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The latest in industry news with the insight of Dominion Due Diligence Group (D3G) President, Rob Hazelton


D3G helps complete the first Mod-Rehab Rental Assistance Demonstration (RAD) Deal

Tags:Rental Assistance Demonstration, RAD, HUD, 221d4, CHAP, Broadway, Townhomes, PCA, RPCA, Property Conditions Assessment

Read press coverage of the deal here

Read the D3G Case Study of Broadway Townhomes here

D3G is very excited to be the third party consultant firm chosen to help complete the First Mod-Rehab Rental Assistance Demonstration (RAD) Deal - Broadway Townhomes in Camden, NJ.

D3G was tasked with both completion of a RAD Property Condition Assessment by a BPI-Multifamily Analyst, as well as processing the energy retrofits and construction budget under a HUD Section 221(d4) loan, post CHAP conversion. Under our scope of professional services we have provided BPI physical inspection, ASHRAE/HUD energy audit, TREAT modeling of varying configuration of scattered sites, domestic hot water and heating load calculation, a utility consumption baseline analysis, and technical review of construction documents for New Jersey Housing and Mortgage Finance Agency (NJHMFA) Modified Tier II Energy Star Homes Equivalency Compliance.

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Fred Griffin
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Wednesday, 24 September 2014 1:01 PM

FAQ Guidance on the Utility Consumption Baseline (UCB)

This week HUD issued some welcomed Frequently Asked Question (FAQ) guidance on the Utility Consumption Baseline (UCB). Read it here: http://www.radresource.net/faq_gen.cfm. HUD relaxed both the milestone timing of the UCB study as well as the unit sampling size.


In more detail, excerpts of the FAQ:

Question: In a RAD FAQ (WEB11102012_22_04070), the Department offered the following response regarding capturing tenant utility data to complete the UCB: “There is no specified minimum sampling requirement, due to the different configurations of buildings. The RPCA contractor must have enough data to ensure that they can produce such a baseline in which HUD can rely.” Can the Department further clarify the sampling size for the UCB?

Answer: The PCA provider should seek to obtain data on resident-paid utilities from 25% of the units, which is a threshold percentage for the PCA provider to provide reasonable estimates of whole-building energy consumption. Please note that in the near future HUD anticipates the publication of tools that will help PHAs and other industry partners manage the UCB data, so the flexibility and the 25% threshold provided in this FAQ is subject to change pending new HUD guidance and tools. Any UCB data submitted to HUD prior to publication of these standards will be grandfathered in to this sampling standard.


Question: The RAD Notice requires that the RAD Physical Condition Assessment (RPCA) be completed within 90 days of award. We expect to complete the RPCA within this timeframe, except for the Utility Consumption Baseline (UCB), which, because of the need to obtain individual utility data from tenants, will take longer. Since the UCB isn’t actually used for underwriting purposes, can we submit the UCB along with the Financing Plan, which is due within 180 days of award?

Answer: The UCB is an important feature of the RPCA and is part of HUD’s broader initiative to establish baseline utility data for our entire rental housing stock. However, since the data is not used as part of Underwriting, HUD will consider waiver requests from PHAs to submit the UCB at the time of the Financing Plan, or after the closing/RAD conversion. If you seek a waiver, please alert your Transaction Manager in writing. Please note: this flexibility extends to non-FHA transactions. For FHA transactions, until further notice, the UCB must be part of the RPCA document submitted with the FHA Firm Commitment application. Furthermore, in the near future HUD anticipates the publication of tools that will help PHAs and other industry partners manage the UCB data, so the flexibility provided in this FAQ is subject to change pending new HUD guidance and tools.

HUD Releases Intrusive FAQs

HUD's FAQs for Intrusive Studies. Read the document here more

NLHA Annual Conference in DC

I'm attending the NLHA Annual Conference in Washington, DC. Ben Metcalf just showed a PowerPoint slide demonstrating the effective timely processing of loans using the single underwriter model in the Atlanta HUB. Of the four examples, D3G performed third party services on three of the success stories!


Kudos to CHP for the NAHMA Award

D3G would like to give a shout out to CHP for The Warwick recognition (NAHMA award here). D3G did a lot of consulting work on this, including: Capital Needs Assessment, Environmental Site Assessment, Hazardous Materials Testing (Asbestos, Lead, Mold), Indoor Air Quality analyses, Phase 2 Environmental Sampling, Technical Abatement Specifications and Scope of Work Development, as well as Construction Inspections during rehabilitation.

This work started in the fall of 2008 and concluded in 2012. Determination and patience with this converted 1928 luxury hotel has resulted in 88 single room-occupancy (SRO) housing, supporting previously homeless individuals. Kudos to CHP!

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