US Housing Law Expands RAD to 555,000 Units as Public Housing Investment Reaches $28.4 Billion
United States | September 30, 2026: The United States has expanded its Rental Assistance Demonstration (RAD) programme, allowing up to 555,000 public housing units to participate, under the 21st Century ROAD to Housing Act, which became law on July 11, 2026. The legislation also makes RAD permanent, creating a longer-term framework for renovating ageing public housing and attracting additional investment.
The changes come as the country has approximately 860,000 public housing units remaining and a growing backlog of repairs. RAD has already supported more than $28.4 billion in investment, while approximately 200,000 additional units are in its development pipeline.
ROAD to Housing Act Makes RAD Permanent
The 21st Century ROAD to Housing Act introduced two significant changes to RAD: permanent authorisation and an increase in the programme's unit limit from 455,000 to 555,000.
Originally launched as a demonstration programme in 2011, RAD was designed to help public housing authorities preserve properties that struggled with insufficient operating revenue and capital funding. Its repeated extensions reflected the continuing need to address the condition of the country's public housing stock.
The new law removes the programme's previous sunset date and expands the number of units eligible for conversion.
Ageing Public Housing Faces a $169 Billion Repair Backlog
Public housing in the United States has faced persistent funding challenges. Low rents and insufficient federal appropriations have left many properties without the resources needed for major repairs and maintenance.
The estimated backlog of capital needs rose from $26 billion in 2010 to $169 billion in 2025, highlighting the scale of investment required to maintain existing homes.
Around 860,000 public housing units remain nationwide, down from a peak of approximately 1.3 million in the 1990s. Many residents are particularly vulnerable to housing instability, including senior citizens and households with members who have disabilities.
How RAD Helps Finance Housing Renovations
RAD allows public housing authorities to convert eligible properties from traditional public housing assistance to long-term project-based rental assistance.
Under this model, properties can receive more predictable rental revenue through housing assistance contracts. This can help support operating expenses and make it easier to secure financing for repairs and renovations.
The programme also enables public housing authorities to combine federal support with private investment, including bank loans and tax credit financing.
RAD Has Attracted $28.4 Billion in Investment
Between 2011 and 2024, public housing authorities converted 1,939 projects covering 266,903 housing units through RAD. More than 600,000 people have benefited from affordable housing preserved or improved through long-term rental assistance.
The programme has generated more than $28.4 billion in new investment. Approximately 14% of that investment supported the construction of new units, including replacement homes and additional housing. Another 34% went toward projects requiring major renovations costing more than $75,000 per unit.
RAD has leveraged approximately $5 in new capital for every $1 of federal, state or local funding, demonstrating how public assistance can help attract additional financing.
Nearly 200,000 More Units in the RAD Pipeline
The programme's expansion comes as approximately 200,000 additional units are in pre-development or other stages of the RAD pipeline.
The higher unit limit creates room for more public housing properties to pursue conversion. Permanent authorisation also gives housing authorities and potential financing partners a longer-term policy framework when planning projects.
However, conversion eligibility does not guarantee that every property will receive financing or complete renovations. Project costs, local conditions and funding availability will continue to influence implementation.
What the Law Means for Affordable Housing Providers
For public housing authorities, the expanded programme offers additional opportunities to address deferred maintenance and improve the financial stability of eligible properties.
For developers, lenders and affordable housing investors, RAD provides a framework for participating in projects supported by long-term rental assistance. The programme's track record of attracting private capital may also be relevant to future renovation and preservation projects.
Residents remain an important part of the process. The law requires HUD to assess and publish annual findings on preservation, private investment, and whether residents remain in or return to converted properties.
What Happens Next
With the ROAD to Housing Act now in effect, the expanded RAD programme can accommodate up to 555,000 units. The next stage will depend on how housing authorities use the additional capacity and whether projects in the pipeline can secure financing and move into construction.
The scale of the existing repair backlog means that preserving and improving public housing will remain a long-term challenge. RAD's expanded scope provides another mechanism for addressing that need, but the pace of progress will depend on project delivery and available resources.