Rental Assistance Demonstration (RAD) Overview

Rental Assistance Demonstration (RAD) Overview

Asbury Park Housing Authority was a successful applicant in the Rental Assistance Demonstration (RAD).  As a result APHA will be converting 4 sites into Project Based Vouchers under the guidelines of PIH Notices.

RAD was designed by HUD to assist in addressing the capital needs of public housing by providing APHA with access to private sources of capital to repair and preserve its affordable housing assets.  Upon conversion the Authority’s Capital Fund Budget will be reduced by the pro rata share of Public Housing Developments converted as part of the demonstration.

RAD is authorized by the Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112-55, approved November 18, 2011), which provided fiscal year 2012 appropriations for HUD (2012 Appropriations Act).

The first component of RAD allows projects funded under the public housing and Mod Rehab programs to convert their assistance to long-term, project-based Section 8 rental assistance contracts.  Under this component of RAD, public housing agencies (PHAs) and Mod Rehab owners may choose between two forms of Section 8 Housing Assistance Payment (HAP) contracts: PBVs or PBRA.  No incremental funds are authorized for this component.  PHAs and Mod Rehab owners will convert their assistance at current subsidy levels.  The 2012 Appropriations Act authorizes up to 60,000 units to convert assistance under this component, to be selected competitively.

RAD STATUS 

12/2013 RAD Applications were submitted to the HUD RAD Applications Division for Comstock Court, Robinson Towers, Lumley Homes and Washington Village.

Since 2013 there have been several appraisals and assessments done on the 4 sites to determine the need for RAD.

03/ 2015 APHA received HUD’s CHAPs (Commitments to enter into Housing Assistance Payments Contracts) letter for all 4 developments.

05/2015 APHA Board of Commissioners approved a Resolution to appoint Innova Services as General Contractor for renovations/rehabilitation on RAD units and in June 2015 they began reviewing blueprints to define scope of work.

07/2015 RAD Significant Amendment to the APHA 5-Year Plan and Annual Plan to include Resident Rights, Participation, Waiting List and Grievance Procedures and Joint Housing/PIH Notice H-2014-09/PIH-2014-17.

08/2015 APHA Board of Commissioners approved Resolution to engage Bellwether as agent to process and obtain the FHA mortgage insurance pursuant to FHA’s MAP program for the insured loan.

08/2015 Resident Advisory Board Meeting to review, discuss and comment on the RAD significant amendment to the APHA %5-Year and Annual Plan.

08/2015 Engagement letter separating family and senior projects.  (HUD/FHA does not allow Family and Senior projects to be combined for one financing).

08/2015 Maestro Board passed Resolution awarding Reno & Cavanaugh PLLC to form 2 NJ Limited Liability Companies and process the RAD administration of loan closing binder.

09/2015 Received draft of RBC Capital Markets Letter of Intent to manage and fund 4% LIHTC transaction for RAD units

10/2015 – 12/2015 Series of inspections and assessments conducted by Dominion Due Diligence Group, Gill Group, Bellwether and Vogt Strategic Insights.  Questionnaires complete and sent along with requested documentation.

11/2015 Finalized RBC Capital Markets Letter of Intent to manage and fund 4% LIHTC transaction for RAD units.

11/2015 APHA Board of Commissioners passed Resolution of Need from City and Pilot Resolution to City.

12/2015 LIHTC Pilot Concept Meeting conducted by NY and Boston HUD Offices

01/2016 Applied for 4% Tax Credits

02/2016 Financial Plan for TC Equity and FHA Loan submitted to HUD

03/2016 Present HMFA Board Resolution for LIHTC Application to APHA Board of Commissioners

05/2016 Submitted PIC removal application for RAD units

PENDING

Closing date for Tax Credit funding and FHA Loan.  Projected date is December 2016.  (Subject to change)

Create Relocation Plan for RAD

2017-09-19T14:05:46+00:00 May 30th, 2016|Categories: Financial, Revitalization|