New Paths to Create Affordable Housing

Public housing authorities (PHAs) have been severely limited in their ability to maintain and create new public housing since the passing of the Faircloth Act froze the number of units a PHA could create or operate starting in 1999, despite the desperate and increasing need for new housing. In addition, decades of underinvestment in public housing has meant that approximately 300,000 units (more than 20 percent) have been demolished over the last 20 years, without being replaced. U.C. Berkeley's Terner Center for Housing Innovation released a report on new pathways to convert Rental Assistance Demonstration programs (RADs) into long term operating contracts in order to rehabilitate older, decaying housing. In addition, RADs are also being used to increase PHAs' stock of housing units. In 2021, HUD issued guidance for a "Faircloth-to-RAD" authority that allows PHAs to use RAD to add units up to their Faircloth limits. Estimates suggest that this could allow up to 235,000 units to be added to affordable housing stock.

Read more about the report here.