City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00315 4/11/2023 Discussion Item 3.
Rental Assistance Demonstration (RAD) 2023 Program Update File ID: 2023-00315
Location: Citywide
Recommendation: Receive and file.
Contact: Mark Hamilton, Director of Maintenance and RAD, (916) 449-6248, [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
Additional Description/Analysis
Issue Detail: In 2018, the Housing Authority Board authorized staff to submit an application to the United States Department of Housing and Urban Development (HUD) to convert its Public Housing inventory to the Rental Assistance Program (RAD). HUD approved the application, and the Housing Authority was granted an allocation of units in HUD’s RAD appropriation balance.
This presentation will update the Board on the Housing Authority’s progress with conversions to RAD.
Policy Considerations: Not applicable.
Economic Impacts: None.
Environmental Considerations: Not applicable.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
File ID: 2023-00315 4/11/2023 Discussion Item 3.
Rationale for Recommendation: Not applicable.
Financial Considerations: Not applicable.
Local Business Enterprise (LBE): Not applicable.
Background: Congress authorized the 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.
Due to the growing backlog of capital improvement needs and the 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 mid-2023. Further detail on these conversions and other issues related to RAD will be provided in the presentation.