RAD Update
 
 
 
March 26, 2018 | Washington, D.C.
 
 
 
 
RAD in FY 2018 Omnibus & Much More!


With the FY 2018 omnibus appropriations bill finally on the books, there are many helpful provisions in it extending RAD’s authority for preserving public and affordable housing ahead:


  • RAD Public Housing Cap raised to 455,000 units. Plus RAD’s sunset will now be extended to 2024, potentially giving breathing room to the building flow of portfolio and multiple project conversions.
  • RAD now covers the Section 202 PRAC inventory. Now ~120,000 units of senior housing at risk of being lost from the inventory will have a viable preservation path. The language also offers helpful subordination language for capital advances. And, it gives the Secretary authority to direct funding from accounts for “Housing for the Elderly” in support of PRAC conversions.
  • Flexibility for Rent Supp & RAP conversions. A further provision provides flexibility for adjusting Rent Supp & RAP rent levels in high-cost areas.

HUD will now prepare a revised RAD notice to fully address how the additional authority will be allocated for both public housing and the RAD’s multifamily component.


Many thanks to all who worked hard to impress upon appropriators the importance of extending RAD’s authority—and to those members and their staff for understanding the critical role RAD plays in preserving much needed affordable housing across the country.


Beyond RAD-specific provisions in the omnibus, the Affordable Rental Housing ACTION coalition reported on two key provisions to strengthen and expand the Housing Credit:

  • A 12.5% increase in 9% LIHTC allocation, effective for four years (2018-2021).
  • A provision authorizing income averaging in Housing Credit properties, on a permanent basis upon enactment of this bill. Allows Housing Credit units to serve households earning up to 80 percent of area median income (AMI), offset by deeper targeting in other units to maintain average affordability in the development at 60 percent AMI. The 60 percent AMI ceiling would apply to the average income limit for all apartments in a development rather than each individual Housing Credit apartment.
 
 
 
 
 
New Section 18 Demo-Dispo Notice Offers
PHAs New Flexibilities


Also last Thursday, HUD released its long-in-the works revisions to the Section 18 Demo-Dispo program. With many new flexibilities for public housing dispositions and demolitions urged by CLPHA and others, the notice is also designed to broaden and deepen RAD’s reach. A helpful summary from Reno & Cavanaugh can be accessed here. Key RAD-related provisions include:

  • PHAs converting 75% of a project’s newly constructed or substantially rehabilitated public housing units through RAD will be allowed to dispose of the remaining units—up to 25%—and replace them with project-based Tenant Protection Vouchers (TPVs) as long as the project is not also using 9% LIHTCs. This effectively broadens and deepens the reach of RAD conversions using 4% LIHTCs and tax-exempt bonds and/or other forms of debt financing.
    • What’s more, if awarded TPVs are converted to PBV contracts, the PBV units will not count under an agency’s HOTMA-redefined inventory cap, as HOTMA exempts previously assisted properties (including public housing properties) from the PBV cap.
  • PHAs owning and operating fewer than 50 ACC units and if disposition will result in the PHA closing out its Section 9 public housing program, HUD will approve a PHA’s disposition application. The PHA will be eligible for TPVs for all occupied units. This includes larger PHAs who have converted all but 50 units or fewer under RAD or previous Section 18 disposition actions.
  • Scattered-site units consisting of units in non-contiguous buildings with 4 or fewer total units are now also eligible for disposition approval and replacement with TPVs for all occupied units.
 
 
 
 
 
Join the RC Telecon 3/28 to Break it All Down!


With so much to work through, the Collaborative will host a teleconference this Wednesday, 3/28 at 1:00 PM/EDT to go through the new omnibus and Section 18 notice provisions supporting RAD. Tom Davis, Director of HUD’s Recap Office, will join the Collaborative’s advisors in providing an overview of all of what just happened and taking your questions.


To reserve a call-in line for the telecon, please send an email to info@radcollaborative.org with your name and this in the SUBJECT line: “Plan to Join 3/28 at 1P EDT.” Call-in details will be provided in a soon-to-come RC Update and will be posted on the Collaborative’s web page (www.radcollaborative.org) along with other helpful materials for the call.

 
 
 
 
 
The Collaborative & CLPHA Supporting
Novogradac’s RAD Public Housing Conference
in Philadelphia April 26-27


Both the Collaborative and CLPHA are pleased to support Novogradac’s 2018 RAD Public Housing Conference at the Loew’s Hotel in Philadelphia on April 26-27, 2018. As Novogradac has had a long role in helping owners and managers successfully implement Section 8 and LIHTC programs, we believe it can do the same for housing authorities and their partners working on complex RAD conversions and tax credit projects. Hear from PHAs, lenders, investors, other development partners, HUD’s Recap Office and the Collaborative on the latest RAD practices and updates. Collaborative participants and CLPHA members will be offered $100 discounts off the standard conference rate. For more details, a conference agenda and registration materials, click here
 
 
 
 
Contact
 
 

radcollaborative.org

 
 
 
 

455 Massachusetts Ave, NW· Suite 425 · Washington, D.C. · 20001 

 
 
    
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