US enacts ROAD to Housing Act, expanding public housing preservation program

Key facts

• The 21st Century ROAD to Housing Act, enacted in July, reforms the Rental Assistance Demonstration (RAD) program.
• Public rental housing units are owned by public entities and charge rents capped at 30% of household income.
• About 860,000 public housing units remain, down from a 1990s peak of 1.3 million.
• The estimated deferred capital expenses to repair public housing reached $169 billion in 2025.
• The RAD program enables public housing authorities to use project-based housing vouchers for higher rent payments.
• The ROAD to Housing Act expands the RAD program's unit coverage by 100,000 to 555,000 units and provides permanent authorization.

The 21st Century ROAD to Housing Act, a federal housing bill that became law in July, introduces significant reforms to the Rental Assistance Demonstration (RAD) program, which is designed to preserve and improve public housing in the United States. Public rental housing, historically funded by the federal government since the 1930s, has seen its stock decline from a peak of 1.3 million units in the 1990s to approximately 860,000 units today, largely due to insufficient funding for maintenance and capital improvements, leading to severe disrepair. The estimated deferred capital expenses for these units have risen to $169 billion by 2025.

Federal policy has shifted over time, moving from direct public ownership towards housing vouchers and private development through programs like the Low-Income Housing Tax Credit (LIHTC) established in 1986. The RAD program, enacted in 2011, allows public housing authorities to convert properties from relying on low tenant incomes to using project-based housing vouchers, which can cover higher market rents under long-term contracts. This conversion aims to create more predictable cash flow, attract private sector investment, and improve property conditions.

Between 2011 and 2024, nearly 267,000 units have been converted under RAD, improving affordable housing for over 600,000 people and securing more than $28.4 billion in new investment. The ROAD to Housing Act builds on this by expanding the RAD program's capacity by 100,000 units to a total of 555,000 units and granting it permanent authorization, signaling a continued commitment to preserving the nation's public housing infrastructure.