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

HUD No. 24-062 HUD Public Affairs (202) 708-0685

FOR RELEASE Tuesday March 26, 2024

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

Transaction preserves and rehabilitates affordable rental homes for seniors and persons with disabilities.

WASHINGTON - Today, the U.S. Department of Housing and Urban Development's Office of Multifamily Housing announced the recent completion of a Rental Assistance Demonstration (RAD) transaction with the Housing Authority of the City of Cumberland (HACC). Through the transaction, HACC will finance the preservation and rehabilitation of 100 affordable rental homes at John F. Kennedy Apartments in downtown Cumberland, Maryland.

"At HUD, we're working to ensure that homes are not just affordable, but truly quality places to live for decades to come," said Acting Secretary Adrianne Todman. "Today, I'm happy to announce that 100 affordable rental homes in Maryland will now be preserved and rehabilitated for the families we serve."

Built in 1967, John F. Kennedy Apartments is an 11-story structure within walking distance of many neighborhood amenities. Due to its age, the building needs extensive capital improvements to keep the homes affordable and support its mostly senior residents as they age in place. Through RAD, HACC will convert dozens of efficiencies to one-bedrooms and double the number of homes that meet federal accessibility standards, making them accessible for residents with disabilities.

"These affordable homes will also include updated kitchens, bathrooms, windows, doors, plumbing and HVAC systems, and enhanced onsite amenities; all necessary improvements that will help increase energy efficiency, and reduce environmental impact and utility costs." said Deputy Assistant Secretary for Multifamily Housing Programs Ethan Handelman.

HACC plans to complete construction in three phases, allowing residents to remain housed at the development throughout the renovation process. The total construction cost for the project is $17.7 million or approximately $170,000 per home, and is financed through a combination of 9 percent Low Income Housing Tax Credits, a Federal Housing Authority (FHA) risk-share loan, and funds from Maryland's Department of Housing and Community Development.

About RAD
RAD was designed to help address the multi-billion-dollar nationwide backlog of deferred maintenance in the public housing portfolio and to stem the loss of affordable housing that could no longer be kept to decent standards. From the program's inception through March 1, 2024, RAD has facilitated more than $19.3 billion in capital investment to improve or replace nearly 205,000 deeply rent-assisted homes, most of which house extremely low-income families, seniors, and persons with disabilities.

Under RAD, projects funded under the public housing program convert their public housing assistance to project-based Section 8 rental assistance. Under Section 8, residents continue to pay 30 percent of their income towards rent and the housing must continue to serve those with very low and extremely low incomes, as was the case when the property was assisted through the public housing program. Residents must be notified and consulted prior to conversion, are given a right to return to assisted housing post-construction so that the same tenants can enjoy these newly preserved and improved apartments and maintain the same fundamental rights they had as public housing residents.

RAD Resources
More programmatic information is available at the RAD website. Data on RAD is available at the RAD Resource Desk.

View photo essays and read case studies where RAD is working to successfully preserve and improve public housing for low-income families. Watch an educational video for public housing residents or those new to the RAD program.