(RAD Project, Orcutt Townhomes, pictured above)
Dominion Due Diligence Group (D3G) has been a proponent of the Rental Assistance Demonstration (RAD) program since inception in 2012. During this time, RAD has gotten mixed reviews from different groups in and out of the affordable housing industry, much of which has been pessimistic. Everything from tenant protesting RAD to articles smearing RAD as a negative program out to destroy public housing. But, as the program matures, we have seen most of those views turn positive. RAD is rising above the noise and proving to skeptics that the program is successful.
On September 21, HUD released a RAD Evaluation Interim Report prepared by Econometrica. My read of the report is RAD gets an A+ in the mission and effectiveness of leveraging private capital with public funds - for the benefit of the most-worthy affordable housing in this country. The interim report concludes that for every $1 of public housing funds, RAD is leveraging $9 from sources such as LIHTC, private mortgage debt, accrued land equity, grants and other funding. On average, the closed projects studied for the report are undergoing an average of $60,877 per unit in construction costs. More on the report here.
I was pleased to see that D3G has been involved in approximately 38% of the RAD projects studied for the Econometrica report. Let us put our 3rd party affordable housing due diligence experience to work for you in your next RAD project.