NYC Approval For Private Management Of Housing

New York City will seek federal approval to move 62,000 public housing apartments into a US$13 billion rent-subsidy program in the next decade, eliminating its reliance on government block grants that repeatedly fall short of financing maintenance of the largest US public-housing system.

The US Housing and Urban Development's rental assistance demonstration program, known as RAD, changes how rents get paid, allowing investors to rely on predictable revenue from monthly rent vouchers guaranteed for 40 years instead of the uncertainty of annual federal budget appropriations. It has been used in Far Rockaway, Queens to renovate almost 1,400 units with US$560 million in private and government financing. So far, it and two other complexes housing about 13,000 have been formally approved.¬