By Nolan Miles
P3 Kentucky Staff Writer
Congress is backing public-private partnerships when it comes to public housing authorities (PHA), a movement that began in 2012 when the Department of Housing and Urban Development (HUD) launched the Rental Assistance Demonstration (RAD) program.
RAD works with PHA’s to create project-based rental contracts by converting annual operating and capital subsidies, allowing expenses like repairs and new construction to be covered by the generated funds.
A win-win situation for both private and public entities, a recent study on the RAD program showed that for every dollar public housing sources spent, it attracted $9 in private funding for rehabilitation projects and $19 for newly constructed units. (Click here for the full story.)
With $26 billion in deferred PHA maintenance, the RAD program has seen exponential success. Congress continues to support the program by increasing the cap on unit conversions, growing from 60,000 unit originally to 225,000 units today.