Rental Assistance Demonstration (RAD) Program Advisory Services
Growth through Strategic Implementation
Collingwood Multifamily Services offers comprehensive planning, transaction management, and implementation guidance for Public Housing Authorities (PHAs) and their development partners converting properties to project-based rental assistance as authorized under the Rental Assistance Demonstration (RAD) Program.
As former federal administrators of the Section 8 Project-Based Rental Assistance (PBRA) program, our expertise in mixed finance transaction management, multifamily asset repositioning, and oversight of regulated property ownership provides a unique set of skills needed to meet RAD timelines, get deals closed, and maintain compliance.
Our team will assist in sizing the maximum first-mortgage debt supportable by current subsidy levels, and, when necessary, research additional sources of subordinate debt, equity and/or grant financing to make the project conversion feasible. We will provide technical assistance to PHAs, development partners, lenders, state and local housing finance agencies to better understand the RAD conversion process. Specific guidance is geared to:
- PHAs and their development partners who have received a Commitment to enter into a Housing Assistance Payments (CHAP) Contract and are in the process of closing or have closed financing;
- PHAs and their development partners who are on the waiting list and have received a Contingent Approval Letter and are awaiting a Commitment to enter into a Housing Assistance Payment (CHAP); and
- PHAs and their development partners who are planning to apply due to the increase the unit cap as authorized by Section 234 of the Consolidated and Further Continuing Appropriations Act of 2015.
Planning & Application Submission
- Assist PHAs in conducting first-level assessments to identify viable RAD conversion projects.
- Establish evidence of financial feasibility; structure a preliminary operating budget and preliminary development budget.
- Assistance with assembling development team.
- Identify capital sources for to meet a project’s indicated needs – Low Income Housing Tax Credits, tax-exempt bond financing, FHA programs and other federal, state, GSE, and municipal finance options.
- Assist with writing and submission of Significant Amendment to Annual/5-Year Plan.
- Submission of Physical Conditions Assessment.
- Research LIHTC state issuing agency’s Qualified Allocation Plan (QAP) and prepare self-score for application purposes.
- Support with gathering Letters of Interest/Intent from the sources in the RAD application.
- Identify capital sources to best address the goals and projected outcomes of RAD conversion sponsor/developer – Low Income Housing Tax Credits, tax-exempt bond financing, FHA programs, and other federal, state, GSE, and municipal finance options.
- Perform research and assist with application preparation to explore and obtain other sources of subordinate debt, equity and/or grant financing to achieve project feasibility.
- Assist with securing financing- pro forma, cost schedule, and rent schedule formulation; application preparation; concept meeting (FHA); and issue resolution through firm commitment and closing.
- Demonstrate economic benefits (e.g. job creation, affordable housing) to secure or maintain subsidy in the form of tax abatement, tax increment financing, and payment in lieu of taxes (PILOT).
- Work to help expedite the approval process with RAD transaction manager, MAP coordinator, and MAP lenders (FHA).
- Provide analyses of state QAPs and multifamily bond rules to determine and summarize investor/owner due diligence requirements.
- Advise on subsidy layering and related overlapping regulatory requirements.
- Consultation on HUD Handbook 4350.3 requirements for subsidized multifamily housing programs.
- Guidance on owner/borrower obligations as prescribed in trust indenture, loan agreement, regulatory agreement, land use restriction agreement and other restrictive covenants and safe harbor provisions.
- Assistance with annual rent adjustments utilizing Operating Cost Adjustment Factors (OCAF).
- Evaluation of fee potential from property management and asset management fees depending upon the financial structure of a transaction.
Tenant Temporary Relocation Plan
- Assistance developing and/or refining Uniform Relocation Act-compliant resident relocation plans.
- Advise on processes and requirements for providing “Choice-Mobility” options.
- Establish a schedule for required resident meetings.
- Assist in the development of resident protection policies – right to return and Choice Mobility.