Federal funding cuts are trickling down to Philadelphia -- notably in lack of maintenance for the city's affordable housing stock. To mitigrate the problem, the
Philadelphia Housing Authority (PHA) has submitted an application to participate in the
Rental Assistance Demonstration (RAD) program. If approved by the
U.S. Department of Housing and Urban Development (HUD), PHA will be able to raise funds to rehabilitate aging affordable housing.
PHA spokesperson Nichole Tillman estimates that PHA now receives 82 cents for every dollar that it needs to operate and maintain public housing. She calls RAD "the Obama Administration's plan to address the defunding of public housing."
Operating funds for RAD developments will come from the Housing Choice (Section 8) program, which has historically been more stable and less prone to dramatic funding cutbacks. Under RAD, PHA could borrow against its rental income and HUD subsidies, which would generate funding for capital improvements. This would give PHA more funds to rehab properties and expand public housing, while creating an estimated 400 construction jobs.
Though RAD approval would create jobs for small businesses, it does not equal privatization for affordable housing.
"A for-profit corporation will
not own public housing," explains Tillman. "Like current tax credit sites, RAD developments will remain heavily regulated, and tenants will have substantial protections similar to those of public housing residents. PHA is likely to establish affiliated nonprofits, just like those at its existing tax credit sites. A long-term use agreement will guarantee that development rents remain affordable." (RAD requires that rent be set at no more than 30 percent of adjusted household income.)
Tillman said that if PHA gets HUD approval for RAD, the agency will invest the money in rehabbing site infrastructure and major systems, including mechanical, electrical, plumbing, and heating and ventilation. Other quality of life improvements would include upgrades to units' interior layouts; updated kitchens and bathrooms; and greening all systems to make them more sustainable.
PHA should hear about approval from HUD by Spring, contingent upon legislative action.
Writer: Nicole Woods
Source: Nichole Tillman, Philadelphia Housing Authority