Key Differences Between DHCD’s MTW Program and HUD’s Rental Assistance Demonstration (RAD) Program

Eligible Projects DHCD can convert any Enhanced Vouchers to PBV’s. Only projects with Rent Supplement or RAP are eligible for this component of RAD. Currently 13A properties (without Rent Supp) are not eligible for either program)

Timing RAD projects that have subsidy contracts that expire after 9/30/13 must get in a funding queue for RAD benefits. MTW projects can apply at any time.

Eligible Tenants Existing RAD tenants must earn below 80% of AMI. Existing MTW tenants must generally be below 80% of AMI, but there is an exception for elderly, disabled, and projects in low vacancy areas. These tenants can have incomes up to 95% of AMI.

Tenant Outreach and Consent MTW projects require that each tenant give individual consent for a PBV. RAD prospective projects only require resident notification, a meeting with residents and the opportunity to receive comments.

Maximum % of PBV Units at a Project For MTW, there is no cap. RAD projects are generally limited to 50% PBV units. The project can have up to 100% PBV units as long as at least 50% of the units are for elderly, handicapped or tenants receiving support services.

Wait List MTW- Site based waitlist. DHCD will recognize an existing project waitlist in most cases. RAD – Waitlist will be according to the PHA administrative plan in effect. Normally, PHA’s are not able to recognize the existing waitlist at the project

Payment Standard MTW – 110% of FMR, subject to rent reasonableness. RAD – Up to 110% of FMR, subject to rent reasonableness. Special project types (e.g. LIHPRHA and decoupled Sec 236 projects) could have capped rents.

Bill Brauner Housing Preservation Program Manager