Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00496 March 8, 2022 Discussion Item 02
Title: (Housing Authority) Rental Assistance Demonstration (RAD) Program Update
Location: Citywide
Recommendation: Receive and file.
Contact: Mark Hamilton, Director of Maintenance and RAD, (916) 449-6248, [email protected]
; Cecette Hawkins, RAD Project Manager, (916) 449-6218, [email protected], Sacramento Housing and Redevelopment Agency
Presenter: Mark Hamilton, Director of Maintenance and RAD, (916) 449-6248, [email protected]
Sacramento Housing and Redevelopment Agency
Attachments:
1-Description/Analysis
File ID: 2022-00496 Discussion Item 02
March 8, 2022
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City of Sacramento
Description/Analysis
Issue Detail: In 2018 SHRA Staff requested and received authority from the Housing Authority Board to submit an application to the United States Department of Housing and Urban Development (HUD) to allow for the conversion of its Public Housing inventory to the RAD program. The application was approved by HUD and the Housing Authority, as staffed by SHRA, was granted an allocation of units in HUD’s RAD appropriation balance.
Since that time staff has completed three RAD projects and has plans to undertake several more in 2022. This presentation will update the Board on the Housing Authority’s progress with conversions to RAD.
Policy Considerations: Not applicable.
Economic Impacts: Not applicable.
Environmental Considerations: Not applicable.
Sustainability: Not applicable.
Commission Action: Sacramento Housing and Redevelopment Commission: At its March 2, 2022 meeting, the Sacramento Housing and Redevelopment Commission reviewed a presentation on the status of the RAD program in Sacramento.
Rationale for Recommendation: Not applicable.
Financial Considerations: Not applicable.
LBE - M/WBE and Section 3 requirements: Not applicable.
Background: Congress authorized the Rental Assistance Demonstration (RAD) Program in fiscal year 2012 to preserve and improve public housing properties and address a $26 billion nationwide backlog of deferred maintenance needs on these properties. RAD allows public housing agencies (PHAs) to convert public housing and other HUD assisted developments to long-term, project-based Section 8 rental assistance developments.
Converting properties to RAD gives the PHAs access to private debt and equity to address immediate and long-term capital needs.
RAD has two components. The first component allows the conversion of public housing and moderate rehabilitation properties to long-term, project-based Section 8 rental assistance contracts. The second component allows rent supplement, rental assistance
File ID: 2022-00496 Discussion Item 02
March 8, 2022
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City of Sacramento
payment, and moderate rehabilitation properties to convert tenant protection vouchers into project-based assistance at the end of the contract.
Due to the growing backlog of capital improvement needs and federal government’s new emphasis on eliminating public housing, HUD has implemented an aggressive campaign to urge PHAs to expedite efforts to convert their public housing inventories.
Since 2018 Sacramento’s City Housing Authority has converted 316 units to RAD and has plans to convert 59 additional units (packaged with 123 non-RAD units) by the end of 2023. Further detail on these conversions and other issues related to RAD will be provided in the presentation.