The Rental Assistance Demonstration (RAD) Final Report analyzes whether RAD preserves affordable housing by improving physical conditions and stabilizing the financial footing of properties. The report also examines how tenants and PHAs are impacted by the program. This evaluation meets Congress's requirement to report on the early observable impacts of RAD on (1) the preservation and improvement of former public housing units; (2) the amount of private capital leveraged as a result of such conversion; and (3) the effect of conversion on residents.

" Over the next several years, rental assistance contracts will expire for about 38,000 affordable housing units currently subsidized through three HUD rental programs. Owners of these units would no longer be required to maintain affordable rents or make their units available to low-income residents. Residents in these units are eligible to receive special tenant-based vouchers called tenant-protection vouchers to shield them from resulting rent increases. HUD's RAD program was created in 2011 to preserve affordable housing by, among other things, allowing owners to convert these tenant-protection vouchers to project-based vouchers for units in three designated HUD programs. Project-based vouchers result in a long-term contract between the property owners and PHAs, which administer the vouchers. The Consolidated and Further Continuing Appropriations Act of 2012 mandated that GAO review these conversions under RAD. This report describes the results of these conversions.

HUD RENTAL ASSISTANCE DEMONSTRATION: Information on Initial Conversions to Project-Based Vouchers