Public housing is a key part of affordable housing programs throughout the United States. However, public housing units across the country have been underfunded by Congress for many years. As a result, necessary maintenance and repairs for public housing units have been perpetually delayed. In fact, public housing units across the country need more than $30 billion in repairs. Because of this, an average of 10,000 public housing units are lost per year, primarily due to disrepair and unsafe housing conditions.
In response to these serious needs, Congress enacted the Rental Assistance Demonstration (RAD) in 2012 to preserve and improve public housing buildings. RAD is the voluntary, permanent conversion of public housing to the Section 8 housing program. Unlike the public housing program, the Section 8 housing program allows for more funding flexibility, including the use of other funding sources like tax credits in addition to public funds, to maintain and improve existing public housing buildings. RAD also guarantees strong tenant protections that tenants had under the public housing program.
RAD housing is limited to low-income families and individuals. The BHA uses income limits developed by HUD. HUD sets the lower income limits at 80% and very low income limits at 50% of the median income for Monroe County. Your eligibility is based on: 1) annual gross income; 2) whether you qualify as elderly, a person with a disability, or as a family; and 3) U.S. citizenship or eligible immigration status. If you are eligible, the BHA will check your landlord references to make sure you and your family will be good tenants. The BHA encourages working families to consider our affordable housing. The current maximum income limit for a family of four is $50,000 per year. The maximum rent for a family of four earning $50,000 per year would be $650 (including utilities) for a two bedroom unit.
Notification of Housing
If the BHA determines that you are eligible, your name will be put on a waiting list. Once your name is reached on the waiting list, the BHA will contact you. Please keep your contact information up-to-date as the BHA will terminate your application if we are unable to contact you. If it is determined that you are ineligible, the BHA must say why and, if you wish, you can request an informal hearing.
If you are offered a unit and accept it, you will have to sign a lease with the BHA. You will also need to pay a $150 security deposit to secure the unit. The BHA will review your lease in detail with you at the time of execution. This will give you a better understanding of your responsibilities as a tenant and the BHA’s responsibilities as a landlord.
Your rent, referred to as the Total Tenant Payment (TTP), would be based on your family’s anticipated gross annual income less deductions, if any. HUD regulations allow the BHA to exclude from annual income the following allowances: $480 for each dependent; $400 for any elderly family, or a person with a disability and some medical deductions for families headed by an elderly person or a person with disabilities. Based on your application, the BHA will determine if any of the allowable deductions should be subtracted from your annual income. Annual income is the anticipated total income from all sources received from the family head and spouse and each additional member of the family 18 years of age or older.
The formula used in determining the TTP is the highest of the following, rounded to the nearest dollar:
(1) 30 percent of the monthly adjusted income. (Monthly Adjusted Income is annual income less deductions allowed by the regulations);
(2) 10 percent of monthly income;
(3) welfare rent, if applicable; or
(4) a $50 minimum rent
Kate Gazunis, Executive Director – firstname.lastname@example.org
Five Things You Should Know About RAD Public Housing Conversions
RAD allows public housing agencies to leverage public and private debt and equity in order to reinvest in the public housing stock. This is critical given the 25.6 billion dollar backlog of public housing capital improvements.
In RAD, units move to a Section 8 platform with a long-term contract that, by law, must be renewed. This ensures that the units remain permanently affordable to low-income households.
Residents continue to pay 30% of their income towards the rent and they maintain the same basic rights as they possess in the public housing program.
RAD maintains the public stewardship of the converted property through clear rules on ongoing ownership and use.
The RAD program is cost-neutral and does not increase HUD’s budget. This program simply shifts units from the Public Housing program to the Section 8 program so that providers may leverage the private capital markets to make capital improvements.
BHA’s RAD Story
In March 2018 the Bloomington Housing Authority (BHA) submitted applications for U.S. Department of Housing and Urban Development (HUD) for its three public housing communities, Crestmont, Reverend Butler, and Walnut Woods development to be considered for conversion to HUD’s Rental Assistance Demonstration (RAD) program. A RAD conversion offers BHA needed flexibility to protect its affordable housing stock and financially stabilize BHA’s properties in the face of substantial and continued cuts to HUD’s Federal Public Housing Programs.
On May 12, 2020, BHA announced the closing of $17.8 million in funding for the preservation and renovation of 116 units at their Reverend E.D Butler and Walnut Woods Communities in Bloomington, Indiana. Thanks to an allocation of $11 million in Tax Exempt Bond Volume Cap and a low-income housing tax credit allocation from the Indiana Housing and Community Development Authority (IHCDA), and the sale of those credits to Cinnaire for $5.28 million along with construction and permanent financing from BMO Harris Bank for $6.1 million, all units in these former public housing communities will undergo rehabilitation to promote accessibility, energy efficiency and modernization. Site and infrastructure updates are also planned. The City of Bloomington pledged $285,000 in HOME funds and a $215,000 loan from the Housing Development Fund as well as acted as conduit for the tax exempt bonds.
The full press release on the closing can be found by clicking here.
In early 2022, the BHA completed RAD renovations for the Walnut Woods and Reverend Butler Communities.
As of Spring 2022, BHA has begun renovations on its second RAD project, the Crestmont Community. This project has a target completion date of Summer 2024.
Architectural drawings for the Crestmont renovation can be viewed by clicking here.
What RAD means for residents?
PROTECTIONS: Every resident has the right to stay in assisted housing and return to an upgraded unit in their original property. Rents will still be based on 30% of adjusted household income, and no current resident has to reapply to stay at the property. Because of the upgrade the market rate for these properties will rent at a higher cost than the original public housing units. Therefore, those who are paying flat rent, will pay more in rent, however the BHA will phase those increases in over a three year period. BHA will maintain a high level of services to its residents.
IMPROVEMENTS: Every property will receive some improvements, and many units will receive extensive needed upgrades, be modernized, and made more energy-efficient. Residents will have a voice in planning these improvements.
CHOICES: Residents in the RAD program will have the opportunity to request a voucher for housing in the private market after one year in a RAD unit.
Located at 802 E. Miller Drive, Walnut Woods is one of our communities undergoing renovations. Renovations are focused on addressing code requirements, environmental remediation,handicap accessibility, structural repair, unit modernization,andenergy efficiency.
The community offers sixty 1-BR, 2-BR, and 3-BR apartments with private parking spaces.
Property Manager Contact Info:
Janice Price 812.339.3491 Ext. 112
Jamison Saltsman 812.339.3491 Ext. 118
Work Orders: 812.339.3491 Ext. 121
Emergency/After Hours: 812.339.3492
Emergency Gas Line (Vectren): 866.227.5003
Amenities: Some of the wonderful things Walnut Woods has to offer:
Located at 1202 W. 11th Street, Reverend E. D. Butler is the second of our communities undergoing renovations. Renovations are focused on addressing code requirements, environmental remediation,handicap accessibility, structural repair, unit modernization,andenergy efficiency.
The community offers fifty-six 1-BR, 2-BR, and 3-BR apartments with private parking spaces.
Located at 1007 W. N Summit St, Crestmont is the third of our RAD communities, having begun renovations in Spring of 2022. Renovations are focused on addressing code requirements, environmental remediation,handicap accessibility, structural repair, unit modernization,andenergy efficiency.