Provo City Housing outlines RAD conversion, plans renovations and sale of 20 homes

Sarah Van Cleve, executive director of Provo City Housing, told the Provo City Council on Nov. 11 that PCHA is preparing a Rental Assistance Demonstration (RAD) conversion that would move public-housing units to project‑based vouchers and allow the housing authority to collect higher per‑unit revenue and access new funding for capital repairs.

Van Cleve said the authority currently manages publicly owned units and receives separate HUD capital‑needs and operating allocations; under RAD the subsidy would be attached to the unit as a project‑based housing‑choice voucher. “What RAD stands for is rental assistance demonstration,” she said. She described immediate goals: renovate units built in the 1970s, increase the number of ADA‑accessible units, replace piping and HVAC systems, and add an elevator to a building called Mountain View.

Van Cleve said PCHA plans to sell 20 scattered single‑family homes to raise seed money for the conversion and the renovations. She said tenants displaced for remodels would receive tenant‑protection vouchers so they could remain subsidized while moving to temporary housing. “They’ll all receive what’s called a tenant protection voucher,” Van Cleve said, adding that some residents could ‘graduate’ off subsidy over time and that portability will allow residents to take subsidy with them — an option many public‑housing tenants lack today.

Van Cleve presented rough finance figures in answering council questions: she said PCHA has about 248 public‑housing units at one point and later referenced 228 units remaining; currently HUD capital/operating support was characterized as low (she said HUD provides about $395 per month per unit in capital funds) while a project‑based voucher could bring roughly $1,200 a month per unit in subsidy, producing a substantial rise in cashflow that PCHA would use to fund renovations and reserves.

She said HUD currently owns the properties and is monitoring them; the conversion would transfer ownership to a nonprofit affiliate (Utah Regional Housing) to make additional grants and tax‑credit financing available. Van Cleve said PCHA is working with a consultant and a Montana developer called Good Housing Neighbors and is pursuing tax credits to support elevator repairs in larger buildings.

Councilors asked whether sales of the 20 homes can be constrained to keep properties affordable. Van Cleve said PCHA has limited authority to set sale prices and that resident purchase programs face market constraints; she said the agency is exploring options such as a land trust and working with organizations that preserve affordability. She said she is pursuing Fannie Mae approval to enable buyers to obtain loans under land‑trust arrangements.

The conversion requires HUD approval (Van Cleve said the agency submitted an application and expects it to be later in the winter); HUD program rules and a PIH notice issued in December 2024 that broadened conversion capacity were cited as key drivers.

Next steps: Van Cleve said the application process will continue and PCHA will post information to its website; she emphasized that the presentation was informational and not an action request to council at this meeting.

Ending: Council members thanked Van Cleve for the update and expressed general support while asking staff to continue providing details about relocation plans, tenant protections, and sale safeguards.