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Federal Home Loan Bank of Atlanta Announces New Advisory Council Members

ATLANTA, Feb. 15, 2018 (GLOBE NEWSWIRE) -- Federal Home Loan Bank of Atlanta (FHLBank Atlanta) announced today that it has appointed two members to its Affordable Housing Advisory Council.

New Members:

Rob Hazelton has vast experience with multi-family housing preservation as it relates to capital needs, architectural design, construction cost estimation, energy conservation, and environmental issues. Mr. Hazelton has worked in all 50 states for the preservation of multifamily and senior housing under the LIHTC Qualified Allocation Plans. He has been involved with the HUD Multifamily Accelerated Process Guide since inception, and is proficient in the FHA-HUD multifamily mortgage insurance markets. Frequently asked to provide technical services for HUD’s many pilot and demonstration programs, Mr. Hazelton is currently working with the LIHTC Pilot, the Rental Assistance Demonstration, Moving to Work, and self-managed Energy Performance Contracting. He was appointed to the Virginia Statewide Independent Living Council by former Gov. Mark Warner, and he continues to support local organizations which service the senior and disabled communities. Mr. Hazelton is an active board member of a Richmond Regional Energy Alliance, focused on bringing energy awareness and efficiency to disadvantaged communities. He is a graduate of Bucknell University and resides in Richmond, Virginia.

Christie V. Smith is executive director of Neighborhood Housing Services of Richmond, Inc. (NHSR), a community development corporation and community development financial institution. NHSR’s mission is to present opportunities for low- and moderate-income families preparing to purchase affordable homes, and to strengthen communities in Richmond and other areas of Virginia. Ms. Smith has served in a variety of capacities at NHSR, including as Homeownership Manager, Housing Counselor, and CRA Officer. She is currently active with the Virginia Association of Housing Counselors (VAHC), the National Association of Professional Women, the National Credit Union Association, and the African-American Credit Union Coalition. Ms. Smith holds a certificate of completion from the Mosley-Flint School of Real-Estate, is a certified FHA Direct Endorsement Underwriter, is certified under the VA’s Lender Appraisal Processing Program, is a VAHC certified Housing Counselor, is a HUD certified Default Counselor, and is a Virginia Housing Development Authority Train the Trainer facilitator. She develops underwriting guidelines for CRA products and NHSR loan products, and she approves, funds, and sells mortgage loans to the secondary markets. Ms. Smith holds a Bachelor of Arts degree in Business Administration and Criminal Justice, and a Master of Business Administration degree from the University of Richmond.

About the Affordable Housing Advisory Council 
FHLBank Atlanta’s Affordable Housing Advisory Council comprises 15 representatives from a diverse group of community and nonprofit organizations actively involved in providing or promoting low- and moderate-income housing and community lending within FHLBank Atlanta’s district. The Advisory Council provides advice to FHLBank Atlanta’s board of directors regarding ways in which the Bank can enhance the effectiveness of its housing finance and community lending mission.

About the Federal Home Loan Bank of Atlanta
FHLBank Atlanta offers competitively-priced financing, community development grants, and other banking services to help member financial institutions make affordable home mortgages and provide economic development credit to neighborhoods and communities. The Bank's members—its shareholders and customers—are commercial banks, credit unions, savings institutions, community development financial institutions, and insurance companies located in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. FHLBank Atlanta is one of 11 district banks in the Federal Home Loan Bank System. Since 1990, the FHLBanks have awarded approximately $5.4 billion in Affordable Housing Program funds, assisting more than 827,000 households.

For more information, visit our website at www.fhlbatl.com.

D3G RAD Work in January RADTalk Newsletter

Every time I get a RADBlast and the RADTalk newsletter I get excited to see the statistics of the program and transformation project highlights. To date 818 public housing properties have been converted, resulting in 88,000 preserved units. And because D3G has worked on over 790 RAD properties totaling greater than 110,000 units, we commonly see our achievements championed by HUD! D3G was an integral team member on this month’s RADTalk showcase properties in San Francisco and Cleveland. Keep up the great work Office of Recapitalization!


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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.  

D3G Works on $60 Million Dollar Walker Dunlop Deal

Congratulations to long-time client Walker Dunlop on their arrangement of a $61 million dollar HUD loan for Bozzuto Development on Monarch at Waugh Chapel, a multifamily project located in Gambrills, Maryland.

D3G was tasked to support multiple facets of the FHA-loan due diligence process. Our Architectural, Engineering and Cost department provided a pre-application review as well as a full 221(d4) A/e plan and cost review. Our Energy team provided the required studies for the property to achieve the MIP reduction to 25 bps. D3G’s Environmental Team provided complex Phase 1 ESA, Phase 2 investigation, and NEPA studies inclusive of floodplain mitigation.   

This project demonstrated how important a knowledgeable and integrated team is to a successful FHA loan application! 




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CNA E-Tool is Here

November 1st came and went. And though I’m sure most dentists couldn’t sleep the night before due to the excitement of National Brush Day (in the United States), most MAP Lender’s couldn’t sleep due to the dread of HUD Tool Day. Yep, as of Wednesday November 1st all FHA mortgage applications must be completed using the CNA e-Tool. The night before may have been Trick OR Treat, but the day after, just tricky. The mortgage industry recognized the potential detriment the unpolished software platform could have on Q4 mortgage applications; yet despite the best efforts of some of the largest industry groups, HUD followed through with mandatory submission requirements. No more beta testing. No voluntary submission. Mandatory. And for this occasion, I wrote a Haiku:

The e-tool is live

Best thing since sliced wonder bread

Or a dumpster fire?

While the tool (made in 25-year old programming language!) could never be on par with Wonder Bread, D3G’s efforts to learn the tool and study the HUD-KPMG programming has created knowledge and efficiencies we can pass on to the Lenders. These considerable efforts by D3G Staff to understand the e-Tool will mitigate the dumpster fire to a small bathroom trashcan. Jokes aside, D3G is ready for the e-Tool.  Are you?

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Fannie Mae Reaches it's 500th Green Multifamily Financing Transaction in 2017

Congratulations to Fannie Mae, and even more so to Chrissa Pagitsas, Director of the Multifamily Green Financing Business for Fannie Mae! Fannie Mae’s green programs have come a long way since D3G provided the first Green PNA Demonstration Report to Chrissa and her team in 2010. Interesting fact, the first green Fannie program was based on HUD’s Green Retrofit Physical Condition Assessment (GRPCA) scope of work. Yes HUD was the innovator, however their green multifamily loan volume pales in comparison to Fannie Mae. 

Again, Congratulations Fannie Mae!



D3G RAD El Paso Project in the News

D3G is in the news again and we couldn’t be happier to be partnering with the Housing Authority of the City of El Paso (HACEP) as they pioneer the RAD program and wrap up Phase One of the project.  

“In the RAD world, HACEP and it’s partners are rock stars.”


A big shout out to all of the D3G employees who worked towards this success. They certainly are rock stars!

Check out the article here.


An Update on the CNA eTool from RAD

Update on CNA eTool, Post-Conversion Construction & Relocation Reviews, Guidance on Delayed Conversion


Update on CNA eTool

As the Office of Recapitalization continues to work with the Office of Multifamily Housing to implement the new Capital Needs Assessment (CNA) e-Tool, we want to update you on the timing of this implementation. 

While the CNA e-Tool itself is currently operational (see CNA e-Tool Web Page for information and guidance), the ability of PHAs to login and submit the CNA through the HUD system is not. Consequently, the Office of Recapitalization and the Office of Multifamily Housing have jointly decided to delay the requirement for the CNA e-Tool to be used in all RAD conversions to February 1, 2018. In an earlier announcement, we referenced that all RAD Physical Condition Assessments (RPCAs) procured now should be using the CNA e-Tool by October 1st; consequently, with this announcement, we are rescinding that requirement and instead we are now requiring that all financing plans submitted after February 1, 2018, must use the CNA e-Tool. 

In the meantime, PHAs may continue to use the existing RPCA Tool. If they have already procured a PCA using the new CNA e-Tool, they may validate it through the CNA eTool public validation portal website using the existing protocols and then upload the validated Tool to the RAD Resource Desk. 

Please note that the PCA Scope of Work has not, and will not, change with the use of the CNA e-Tool.  All the existing RAD requirements for the PCA will remain the same; only the Assessment Tool that is required to be submitted will change.  It is important to note that most Needs Assessors/Consultants performing PCAs within the RAD program have either already been trained, or are currently being trained, on the new Assessment Tool.  Therefore, PHAs are strongly encouraged to procure these services from a Needs Assessor/Consultant with RAD or Multifamily experience, as this Assessment Tool is complex and may not be easily populated by someone unfamiliar with it.

Additionally, in preparation for the CNA e-Tool’s mandatory use in February 2018, the Office of Recapitalization is producing PHA-specific trainings and a revised User Guide, which will be available both on the RAD Resource Desk and at the link above.  This training will be released later this calendar year and will provide PHAs with a general overview of the CNA e-Tool, as well as specific guidance on how to obtain the necessary credentials for uploading the Assessment Tool into the HUD system; instructions on how to initially populate the Assessment Tool; and other requirements for submission of a successful CNA e-Tool.

If you have any questions, please visit the link above or www.radresource.net, where you can find FAQs and ask a specific question related to your transaction.


Post-Conversion Construction and Relocation Reviews

HUD has contracted with a firm to conduct preliminary compliance reviews of completed RAD conversions to better carry out oversight of relocation and verify construction activity. Ninety properties were selected at random for either a relocation review or a construction review. These reviews are all desk audits which include contacting the PHA and reviewing relevant files. If you have been contacted by the firm conducting these reviews, we appreciate your cooperation.


Guidance on “Delayed Conversions”

For RAD conversions involving a transfer of assistance, there are two options to structure the conversion when the residents will remain in their original Public Housing units until construction completion: 1) a conventional conversion with a Master Lease or 2) a Delayed Conversion. HUD has posted to the RAD Resource Desk an “Overview of Master Leases & Delayed Conversion Agreements” that describes the options PHA have related to the timing of conversion, the documentation that is used, and the restrictions and benefits associated with each option.


                - The RAD Team



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D3G Provides Services for Ambitious, Luxury, Multi-Family Development in Florida

D3G provided third party compliance services on this complex 221(d4) project in Miami. Our staff enjoyed partnering with Turnberry Associates, LeFrak, Wells Fargo, and the US Department of Housing and Urban Development (HUD) to process this very large project within an expedited time frame. We were responsible for phase I&II environmental studies, NEPA-HEROS reporting, architectural code review, and independent cost estimation.

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Harvey and Irma's Effects on Affordable Housing

The recent devastating events of Harvey and Irma and their extensive coverage in the news is overwhelming and weighing heavily on my mind.   As housing professionals, we can recognize that the pre-existing deficit of affordable housing in this country just got further compromised by these massive storms. A housing crisis which could have been worsened by a government shutdown in October, a viable threat just three weeks ago. Fortunately, that has been averted with President Trump signing a $15 billion disaster relief package into law last Friday. I applaud the $7.4 billion in community development block grants (CDBG).  However, I find great irony in the fact it took the wrath of Mother Nature to demonstrate to the Administration the importance of HUD.  I hope that President Trump and the voters in the states most heavily impacted by these recent storms don’t forget the importance of housing programs come December, when we need a more permanent budget resolution.

D3G projects are getting noticed!

HUD’s Rental Assistance Demonstration (RAD) program is everywhere in the news and the spotlights are on projects D3G WORKED ON!  From our very own backyard in RVA (Richmond times Dispatch July 17, 2017 article on Creighton Courts); North to The Big Apple (NYCHA Plans Largest Public-Private Rehab Ever); West to the Golden Gates (Politico:  How San Fran saved its Public Housing – By Getting Rid of It); and South down to the Rio Grande (ElPaso Receives LIHTC Allocation). We are proud to be working to preserve housing for those that need it most.

Carson's Confirmation Hearing

Dr. Ben Carson’s confirmation hearing was almost boring compared to the others! 

While many in our industry were questioning Dr. Carson’s housing acumen, it is obvious that he is well advised by housing experts.  I was pleased to hear him give praise to LIHTC; acknowledge the importance of the Section 8 platform; and, encourage public-private partnerships (e.g. RAD should benefit).   

Also, I was enlightened by his criticism of the Affirmatively Furthering Fair Housing laws which are hindering RAD deals.

CNA e-Tool is LIVE!

This past Friday, the last work day of the year, HUD released the long-awaited CNA e-Tool and Mortgagee Letter 2016-26.   The original fall 2014 release of a beta version was followed by much radio-silence, and the fate of the tool was unknown.  It appears now that HUD believes the tool ready for prime time – however, the instructions to the platform will not be ready until mid-January! Release a convoluted electronic tool without instructions - why would HUD do that?  It is obvious to me the pending administration change precipitated the year-end release.  It is my professional opinion that an electronic tool would be welcomed by the industry for consistency of reporting, access to portfolio wide data, and development of capital needs analytics to speed underwriting and processing.  


But that only works if the tool has a dynamic user interface (UI).  And that is where the tool may fail, because strong stakeholder involvement was not enlisted during development.  Anyone that knows anything about software development understands the importance of stakeholder involvement to achieve buy-in.  This is why I fear HUD will be using a stick and not a carrot to make all of us use the tool, despite potential limitations and bugs (mandatory use is July 1, 2017).  Which is greater reason why strong multifamily industry partners and advocates like D3G must engineer methods to streamline use of the tool.  Stay tuned...

Dominion Due Diligence Group Introduces Senior Leadership Team

RICHMOND, VA., – Dominion Due Diligence Group (D3G), a national leader in environmental and engineering due diligence, today announces an expanded senior leadership team.

“Our industry has experienced significant change in the past few years,” said Rob Hazelton, CEO and president of D3G. “We have been evolving as well, and our new leadership team positions us to manage the complex issues facing our clients, just as we have for more than 20 years.”

The senior leadership team consists of:

Rob Hazelton, CEO and President  – Hazelton has served as President and CEO of D3G since founding the firm in 1994. A graduate of Bucknell University, Hazelton boasts more than 20 years of real estate due diligence inspection, account management and technical review of field projects. Rob’s passion for the preservation of our nation’s affordable housing inventory and the programs and institutions that support these housing programs is evident in D3G’s corporate vision and missionary foundation. More on Rob Hazelton.

Tim Ungerleider, COO – Ungerleider has been promoted from senior leader/program manager to COO and will focus on the firm’s growth and operations. A graduate of Rider College with advanced certifications from Rutgers University and Villanova University focusing on program development and Six Sigma process improvement, Ungerleider has been with D3G since 2013. Tim has more than 20 years of corporate management experience including Fortune 500 firms as well as the start-up of two service-based technical companies. His experience in business management includes operations, sales and corporate finance.

Mike Ferguson, VP of Technical Services – Ferguson has been promoted from Director of Engineering Services to VP of Technical Services and will lead D3G’s account management teams. A Licensed Professional Engineer and graduate of Ryerson University with an advanced engineering degree from the University of Toronto and an MBA from Averett University, Ferguson has been with D3G since 2003. Mike has a vast and thorough knowledge of FHA multifamily mortgage insurance programs, and has participated in and reviewed thousands of engineering studies for D3G’s property and capital needs assessment services.

Tim Black, CFO – Black has served as CFO since 2009. He is a graduate of the University of Richmond with an MBA from University of Virginia’s Darden School of Business and holds a CPA certification. Tim has spent the past 20 years working with emerging growth and entrepreneurial companies as an advisor, banker, accountant and owner. His passion and skills enable business owners to use financial information to make better strategic and personal decisions. 

Jil Stoddard, HR Director – Stoddard joins D3G after serving as a human resources senior leader for 29 years. Stoddard is a graduate of the University of New Hampshire with an advanced degree from Virginia Tech. Jil’s extensive experience in providing internal employee and leadership development to all corporate organizational levels enables her to design and implement strategic plans that cultivate D3G’s high-performing teams. 


Over the past 18 months, the Department of Housing and Urban Development (HUD) has issued a series of changes within the Federal Housing Administration’s (FHA) multifamily mortgage insurance programs, allowing for greater access to capital and favorable underwriting for affordable and energy efficient properties. HUD also is streamlining its operations through its “Transformation for Tomorrow” initiative to reflect these regulatory changes and other industry best practices. D3G has responded to these new opportunities, changing dynamics and challenges by implementing process efficiencies, leveraging technology and strengthening its management team. 

About Dominion Due Diligence Group (D3G):

D3G is a multi-disciplinary due diligence provider for the multifamily, senior and affordable housing markets. D3G’s environmental, engineering and energy assessments facilitates the preservation, repositioning and construction of greater than 180,000 units of housing annually.   For more information about D3G, please visit www.d3g.com.

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.  

Bringing More Affordable Housing to the Market

Another example of Dominion Due Diligence Group (D3G) assisting a state finance agency with the FHA risk share program to bring more affordable housing into the market. Kudos to MassHousing, Rockport, and all others involved with this project.

Full article 

Rental Assistance Demonstration (RAD) success with D3G

 This is what RAD is all about.  Beautification and modernization of public housing, with the transformation to the multifamily housing portfolio.  It was a pleasure to work with the Salisbury Housing Authority and their Executive Director, Mr. Sam Foust, on this important initiative over the past 3 years.  Congratulations to all of those who put in long hours to get this done, all for the benefit of the community and residents.

More here

Virginia to get nearly $7 million in funds for affordable housing

(Pictured above: Dale Homes)

Congratulations to all of those involved!   Dominion Due Diligence Group (D3G) was proud to have worked on New Clay House; Dale Homes; and Sun Valley Landings, contributing a combined $42.1 million to affordable housing in Virginia.  Working on 3 of 5 recipients is not too shabby!   

More info

Update: Midwest Lenders' LIHTC Workshop

I am currently attending the Midwest Lenders' LIHTC Workshop in Chicago. The conference has been very informative so far and I have taken part in many interesting discussions. Lots of good knowledge and best practices being shared... But I'm not sure which is more lively, the conversations or the carpeting!


      For the latest from D3G 

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