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Title:
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HUD Rental Assistance Demonstration (RAD) Program Application and Implementation at Public Housing Communities
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Title
HUD Rental Assistance Demonstration (RAD) Program Application and Implementation at Public Housing Communities
Description
This report requests the Land Use and Livability Subcommittee recommend Assisted Housing Governing Board (AHGB) approval for the Housing Department to apply for and implement the U.S. Department of Housing and Urban Development’s (HUD) Rental Assistance Demonstration (RAD) Program for the Aeroterra Phase II and Aeroterra Phase III public housing communities.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
The RAD program enables the Housing Department to convert units from public housing operating subsidy to a long-term, renewable project-based Section 8 contract. Participation in RAD will: (1) increase the self-sufficiency of property operations through more stable Section 8 funding; (2) provide for property reserves, not subject to HUD recapture, to address on-going capital needs; and, (3) allow for the use of Low Income Housing Tax Credits as well as private sources of funding to make capital improvements.
In Feb. 2016 and May 2017, the City Council approved applications to the RAD Program for a portfolio of eleven public housing communities. In July 2017 and Jan. 2019, the City Council approved implementation for the same eleven public housing communities. In April 2019, AHGB approved implementation for one additional property. Aeroterra Phase II and Aeroterra Phase III were not authorized for RAD implementation as part of those previous actions. Additional time was needed for consideration of these properties under the RAD Program requirements.
The public housing properties proposed for RAD application and implementation are:
Aeroterra Phase II, 1775 E. McKinley St. (36 public housing units to be converted to RAD)
Aeroterra Phase III, 1650 E. Villa St. (34 public housing units to be converted to RAD)
The RAD Program will help provide for future financial sustainability and continued affordability at these properties. Under RAD, residents continue to pay 30 percent of their income for rent and maintain the same basic rights as they possess in the public housing program. The Housing Department does not anticipate any relocation for the residents of these properties as a result of the RAD conversion.
The Housing Department seeks authorization to proceed with the RAD application and all actions necessary or appropriate to implement the RAD Program at the proposed public housing properties including the following:
Pursue and provide all documentation for RAD application submission;
Allocate Section 8 project-based vouchers and/or other subsidies, amend HUD Annual Plan(s), and enter into associated contracts or agreements, as necessary to facilitate RAD implementation and operations;
Make any necessary or desirable revisions to existing operating agreement(s), lease agreement(s), loan document(s), HUD document(s), and/or any other document(s) to reflect the implementation and operation of the RAD program;
Procure, execute, and submit or deliver all contracts, documents and instruments necessary to facilitate RAD implementation and operations;
Use and expend the proceeds of any grants, loans, and other financing and funding sources to carry out RAD implementation and operations; and
Take other action necessary or appropriate to implement and operate all phases of the RAD Program at these properties.
Financial Impact
There is no impact to the General Fund.
Location
Aeroterra Phase II, 1775 E. McKinley St.
Aeroterra Phase III, 1650 E. Villa St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Housing Department.