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

2. 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

3. 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

4. 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 units a month
100 state funded vouchers for specials needs
20 vouchers for people coming out of the correctional system

5. 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

6. 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.

7. 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

8. 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

9. 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.

10. 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

11. 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

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

13. 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

14. 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

15. Partnership with the Housing Authority of Maricopa County

16. 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

17. Partnership with the Housing Authority of Maricopa County

18. 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

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

20. 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

21. 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

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

23. 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

24. PHA
CO-DEV
HUD
PH RESIDENTS
FUNDERS
COMMUNITY
CONSULTANTS
CITY

25. PHA
HUD
PH RESIDENTS
FUNDERS
COMMUNITY
CONSULTANTS
CITY

26. RIVER AT EASTLINE VILLAGE

27. HERITAGE AT SURPRISE

28. 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