Apex Engineering: Accident ReconstructionForensic Engineering Product Liability
The Paramus Post - Greater Paramus News and Lifestyle Webzine
Thursday, July 24 2014 @ 03:22 PM EDT
Advertise Your Business - Tageting Bergen, Passaic Counties and North Jersey
Share

HUD Launches Groundbreaking Rental Assistance Demonstration To Preserve And Strengthen Public, Other HUD-Assisted Housing

Strategy to save 502 affordable housing units in NJ, create jobs

To stem the loss of critically needed public and other forms of subsidized housing due to the severe backlog of capital needs, the U.S. Department of Housing and Urban Development (HUD) today officially launched its Rental Assistance Demonstration (RAD), the Obama Administration’s groundbreaking strategy to preserve tens of thousands of public and HUD-assisted housing units.


In the near term, RAD is expected to preserve and enhance more than 502 units of affordable housing in Passaic, Lakewood, Millville, Newark, East Orange, and Perth Amboy, and generate private capital to address the significant backlog in capital needs faced by public housing authorities in the U.S. This additional capital will also stimulate employment in the construction trades across the country. Nationally, RAD is expected to benefit more than 13,000 units of affordable housing and generate more than $650 million in private capital.

“This innovative and cost-effective approach greatly enhances our ability to confront the decline of our public housing and older assisted housing stock,” said HUD Secretary Shaun Donovan. “With the initial implementation of RAD, the Obama Administration has begun to demonstrate that public-private partnership can help preserve our nation’s affordable housing and create jobs in the process.”

“HUD and our local partners are working to protect critically needed affordable housing for the residents in these communities,” said Mirza Orriols, HUD Acting Regional Administrator for Region 2, New York and New Jersey. “This is a market-based approach to helping local housing authorities tap into private capital to preserve housing for some of our most vulnerable citizens.”

HUD awarded commitments to the Passaic Housing Authority, owners of the Murphy / Hetch Apartments; the Lakewood Housing Authority, owners of Duffy SC / JFK; and the Millville Housing Authority, owners of Ferguson / Holly Berry Court; allowing them to seek private financing to rehabilitate 240 units that are otherwise at risk of being lost from the affordable housing inventory. In addition, HUD approved the owners of High Street Senior Homes in Perth Amboy, Shalom Towers in Newark, and McIver Homes in East Orange, New Jersey to convert and extend rental assistance contracts for 262 units. Combined, the commitments announced today are projected to preserve more than 502 public and other HUD-assisted housing units for the next 20 years.

RAD allows public housing agencies and private owners of certain at-risk, federally assisted properties to convert their current assistance to long-term Section 8 contracts. Such contracts will allow owners to leverage millions of dollars in debt and equity to better address immediate capital needs and preserve these affordable housing units. In addition, participating agencies are freed from antiquated public housing rules and restrictions that hindered their ability to best preserve and manage their housing similar to other affordable housing owners and managers.

In 2011, HUD released Capital Needs in the Public Housing Program, a study that found the nation’s 1.2 million public housing units need nearly $26 billion to keep these homes in safe and decent condition for families, a figure well in excess of the roughly $2 billion Congress appropriates for capital repairs annually. Beyond the potential loss of this public housing, the Moderate Rehabilitation, Rent Supplement, and older Rental Assistance Payment (RAP) programs are at risk of being lost from the affordable housing stock.

RAD is part of the Obama Administration's comprehensive strategy to preserve public and HUD-assisted housing. In November 2011, Congress authorized HUD to implement RAD as a budget-neutral demonstration program with two components, allowing for the conversion of assistance for both public housing and HUD-assisted properties that have expiring subsidies.

comments powered by Disqus

Adsense R01 300x250

Top 10 Stories in 30 Days

Top 10 Stories in the last 30 Days

Adsense R02 300x250

Text Sponsor Ads

Trinity Presbyterian Church
Join the purpose driven church exercising faith, hope, and love because nothing else matters...
www.TrinityFamily.org
Spivak Lighting
Lamp Repairs, Chandeliers, Track Lighting, Outdoor Lamps, Recess Lighting, Paddle Fans, Consultation
www.spivaklighting.com
StoneMicro Web Technologies
Dynamic Website Development, Content Management System, Blogs, Web design, Web hosting services
www.StoneMicro.com
Sponsor ParamusPost

Popular tags at this site

Error in PHP Block. Function, phpblock_tag_cloud, does not exist.