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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.  

http://columbiadailyherald.com/news/local-news/columbia-housing-secures-68-million-rehab-project

 

Update: NCSHA Housing Credit Connect 2016

HUD Deputy Assistant Secretary for Multifamily Housing, Priya Jayachandran, and NEF Vice President, Catalina Vielma, provided a wonderful RAD update at NCSHA's Housing Credit Connect 2016.

A few major bullet points to take away from their update:

  • 32,000 units of RAD closed to date and another 20,000 with RCC or financing plan submitted; that equates to about 52,000 units of success!
  • 81,000 with active chaps with HUD involvement
  • $2.2 billion in construction dollars leveraged with closed transactions.
  • 53% of closings consist of 4% or 9% LIHTC
  • 17% new construction 

 But HUD wants and needs more on the waiting list! PHAs, hear the call!

SWAC and SMAC 2016 - Conference Overviews

I recently got back from the SWAC meeting in Fort Worth, Texas, and the SMAC meeting in Atlanta, Georgia.  Both were very informative and great events. 

D3G’s staff were invited to present and train on topics of engineering, environmental, and energy as they apply to the 2016 MAP Guide and the MIP Reduction Notice.   A few of the things I learned from the conferences:

a.      Transformation is hard to do. Fort Worth is two years removed from the process and Atlanta is currently in the midst of transformation – and when asking Lenders and HUD staff how is the process going, the four letter word most heard was not “easy”.     

 b.     Training is needed for HUD, Lenders, and Practitioners alike. It is evident during these times of changing policies and guidebooks that quality training is needed more than ever.  The Single-Underwriter Model, a keystone of the transformation, relies upon the premise of a very knowledgeable HUD representative who understands the technical due diligence subject matter, as well as multifamily underwriting.  

 c.     The MIP Reduction Notice for Green Buildings is energizing the FHA markets in two ways. First (and best) is the blitz of conventional product that wants to achieve the reduced MIP.  Second (but worst) is the misinformation in the marketplace about how easy it is.  It is not that easy, and we all should be reminded of HUD’s best line of the conference when presented with the question: “What if I don’t get an energy score of 75 post-construction?”  Answer:  Death Star activated.  HUD was very clear, a non-compliant property will be forced into compliance, or else.

d.     The Georgia Accessibility Law often referenced by the Atlanta HUD office may not be enforceable.

e.     Balconies, Noise, and HUD currently don’t make a good mix and compromise needs to be reached to allow for the development of vibrant urban housing and transit oriented developments.

And finally, SMAC knows how to throw an event in celebration of 15 years, and dancing to the sounds of The Brotherland was fun! 

For more information regarding the above topics and others, please be on the lookout for our next newsletter, which will be distributed in early June. Until then, keep sending us your inquiries concerning all things HUD.

The Housing Authority of the County of San Bernardino, Wells Fargo, & D3G

Congratulations to Wells Fargo and the Housing Authority of the County of San Bernardino! 

Wells Fargo closed a new construction loan and provided tax credit equity for Waterman Gardens, where D3G provided inspections, third party due diligence services and reports.

D3G is proud to have been on the team for this very complex RAD and FHA Section 221(d)(4) affordable housing property.  

Read the full story here.

 

RAD at 3

It was great to read Pat Costigan's article in AHF, "RAD at 3".

Within the piece, he takes a far look into the Rental Assistance Demonstration (RAD) program. Touching on it's origin, initial skeptics, where we are now, how we can improve, and what the future holds for RAD.

See Pat's full article here.

(Patrick Costigan pictured below) 

 

 

 

 

 

 

  

RAD has come a long way in only a few years, and Dominion Due Diligence Group (D3G) is honored to be a cog in the wheel for the transformation of public housing. D3G has over 50,000 units of RAD experience and we are ready to assist your project through RAD conversion. As always, I am here to answer questions and provide assistance. This email address is being protected from spambots. You need JavaScript enabled to view it. anytime.

 

RAD Collaborative Event - Washington, D.C.

April 6th, 2016, I attended the RAD Collaborative event in D.C. Great topics, interactive discussion, and even a visit by the original RAD champion, former Secretary of HUD, and current Director of the Office of Management and Budget, Mr. Shaun Donovan. All of this made for a great event!

Be on the lookout for our upcoming newsletter discussing topics covered and other trends happening now in our industry. Join our newsletter list at the top of our homepage.

Helping PHAs nationwide...and now in our backyard!

D3G has been assisting housing authorities all over the country, but it is finally great to help the PHA in our backyard!  D3G is honored to have been selected to assist Richmond Redevelopment and Housing Authority (RRHA) with their redevelopment plans.   We are excited to help our own “backyard” with the tools for redevelopment, transformation, and planning to benefit the residents of these communities.

Additional project info

 

D3G's Rental Assistance Demonstration (RAD) services

D3G's FHA/HUD Multifamily Accelerated Process (MAP) services

 

 

Assisted Living Conversion Program

Assisted Living Conversion Program

On August 11th, HUD released a Multifamily memorandum regarding HUD Financing of Assisted Living Conversion Program (ALCP) Properties.  

Since 2000, the department has allowed over 80 senior facilities to receive grants to accommodate renovations for aging in place residents. 

But until now, these properties could not receive FHA mortgage insurance.   The Ft. Worth program office has been given the responsibility to allow Section 236, 202, and 202/8 Direct Loan senior properties with ALCP grants to use the Section 223(f) and Section 223(d4) program.   This is wonderful news for seniors and the housing industry!

REITs finally notice Rental Assistance Demonstration (RAD)

As we near the 3 year anniversary of the Rental Assistance Demonstration (RAD) program, I am pleased to see such articles as this: 

“Public-Private Alliance Can Solve Affordable Housing Crunch”

http://www.americanbanker.com/bankthink/public-private-alliance-can-solve-affordable-housing-crunch-1075216-1.html   

 The REITs are finally noticing RAD and the potential the program has to preserve much needed affordable housing in this country. 

Congratulations to the newest member of HUD's Office of Multifamily Housing Programs!

D3G wishes to welcome Tom Davis, formerly with Recap Real Estate Advisors, to HUD’s Office of Multifamily Housing Programs!  

I was very pleased to see the announcement this morning that Tom has joined HUD as the new Director of Recapitalization.   I have had the pleasure of speaking with Tom on many panels, and his passion for affordable housing and the Rental Assistance Demonstration (RAD) goes unmatched.   Adding talent like Tom Davis to HUD is good news for our industry.

 

More here - http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh 

Funding a 20-year R4R - MBA Newslink - May 1, 2015

The MBANewslink last Friday picked up a great piece discussing the HUD Multifamily PCNA requirement for funding a future 20-year reserve for replacement (R4R) schedule, and its’ deleterious effects on affordable housing.  As the author put it “The bottom line is that affordable rental housing is getting squeezed.” 

Read here:  http://www.housingwire.com/articles/33752-changes-in-fha-multifamily-lending-requirements-squeeze-lenders-owners

We concur that a 10+2 R4R schedule is more accurate and appropriate.

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)

 
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