1. RAD Program Overview

2. Public Housing Status Quo
Why RAD?
Public Housing Status Quo
Capital repair needs $25.6 billion
$23,365 per unit
Unreliable funding platform (pro-ration, cuts)
Unable to access private debt and equity due to public housing declaration of trust (DOT)
Losing 10,000 – 15,000 physical units annually
Response: RAD
Section 8 funding platform
Release from DOT

3. Build on the proven Section 8 platform
RAD Goals
Build on the proven Section 8 platform
Leverage private capital to preserve assets
Offer residents greater choice and mobility

4. RAD Authority
Authorized in Consolidated Further Continuing Appropriations Act of 2012
Draft Notice PIH (3/8/12)
Final Notice PIH (7/26/12)
Updated Notice issued 7/2/13
Revised Updated Notice Issued 6/5/15

5. Multiple Aspects of RAD
Component 1
RAD for Public Housing (Orignally Competitive)
RAD for Mod Rehab (Originally Competitive)
RAD for Mod Rehab – Now Under Component 2
Component 2
Other aspects of RAD are:
RAD for Mod Rehab (Non Competitive)
RAD for RAP and Rent Supplement (Non Competitive)
Subject Only to Availability of Appropriations

6. Key Provisions: Public Housing
Voluntary
PHA can choose:
Project-Based Rental Assistance (PBRA) or
Project-Based Vouchers (PBV)
Projects convert at current funding
or PBRA-PBV limit, if lower
Choice-Mobility is required
With limited exemptions
Resident Protections

7. Conversion at Current Funding
At conversion, PHAs will convert funding to a Section 8 contract rent
ACC
Section 8

8. Current Funding, PBRA & PBV Rent Caps
PBRA Cap—lower of
Current funding, or
120% of FMR (less utility allowance)
EXCEPT where current funding is below market (note 1)
PBV Cap—lower of
110% of FMR (less utility allowance), or
Reasonable rent (note 2)
Note 1: Where the PBRA exception applies, the PHA submits an RCS for HUD review. Rent is lower of comparable market rent or 150% of FMR (minus U/A).
Note 2: Reasonable rent is a market rent determination made by the PHA that administers the vouchers. Typically a staff determination; often based on a desk review.

9. Rules differ for PBRA and PBV
Choice-Mobility
General concept:
Residents have the opportunity to exchange their project-based Section 8 slot for a tenant-based voucher
Opportunity is available only after an initial minimum occupancy period
Rules differ for PBRA and PBV
Generally required for all RAD public housing conversions
Some PBRA projects can receive good cause exemptions

10. Davis-Bacon and Section 3 apply to the initial rehab
Other
Davis-Bacon and Section 3 apply to the initial rehab
Ability to transfer assistance to another property after 10 years
Resident protections/resident participation
Use Agreement
Physical Condition Assessment (PCA)

11. Conversion Awards - Component 1
RAD Statistics As Of 5/31/15
Units
Projects
Statutory Cap
185,000
n/a
Active CHAPS
104,489
879
Closed Conversions
17,214
164
Applications Under Review
19,346
183
Total Awarded
177,084
1,472
Multiphase/Portfolio Reservations
36,035
246
Authority Remaining
7,916 43
RAD Component 2
Units
Projects
Active Conversions
3,221 25
Closed Conversions
15,295
114
5/16/2013

12. Public Housing Initial Awards – Key Characteristics
$Total Construction Activity Leverages
$971,367,463
5/16/2013

13. RAD Financing Debt Conventional Soft secondary Credit enhancement
FHA Insurance
FHA Mortgagee Letter for RAD transactions
LIHTC Pilot
LIHTCs
4% availability & considerations
9% availability & considerations

14. RAD Sweet Spot—4% LIHTCs
RAD Financing
RAD Sweet Spot—4% LIHTCs
Rehab needs above $24k/unit to ~$40k/unit
Ease of meeting 50% test with RAD rents
Available Volume Cap
Non-competitive
QAPs favoring preservation, green
Evolving, accessible short-bond structure
Historically low borrowing rates

15. RAD Sweet Spot—9% LIHTCs
RAD financing
RAD Sweet Spot—9% LIHTCs
Above $40K: Targeted prospects for substantial rehab & replacement housing
No Section 18 review
Income mixing
Split project (AMP)
9% LIHTC used to help cover relo/demo/first phase
4% LIHTC for balance of site
RAD HAP contract(s) for off-site replacement
Acquisition/rehab
New construction

16. Developer Opportunities

17. Developer Opps Partner with PHAs to
Modernize aging family & elderly properties
Substantial rehab of deteriorated properties
Demolish/replace severely distressed/obsolete properties
Thin densities/mix incomes via RAD HAPs and transfer authority
Place RAD HAP contracts in off-site units in high amenity locations
Increase QAP scoring by serving more VLI families
New 20 year HAP contract funding
2/2/2012

18. New Mixed Finance Transactions
Developer Opps, cont’d
Restructure existing Mixed Finance Transactions to avoid Transformation Remedies
RAD available to all mixed finance transactions not using HOPE VI
PHA needs to initiate process
New Mixed Finance Transactions
Can do conversions from RAD site to off-site
Can’t do direct conversion from Faircloth “shelf”
2/2/2012

19. www.radresource.net RAD Resource Desk
PHA libraries, Milestone tracking,
Document library, and FAQs can be found at

20. Email questions to rad@hud.gov
RAD Web Page
RAD Notice, application materials, and additional resources can be found at
questions to