Rental Assistance Demonstration (RAD) Program. 2013 NJAHRA CONFERENCE Atlantic Club Hotel & Casino Atlantic City, NJ Presenters: William F. Snyder Louis Riccio. What is RAD?. It is the conversion from Section 9 Public Housing Assistance to Project Based Section 8 Assistance.
2013 NJAHRA CONFERENCE
Atlantic Club Hotel & Casino
Atlantic City, NJ
William F. Snyder
What do we know about the stability and rate of funding for the Public Housing Program?
From 2001 to 2013 the Capital Fund has been cut by nearly 50%!
25% from 2010 to 1013 alone!
From 2004 to 2013 the CDBG program has been reduced by 1.54 billion.
The HOME Program has been utilized as a source of gap funding in developing new affordable housing. Over the last 10 years, the HOME program has been slashed by 50%!
deficit $973 Billion
over the next 10 years $1.5 Trillion
What is sequestration?
Sequestration is an across-the-board reduction in Federal budgetary resources in all budget accounts that have not been exempted by statute. Under the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, the American Taxpayer Relief Act of 2012, and other relevant legislation, across-the-board reductions of $85 billion in budgetary resources were required to be ordered by the President on March 1, 2013. Sequestration reduces each agency’s budgetary resources in non-exempt accounts for the remainder of the fiscal year (which runs through September 30, 2013).
Automatic cuts come from domestic discretionary spending which make up about 30% of the federal budget. HUD spending is considered discretionary spending and is subject to sequestration.
What will be the impact of sequestration on HUD?
HUD will attempt to minimize the impact of sequestration to the extent permitted by law. However, HUD cannot choose which programs to exempt or what percentage cuts to apply. This will mean automatic and across-the-board budget cuts at HUD. The impact of sequestration on HUD programs will be dramatic.
An approximate 5% across the board cut in HUD programs added to the already historic low proration factor!
Where Does the Money Go?
Mandatory and Discretionary Spending
There was a total of 130 projects that were issued CHAPs for 14,438 units
NOTE: For applications submitted prior to 12/31/13
The weighted current funding is adjusted by a bedroom adjustment factor to arrive at a bedroom specific rent schedule.
HUD will compare the Current Funning Rents from Step 2 with the rent caps to determine the HAP Contract Rent.
*Contract shall be the lower of the Current Funding or the 120% FMR cap. In this example the current funding is less than the 120% of FMR.
When converting to PBV, the contract rent is the lower of the current rent, 110% of FMR (minus utilities) or reasonable rent. In this example the Reasonable Rent is the lower amount.
NOTE: Failure to meet CHAP milestones can cause the CHAP to be revoked.