What is RAD? The Rental Assistance Demonstration in plain terms
RAD, HUD's Rental Assistance Demonstration, lets housing authorities and some private owners move a property's federal aid onto a long-term Section 8 contract (PBV or PBRA) so they can borrow and repair it. Since July 11, 2026 it is permanent, with a 555,000-unit cap on public housing conversions.
RAD is the federal program that lets a housing authority take a public housing property off the public housing funding system and put it on a long-term Section 8 contract instead. The rent stays affordable for residents. What changes is the money behind the building: a Section 8 contract is a steady, renewable stream that banks and tax credit investors will lend against, which public housing funding is not.
That is the whole point. Public housing has a large repair backlog and, by law, very limited ability to borrow. RAD gives each property a contract that can support debt and equity, so the owner can fix or rebuild it.
RAD at a glance
| Fact | Current figure | Source and date |
|---|---|---|
| Legal home | P.L. 112-55, Div. C, Title II (2011), as amended | HUD statute compilation, March 19, 2024 |
| Status | Permanent (no application deadline) | P.L. 119-101 §212, July 11, 2026 |
| Public housing unit cap | 555,000 (was 455,000) | P.L. 119-101 §212 |
| Units closed (Component 1) | 203,354 | RAD Resource Desk, October 30, 2026 |
| Units in active deals | 66,014 | RAD Resource Desk, October 30, 2026 |
| Units reserved, not yet active | 148,137 | RAD Resource Desk, October 30, 2026 |
| Cap still available | 137,495 | RAD Resource Desk, October 30, 2026 |
| Closed conversions in our data | 1,955 deals at 570 housing authorities | HUD’s RAD Resource Desk data as of October 24, 2026 |
| Contract type chosen | 61% of closed units PBV, 39% PBRA | Same |
| Component 2 (private owners) cap | None | RAD statute |
The four cap figures from the Resource Desk add to exactly 555,000. Our own count of closed units (203,060) comes from the Resource Desk’s property export on October 24 and differs slightly from the live chart because of later closings and definitions. The home page meter and the conversion tracker show the current numbers by deal.
The two components
Component 1 (First Component) converts public housing. A housing authority applies, HUD reserves part of the cap, and the property moves from public housing operating and capital funds to either project-based vouchers (PBV) or project-based rental assistance (PBRA). This is the capped part of RAD and the part most people mean when they say “a RAD conversion”.
Component 2 (Second Component) converts older HUD rental aid on privately owned properties: Rent Supplement, Rental Assistance Payment (RAP), Moderate Rehabilitation (including SRO), Section 202 Project Rental Assistance Contracts (PRAC), Section 811 PRAC and, since 2024, Senior Preservation Rental Assistance Contracts. Component 2 has had standing authority since fiscal year 2012 with no unit cap. HUD reports that Rent Supplement and RAP are fully converted and about half of Mod Rehab units have converted. See the Component 2 guide.
How a public housing conversion works
The RAD notice (Notice H-2019-09 / PIH-2019-23, Revision 4, as amended by Supplementals 4B and 4C) sets the steps:
- Resident meetings and application. The housing authority holds at least two resident meetings before applying and applies for one project or a portfolio.
- CHAP. HUD issues a Commitment to enter into a Housing Assistance Payments contract, which fixes the initial rents. It is not negotiable.
- Concept Call and Financing Plan. The housing authority and its partners walk HUD through the deal, then submit a Financing Plan within 270 days of the CHAP (or 60 days after HUD’s invitation following the Concept Call).
- RCC. HUD issues the RAD Conversion Commitment. The housing authority has 30 days to sign it and 90 days from issuance to close.
- Closing and HAP. The property leaves public housing, a RAD Use Agreement is recorded ahead of all liens, and the Section 8 contract starts on the first day of one of the two months after closing.
The detailed clocks are in RAD conversion steps. In our data the median time from CHAP to closing was about 22 months across 1,858 closed deals, and about 25 months for deals closed in 2023 or later.
PBV or PBRA, in brief
| RAD PBV | RAD PBRA | |
|---|---|---|
| Administered by | A voucher agency (often the same housing authority) | HUD’s Office of Multifamily Housing or a contract administrator |
| First contract term | 15 to 20 years | 20 years |
| Initial rent cap | 110% of fair market rent, less utilities | 120% of fair market rent, less utilities (up to 150% with a rent study) |
| Resident can move with a voucher | After 1 year | After 24 months |
Both contracts must be renewed at expiration; the statute says HUD “shall offer and the owner of the property shall accept renewal”. The full comparison, with what housing authorities actually chose, is in PBV vs PBRA.
Rents and money
RAD does not add subsidy. The initial contract rent equals what the property already receives in operating fund, capital fund and tenant rent, then adjusts each year by HUD’s Operating Cost Adjustment Factor (OCAF). HUD publishes each unconverted project’s rent in the RAD Contract Rents Look-Up Tool, last updated May 27, 2026; our rent check puts all 6,191 projects in one table. How those rents are built is in how RAD rents are set.
Because the rent is fixed, the money for repairs comes from leverage. The RAD Resource Desk counts about $52.6 billion in sources across closed public housing deals, led by tax credit equity ($16.3 billion) and non-FHA commercial loans ($10.8 billion), and reports $18.94 raised per $1 of public housing funds. Our financing breakdown shows the mix by deal.
The July 2026 law
Section 212 of the 21st Century ROAD to Housing Act, Public Law 119-101, enacted July 11, 2026, made these changes to the RAD statute:
- Permanent. The September 30, 2029 application deadline is gone.
- Cap. 455,000 public housing units became 555,000.
- Lease addendum. HUD may require a mandatory tenant lease and management plan addendum for converted properties not covered by another program.
- Annual findings. HUD must assess and publish findings every year on public housing conversions, including preservation, private leverage, how many residents stayed or returned, and the effect on tenant rights.
- Civil money penalties. HUD may take remedial action or impose civil money penalties or other sanctions for material violations of both First and Second Component requirements.
- Savings clause. Nothing in the RAD statute reduces owners’ RAD property rights or tenants’ rights, “which shall remain enforceable by tenants”.
- Use restriction. Housing authority property must be used for affordable housing, and no conversion may be used for sporting, private or for-profit purposes except those that keep or add housing supply.
The bill became law without a presidential signature, so “enacted” is the accurate word. As of October 30, 2026, HUD had not issued a notice implementing the lease addendum or the penalties, and the RAD notice itself still prints the old cap and date. The statute controls. More in RAD is permanent and the dated 2025-2026 changes timeline.
Cap and deadline history
| Law | Date | What it did to RAD |
|---|---|---|
| P.L. 112-55 | Nov 18, 2011 | Created RAD; 60,000-unit cap; application deadline in 2015 |
| Appropriations acts, FY2014 to FY2017 | 2014 to 2017 | Raised the cap to 185,000, then 225,000 (reported as FY2015 and FY2017); moved the deadline to 2018, then 2020 |
| P.L. 115-141 (FY2018) | Mar 23, 2018 | Raised the cap to 455,000 |
| A later act | 2018 to 2022 | Moved the deadline to September 30, 2024 |
| P.L. 118-42 (FY2024) | Mar 9, 2024 | Deadline to September 30, 2029; tenant protection vouchers in blends may convert to PBV or PBRA; added Senior PRAC to Component 2 |
| P.L. 119-75 (FY2026) | Feb 3, 2026 | No cap or deadline change; RAD-related funding provisions |
| P.L. 119-101 §212 | Jul 11, 2026 | Permanent; cap 555,000; lease addendum, annual findings, penalties, savings clause |
Who it is for
- Residents: your rights before, during and after conversion are in RAD tenant rights, and terms are defined in the RAD glossary.
- Housing authorities: start with your agency’s page under states, which lists every conversion and every unconverted project with its 2026 RAD rent.
- Owners and development partners: the financing guide covers debt and tax credit structures. If you are sizing a conversion, Janover Capital LLC’s commercial mortgage desk can review it at get financing. We are an advisor, not a lender and not HUD.
Sources
- Public Law 119-101, 21st Century ROAD to Housing Act, §212, July 11, 2026 (140 Stat. 884).
- HUD Office of General Counsel, RAD statute compilation (Ramseyer), updated March 19, 2024.
- HUD, RAD Notice Revision 4 as amended by Supplementals 4B and 4C, H-2019-09 / PIH-2019-23.
- HUD, RAD Overview, August 2026.
- RAD Resource Desk cap chart and leverage page (sources), checked October 30, 2026.
- HUD’s RAD Resource Desk data as of October 24, 2026 (Component 1 property export), tabulated by Conversion Ledger.
- HUD, RAD Contract Rents Look-Up Tool, May 27, 2026.
- Public Law 119-75, Consolidated Appropriations Act, 2026, Division D.
- Congressional Research Service, R49354, September 17, 2026 (how the ROAD Act became law; secondary).
This guide is general information, not legal advice. Check HUD’s current notices and your own counsel before acting on a conversion.
Short answers
What does RAD stand for in housing?
RAD stands for Rental Assistance Demonstration. Congress created it in the 2012 HUD appropriations act (Public Law 112-55) to let public housing and certain older HUD-assisted properties convert their aid to long-term Section 8 contracts.
Is RAD still a demonstration, or is it permanent?
It is permanent. Section 212 of Public Law 119-101, enacted July 11, 2026, replaced the September 30, 2029 application deadline with "for fiscal year 2012 and each fiscal year thereafter". The name did not change.
How many units can convert under RAD?
Up to 555,000 public housing units under the First Component. The Second Component, for private owners of older HUD-assisted properties, has no unit cap.
Does RAD privatize public housing?
The statute requires public or nonprofit ownership or control of converted public housing, except after foreclosure, bankruptcy or default. A private partner, such as a tax credit investor, can hold an ownership interest only if the housing authority or a nonprofit keeps an interest, and a recorded use agreement keeps the units affordable.
Do residents lose their housing in a RAD conversion?
The statute bars re-screening and says conversion cannot be the basis for eviction or termination of assistance. Residents who must move during repairs have a right to return. HUD reports that over 90% of residents remained or returned.
How long does a RAD conversion take?
In HUD's RAD data as of October 24, 2026, the median time from CHAP award to closing was about 22 months across 1,858 closed public housing conversions with both dates.