After getting shut out in the House of Representatives, the Senate Appropriations Committee provided HUD (and the affordable housing industry) with its wish list of improvements to the Rental Assistance Demonstration (RAD) Program in last week’s markup of the FY 2015 HUD Appropriations Bill, S. 2438 (Report No. 113-182). The provisions include:
- Increasing the unit cap for Component 1 (PHA, Mod-Rehab) from 60,000 units to 185,000.
- Extending the Component 1 statutory authority from September 30, 2015, to September 30, 2018.
- Extending the Component 2 (RAP, Rent Supp, Mod-Rehab) statutory authority from December 31, 2014, to December 31, 2016.
- Providing a Component 2 owner with a new choice of subsidy: a Project Based Rental Assistance (PBRA) Section 8 contract – 20-year term, OCAF rent adjustments. This is in addition to the current Project Based Voucher Contract option.
These provisions are all supported by IRHP and the affordable housing industry as they substantially enhance the RAD program. The Component 1 cap increase was made necessary as applications for more than 170,000 units are currently pending before HUD.
It’s uncertain whether Congress will pass any of the appropriation bills prior to the October 1, 2014, start of the government’s new fiscal year. We’ll monitor closely the appropriations process as it moves forward these next few months.