WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) announced today that it has closed a Rental Assistance Demonstration (RAD) transaction with the Newport News Redevelopment and Housing Authority (NNRHA) at Orcutt Townhomes. This transaction allows NNRHA to substantially rehabilitate 40 affordable rental homes through a combination of funding from state, local, and federal sources. Through this transaction, NNRHA will be able to ensure that the property is updated and preserved so that it can continue to provide safe and affordable housing to residents for many years to come.

Orcutt Townhomes features twenty two-story duplex townhomes and is adjacent to several local amenities, including schools, a grocery store, and other businesses. A new community facility will be built across the street from the property and funded in part through the HUD Choice Neighborhoods Initiative. The property will undergo extensive rehabilitation, including structural upgrades, updating of community amenities, and significant updates to the residents’ homes. Each home will feature new kitchens and appliances, windows, plumbing, and HVAC systems, as well as complete interior and bath refurbishment. Many of the improvements increase energy efficiency, thereby reducing environmental impact and utility costs.

The total construction cost for the project is $6.05 million, or approximately $150,000 per home, and is financed through a combination of 9 percent Low Income Housing Tax Credit Equity and funds from the HOME Investment Partnerships Program (HOME), National Housing Trust Fund, and the Virginia Department of Housing and Community Development.

About RAD

This year marks the 10th anniversary of the first public housing conversion under the Rental Assistance Demonstration (RAD) program, which has revitalized nearly 200,000 public housing units and improved the living conditions for more than 500,000 individuals and families.

RAD was developed 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, 2023, RAD has facilitated more than $17.7 billion in capital investment to improve or replace nearly 197,000 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. Residents continue to pay 30 percent 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 and are given a right to return to assisted housing post-construction so that they can enjoy these newly preserved and improved apartments and maintain the same fundamental rights they had as public housing residents.

RAD Resources

More programmatic information is available at the RAD website. Data on RAD is available at the RAD Resource Desk.

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.