CMHA will use RAD to preserve 142 affordable rental homes and develop 8 new affordable rental homes at Post Oak Station II
The U.S. Department of Housing and Urban Development’s Office of Multifamily Housing on Tuesday announced that it has closed a Rental Assistance Demonstration (RAD) transaction with the Columbus Metropolitan Housing Authority (CMHA) in Columbus, OH. The project, Post Oak Station, located on the west side of the city, will include 142 rehabilitated affordable rental homes as well as eight newly constructed affordable rental homes and a new daycare center.
In May, Secretary Marcia L. Fudge traveled to Columbus, Ohio to announce the Biden-Harris Administration’s actions to ease the burden of housing costs and increase the affordable housing supply in Columbus and across the country. Secretary Fudge was joined by U.S. Senator Sherrod Brown, U.S. Representative Joyce Beatty, and Columbus Mayor Andrew Ginther. The transaction with the Columbus Housing Authority is a new step the federal government is taking to expand affordable housing in the area.
The current development on this site, Post Oak Station II, consists of 26 two-story apartment buildings and one single-story club house constructed in 1971. RAD will allow for the CMHA to raise $16 million for its construction budget ($106,000 per unit), which will be fully financed through:
- $7.3 million FHA-insured mortgage under the 221(d)(4) program
- Public Housing Capital Funds
- 4% Low Income Housing Tax Credits
As part of this transaction, CMHA will renovate the community building to give residents an improved gathering space. The rehabilitation of the existing 142 units will include new furnaces, air conditioning units, appliances, and water heaters and updates of the bathrooms, kitchens, and electrical systems. The eight new affordable rental homes will be constructed in two new buildings that will be added to the site. These updates as well as a brand-new daycare center will help to improve the quality of life for families.
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 June 1, 2022, the Rental Assistance Demonstration has facilitated more than $14.7 billion in capital investment to improve or replace nearly 180,000 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% 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.
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.