RENTAL ASSISTANCE DEMONSTRATION (RAD) PROJECTS
Increasingly, the revitalization of public housing developments includes project-based vouchers, often through HUD’s Rental Assistance Demonstration (RAD) program. RAD was introduced in 2012 to give housing authorities a tool to preserve and improve public housing properties and to address a $26 billion nationwide backlog of deferred maintenance.
Since RAD’s inception, D+B has become very familiar with the complexities inherent in RAD conversions. D+B works with PHAs to evaluate RAD’s impact on their financial operations; factors include the scope of RAD conversions relative to an overall portfolio as well as existing and potential sources of revenues. For PHAs that are new to redevelopment, are beginning to undertake master planning or asset repositionings, or are unfamiliar with the RAD program, D+B has provided board and staff trainings in RAD.
Among D+B’s RAD-related projects are the following:
- D+B worked with the Greensboro (North Carolina) Housing Authority to convert the majority of its conventional public housing stock to RAD. D+B assisted the GHA in the submission of ten RAD applications in 2014 and in the closing of eight transactions (debt only and no debt) in 2015.
- In 2014, D+B was selected as financial consultant to the Housing Authority of Columbus Georgia (HACG), which gained HUD approval to convert its entire public housing portfolio under RAD. D+B’s scope of services includes program management services on the initial phase of RAD conversion of 784 units. D+B assisted in all aspects of the development, including running financial projections, negotiating with financing partners, preparing tax credit projections, preparing relocation budgets, and preparing the HUD financing plan and other RAD-related submissions.
- D+B assisted the Philadelphia Housing Authority in conducting an evaluation of its portfolio for RAD conversion at the onset of the program in 2012–2013, and in August 2015 the housing authority closed on its first RAD transaction, Blumberg Apartments Phase I—a 57-unit new development for which D+B provided development consulting services.
- D+B has partnered as co-developer on RAD projects in several cities. For example, D+B and L+M Development Partners were recently selected to convert three properties owned by the Municipal Housing Authority of the City of Yonkers (NY) to RAD. The project is anticipated to close in second quarter 2017, and the 849 units will be rehabilitated with tenants in place. In Jacksonville and Winter Park, FL, D+B and Gardner Capital Development Florida were recently selected to redevelop housing authority sites and are evaluating the feasibility of building new construction under the RAD program.