NAVIGATING THE RAD PROCESS A PUBLIC PRIVATE COLLABORATION GLORIA MUNOZ | ZACH JOHNSON | KEVIN KELLOGG PSWRC - NAHRO 2018

HOUSING AUTHORITY OF MARICOPA COUNTY RAD PORTFOLIO CONVERSION – A STRATEGY FOR GROWING OUR REGIONAL IMPACT HOUSING AUTHORITY of MARICOPA COUNTY H A M C Gloria Munoz, Director Executive Director

AGENCY PROFILE Medium-size Agency HOUSING AUTHORITY OF MARICOPA COUNTY Medium-size Agency Develop and Manage Multifamily and Single Family Homes 573 units including 3 tax credit properties 600 units in co-partnerships 1,173 units total

AGENCY PROFILE 1,600+ Section 8 Housing Choice Vouchers HOUSING AUTHORITY OF MARICOPA COUNTY 1,600+ Section 8 Housing Choice Vouchers Homeless Attrition through HCV another 8- 10 units a month 100 state funded vouchers for specials needs 20 vouchers for people coming out of the correctional system

PORTFOLIO ASSESSMENT Public Housing inventory review HOUSING AUTHORITY OF MARICOPA COUNTY Public Housing inventory review Assess long term capital needs Capital needs for each site Operating needs long term 30 year time horizon

INTERNAL COLLABORATION HOUSING AUTHORITY OF MARICOPA COUNTY Reviewed the property assessment with our internal property management team to validate the findings. Shared the property assessment at a board and staff retreat to obtain input and determine priorities by site.

CAPACITY BUILDING Assemble a team to execute the plan Lead RAD manager HOUSING AUTHORITY OF MARICOPA COUNTY Assemble a team to execute the plan Lead RAD manager Internal staff External Consultants

STRATEGIC PLANNING HOUSING AUTHORITY OF MARICOPA COUNTY Priorities were identified with site specific strategies Housing Plan was formalized and adopted by Board. Agency Plan was updated to include the Housing Plan

STRATEGIC PLANNING HOUSING AUTHORITY OF MARICOPA COUNTY We decided a possible financing strategy by site and/or consolidation of sites. We determined the type of rental subsidy (PBV or PBRA) by site.

IMPLEMENTATION Developed a Timeline & Plan by Site : HOUSING AUTHORITY OF MARICOPA COUNTY Developed a Timeline & Plan by Site : Sites that require a co-developer (9%, PABs, 4%), RAD rehab conversions Projects that can be managed internally with other types of financing (HOME, Conventional, Capital Funds, Public Housing Reserves

FOCUS ON RAD HOUSING AUTHORITY OF MARICOPA COUNTY Identify who in your agency will take the lead on the conversion for your agency. This person will represent the agency with HUD RAD Transaction Manager, Closing Coordinator HUD Field Office for PIC, Agency Plan, EPC This person will coordinate Internal and external development team members

Gorman & Company, LLC Revitalizing Communities and Building Neighborhoods Since 1984 Zach Johnson, Development Manager

Gorman & Company, LLC Top 10 Affordable Housing Developer in U.S. Headquartered just outside of Madison, WI Offices in Milwaukee, Denver, Phoenix, Chicago and Miami 8,500 units in 100 Projects in 9 States Approximately 500 RAD units completed, 750 units moving to close, 1000 units with CHAPs and FP due dates Gorman

Partnership with the Housing Authority of Maricopa County 143 Total Public Housing Units (3 sites in Avondale and Buckeye, AZ) Madison Heights site – 77 units on 10 acres (7.7 units to the acre) Immediately adjacent to Agua Fria High School Walking distance to grocery, shopping, high capacity transit

Partnership with the Housing Authority of Maricopa County

Partnership with the Housing Authority of Maricopa County 301 Total Public Housing Units Coffelt site – 301 units on 38 acres (7.9 units to the acre) 1 acre park, 5000 square foot community building anchors the site Immediately adjacent to Arthur Hamilton Middle School

Partnership with the Housing Authority of Maricopa County

Benefits of Partnering with a Private Developer Comprehensive knowledge of affordable housing development Expertise and experience with Section 42, CFR Part 983, Uniform Relocation Act, Section 3 Relationships with financial partners, predevelopment lenders, industry figures, public officials, state finance agencies Ability to provide financial guarantees

Benefits of Partnering with a PHA Existing Properties Real Estate Tax Exemptions RAD Control Provisions Additional Capital Sources Operating Subsidy

Master Development Agreement Legal document that serves as a comprehensive plan for ongoing and future development Clearly defines roles & responsibilities Lays out financial responsibilities of all parties Defines financial benefits of all parties Dictates how development team is selected Defines predevelopment funding and financial guarantee obligations

Current Status of RAD Omnibus spending bill includes historic $4.7 billion increase in HUD funding (9.8% increase in funding from FY2017) Increases RAD cap from 225,000 to 455,000 units Creates an income averaging option for LIHTC properties Increases the 9% LIHTC allocation by 12.5% for the next four years

HOUSING AUTHORITY OF MARICOPA COUNTY ENGAGEMENT, COMMUNICATION COLLABORATION HOUSING AUTHORITY of MARICOPA COUNTY H A M C Kevin Kellogg Housing Development Manager

PHA RAD LEAD MANAGE THE RAD DEVELOPMENT PROCESS HOUSING AUTHORITY OF MARICOPA COUNTY MANAGE THE RAD DEVELOPMENT PROCESS ENGAGE INTERNAL AND EXTERNAL STAKEHOLDERS COLLABORATIVE PROBLEM SOLVING COMMUNICATIONS HUB FOSTER RELATIONSHIPS

PHA CO-DEV HUD PH RESIDENTS FUNDERS COMMUNITY CONSULTANTS CITY

PHA HUD PH RESIDENTS FUNDERS COMMUNITY CONSULTANTS CITY

RIVER AT EASTLINE VILLAGE

HERITAGE AT SURPRISE

CONCLUSIONS RAD IS HERE TO STAY AND EXPANDING HAVE A CLEAR STRATEGY FOR PORTFOLIO DEVELOP INTERNAL CAPACITY SEEK OUT PARTNERSHIPS WITH QUALITY DEVELOPERS THE KEY SUCCESSFUL TEAMWORK DEVELOPING RELATIONSHIPS AND A CULTURE OF TRUST