HUD Preservation Update June 2014 R ENTAL A SSISTANCE D - - PowerPoint PPT Presentation

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HUD Preservation Update June 2014 R ENTAL A SSISTANCE D - - PowerPoint PPT Presentation

Sep 04, 2023 341 likes •501 views

HUD Preservation Update June 2014 R ENTAL A SSISTANCE D EMONSTRATION In order to preserve the public housing and at-risk legacy stocks, convert existing assistance to the project-based Section 8 platform, which will: Stabilize funding 1.

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HUD Preservation Update

June 2014

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In order to preserve the public housing and at-risk legacy stocks, convert existing assistance to the project-based Section 8 platform, which will:

1.

Stabilize funding

2.

Create access to private capital

3.

Streamline HUD programs

4.

Enhance housing options for residents HUD continues to ask Congress for additional authority and for funds.

RENTAL ASSISTANCE DEMONSTRATION

2

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Tenant Rent $318 Tenant Rent $318 Capital Fund $144 Operating Fund $330 Housing Assistance Payment $474 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 Pre-Conversion Post-Conversion

Sample Public Housing Conversion Per Unit Monthly (PUM)

$792

RAD SECTION 8 CURRENT FUNDING RENT LEVELS

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ACC Section 8

At conversion, PHAs will convert funding to a Section 8 contract rent

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SLIDE 4

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RAD PROGRAM UPDATE – JUNE 2014

  • No. Projects
  • No. Units

Total Active Public Housing CHAPs 290 38,173 Total Active Mod Rehab CHAPs 7 878 Closed Public Housing 35 3,184 Closed Mod Rehab 1 175 Portfolio Awards 21 15,034 Multiphase Awards 8 934 CNI Applicant Reservations 7 1,887 Pending CHAP Revocations (265) Total 60,000 Completed CHAP Revocations & Withdrawals 25 2,507* Pending RAD Applications 705 117,104

*Withdrawn/revoked units represent approximately 4% of 60,000 reserved units

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What will HUD do for waiting list applicants?

  • Continue to work with Congress to lift the unit cap
  • Complete reviews of RAD applications – expect most reviews

will be completed within 30 days, the rest in 60 days

  • Issue conditional approvals pending the lifting of the unit cap
  • Provide technical assistance for applicants to help prepare to

make transactions go smoothly

  • If and when CHAPs are withdrawn/revoked, pull projects

from wait list – small number to date

WAITING LIST – THE “OVER 60K” CLUB

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PERCENTAGE OF CURRENT PH UNITS BY HUD REGION THAT HAVE APPLIED FOR RAD

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6% 7% 16% 22% 15% 21% 3% 7% 18% 21%

Note: This data reflects the percentage of PH units in each HUD region that have applied for RAD; note that units are considered public housing until the RAD closing is complete.

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CUMULATIVE RAD CLOSINGS

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*Projections based on current RAD pipeline estimated closing dates 3,359

5,395 15,000 36,000

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Current & Projected

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SLIDE 10

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LIHTC Fast Tracking

  • Streamlined submission requirements
  • Compresses milestones to one deadline 60 days after

award/approval

  • Focuses HUD review on areas where we add value
  • Helps PHA & development team meet LIHTC time frames

FHA/RAD Fast Tracking

  • Centralized processing
  • Contract support for Section 223(f)/RAD underwriting
  • Special centralized team in Chicago for Section 221(d)(4)s
  • Streamlined approval processes

DELIVERING RESULTS:

KEY RAD PROGRAM IMPROVEMENTS

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Updated Guidance

  • Relocation Notice
  • Clarifies process for resident relocation in RAD conversions
  • Demystifies program requirements to shorten approval process
  • Closing Documents
  • Clarifying lender rights and responsibilities in event of

foreclosure

  • Clarifying HAP contract language with regard to future changes

in policy

  • Conversion Guides
  • Written protocols on PBRA and PBV conversion
  • Public Housing close-out guide

KEY RAD PROGRAM IMPROVEMENTS

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SLIDE 12
  • Eliminates the 60,000 unit cap and extends the application

deadline for 1st component to September 30, 2018;

  • $10 million in gap financing for RAD conversions
  • Section 8 MR Single Room Occupancy (SRO) properties eligible

for RAD;

  • PBRA conversion option for Rent Supplement and RAP

properties and extends the sunset date for Rent Supp and RAP conversions to September 30, 2016.

PROPOSED FY 15 BUDGET

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Initiatives to preserve and recapitalize assisted housing

  • Section 236 preservation
  • Streamlined, centralized processing of Section 236

prepayments and related approvals through electronic

  • application. www.hudmfpreservation.net
  • RAD 2nd Component
  • Received 16 proposals to convert Rent Supp/RAP

contracts, 30 more en route.

MULTIFAMILY HOUSING PRESERVATION

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  • Section 202 Senior Preservation Contracts (SPRAC)
  • 12 projects initially approved; 8 prepayments; one closing
  • Pursuing options for additional funding
  • Mark to Market
  • Pipeline of approximately 40 transactions, and
  • Another 20 post M2M Assumption/Subordination transactions
  • Technical Assistance
  • New Technical Assistance initiative for MF owners
  • Track geared to small owners and track for large owners
  • Focus on maturing mortgage properties – tools, info
  • GIS mapping

KEY PRESERVATION INITIATIVES

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SLIDE 15

15

  • Better Buildings Challenge
  • Transfers of Section 8 Assistance
  • MF Transformation changes

OTHER KEY INITIATIVES