Rental Assistance Demonstration
Statement on Behalf of the PHA Board of Directors
It has been brought to the attention of the Board that certain falsehoods and misrepresentations regarding the redevelopment of Hudson Gardens are being spread, causing concern for the residents of that property. The Board would like to address these issues before proceeding with its regular business.
Hudson Gardens was selected for redevelopment under the RAD (Rental Assistance Demonstration) program to make much needed repairs and improvements for the benefit of the residents currently residing there. Under RAD, a public housing subsidy is converted into a section 8 subsidy that is tied to the property. This conversion allows the PHA to access additional funding sources to improve the quality of the residences while also keeping the rental assistance received from the federal government, ensuring the property remains permanently affordable.
Contrary to any rumors you may have heard, the RAD conversion will not cause any involuntary displacement of residents. Every resident has a guaranteed right to remain at the property or to return to the property if temporary relocation is necessary for repairs to be completed. In addition, following the conversion, monthly rent will be capped at 30% of income, which means that most residents will not see any change in rent. For residents currently paying a flat rent, they will be transitioned to the 30% of income calculation over a period of 3 to 5 years.
At this stage in the process, a selection committee has evaluated all of the development firms that submitted proposals to partner with PHA in the redevelopment. PHA will begin negotiations with the development firm that was ranked highest by the selection committee. Those negotiations have not started yet and will not start until PHA has selected an attorney to represent them during the negotiations. This means that negotiations will not begin for several months.
The specifics of the redevelopment project will be determined during these negotiations. At this point, there has been no determination as to what the redevelopment will look like and whether any residents will need to be temporarily relocated in order to complete the desired repairs and improvements. If PHA is not able to reach an agreement with the highest ranked development firm, they will start negotiations with the second highest ranked firm. This process will continue until an agreement is reached.
PHA believes that the input of the residents is critical to making this project a success and will be hosting several Town Hall meetings during the year to ensure that residents are informed of the progress and will be able to provide necessary input. All residents of Hudson Gardens will be sent notices advising them of the date, time and location of the next Town Hall meeting.
More information about the RAD program can be found at hud.gov/RAD/residents/PublicHousingResidents