Rental Assistance Demonstration Program Housing Authority of the City of Cumberland

Notifications As part of our application process, we are required to do two resident related items: Distribute a letter to all households explaining our application and possible relocation activities Conduct two Resident Meetings which a notice was distributed to all households listing dates, times and locations.

Resident Information Meetings October 22, 2015 at 3:00 p.m. Queen City Tower Community Room October 23, 2015 at 11:00 a.m. John F. Kennedy Apts. Community Room October 26, 2015 at 6:00 p.m. Jane Frazier Village Community Room ALL RESIDENTS INVITED AND ENCOURAGED TO ATTEND. REQUIRED ACTION FOR APPLICATION SUBMISSION

Save Your Questions Save your questions to the end as the presentation is designed to answer most of your questions, dispel false rumors and give you the facts.

FALSE RUMOURS We have sold our developments You can’t sell a government agency! We are in bad financial condition financial condition is strong despite budget cuts, clean audits for years, reserves funded to 70-95% (required to be less than 100%)! We have run HACC into the ground We are a HUD high Performing Agency for 17 continuous years including 2015!

FALSE RUMORS Social Security recipients will get 1 Br units and TDAP will get efficiencies You will get same size as you have now or move up to a 1 Br due to eliminating some efficiencies We are closing the developments we have 425 units of affordable housing and if conversion occurs we will still end up with 425 units.

What is RAD? The Rental Assistance Demonstration (RAD) is a HUD program that will allow the Housing Authority to convert properties from conventional public housing support, with traditional capital fund subsidies and operating fund subsidies, to Project Based Rental Assistance program with a Housing Assistance Payment (HAP)contract.

At conversion, PHAs will convert funding to a Section 8 contract rent How does RAD Work? At conversion, PHAs will convert funding to a Section 8 contract rent

Why was RAD established The public housing inventory across the Country and here in Cumberland is aging. Four of five developments are 45 – 63 years old with never having a significant modernization. They are becoming more obsolete and have an increasing backlog of unmet capital funding needs. The backlog of HACC is greater than 18.7 million dollars

Why was RAD established Operational Subsidies have declined over the past 10 years as much as 18% Capital funding has declined 24% over the past decade and is estimated to be funded at less than half of the annual need The funding is insufficient to meet the growing backlog of capital needs. The backlog of HACC is greater than 18 million

How does RAD Work Replaces the HUD deed of Trust with a RAD use agreement so the Housing Authority can borrow against the property to fund renovations. RAD provides a defined and more secure project subsidy from HUD. Locks in the current level of project subsidies in a Section 8 HAP contract with built-in annual operating cost adjustment factor (OCAF) increases that would address inflation.

How does RAD Work Units are managed and operated under the HUD Multi Family regulations by the Housing Authority. Allows the development to access private debt, grants and equity to finance capital needs. Allows the Housing Authority to more easily seek Low Income Housing Tax Credits to renovate communities and build new housing.

How does RAD Work RAD creates greater funding certainty while allowing increased operational flexibility for the Housing Authority Better platform for long-term preservation Simplification and streamlining of program operations

Benefits to Residents New and remodeled living units with modern enhancements, appearance and accessibility Enhancements and improvements to physical exterior appearance of the development, common areas, etc. to meet the needs of the residents

What Work Will be Performed There have been no plans made as of this date as to what improvements, enhancements, changes etc. will be done. We are in the application phase only and a staff workgroup is beginning to discuss these issues now with many months of work ahead. Our only plan so far is to improve the quality and appearance of all units and common areas

Impact on Residents Will the rent residents pay change a result of RAD? Residents will continue to pay no more than 30% of adjusted income. If RAD conversion results in a resident’s rent going up by more than 10% or $25.00 per month the increase will be phased in over a 3 to 5 year period.

Impact on Residents Will residents have to sign a new lease? Yes, however, current public housing residents will not be rescreened, or face other income eligibility criteria or income targeting provisions. If you are lease compliant before RAD conversion you can not be displaced. A resident’s lease must be renewed unless just cause exists.

Impact on Residents Requirements for adequate written notice of lease termination and access to grievance process are retained. Residents may still participate in Resident Opportunities and Self Sufficiency programs. Residents can still operate tenant organizations.

Will I Need to Move RAD provides the ability for the needed repairs and modernization renovations to be made to the residential units and common areas. Every effort will be made to allow you to stay in your home during most construction in the common areas and to other units or buildings. However, at some point it is likely you will be required to move at least once

Reason You Will Need to Move Renovation of residential units will require them to be vacant for a short period of time. Renovations to adjoining units, common buildings, or common areas near your residential unit. Elimination and relocation of certain units All relocations will be done for your Safety and to provide you with an enhanced living environment

Relocation Transfer Residents should not be displaced more than 12 months. Any temporary relocation more than 12 months must comply with Uniform Relocation Act. No permanent involuntary displacement will take place.

Relocation Transfer Residents will be notified in writing at least 90 days in advance of any move. The Housing Authority will be responsible for coordinating and arranging the transfer. The expenses of physically moving and the utility transfers will be paid by the Housing Authority.

Relocation Transfer Residents will be temporarily or permanently relocated to another unit within the same development dependant upon whether the unit transferring to has been renovated. Residents may be temporally transferred to another development if there are no available units within their own development.

Relocation Options Option 1: Temporarily relocate within the same development and A: return to same unit when completed B: return to another unit or floor when completed Option 2: Temporarily relocate to another development and

Relocation Options Option 3: Relocate to another development – Permanently Option 4: Move out of all HACC housing Every attempt will be made to accommodate the tenants requested relocation option but it will not be possible to accommodate all requests.

Relocation Options The Housing Authority does have the legal authority to require relocation of tenants as necessary in order to accommodate operations, unit sizes, designated units/buildings, etc. We will do our best to make this as easy as possible and accommodate your needs IF relocation is necessary!

Reasons You May not be Able to Return to Your Unit Some units will no longer exist due to the planned enlargement of some units and the creation of assessable units at all developments The planned deconcentration of units/buildings at Jane Frazier Village and Fort Cumberland Homes

RAD Improvements Modernization of residential units Exterior improvements to buildings Enhancements to playgrounds, walks, parking, community centers Conversion of several units into wheelchair/scooter assessable units De-concentrate the family developments

First Phase RAD Projects John F. Kennedy Apts. Fort Cumberland Homes Due to the conversion of several units at these sites for accessibility and the possible elimination of a units to de-concentrate the population of FCH, new units may be constructed at another location to replace those units lost and will be offered to historically good tenants (clean units, rent paid on time, no problems, etc.)

First Phase RAD Projects Banneker Gardens Will see minimal exterior improvements Conversion will be limited to operational components

Second Phase RAD Projects Queen City Tower Jane Frazier Village Due to the conversion of several units at these sites for accessibility and the possible elimination of a units to de-concentrate the population of JFV, new units may be constructed at another location to replace those units lost and will be offered to historically good tenants (clean units, rent paid on time, no problems, etc.)

Next Steps The number of RAD units is limited and more and more authorities are opting to convert to RAD. It is currently capped at 185,000 units with applications on file for all of those units. Our application will get HACC on the waiting list in case units become available. we will continue to evaluate the program

Conversion Steps Board Approves Concept & Staff Meets with Residents PHAs submits Excel-based Application to HQ HQ reviews application and requests Field Office input on Eligibility HQ issues awards/Commitments to Enter Housing Assistance Payments Contract (CHAPs) PHAs have 6 months to submit Financing Plan to HQ for review Multifamily Housing Asset Management Subsidy Administration PBRA Project converts Remove from ACC Release DOT Execute HAP Execute RAD Use Agreement Close Financing HUD issues RAD Conversion Commitment

RAD Conversion Timeline Housing Authority Submits Application November 2015 HUD Reviews & if Approved Awards CHAP March 2016 Housing Authority Submits financing Plan November 2016 HUD Accepts Financing Plan January 2017 Execute HAP w/HUD & Close on Financing March 2017 Conversion Financing Complete and Begin Modernization April 2017 These Dates are only the earliest possible estimates

Application Submittal Only NOTE: HACC will have the option at any time in the process to withdraw its RAD applications and is not committed until it actually executes the HAP contract with HUD. This is not something that will be occurring in the near future and when it does will be a long process to complete.

INFORMATION DO NOT believe anything that doesn’t come published by HACC! If you have a question contact your Property Manager to get the correct answer. You will be kept advised if and when activities begin to occur.

with upgraded, modern, attractive, safe and affordable housing ULTIMATE GOAL We have but one goal in this conversion To provide our residents with upgraded, modern, attractive, safe and affordable housing for the next 63 years!

RAD QUESTIONS COMMENTS CONCERNS