Programs News

Washington, DC- The Department of Housing and Urban Development’s office of multifamily housing announced the closing of a rental assistance demonstration transaction with the Boston Housing Authority (BHA) in Boston. Doing so will preserve 445 deeply affordable rental homes with the help of the RAD/section 18 blend. Section 18 blend is a component of RAD that allows higher levels of funding to preserve affordable housing homes. It would not be financially possible without the blend option.

With the assistance of RAD, the homes at Mission Main will undergo substantial upgrades, including kitchen and bathroom rehabilitation, flooring and painting enhancements, as well as HVAC upgrades. Also, new energy and water-efficient kitchens and baths with a new heating and cooling system will be installed for low-income seniors to promote energy efficiency and conservation. Wall air conditioner and heater openings, air conditioning units in 30 townhome building bedrooms, and air conditioning sleeves can help to achieve higher energy efficiency. Besides this, there will be supportive services after school, youth, and senior programs.

The construction budget for the RAD transaction is $66 Million. The financing will be done through:

• Non-federal funds by Public Housing Authority
• Funds from Massachusetts Housing Finance Agency
• 4% funds from low-income housing tax credit equity
• FHA-insured mortgage from the Housing Finance Agency risk-sharing program

The investments facilitated through RAD confirm that the property will serve as affordable housing for the long term.

About RAD

The main purpose why RAD was designed is to address the deferred maintenance in the Public Housing portfolio and to stop the loss of affordable housing that cannot be kept anymore to decent standards. RAD has facilitated more than $15 Billion to improve or replace deeply rented assisted homes that house low-income families, seniors, or people suffering from disabilities.

The projects funded convert their assistance to project-based section 8 rental assistance.
under the public housing program. Section 8 says Residents are required to pay 30% of their income as rent and the housing will continue to serve the individuals having low income. Before conversion, the residents need to be consulted and notified about the same as they enjoy the right to return to assisted housing once the construction is complete so that the tenants can enjoy the improved apartments and also maintain the same fundamental rights they earlier enjoyed as public housing residents.

About RAD/Section 18 blends

RAD/Section 18 blends enable Public Housing Authorities (PHAs) to combine project-based voucher assistance with assistance from tenant protection vouchers. Over 60 PHAs have already completed 100 transactions using the section 18 blend. It is through these conversions only that PHAs invested $4 Billion to develop 25,000 public housing homes which in turn provided improved housing conditions to low-income families.