What is RAD/PACT?

RAD/PACT allows NYCHA to transfer buildings to private landlords, who then manage the buildings instead of NYCHA. It’s a way for NYCHA to transfer responsibility for buildings to private developers and landlords so NYCHA no longer has to maintain those properties. The program is referred to by a few different names. It’s called RAD (Rental Assistance Demonstration)– by the federal government and PACT (Permanent Affordability Commitment Together)in NYC. Traditionally, the federal government gives money to NYCHA and NYCHA uses that money to manage the building. Tenants pay up to 30% of their income back to NYCHA in rent. Additionally, tenants’ taxes go to Congress for yearly appropriations, including funding for NYCHA. There is a direct, cyclical nature to our funding.

In Project-Based Section 8, a tenant lives in a building managed by a private landlord. This landlord gets two payments for each apartment — one from the tenant, who pays 30% of their income, and the other the balance of their rent paid by the federal government. The total of both payments added together equals the “Fair Market Rent”, which is just a term for the average rent that a private landlord in the area can charge for any private apartment.

Note that there are two kinds of Section 8. The tenant-based Section 8 voucher program, and the Project-Based Section 8 program. In Project-Based Section 8, the whole building is in the Section 8 program, and if a resident leaves, they can’t take the Section 8 benefits with them. In the voucher program, a tenant can go to any private building and try to get the landlord to accept their Section 8 voucher and take them as a tenant. RAD/PACT is Project-Based Section 8. It’s converting the public housing building to a Project-Based Section 8 building.

Basically, RAD/PACT converts buildings from Section 9 public housing — where the federal government pays NYCHA to run the buildings — to Project-Based Section 8, where the federal government is subsidizing a private landlord to run the buildings.

How Many Units Has NYCHA Privatized through RAD/PACT To Date?

Resident Rights

It is important to note that this conversion means you will no longer be a Section 9 Public Housing resident, so you will no longer have a Section 9 lease. Instead, you will be a tenant at a project-based Section 8 building or development and will sign a PACT lease. Although you will continue to pay 30% of your income, please note that within the lease, a PACT Partner or Property may require a tenant to pay other charges and fees. For example, PACT Partners/Property Managers can charge tenants for utilities like gas and electricity, as well as for unit and appliance damages.

Resident rights are supposed to be carried over according to HUD’s rules:

• Residents should have the right to pass their apartment on to a loved one.
• Residents should have the right to a hearing if they have grievances.
• Residents should have the right to organize through a residents association.
• Residents should have the right to return to property without prescreening.
• Residents should have the right to no rent increases if already paying at least 30% of income on rent.
• Residents should have the right to access the same fair housing, accessibility, and reasonable accommodations rights as prior to RAD conversion

Mold and Leak Ombudsperson Call Center (OCC) is available for residents of buildings owned and managed by NYCHA as well as those owned by NYCHA with private management, such as those that transitioned through the PACT/RAD programs. 

Obligations to the State Office of Historic Preservation continue to apply, even after conversion to RAD/PACT. NYCHA also has the obligation to consult with the State Office of Historic Preservation for (1) demolition of buildings over 50 years old, (2) all new construction, (3) all major digging (just in case the campus might turn out to be an archaeological site) and (4) work in, on or around most artworks on NYCHA property (all artwork over 50 years old is protected through required consultation, and as time passes the list of protected art grows).

Process

If NYCHA wants to lease a part of its development through RAD/PACT, it has to go through the U.S. Department of Housing and Urban Development (HUD) approval process by filing a Section 18 application (just like all other leases). Review the Section 18 Application NYCHA submits to HUD and see When NYCHA Sells or Leases Property to a Private Party.

Before it submits, the NYCHA Board first has to approve the application; see Review by the NYCHA Board and Testify at a NYCHA Board Meeting. 

Additionally, for RAD/PACT leases to be properly approved, NYCHA must give notice of their intent to convert the property as well as details of  that conversion to residents in advance of sending the application. NYCHA must also hold several public meetings over the process of developing and approving a conversion plan. NYCHA is also obligated to provide responses to resident comments raised at those meetings, with the process outlined below.

1. During Resident Engagement, two meetings must be held before submitting an application to HUD to explain RAD, plans for the campus, and to receive resident feedback.
   
   
2. After those meetings, NYCHA can submit initial paperwork to start the process of the RAD process, called a CHAP (Commitment to Enter into a Housing Assistance Payment Contract).
   
   
3. Then, NYCHA must hold two more meetings with residents after the CHAP is accepted and before  NYCHA has a concept call with HUD.
   
   
4. After those two meetings, NYCHA corresponds with HUD for the concept call and develops a Financing Plan to submit to HUD.
   
   
5. If HUD approves, there must be one more meeting after HUD approves (also now called "RAD Conversion Commitment") and prior to closing. The PHA must review the conversion timing, work changes to the lease and house rules, and any anticipated relocation.

The below graphic was created by HUD as part of its 2023 notice.

All these things must happen before closing. Once a conversion is closed, the deal is final and the buildings are now owned by a new entity and are no longer regulated by HUD.

Organizing Notes

Although not required by any law, NYCHA has allowed residents in some developments to vote on whether they want to be converted through RAD/PACT (and some voted no) and some resident leaders have successfully convinced NYCHA to hold a vote even when NYCHA did not plan to do one.

Even if NYCHA will not hold a vote, you can make your voice heard by the decision-makers. If you feel that NYCHA has not meaningfully consulted with you in developing its plans, it’s important to create a record of that for HUD to see. If you are opposed to the plan or want it to be changed:

• Put your criticisms of NYCHA’s plans and its process of engaging with residents in writing. Refer to the meetings that NYCHA is required to hold as listed above. Did they happen? Were they meaningful? If you write your comments down, NYCHA will not be able to mischaracterize how you feel about the plans and the way NYCHA is consulting – or not consulting – with residents.
  
  
• Be very specific. For example, point out issues raised at earlier meetings that had no follow-up. Refer to commitments NYCHA representatives may have made but later backed away from in their conversations with residents.Whenever you submit a written comment to NYCHA, include this sentence: “NYCHA is legally obligated to evaluate this comment and forward all comments to HUD under 24 CFR § 970.9(a).”

HUD has issued some guidance for how NYCHA must conduct its meetings. Any violation of these guidelines could be brought to HUD's attention using the contact information here: 

• NYCHA must provide adequate notice of meetings and consider practices to reduce barriers to resident participation in meetings.
  
  
• Meetings should be conducted in a place and time that fosters participation with a variety of preferences and schedules.

• NYCHA must make meeting notifications and materials available in an accessible format.

• PHAs may not restrict attendance at the meetings unless it’s necessary for the effective conduct of the meeting such as the meeting venue.

• At HUD’s request, the PHA must provide an opportunity for a HUD representative to attend resident meetings. This means residents can ask HUD staff to attend the meetings.

NYCHA Real Talk Workshop Materials

Since 2020, TakeRoot has been working with New York City Housing Authority (NYCHA) residents responding to the Authority’s plans to transfer control of existing public housing to private developers and allow private housing to be built on NYCHA campuses, including launching the NYCHA Real Talk series in Fall 2021. We created a Presentation and Script (last updated in 2025) that you can use to lead a conversation about RAD/PACT conversions in your community.