Rental Assistance Demonstration, or RAD, is a voluntary program that falls under the Department of Housing and Urban Development (HUD). The purpose of RAD is to “preserve public housing by providing Public Housing Agencies (PHAs) with access to more stable funding to make needed improvements to properties,” states hud.gov. It’s estimated that public housing units country-wide need more than $26 billion in repairs. These repairs are referred to as ‘capital needs’, which the government defines as any cost of repairs and replacements beyond ordinary maintenance required to make housing decent and economically sustainable.
So why is RAD important? RAD allows PHA’s and owners to borrow money more efficiently and perform needed maintenance or updates while living conditions for the tenants of the properties improve. Many public housing units struggle to keep up to date with regulatory changes, on top of regular wear and tear done by building age, tenants, and overall infrastructure.
What does D3G do that makes them unique when it comes to RAD? D3G’s 25 years of experience with FHA mortgage insurance, Section 8 PBRA/PBVA, Section 9, Senior Housing Restructure, LIHTC, and mixed-financing real estate inspection and due diligence serves RAD transactions very well. D3G has the technical affordable housing expertise to guide PHA’s on financing options, and each of our Subject Matter Experts (SME’s) remains at the forefront of the housing industry trends. We can assist with the complex decisions of property transformation and know how best to make RAD work by using the tailored financing options available.
Let our experienced HPS team guide you throughout the complex RAD and SAC application process, and act as liaisons between the PHA and HUD staff.
Why choose D3G? Because we understand small and large Public Housing Agencies. While we’ve worked with 4 of the 5 largest Public Housing Agencies in the country, we have also been successful with some of the smallest PHA’s totaling less than 50 units. Our experience spans over 100 clients with a 100% success rate.
What do you get when you partner with D3G for your RAD assessment? You’ll begin with the RAD Physical Condition Assessment, which is provided by us, that consists of three distinct scopes of work:
- Part 1 - Capital Needs Assessment (CNA) Report comparing Green vs. Traditional Requirements.
- Part 2 - ASHRAE Level 2 Energy Audit.
- Part 3 - Utility Consumption Baseline (UCB)
Here’s what you’ll get when these assessments are done, you’ll have:
- Description of the property elements and their respective physical condition.
- Identification of the property:
- Immediate-Critical Repair Needs
- 24-Month (Non-Critical) Repair Needs
- Expected repair, replacement, and major maintenance needs over the following 20 year period (Long Term Reserve for Replacements).
- The total estimated cost, in current dollars, to complete such items.
- Identification of all major work items to bring the developments up to a level at least equal to the current modernization & energy conservation standards.
- Inventory of energy and water by using equipment, with recommendations for Energy-Water Conservation Measure (EWCM).