MHA has been preliminarily approved to participate in a new special program authorized by the United States Congress and run by the U.S. Department of Housing and Urban Development (HUD) known as the Rental Assistance Demonstration (RAD) program. As a part of RAD, MHA will be converting its public housing units to Project Based Voucher units. No current MHA resident will lose his or her housing as a result of this change and each household will still pay rent under the same structure in place now.
Making the move to RAD means that MHA will be able to achieve two major goals:
- Preserve our current affordable units for many years to come by moving our funding stream to a more stable HUD platform.
- Modernize and update the MHA real estate portfolio.
Frequently Asked Questions:
What is the Rental Assistance Demonstration (RAD) program?
RAD is a new federal program designed to address the demanding capital improvement and renovation funding requirements for public housing across the United States. RAD is a voluntary program of HUD. RAD seeks to preserve public housing by providing Public Housing Agencies (PHAs) such as the Housing Authority of the City of Little Rock Arkansas D/B/A Metropolitan Housing Alliance (MHA), with access to a more stable funding mechanism necessary to make needed improvements and meet ongoing maintenance requirements at all qualifying public housing properties.
Why is RAD needed?
Public housing units across the country need more than $26 billion in repairs. HUD refers to these repair costs as capital needs. RAD provides PHAs like MHA a stable funding source for capital improvement requirements that is not subject to annual Congressional Budget Allocations.
How does RAD benefit Little Rock?
Through the RAD program, MHA will renovate our inventory. As a result of direct construction efforts and significant improvements to our neighborhood communities, RAD represents a significant economic opportunity for our entire community.
How does a RAD conversion work?
For the individual resident, the RAD conversion is transparent. The resident will see little difference in their individual, respective financial requirements (rent & utilities). MHA will receive its government funding in the form of a Property Based Voucher (PBV). For specific details on the RAD conversion see HUD.GOV.
Is RAD an extension of public housing?
No. In the case of MHA, only the total number of public housing units within our inventory will be converted to RAD.
What does RAD mean for the Public Housing families residing in MHA’s Public Housing sites?
- Newly renovated units will continue to serve as affordable housing.
- Except in rare cases (over/under housing), residents will see no difference in their financial responsibilities under RAD.
- Requalification or rescreening will not be required as part of the conversion.
- MHA will provide in-depth communications to all residents during this conversion.
How long will it take to complete the conversion?
The complete conversion and rehabilitation of all MHA public housing properties is anticipated to be complete by January 2020.
Is RAD a conversion to the Housing Choice Voucher Program (HCV)?
This is a conversion to project based rental assistance, which is different than the conventional tenant-based HCV program.
How are we going to know what units will be affected?
MHA will conduct a series of meetings and communication efforts in which all residents will be provided with detailed information regarding their specific circumstances.
Will you be improving curb appeal and sidewalks?
MHA will be reviewing all property needs subject to budgetary constraints. The primary focus of renovation is on the building interiors & energy efficiency.
Will a RAD conversion affect my rent?
Your rent contribution will most likely be the same as it was under public housing—generally no more than 30% of your household’s adjusted gross income. No rent increases will be result of a RAD conversion.