The Rental Assistance Demonstration (RAD) and Low-Income Housing Tax Credit (LIHTC) redevelopment programs are common ways for housing agencies to significantly upgrade dilapidated housing stock. Energy Performance Contracts (EPC) in place at the targeted development can present a significant hurdle to the process. EPC financing has placed lien positions on the real property being developed that must be removed prior to redevelopment. HUD approval is required if the targeted units represent more than 10% of the total housing stock. Essentially, PHAs must prove to HUD, through an entire EPC application, that the remaining housing will have enough savings to cover the remaining debt.