5 Things Every Small PHA Should Know Before RAD Conversion
- urbanuspartners25
- Aug 4
- 2 min read

The Rental Assistance Demonstration (RAD) program offers a unique opportunity for small Public Housing Authorities (PHAs) to preserve affordable housing through public-private partnerships. However, navigating the RAD conversion process can be challenging, especially for smaller PHAs with limited resources. Here are five critical considerations for small PHAs before embarking on a RAD conversion:
1. Understand the Financial Implications
RAD conversions typically require a significant financial investment. While the program offers access to capital funding through Low-Income Housing Tax Credits (LIHTC) and other financing mechanisms, small PHAs must understand the costs involved in the conversion process. This includes costs for renovations, environmental reviews, and potential changes to the property's operational model. Make sure your financial team is prepared and that you have a solid plan for securing funding.
2. Capacity Building and Staff Training
One of the challenges of the RAD program is the complexity of managing the conversion process. Small PHAs may not have the in-house expertise to handle the administrative, legal, and financial aspects of the conversion. Investing in capacity building for your staff or partnering with experienced consultants can ensure that your team is prepared to navigate the intricacies of the program. Proper training will also allow your team to manage the post-conversion operations effectively.
3. Know the Regulatory and Compliance Requirements
RAD conversions involve multiple layers of regulatory compliance. PHAs must adhere to federal, state, and local guidelines, as well as specific requirements related to Section 8 Housing Assistance Payments (HAP) contracts. Small PHAs should familiarize themselves with the legal and compliance framework surrounding RAD, including tenant protections, rent adjustments, and long-term affordability requirements.
4. Tenant and Community Engagement is Key
RAD conversions can be disruptive to tenants, particularly in terms of temporary relocation during renovations. It’s essential to engage with tenants early and often to ensure they understand the benefits of the conversion and feel supported throughout the process. Transparency, regular communication, and community meetings are crucial to maintaining good relationships and ensuring a smooth transition.
5. Prepare for the Long-Term Commitment
RAD conversions are not a quick fix. The benefits of RAD, such as long-term capital improvements and better financial sustainability, often come with the requirement of long-term commitment. PHAs need to be prepared for ongoing property management responsibilities, maintenance, and tenant services post-conversion. This is especially important for small PHAs that may be transitioning from a traditional public housing management model to a more complex mixed-finance model.
Conclusion
RAD offers a transformative opportunity for small PHAs to preserve and improve their affordable housing stock. However, before diving into the conversion process, it’s important to have a solid understanding of the financial, regulatory, and operational changes involved. By planning ahead, building internal capacity, and engaging with tenants and the community, small PHAs can navigate the RAD conversion process successfully and secure the long-term sustainability of their properties.
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