HUD Closes $17.7 Million Rental Assistance Demonstration (RAD) Transaction to Improve 100 Rental Homes in Cumberland, MD

By klrw460 March 26, 2024

The U.S. Department of Housing and Urban Development’s Office of Multifamily Housing recently announced the completion of a significant Rental Assistance Demonstration (RAD) transaction with the Housing Authority of the City of Cumberland (HACC). This collaboration aims to finance the preservation and rehabilitation of 100 affordable rental homes at John F. Kennedy Apartments in downtown Cumberland, Maryland. Acting Secretary Adrianne Todman highlighted the department’s commitment to ensuring that homes are not only affordable but also of high quality for the decades to come. The initiative promises to preserve and rehabilitate affordable rental homes for Maryland families.

Constructed in 1967, the 11-story John F. Kennedy Apartments requires substantial capital improvements to maintain affordability and support its predominantly senior resident population in aging in place. The RAD conversion will allow HACC to transform numerous efficiencies into one-bedroom apartments and double the number of units meeting federal accessibility standards, catering to residents with disabilities. The planned upgrades include modernized kitchens, bathrooms, windows, doors, plumbing, and HVAC systems, alongside improved onsite amenities. These enhancements are designed to boost energy efficiency, lower environmental impact, and reduce utility costs, as explained by Deputy Assistant Secretary for Multifamily Housing Programs Ethan Handelman.

HACC has devised a three-phase construction plan that ensures residents can remain in their homes throughout the renovation. The project’s total construction cost stands at $17.7 million, averaging approximately $170,000 per home. Funding sources include 9 percent Low-Income Housing Tax Credits, a Federal Housing Authority (FHA) risk-share loan, and contributions from Maryland’s Department of Housing and Community Development.

The RAD program aims to tackle the multi-billion-dollar backlog of deferred maintenance across the public housing sector and prevent the loss of affordable housing. Since its inception and as of March 1, 2024, RAD has enabled over $19.3 billion in capital investment to refurbish or replace nearly 205,000 deeply rent-assisted homes, serving primarily extremely low-income families, seniors, and individuals with disabilities. Through RAD, properties converting from public housing assistance to project-based Section 8 rental assistance ensure residents continue paying 30 percent of their income towards rent. The conversion process requires resident notification and consultation, with guarantees for a right to return post-construction, allowing them to enjoy the newly improved apartments and maintain their fundamental rights as public housing residents.

For the full details and insights, please refer to the original press release at the following link: