Anyone for a Revolution?

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3 min read

Sometimes a revolution sneaks up on you quietly, attracting few joiners at first and widespread initial skepticism. But then it begins to take root as more people get on board, convinced that the conventional rules and old ways of doing things just don’t make sense any more.

Such a revolution is happening today in public housing – and its name is the Rental Assistance Demonstration (RAD) program. Under this bold federal initiative, an increasingly larger number of public housing authorities (PHAs) are joining the cause to convert their traditional aging, often obsolete public housing properties to modern refurbished or newly built affordable apartments targeted to both public housing residents and other low-income households. In doing so, authorities are gaining access to housing tax credits and private capital, building expertise in real estate development, and generating new sources of revenues.

In this issue, we focus on public housing revitalization, taking a look at the RAD program and how some individual PHAs across the country are using it, as well as examine other types of redevelopment transactions by housing authorities. (“Backs Against the Wall,” p. 16) Industry expert David A. Smith, in his guru column, chronicles the growing revolution that is RAD and explains why housing authorities should join in while the opportunity is still available. (“The unannounced revolution,” p. 24)

No longer is a revolution – but still a powerful driver for affordable housing production – the low-income housing tax credit. While there have been multiple studies over the years about the nationwide impact of the program and the performance of LIHTC properties, a largely unreported aspect has been the vital role played by this tool in serving rural communities in the U.S. The wait is over: we talk about a new report that focuses on the LIHTC in rural America. (“A Proven Record,” p. 34)

And, as always, we can’t talk our eyes off Washington – the source of trials and opportunities, even in summer. We report on the newly opened funding round (the eleventh) for the federal new markets tax credit program. (“CDFI Fund…,” p. 40) In addition, we talk about how advocates of federal housing, historic, and new markets tax credits will be redoubling their efforts when Congress returns in September to protect these tax credit programs against any legislative threats, particularly a possible tax reform bill. (“Defending Tax Credits,” p. 8) The Tax Reform Act passed in 1986 was certainly a revolution at the time. Can it happen again?

Maybe RAD was one revolution in the housing field that snuck up on us quietly. But we’re alert to it now, and have our ears to the ground for any other new pioneer movement that might come along.