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 4/13/2015 2 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 4/13/2015 3 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 4/13/2015 4 Contracts and Rents (PH) • • • • • • 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 4/13/2015 5 RAD Financing • • • • 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 4/13/2015 6 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 4/13/2015 7 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reviews of RAD applications – 30 days • Issue conditional approvals pending the lifting of cap • If and when CHAPs are withdrawn/revoked, pull projects from wait list 4/13/2015 8 RAD UPDATE Total Active PIH CHAPs = 290 Projects 38,173 units Total Active Mod Rehab ChAPs = 7 Projects 878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 4/13/2015 9 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 4/13/2015 10 RAD in Massachusetts • • • • • • 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 4/13/2015 11