Transaction will allow for rental homes at Stevenson Crossing to remain permanently affordable to low-income senior residents.
The U.S. Department of Housing and Urban Development’s Office of Multifamily Housing is announcing today that it has closed a Rental Assistance Demonstration (RAD) transaction with the Housing Authority of Joliet (HAJ) in Joliet, IL, to preserve 113 affordable rental homes for low-income seniors at the housing authority’s newly named Stevenson Crossing site in southwest Joliet.
The RAD transaction will convert the rental homes to HUD’s Section 8 Project Rental Assistance platform and includes $16.1 million in construction renovations at the site, or $142,000 per home. The transaction is funded via:
- 9% Low-Income Housing Tax Credits
- Private First Mortgage Loan
- Public Housing Capital Funds
- Public Housing Authority Non-Federal Funds
The RAD conversion supports HAJ’s priority to serve its senior residents, as its most recent needs assessment indicated 11 percent of City of Joliet residents who need affordable housing are aged 62 or older. While not currently a senior property, as part of the transaction HAJ has received approval to change the occupancy preference for Stevenson Crossing to seniors.
In addition to substantially renovating the property, including renovations for the Uniform Federal Accessibility Standard (UFAS), HAJ will be combining and reconfiguring efficiency apartments into larger one-bedroom homes. This will ensure more units are accessible for seniors with mobility impairments and for people with sensory impairments. The rehabilitation work planned for the property also includes replacement of the roof, appliances, and windows as well as updates to the bathrooms and kitchens.
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 September 1, 2022, the Rental Assistance Demonstration has facilitated more than $15 billion in capital investment to improve or replace more than 185,000 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.