RENTAL ASSISTANCE DEMONSTRATION RAD

Report
RENTAL ASSISTANCE DEMONSTRATION
RAD
RAD 101 AND PROGRAM
UPDATE
4/13/2015
1
WHY RAD
Public Housing Inventory
• 1.15 million units across 3,100 PHA’s
• Capital repair needs in excess of $25.6 billion
at $23,365/unit
• Section 9 funding unreliable – limited access
to debt/equity capital
• Losing 10-15 thousand units per year
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RAD component 2
Affordable multifamily housing in legacy
programs “at-risk”:
• RAD for Mod Rehab (competitive)
• RAD for Mod Rehab (non-competitive)
• RAD for RAP and Rent Supplement (noncompetivie
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RAD Key Goals
Allows selected Public Housing, and at-risk
legacy programs to convert to long-term Section
8 HAP contracts
• Build on proven Section 8 platform
• Leverage private capital to make needed
repairs and preserve affordable housing
• Offer residents greater choice and mobility
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Contracts and Rents (PH)
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Choice of Section 8 PBV or PBRA
Annual OCAF
RAD HAP begins at construction closing
No limitation on use of project cash flow
HAP contract Renews
Use Agreement
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RAD Financing
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Conventional (40%) or Secondary
FHA - 223(f) and (d)(4) and TC Pilot (f)
Tax Credits (4% and 9%) – 50% propose 4%
Public Housing funds -- Operating Reserves;
Capital Funds; Replacement Housing Factor
funds; Sales Proceeds
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FHA FIRST MORTGAGE
Approximately 40% PHAs deals to use FHA
• 70% - Section 223(f)
• 30% - Section 221(d)(4)
Mortgagee Letter 2012-20
• Provides underwriting guidance
• FHA MAP review modeled on streamlined Pilot
• Davis Bacon required on all initial repairs
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WAITING LIST – THE OVER 60k CLUB
• HUD continues to work with Congress to lift
the cap
• Complete reviews of RAD applications – 30
days
• Issue conditional approvals pending the lifting
of cap
• If and when CHAPs are withdrawn/revoked,
pull projects from wait list
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8
RAD UPDATE
Total Active PIH CHAPs =
290 Projects 38,173 units
Total Active Mod Rehab ChAPs =
7 Projects
878 units
Closed Public Housing
35 Projects 3,184 units
Closed Mod Rehab
1 Project
175 units
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RAD throughout country
Implemented RAD
• 185,000 applications received through FY14
• 5,806 public housing units and 7,410 other
affordable units converted through RAD
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RAD in Massachusetts
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28 Rent Supp/RAP properties various stages
2 Retroactive conversions; 26 Prospective
14 closed to date – 4,878 units
1,392 units under RAD PBV
3 Mod Rehabs (not executed HAP) – 394 units
2 Public Housing – CHAPs ; Burlington VT –
209 units; Cambridge – 2,130 units (2 phases)
• Nine (9) – waiting list
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