RENTAL ASSISTANCE DEMONSTRATION RAD RAD 101 AND PROGRAM UPDATE 6/9/20151

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 thousand units per year 6/9/20152

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 (non- competivie 6/9/20153

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 6/9/20154

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 6/9/20155

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 6/9/20156

FHA FIRST MORTGAGE Approximately 40% PHAs deals to use FHA 70% - Section 223(f) 30% - Section 221(d)(4) Mortgagee Letter Provides underwriting guidance FHA MAP review modeled on streamlined Pilot Davis Bacon required on all initial repairs 6/9/20157

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reviews of RAD applications – 30 days Issue conditional approvals pending the lifting of cap If and when CHAPs are withdrawn/revoked, pull projects from wait list 6/9/20158

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 6/9/20159

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 6/9/201510

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 6/9/201511