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Rob grew up in Southern Vermont and attended Bucknell University in Lewisburg, Pennsylvania. Rob founded D3G in 1994, and his passions include time with family, golf, being outdoors and reading. Personal motto: “Work is a dirty 4-letter word, so it is my job to make it more enjoyable.”

Stifel (Merchant Capital) Showcase

Stifel (Merchant Capital) Showcase

We love it when our client’s successes are other’s successes.  For example, yesterday's press release by Stifel (aka Merchant Capital) showcased four (4) recently completed affordable housing bond transactions, and we worked on two of them!

 

Full Press Release Here

Housing Authority of the City of El Paso (HACEP) closes country's largest RAD deal to date

I have Google Alerts for all things RAD, and I loved seeing this PR release.  

I want to give kudos to the entire RAD Staff at D3G, who have been working diligently on this project for over 2 years. 

Congrats to HACEP, and a thank you to the HUD RAD Team!

 

View full press release here

HUD releases new RAD Physical Condition Assessment (RPCA) Guide on 3/31/2015

HUD posted their new "RAD Physical Condition Assessment Guide” yesterday.  Thirteen pages of good reading.  The big take-away is in the RPCA Lessons Learned section on page 8. They even put it in bold for us, “There is no substitute for an experienced, qualified RPCA Contractor.”

 

There are also a few nuggets of processing news.   Two of the important ones are on page 2: 

(a)  “Public housing built within the last 5 years without FHA financing” do not require an RPCA; and

(b) the RPCA narrative report can be waived on not only Gut Rehabilitation, but also non-FHA LIHTC projects. 

 

Excellent changes.  Also, another important note on a quality RPCA is included on Page 4 of the document:

“An inexperienced RPCA Contractor costs everyone time, frustration, and money, and may jeopardize HUD milestone compliance for even project feasibility.”   

 This statement by HUD makes our 26,000 units of RAD conversion experience invaluable to public housing organizations.   

 

Use the link below to read the RAD Physical Condition Assessment Guide in its entirety.

HUDs RPCA Guide

New RAD Multi-Site Bond Program

This week’s announcement by the Georgia DCA (a State Finance Housing Agency (SFHA)) is a welcomed addition to financing options for RAD projects. 

I am especially excited because this program was established in cooperation with HUD to bolster public housing agency access to the LIHTC program.    

We hope to see more SFHA’s be creative and implement similar multi-site bond buying programs or financing pools with HUD assistance to assist in the preservation of public housing as they convert to long-term Section 8 contracts. 

Kudos to DCA and HUD for being creative! 

 

RAD Multi-Site Bond Program - Press Release ->GA-DCA-RAD-Multi-Site-Bond-Program.docx

HUD MAP Guide 2015 - Draft for Feedback - Released February 2015

The draft FHA Multifamily Accelerated Processing (MAP) Guide was posted on February 27, 2015 for stakeholder review and feedback.

 

HUD indicates the new Draft MAP Guide has revisions which can be categorized into three main areas:

 (1) Technical corrections and edits to the current version, based on operational experience; 

(2) Integration of previously published policy (e.g. Mortgagee Letters, Housing Notices, Memos, and less formal guidance) issued since 2011; and

(3)  Incorporation of the significant organizational and operational business model changes associated with the Multifamily for Tomorrow transformation initiative.  

 

The great news is that HUD is soliciting public comment and stakeholder feedback through April 30, 2015.    To facilitate HUD’s review and analysis of feedback, stakeholders are encouraged to use a “Feedback Response Worksheet” in Excel format that can be accessed here.  Now, let’s all curl up with the 907 page document and have a good read!

 

*For MAP Guide 2015 Draft Appendices and other resources on this subject, please visit our Resource Center under HUD/FHA Resources.

Rental Assistance Demonstration (RAD) again in the Federal Register

On Thursday, January 29th, 2015, the Rental Assistance Demonstration (RAD) once again made the Federal Register.  HUD is proposing to reprioritize the RAD waiting list in order to give priority to the deals that have a higher likelihood of closing.  This notice is open for comment until March 2, 2015. 

Read the full notice here.     

Great news from New Orleans HUD: Homes for all of it's homeless veterans!

In this industry of affordable housing preservation, often we are working so hard that we forget to see the change we make in people’s lives.   I was touched when one of my employees forwarded me the following article prefacing it with:

“Hey Rob,  I don't know if you've already seen this article, but I was so happy to read this, I wanted to share it with you. I know a lot of us, myself included, have worked on HUD projects in New Orleans, and it's really great to see the difference we can make. I am so happy and proud to be a part of a company that works toward ensuring SAFE and affordable housing. Even if we only played a small part in this, we got to be part of the solution to getting a couple hundred people who served our country off the streets and into homes!“

http://m.csmonitor.com/USA/Society/2015/0109/In-a-US-first-New-Orleans-finds-homes-for-all-its-homeless-veterans  

Just wanted to share that view with everyone, as it reminds us that we should all be grateful to have the opportunity to help others in the work we perform.  Doing well, by doing good, is a great thing.  

Let’s raise a cheer for 2015 and push for more affordable housing for those that need it the most!

 

RAD FHA Lenders: Frequently Asked Questions

 

D3G is an active participant in the Mortgage Bankers Association (MBA) and has been on monthly conference calls between FHA Lenders and HUD RAD staff.  These calls have been very informative and serve as question and answer sessions to improve the process of RAD transactions using HUD’s multifamily mortgage insurance programs.  

Last week HUD produced a list of “RAD FHA Lenders Frequently Asked Questions” which is a summary of the larger topics discussed over the past 6 months.   

I find two of the more important FAQs for my direct industry to be A (Scattered Sites) and C (RPCA with Section 221(d4) programs). 

Enjoy the new clarifications, and we can expect these FAQs to be incorporated into the revised pending RAD Notice 2012-32 expected in mid-March.

rad_fha_faqs.pdf

HUD RAD Showcase: Spotlight on Recent Closings

Great way to start the new year, as HUD has showcased another RAD Closing for a project Dominion Due Diligence Group (D3G) guided.  HUD has now showcased preservation deals, moderate rehabilitation deals (4% lihtc) and significant rehabilitation deals (9% lihtc) where D3G performed environmental, energy and engineering studies. Link below.

HUD Issued RADBlast! RAD_Newsltr_Dec2014.pdf

November Closing Spotlight: First listed is the project D3G guided. (Top of page 2)

Rental Assistance Demonstration (RAD) & The San Francisco Housing Authority

In light of the recent RAD re authorization (125,000 more units YIPPIE!), I wanted to blog about this great article regarding San Francisco Housing Authority and RAD.  D3G has worked on the San Fran RAD projects for greater than a year with the Mayor’s Office, and it is nice to see good press about the benefits of healthy homes. 

Also the article notes “Early estimates indicate that the RAD financing structure will result in over $500 million in rehabilitation. To put that number into perspective, the Housing Authority only receives $10 million per year for rehabilitation under the current system.”

Here’s wishing a healthy and happy holiday season to San Francisco Housing and their residents!

Full Article Here

UPDATE: HUD issues another clarification on RAD. RPCA studies necessary for 221(d)(4) projects

Is a RAD Property Condition Assessment (RPCA) required on the Section 221(d)(4) transaction?

 

No, an RPCA narrative report is not required on any 221(d)(4) transaction.

However, the RPCA Excel tool is required on all 221(d)(4) sub-rehab projects where the scope of rehab does not include "the removal and replacement of substantially all interior finish surfaces exposing the underlying building frame (i.e. gut rehab).  

For those non-gut rehab transactions, the RPCA tool will be required  1) to size the project's reserve for replacement account's deposit, and 2) to capture it's utility consumption baseline data.

The required portions of the RPCA tool which must be completed include:

a) Utility Baseline - Summary

b) Utility Baseline - Monthly

c) Cap Needs Input

 

For FHA 221(d)(4) new construction and gut rehab transactions, Lenders should use the FHA Section 221(d)(4) formulas to size the reserve for replacement account deposit.

HUD Update: Emergency Call Systems in Elderly Properties

 

Recently HUD’s Office of Multifamily Housing Programs issued clear guidance on the requirements for an Emergency Call System in Elderly Properties.  

The memorandum (dated October 31, 2014) was written to clarify Section 100.2 of HUD’s Minimum Property Standards (MPS), Handbook 4910.1.  

Since the memorandum is moot on the definition of Elderly Housing (e.g. 55 or 62?) we will assume this requirement applies only to the Federally defined 62+ age demographic.

 

Read the full update below:

HUD-Update-Call-Systems-in-Elderly-Properties.pdf

UPDATE: FAQ was issued on RAD, clarifying which RPCA studies are necessary for HUD Section 221(d)(4) projects

 

My last blog was about a new RAD FAQ regarding 221(d4) mortgage insurance and RAD, specifically the following new FAQ on 10-14-2014: 

 

Posted: 10/14/2014

Question: Is a RAD Property Condition Assessment (RPCA) required on the Section 221(d)(4) transaction?

Answer: No. A RPCA narrative report is not required on any 221d4 transaction. However, the RPCA Excel tool IS required on all 221d4 sub-rehab projects where the scope of rehab does not include “the removal and replacement of substantially all interior finish surfaces exposing the underlying building frame (i.e. gut rehab). For these non-gut rehab transactions, the RPCA tool will be required: 1) to size the project’s reserve for replacement account’s deposit, and 2) to capture utility consumption baseline data. The required portions of the RPCA tool which must be completed include: a. Utility Baseline - Summary b. Utility Baseline - Monthly c. Cap Needs Input For FHA 221d4 new construction and gut rehab transactions, Lenders should use the FHA Section 221(d)(4) formula to size the reserve for replacement account deposit.

 

But, I want to thank a very astute client who culled the RAD FAQ’s this week, only to find that that the original FAQ response was modified (yet the date of issue remained the same)The new language is:

 

Posted: 10/14/2014

Question: Is a RAD Property Condition Assessment (RPCA) required on a new construction or substantial renovation transaction?

Answer: A RPCA is required for all RAD transactions, except the following: 1) New Construction; 2) Gut Rehab (essentially, down to the stud); or 3) Recently modernized or constructed buildings (based on the recommendation of the HUD RAD Transaction Manager and approval by the RAD Team Lead). However, the RPCA Excel tool is still required to size the reserve for replacement deposit on all sub-rehab transactions, with the exception of “gut rehabs”. “Gut rehabilitation” is defined as “removal/replacement of all or substantially all interior finished surfaces”.

 

I see the major change being that they removed the Utility Consumption Baseline (UCB) requirement, which makes sense and reduces the time and cost of the study.  Kudos to HQ for making this smart change, and Kudos to AGM Andy for finding the change!

 Full issued FAQ here: radfaq-1.pdf

First Freddie Tax-Exempt Loan Closes

We completed much of the 3rd party due diligence work for this rehab deal. We assisted the first Freddie tax-exempt loan deal by providing an Environmental 4.4 form, Green Physical Conditions Assessment, Integrated Pest Management, Utility Consumption Baseline and Energy Audit for The Lakewoods, a 417 unit apartment complex in Ohio.

 Read more in this excerpt from the latest edition of AHF.

AHF-10-14---Lakewoods--First-Freddie-Tax-exempt-loan.pdf

D3G's Accessibility Toolkit mentioned at HUD's FHA Housing Tax Credit Pilot Program Training

For those that attended HUD’s FHA Housing Tax Credit Pilot Program Training at HUD Headquarters on September 22nd and 23rd, you may have heard about our Fair Housing Act Accessibility Guideline Toolkit. 

This resource well illustrates common Fair Housing Act accessibility issues in housing, and can assist in making sure industry participants are educated on the important subject.

View our Accessibility Toolkit with the link below:

Accessibility-Toolkit-FHA-Design-Manual-Re-Issued.pdf

HUD posts RAD Case Studies

On Wednesday of last week, HUD posted RAD case studies on their website. As of today 10% of the original 60,000 units has closed.  Good progress going forward.

(One of the case studies featured was the project we worked for the Lexington Housing Authority in Lexington, North Carolina)

Read the case study here.

Lexington-NC-RAD.pdf

USDA Rural Development issues NOFA for $20 million

This week USDA Rural Development issued a NOFA for $20million aimed towards a “demonstration program to preserve and revitalize existing Rural Rental Housing (RRH) projects under Section 515, Section 514, and Section 516.” Pre-Applications are due November 24, 2014. 

And if you need assistance with a competitive application, D3G can provide a Green Physical Needs Assessment with energy audit which will be in important tool in the process. 

Read more about the NOFA here:   https://www.federalregister.gov/articles/2014/09/23/2014-22476/notice-of-funding-availability-multi-family-housing-preservation-and-revitalization-demonstration

Know that we are here to assist you with your preservation project.

 

 

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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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

 
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