EDITOR'S NOTE: Information from a news release from the U.S. Department of Housing and Urban Development.
To stem the loss of critically needed public and other forms of subsidized housing due to the severe backlog of capital needs, the U.S. Department of Housing and Urban Development (HUD) today officially launched its Rental Assistance Demonstration (RAD), the Obama Administration’s groundbreaking strategy to preserve tens of thousands of public and HUD-assisted housing units.
In the near term, RAD is expected to preserve and enhance 53 Public Housing units of affordable housing in Shakopee and generate private capital to address the significant backlog in capital needs faced by public housing authorities in the U.S. This additional capital will also stimulate employment in the construction trades across the country. Nationally, RAD is expected to benefit more than 13,000 units of affordable housing and generate more than $650 million in private capital.
HUD awarded commitments to Scott County Community Development Agency in allowing them to seek private financing to rehabilitate 53 units that are otherwise at risk of being lost from the affordable housing inventory. The commitments announced today are projected to preserve public and other HUD-assisted housing units for the next 20 years.
“This innovative and cost-effective approach greatly enhances our ability to confront the decline of our public housing and older assisted housing stock,” said HUD Secretary Shaun Donovan. “With the initial implementation of RAD, the Obama Administration has begun to demonstrate that public-private partnership can help preserve our nation’s affordable housing and create jobs in the process.”
“HUD and our local partners are working to protect critically needed affordable housing for the residents in these communities,” said HUD’s Midwest Regional Administrator Antonio R. Riley. “This is a market-based approach to helping local housing authorities tap into private capital to preserve housing for some of our most vulnerable citizens.”