2013 NJAHRA CONFERENCE
Atlantic Club Hotel & Casino
Atlantic City, NJ
Presenters:
William F. Snyder
Louis Riccio

It is the conversion from Section 9 Public Housing
Assistance to Project Based Section 8 Assistance.
You will be released from your Public Housing
Annual Contributions Contract and the Declaration of Trust.
You will have less administrative burden (HUD estimates about 15%).
You will be relieved from the burdens imposed by
REAC (PASS, FASS, MASS).
RAD is the current administration’s attempt to recapitalize public housing through private debt & equity.

What is the future of public housing?
Will the PH program provide a stable funding source for operations & capital needs in the future?
Do my properties have significant capital needs?
Can my properties pass HUD’s physical condition assessment
(PASS)?

What do we know about the stability and rate of funding for the Public
Housing Program?

The Annual Contributions Contract
(ACC) stipulates that your subsidy is subject to annual appropriations from
Congress. There is currently an
$800,000,000.00 gap in PHA
Operating Fund eligibility and
Congressional appropriations. PHAs must estimate what percentage
Congress will approve in preparing their budget.

For 2012, the Congress accepted the
Administration’s recommendation and funded the
Public Housing Operating Fund at $3.982 billion,
$1 billion below total subsidy eligibility. This funding level was paired with a $750 million offset against “excess” existing operating reserves held by Public Housing Authorities (PHAs). .
A year-long CR at the 2012 level will provide only
83 percent of PHAs’ operating costs for calendar year 2013. This would be the deepest proration in the program’s history.

Estimated Need (Abt) $26 Billion
Annual Accrual Rate $3.6 Billion
2013 Appropriation $1.78 Billion
25% Cut in CFP from 2010-2012

From 2001 to 2013 the Capital Fund has been cut by nearly 50%!
25% from 2010 to 1013 alone!

For 2012, the Public Housing Capital Fund was funded at $1.875 billion, the lowest funding level in the history of the program. Between 2010 and
2012, the Capital Fund experienced an unprecedented 25 percent reduction from what was already an inadequate funding level given the inventory’s annual accrual of capital needs.
According to the Capital Needs Assessment recently completed by Abt Associates at HUD’s direction, the portfolio already has a modernization backlog in excess of $26 billion, with an annual accrual rate of approximately $3.4 billion.

Need/Eligibility $18 Billion
Current HAP Funding 94%
Admin Fee 69%

HUD’s FY 2013 budget proposed $1.575 billion for
“administrative and other expenses of which up to $50 million
“shall be available to…allocate to public housing agencies that need additional funds to administer their Section 8 programs” at pre-QHWRA rates, leaving at least $1.525 billion for ongoing administrative fees. Vouchers from incremental and special purpose programs such as HUD-Veterans Affairs Supportive
Housing (HUD-VASH), Non-Elderly Disabled (NED), the Family
Unification Program (FUP), tenant-protection vouchers, and optouts will be leased and therefore “roll into” the Section 8 tenantbased renewal account for FY 2013, HUD has previously estimated that the proposed funding level would provide an 81 percent pro-ration for 2013.
The FY 2012 act provided just $1.3 billion for ongoing administrative fees, $97 million less than the FY 2011 enacted level. This results in proration of 69 percent, this represents the lowest pro-ration in the 37-year history of Section 8 tenant-based voucher programs.

Community Development Program
From 2004 to 2013 the CDBG program has been reduced by 1.54 billion.

The HOME Program has been utilized as a source of gap funding in developing new affordable housing. Over the last 10 years, the HOME program has been slashed by 50%!

Do you think that the current congress has an appetite form increasing HUD funding Public Housing?
Do you think that housing programs a congressional priority?

Current Federal Budget $3.8 Trillion
Current National Debt $16.8 Trillion
Current annual budget deficit
Proposed Budget Savings
$973 Billion over the next 10 years $1.5 Trillion

National Debt-over the next 10 years
Per year Savings (per sequestration) 150 Billion
Current Annual Deficit 973 Billion
Annual Difference
10 years
823 Billion x10
10 Year deficit
Current Deficit
8.23 Trillion
16.8 Trillion
Total Projected Deficit at 2023 25.03 Trillion
Entire federal budget is 3.8 Trillion
The Deficit is going up-not down as a result of sequestration!
As a nation, we are overspending.
The United States just doesn’t not have the resources to continue to increase the federal budget. As such, it comes down to a matter of priorities (guns or butter). Currently, congress cannot agree on what priorities should be funded!

What is sequestration?
Sequestration is an across-the-board reduction in Federal budgetary resources in all budget accounts that have not been exempted by statute. Under the
Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, the American Taxpayer Relief Act of 2012, and other relevant legislation, across-the-board reductions of $85 billion in budgetary resources were required to be ordered by the President on March 1,
2013. Sequestration reduces each agency’s budgetary resources in nonexempt accounts for the remainder of the fiscal year (which runs through
September 30, 2013).
Automatic cuts come from domestic discretionary spending which make up about 30% of the federal budget. HUD spending is considered discretionary spending and is subject to sequestration.

What will be the impact of sequestration on
HUD?
HUD will attempt to minimize the impact of sequestration to the extent permitted by law. However, HUD cannot choose which programs to exempt or what percentage cuts to apply. This will mean automatic and across-the-board budget cuts at HUD. The impact of sequestration on HUD programs will be dramatic.
An approximate 5% across the board cut in HUD programs added to the already historic low proration factor!

The sequester was originally passed as part of the
Budget Control Act of 2011 (BCA), better known as the debt ceiling compromise.
It was intended to serve as incentive for the Joint
Select Committee on Deficit Reduction (the
“Supercommittee”) to come to a deal to cut $1.5 trillion over 10 years. If the committee had done so, and Congress had passed it by Dec. 23, 2011, then the sequester would have been averted.
No compromised deal has been achieved.
No compromise seems to be anywhere is sight!

Approximately 3,300 PHAs
1.2 million public housing units
60% of residents are elderly or disabled
40% include families with children
Average residency for non-elderly is approximately 4 years

Where Does the Money Go?
In fiscal year 2014, the federal government will spend around $3.8 trillion. These trillions of dollars make up a considerable chunk – around 22 percent – of the US. economy, as measured by Gross Domestic
Product (GDP). That means that federal government spending makes up a sizable share of all money spent in the United
States each year. So, where does all that money go?

Mandatory and Discretionary Spending
The U.S. Treasury divides all spending into three groups: mandatory spending and discretionary spending and interest on debt . Interest on debt, which is much smaller than the other two categories, is the interest the government pays on its accumulated debt, minus interest income received by the government for assets it owns.
Mandatory items: Medicare, Medicaid, Social
Security, unemployment, SNAP, SSI, TARP.

Total Federal Budget $3.8 Trillion
Annual HUD Budget $44.8 Billion
Percent of Total Budget <2%
Annual Federal Budget deficit $973 Billion
Accumulated federal deficit 16.8 Trillion

Do you think that things will get better anytime in the near future?
2014 Operating Fund levels are being projected at the same levels as 2013 with sequestration.
Congress does not appear to be anywhere close to a compromise on spending priorities.

Issued 7/26/12
Provide Instructions for the RAD program
Eligibility
Selection Criteria

Build on the proven Section 8 platform
Leverage private capital to preserve assets
Offer residents greater choice and mobility

PHA Size Northeast Midwest South West Total
<250 Units
Small
250-1,249
Medium
1,250+
Large
Total
1,314
3,952
14,099
19,365
2,985 5,437 764 10,500
3,263 7,566 1,513 16,294
4,772 10,542 2,543 31,956
11,020 23,545 4,820 58,750

Authorized in the Consolidated Further
Continuing Appropriations Act of 2012
(Public Law 112-55)
Allows public housing & certain at-risk multifamily projects to convert to project based Section 8
Two Components:
1 st Competitive : Public Housing & Mod Rehab
2 nd Non-competitive : Mod Rehab, Rent
Supplement & RAP
On-going application period

st
Allow projects funded under public housing and Section 8 Moderate Rehabilitation to convert to project based Section 8 contracts.
PHAs may choose between project based voucher (PBA) or project based rental assistance (PBRA)
60,000 units are authorized for conversion under the 2012 Appropriations Act.

nd
Rent Supplement, Rental Assistance
Payment and Moderate Rehabilitation
Programs may convert to Project
Based Vouchers.
No cap on the number of units and no requirement for competitive selection
Subject to availability of vouchers

Applications had to be submitted during the application period (9/24-10/24/12)
Approved projects will received a Commitment to enter into a Housing Assistance Payment (CHAP)
The PHA must submit a financing plan for HUD review and approval.
Approved projects will receive a long-term Section
8 HAP contract.
We are currently in the “On-going Application” period! You can still apply since the initial interest was not what had been forecast.

Northeast Midwest South West
Awarded PH
Authority
948
Remaining
Authority
18,417
TOTAL 19,365
1,807
9,213
11,020
7,726
15,819
23,545
1,996
2,824
8,820
There was a total of 130 projects that were issued CHAPs for 14,438 units

Scope of Rehabilitation Costs
RAD Awards
Per Unit Rehab/Construction Costs % of Awarded Units
>$50,000
$30-$50,000
$10,000-$30,000
<$10,000
No Rehab/Construction
26%
22%
26%
17%
11%

HUD establishes the initial contract
Rents for every public housing project based upon:
2012 Appropriated Operating Funds
2012 Appropriated Capital Funds
NOTE: For applications submitted prior to 12/31/13

PBA
Project Based Rental Assistance will be administered by the agency on whose Annual Contribution Contract the voucher were assigned (most cases will be the agency doing the conversion)
Term-15 years (up to 20 with approval of administering voucher agency)
PBV rents will be equal to current finding subject to a cap and will be adjusted annually
PBA contract will also carry a concurrent renewable RAD
User Agreement
Must provide Choice Mobility Option to residents
Maximum PBA assistance (20% of budget authority) will not count against the PHA’s maximum for covered projects

The 25% limitation on the number of
PBV assistance in a project is increased to 50%.
100% of the units may be PBV if the at least 50% of the units qualify as elderly, disabled or families receiving supportive services.

PBRA
Project Based Rental Assistance-the project will be administered by HUD’s Office of Housing
PBRA Contract rents will be equal to the project’s current funding, subject to a cap and will be adjusted annually
Term-20 years
PBRA Contract will also carry a concurrent 20 year renewable RAD User Agreement
A Choice Mobility Option will be a condition of the conversion

Must have public housing units under ACC
Be classified as a standard or high performer. If “troubled” must be able to demonstrate the capacity to carry out a successful conversion.
Be classified as standard or high performer under SEMAP if administering the PBV contract. If “troubled” must be able to demonstrate the capacity to carry out a successful conversion.
Be in substantial compliance with HUD reporting and programmatic requirements and/or be in compliance with an
MOA.
Not have debarments, suspension or LDPs lodged against the
Executive Director. Board members or affiliates.
Submit a completed application that complies with the RAD instructions
Be in compliance with all fair housing and civil rights requirements

HUD estimates that there is a need for approximately 25.6 billion in capital needs across the portfolio
One of the main purposes of the RAD program is demonstrate how the conversion to Project Based Assistance can generate access to private debt and equity to address immediate and long-term capital needs through rehabilitation.
Any and all viable forms of debt and equity financing will be considered to support the conversion.

Applications will be scored on a perunit capital cost value system
High Need Scoring:
Family-$37,665
Elderly-$21,834

The PCA is at the center of the conversion process.
It provides the 20 year capital needs for the property.
It is not the same as your Physical Needs Assessment-PNA.
It is very important to the overall project financing.
All PCA capital needs must be supported through the upfront financing and an annual deposit to a reserve for replacement
(R&R) or a combination of both.
If this cannot be accomplished, the project is not feasible!

Physical Condition Assessment (PCA)
Projects selected for award will be required to perform a detailed physical inspection of the property to determine short-term rehabilitation needs and long term capital needs to be funded through a reserve for replacement.
The PCA Statement of Work must be in the format utilized in HUD’s Mark to Market program and may accessed at: http://portal.hud.gov/hudportal/hud?src=/program_offices/housing/mfh/presr v/mhrpaes/training

Green Building & Energy Efficiency
All projects retrofitted under the RAD conversion must replace appliances and systems with Energy Star,
WaterSense or Federal Energy
Management (FEMP) designated product and appliances.

Temporary Relocation-Any temporary relocation must comply with the
Uniform Relocation Assistance and real Property Acquisition Act of 1970
(see 49 CFR Part 24)

Accessibility Requirements-When a project’s rehabilitation meets the definition of substantial rehabilitation under 24 CFR Part 8.23, the PHA must comply with all applicable accessibility features under 504 of the
Rehabilitation Act of 1973.

Site Selection & Neighborhood
Standards-where a PHA is planning to convert assistance under RAD in conjunction with new construction on an alternate site, the PHA must comply with all applicable site selection criteria per the Fair Housing
Act and Title VI of the Civil Rights Act of 1964

RAD projects are eligible for financing from private and public lending sources (see application proforma).
Loans are secured according to the RAD
User Agreement that will be filed in first position.
Debt Service Coverage must be at least
1.20 or the lender's requirements
HOME funds can be use in RAD projects

PHAs may use Operating reserves (Per
PIH Notice 2011-55) and unobligated
Capital Funds to support conversion (up to
$100,000.00 for planning)
PHAs must disclose the amounts of any indebtedness, including Energy
Performance Contract, Capital Fund
Financing, etc. The PHA can refinance these items as part of the conversion.
Conversion does not relieve the PHA from these obligations. A lender may require that the debt be paid off or subordinated.

Low-Income Housing Tax Credits-
Applicants are encouraged to use
LIHTCs to support recapitalization of the project (9% & 4%). Applicants should indicate in their application that they intend to use LIHTCs.
There is no requirement that the credit be secured prior to submitting an application. The 9% credit have special application requirements.

Must submit a letter from credit issuing agency
(HMFA) addressing:
Whether then property and proposed transaction appear eligible
Whether the applicants PHA or owner entity have acceptable experience to proceed
The timing of the application and LIHTC award
Whether a typical reservation of credits is sufficient to address the expected need of the first or only phase of the project
If you cannot secure this letter you must include evidence that you diligently attempted to secure such a letter and a self-scored LIHTC application under the Qualified Allocation Plan

Amendment to Annual & Five Year Plan
(Should be done immediately!)
See PIH 2013-31-Attachment 1D for the specific requirements.
Conversion to the RAD Program is considered a
“significant amendment” to the PHA’s Five Year
Plan for both qualified and non-qualified PHA.
RAD Conversion is subject to the Consolidated
Plan requirements and public notice and Resident
Advisory Board consultation requirement per 24
CFR Part 903.
Policy changes must be submitted to HUD within
60 days of CHAP delivery.
Public notice and at least one public hearing

Must include the following:
A description of the units to be converted, including type of units (family, elderly, etc.) and bedroom distribution.
Any change in the number of units, including the de minimis unit reduction (5% or 5 units).
Any change in bedroom distribution
Any change in policy governing admission, eligibility, selection and occupancy after conversion (including waiting list preferences).
Transfer of assistance where the converted units will be moved to another location
HUD will review all amendments for civil right, executive order and regulatory compliance.

(Attachment 1B.2)
Residents must be notified and have an ability to comment on the conversion in writing. Resident comments must be responded to
At least 2 Resident meetings must be held prior to submitting an application and 1 additional meeting after selection and prior to execution of the HAP contract.
Similar to Demo/Dispo process

(Attachment 1C-Pages 79-81)
Rent cannot exceed current funding
Initial contract rents cannot exceed the lower of:
Current funding (adjusted for bedroom size)
The reasonable rent
Up to 110% of the applicable FMR, minus any utility allowance
The rent requested by the owner

Step One-Determine Current Funding
Step One-Determine Current Funding
PUM Subsidy at full occupancy
The amount of the PHA’s Capital Fund Grant
PUM adjusted formula income (Rent)
Example:
$340.00 PUM Operating Subsidy
$135.00 PUM Capital Fund
$308.00 PUM Adjusted Formula Income
$783.00 PUM Current Funding

Step Two-Apply Bedroom Adjustment Factor
The weighted current funding is adjusted by a bedroom adjustment factor to arrive at a bedroom specific rent schedule.
Bedroom Size 1 Bdr 2 Bdr 3 Bdr Total
100 PIC Units
FMR
20
$650
FMR Bdr.
Adjustment
Bdr. Adjustment
Rent
0.839
$646
50
$775
1.00
$770
30
$900
1.161
$894 $783

Step Three-Apply Rent Caps PBRA
HUD will compare the Current Funning Rents from Step 2 with the rent caps to determine the HAP Contract Rent.
Bedroom Size 1 Bdr
Current Funding (Step 2) $646
120% of FMR
-Utility Allowance
$780
$50
FMR Rent Cap
Market Rent
*PBRA Contract Rent
$730
$640
$646
2 Bdr
$770
$930
$60
$870
$740
$770
3 Bdr
$894
$1,080
$70
$1,010
$830
$894
*Contract shall be the lower of the Current Funding or the 120%
FMR cap. In this example the current funding is less than the
120% of FMR.

Step Three-Apply Rent Caps PBV
Bedroom Size
Current Funding Rents
(Step 2)
Reasonable Rent
110% of FMR
-Utility Allowance
FMR Cap
*PBV Contract Rent
1 Bdr
$646
$640
$715
$50
$665
$640
2 Bdr
$770
$740
$853
$60
$793
$740
3 Bdr
$894
$830
$990
$70
$920
$830
When converting to PBV, the contract rent is the lower of the current rent, 110% of FMR (minus utilities) or reasonable rent. In this example the Reasonable Rent is the lower amount.

PBRA Rent Cap
Lower of:
Current Funding or
120% of FMR (less utility allowance)
Except where current rent funding is below market, wherein rent is limited to 150% of FMR
PBV Rent Cap
Lower of:
Current Rent
110% of FMR (less Utility Allowance)
Reasonable Rent

Once you convert to RAD, you will no longer receive Operating or Capital
Fund subsidies.
HUD will post presumptive contract rent calculations for every public housing project at www.hud.gov.rad

Due by: On-going application period
Ranking/Scoring
Capital Needs
Green Building
Choice Mobility
Priority Project
All applicants must complete the Microsoft Excelbased RAD Application which will be available on the RAD website ( www.hud.gov/rad ). The application will contain certain pre-populated project data.
Applications will be accepted on a project by a project basis

Filed at: RADapplication@hud.gov
RAD Board Approval Form-includes the proposed pro-forma and other key certifications and must be approved by the Board of Commissioners and signed by the authorized representative.
Financing Letter of Interest/Intent-from each lender or equity investor indicating that the proposed pro-forma is reasonable. This is not necessary where the long-term capital needs are being met from a reserve for replacement.
Mixed Finance Affidavit-is required where the PHA is requesting to convert public housing to a mixed finance project.
Choice Mobility Letter-signed by the voucher agency that has committed to provide Choice Mobility vouchers. This is not necessary where the PHA is meeting this requirement through turnover in their own voucher program.
Designation of PBV Administering agency-the PHA must identify the agency that will be administering the PBV contract (signed letter from the administering agency)
Resident consultation-include responses to comments received in connection with the resident meetings on the proposed conversion to RAD
All required materials (Including attachments) must be submitted electronically using the Excel-based RAD application. Attachments must be included as PDF files. NO PAPER OR FAX SUBMISSIONS AREV
PERMITTED.
There is no cap on the number of applications that a PHA can file.

High Capital Need
Projects (0-50 pts)
Applications that propose to meet or exceed the established thresholds for high capital needs will receive the maximum 50 points.
Occupancy
Type
Family
Elderly
High Need
$37,665
$21,834

Choice-Mobility Commitment (20 pts.) Evidence must be provided documenting that at least 15% of the assisted residents have the annual mobility option. It must be demonstrated that there are sufficient turnover vouchers available to cover this option.

If the PHAS does not have a Voucher Program, another agency may donate vouchers to cover the project.
Both agencies will earn the 20 mobility points.
Both agencies must complete and execute a Choice Mobility
Letter as part of the application.
The donating agency will have 60 days from the issuance of the commitment letter (CHAP) to submit a significant amendment to its annual plan to HUD for approval. If it is not received the CHAP will be revoked.
HUD may issue exemptions to the Choice Mobility
Component for PBRA for up to 10% of the awards under the demonstration. The good-cause exemption must be listed in the application. The PHA may amend its application, during the application period, to indicate that it will meet the Choice
Mobility requirements.

Green Building & Energy Efficiency
(10 pts) The PHA must commit to pursue industry-recognized standards and certification for green building
(Enterprise Green Communities
Criteria, LEED, Energy Star, etc). A certification must be submitted after completion of the renovations providing evidence that the green standards have been achieved.

PHA Priority Project (20 pts) A PHA may designate only one project for which it submits a RAD application as a “priority project” except for small
PHAs which may designate all projects as priority project. The project will automatically earn 20 ranking points

Summary of Ranking Factors Points
High Capital Need
Choice Mobility Factor
0-50
20
Green Building & Energy
Efficiency
PHA Priority
TOTAL
10
20
100

(Commitment to Enter into a Housing Assistance Payment
Contract)
All PHAs will be notified of their selection via issuance of an award letter, signed by HUD.
Attached to the award letter will be a Commitment to Enter into a Housing Assistance Payment
(CHAP) which will indicate HUD-approved terms and conditions for the conversion.
CHAPs are not subject to negotiation by the PHA or a third party.
The PHA has 15 days in which to notify HUD that they are refusing to terms of the CHAP.

(Commitment to Enter into a Housing Assistance Payment
Contract)
The CHAP may be revoked:
Upon HUD Determination of financial infeasibility
PHA failure to meet required deadlines
PHA Non-cooperation
Violation of program rules & restrictions, including fraud
PHA failure to submit an approved significant amendment to HUD
If HUD determine that the conversion would be inconsistent with fair housing, civil rights laws, fair housing or civil rights court orders, settlement agreement or voluntary compliance agreements

(Commitment to Enter into a Housing Assistance Payment
Contract) Pages 59-62
Within 30 days following CHAP issuance the PHA must submit to
HUD:
Accepted Lender Engagement or
Commitment letter (if applicable)
Statement of Development Team
Capacity
PHA’s decision whether the project will convert its assistance to PBV or PBRA.

(Commitment to Enter into a Housing Assistance Payment
Contract)
Within 90 days following chap issuance, the PHA must submit to HUD a certification from the PHA that all industry-standard due diligence has been performed for and received by the lender and/or financing source. It must include the Physical
Condition Assessment (PCA), appropriate environmental reports, an appraisal, survey and title insurance.
Projects without financing must submit a copy of the PCA

(Commitment to Enter into a Housing Assistance Payment
Contract)
Within 150 days following CHAP issuance, the PHA must submit a certification that it has applied for form commitments of all financing. FHA insurance must be in the form of the
Firm Commitment Application to FHA.

(Commitment to Enter into a Housing Assistance Payment
Contract)
Within 180 days following CHAP issuance, the PHA must submit a
Financing Plan (See attachment 1A.1)
HUD will have 60 calendar days from the date of submission to approve. Reject, or request additional information.
The PHA may make corrections that satisfy HUD or appeal HUD’s decision within 30 days of notification.
PHAs will be notified of HUD approval of the Financing Plan via issuance of a RAD Conversion Commitment (RCC), conditioned upon firm commitment of financing from a lender (see 1A.2-
Contents of RAD Commitment)
The PHA has 30 days of issuance of the RCC to execute and return to HUD. Failure to return will result in the forfeiture of the award.
Once the RCC is executed, HUD expects the RAD conversion to close quickly. The RCC will allow 90 days from issuance to closer the transaction.
The RCC will be an attachment to the RAD Use Agreement

(Commitment to Enter into a Housing Assistance Payment
Contract)
Within 320 Days following issuance of the CHAP (not later than 40 days following closing), the PHA must submit evidence of firm commitment of financing or evidence of equivalent milestone in securing all sources of financing required to the close the deal.

(Commitment to Enter into a Housing Assistance Payment
Contract)
Within 360 days following CHAP issuance, the PHA must reach closing.
The Financing and RCC must include a reasonable timeline for completion of all rehabilitation items acceptable to HUD, generally 12 to 18 months from the date of the closing.

The closing will include the following:
Release of the Declaration of Trust
Removal from the public housing ACC
Execution of the new PBRA or PBV HAP contract and RAD Use agreement
Recordation of the RAD Use Agreement
Closing of any bridge, construction or permanent debt or equity financing.
Closing of the Terms and Conditions of the
RCC

“CHAP Milestones”
On-going application period
Opens 10/24 (First-Come, First Serve)
Award letter-must accept or refuse terms of the CHAP within 15 days
Lender Engagement letter/Development Team statement-within 30 days of
CHAP
Annual & 5 year Plan Amendment and PBV/PBRA decision-60 days after
CHAP
Certification regarding due diligence-within 90 days of CHAP
Application for firm financing commitments completed-within 150 days of
CHAP
Financing Plan-within 180 days of CHAP
Evidence of firm financing commitments-within 320 of CHAP
Closing-within 360 of CHAP
NOTE: Failure to meet CHAP milestones can cause the CHAP to be revoked.

This is a decision that rest with each individual PHA at each individual project.
There are many factors to consider!

Do you think that funding for the public housing program will stabilize in the future?
Once you receive your CHAP, all covered units shall not be issued
REAC scores for the fiscal year in which the CHAP was issued, nor any subsequent year until the time of conversion.
Asset Management will be eliminated for the projects that are converted and may also place you under the 400 unit threshold for project based accounting and management.
After conversion, units shall be subject to the Section 8 requirements.
If you file an application by 12/31/13 you will be locked into the
2012 Operating fund level as a component of your rent.
What are your capital needs. The 4% LIHTC program is providing about $35,000-$45,000 per unit in rehabilitation.
Can you afford the planning expenses?
Once you convert, you will no longer receive Operating or Capital
Funds.

The cost of preparing the application is not that great.
You can withdraw your application at anytime up to the point of closing.

Determine if you have in-house capability to prepare the RAD application or you need to hire a consultant.
Estimate your Capital Needs from your existing Physical Needs
Assessments-PNA.
Prepare a vision of what you want to accomplish through the RAD conversion
Determine RAD feasibility for your units.
Determine if you have sufficient HCV turnover to support Choice
Mobility
Determine whether you will be converting the PBV or PBRA.
Verify that the number of units that is included in your application equals the total of units listed in the PIC system.
Amend your Annual & Five year plan to include RAD.
Meet with your residents (twice) before submitting your application.
Prepare a “draft application”
Obtain the Financing Letter of Interest/Intent
Prepare RFPs and start assembling your development team (Technical
Consultant, Investment Banking Services, Tax Credit Consultant, PCA architect/engineer, design architect).
You will also eventually need a property appraisal and a market study.

Thank-you for attending wfsnyder@earthlink.net