Gateway Homes RAD

What is RAD?

The Rental Assistance Demonstration (RAD) is a voluntary program of the Department of Housing and Urban Development (HUD). RAD seeks to preserve public housing by providing Public Housing Agencies (PHAs) with access to more stable funding to make needed improvements to properties.

Housing Authority of the County of Merced (HACM) has taken steps to participate in this program in order to both preserve its existing housing stock, and to seize opportunities to better serve its residents.

What are the Plans for Gateway Homes?

The conversion of these properties will take approximately 12-18 months. As a resident, you will hear a lot about “RAD” in the upcoming year. What RAD means is that the money HAMC will receive from HUD will be “converted” from Public Housing to Section 8. The program also gives residents certain rights relative to the right to stay at the property and relocation.

The plans for the RAD Application for Gateway Homes involve a two-step process.

Step 1: Application & Approval — MCHA staff encourages residents to attend meetings and ask questions.

Step 2: Conversion — For residents, the only action that needs to be taken is to sign a new Section 8 lease. MCHA staff will assist residents with this process.

Will the RAD Conversion Affect my Housing Assistance?

You will not lose your housing assistance and you will not be re-screened because of the RAD conversion.

Even though a RAD-Blend property is no longer considered Public Housing, it will still receive money from HUD. With the subsidy from HUD, MCHA will continue to manage the converted property. RAD Blend requires that converted properties are owned by MCHA or it’s instrumentality.

Definitions

Capital Needs: Costs of repairs and replacements beyond ordinary maintenance required to make the housing decent and economically sustainable.

Housing Choice Voucher: Rental vouchers that let people choose their own housing in the private rental market.

Project-based Vouchers: Rental vouchers that are attached to a specific number of units in a building. The voucher stays with the unit even after a tenant moves out. This program is often operated by PHAs.

Rehabilitation (or Rehab): The repairs needed to restore a unit or property to good condition.

Section 18 Disposition: Allows for the transfer of public housing units or other property via sale, lease or other transaction, if the transfer is justified under statutory, regulatory, notice, and other HUD criteria.

MHA Development Timeline

1. Gateway Homes RAD — Convert 176 units at Gateway Homes.
2. Improvements & Rehabilitation Projects — Complete necessary updates and repairs.
3. RAD-Blend Conversion — Convert 245 units: Atwater, Livingston, Winston, Los Banos, Dos Palos, Merced.
4. Improvements & Rehabilitation Projects — Complete necessary updates and repairs.