The Department of Housing and Urban Development announced increased flexibility and reduced barriers for public housing repositioning, a policy change designed to accelerate the rehabilitation of aging public housing units that serve hundreds of thousands of low-income Americans, on Aug. 28.
Repositioning allows public housing authorities to convert deteriorating buildings to other forms of federally assisted housing, typically under the Rental Assistance Demonstration program, while maintaining affordability requirements for residents.
The policy change is intended to unlock private capital investment that public housing authorities cannot access under the traditional public housing funding model, HUD said. The federal public housing capital backlog has been estimated at tens of billions of dollars.
Millions of low-income Americans live in public housing stock built decades ago that has received insufficient federal maintenance and modernization funding. Many units suffer from structural deterioration, outdated systems and health hazards including mold and lead paint.
Under the RAD program, public housing units are converted to project-based voucher or project-based rental assistance contracts. The conversion allows housing authorities to leverage private financing for rehabilitation while preserving long-term affordability protections for tenants.
Housing preservation advocates have generally supported RAD conversions as a pragmatic solution to the capital funding gap but have cautioned that tenant protections must be rigorously enforced during and after conversion.
Public housing resident organizations have expressed concerns about displacement during renovation, changes in management and the long-term security of affordability commitments under private ownership structures.
The reduced barriers announced by HUD apply to the application and approval process that public housing authorities must navigate to convert their properties, the department said.