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D3G Provides One Stop Green MIP Shop for Walker Dunlop Deal

Congratulations to longtime client Walker Dunlop on securing a $15.5 million HUD loan for the construction of Manseau Flats, a multifamily project located outside of Lambeau Field. This project is expected to qualify for the National Green Building Standard designation, work that D3G supported as part of our one stop shop for Green MIP. We also delivered a range of due diligence services and reports for this project including, a Statement of Energy Design (SEDI), pre-construction radon mitigation review and an Arch and Cost Review. 



How this Tax Plan Affects Affordable Housing

The irony between actions and words in DC is staggering. This week I was at AHF Live in Chicago, where the dominant topic of discussion was the President’s tax reform. And yet a day after the House passes the Tax Cuts and Jobs Act (TCJA) an article is published in which HUD Secretary Carson reminds us that "11 million households in America are severely burdened". To add on a layer of absurdity, Dr. Carson champions RAD as an example of how his Department plans to address the affordable housing crisis yet, no one in this Administration seems to comprehend that the House version of the tax cuts eliminates the Private Activity Bond market, which directly kills the historic, new market and 4% tax credit markets!

The link between the success of RAD and the private activity bond market is strong, as it is estimated that greater than 50% of RAD conversions will require tax credits to address needed repairs and deferred maintenance. The Finger Lake Times described the devastating effect this legislation would have, and how conversions like those planned in New York City would never come to fruition. I have faith that those in the Senate will understand the mechanisms necessary to solve the housing crisis and will not eliminate the 4% bond market.  

RAD Evaluation Interim Report

(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.  

RAD, Columbia Housing and Redevelopment Corporation, & D3G

D3G is honored to have been involved with the Columbia Housing and Redevelopment Corporation and LHP Development, LLC with the preservation of 296 public housing apartments, participating in the HUD Rental Assistance Demonstration (RAD). 

This five (5) property portfolio was successfully awarded 9% LIHTC from the Tennessee Housing Development Agency.  D3G’s professional services were important with this Section 8 PBRA transformation and included a property condition assessment, energy auditing, environmental assessment, and utility allowance analysis. The development team should be commended for their commitment to energy efficiency with the proposed rehabilitation.  



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