1. D3G’s Role
The 10 Year Roadmap for Public Housing Sustainability estimates that $169.1 billion is required to preserve America’s public housing portfolio. D3G played a central role in evaluating and quantifying this need, drawing on our experience supporting more than 500 Public Housing Authorities (PHAs) nationwide.
Our Capital Needs Assessments, Environmental Reviews, and Energy Assessment data provided a benchmark for regression analysis and comparison to the data obtained by HUD. This exercise confirmed the accuracy of the dataset by highlighting physical, environmental, and energy-related investment needs across public housing. The result is a more accurate, data-driven understanding of long-term capital requirements.
2. Why D3G
D3G was the only third-party firm selected to support this national initiative. This reflects our expertise in public housing repositioning and capital planning, built over 30 years of affordable housing experience.
Our involvement with the RAD program began in 2011, when HUD selected D3G to help pilot the initiative. Since then, we have completed over 5,000 PHA assessments. The steering committee relied on our contributions because of the consistency, integrity, and innovation that define our work. Our proprietary data systems and rigorous reporting standards continue to set a benchmark for quality in the industry.
3. Developer Opportunity
The estimated 169.1 billion dollar funding need reflects only the cost to preserve existing public housing, not to redevelop or expand it. Developers with expertise in preservation, rehabilitation, or conversion projects have a significant opportunity to help address this national challenge.
With recent expansions to the Low Income Housing Tax Credit (LIHTC) program, both 4 percent and 9 percent LIHTC investments can now be utilized under RAD. This opens the door for a broader range of financing structures to support critical modernization and long-term sustainability efforts.
4. Debt and Equity’s Role
Long-term rental assistance contracts, whether PBRA or PBV, provide lenders and investors with the stability needed to finance public housing improvements confidently. Most RAD conversions rely on a combination of at least five capital sources, which can include:
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Construction loans
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Permanent debt
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Syndicated LIHTC equity
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Municipal incentives
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State-funded grants
Financing is commonly provided through approved FHA MAP lenders or Fannie Mae and Freddie Mac platforms. These executions create opportunities to meet CRA goals while supporting essential improvements to housing for low-income residents.
5. How D3G Helps PHAs
In addition to our core due diligence services, D3G provides comprehensive support to PHAs exploring repositioning strategies. Our services include RAD feasibility studies, application management, and hourly advisory support to help authorities understand the full spectrum of available options.
Not every RAD conversion requires debt. So-called RAD O Matics can use existing resources to fund necessary repairs. The Section 18 Demolition and Disposition program allows PHAs to replace their most distressed units with modern, efficient housing. In contrast, RAD and Section 18 blends offer a middle ground that combines RAD’s streamlined process with the higher rent potential available under Section 18.
The emerging Restore Rebuild initiative (formerly Faircloth-to-RAD) is creating new opportunities to add public housing units and convert them to RAD immediately, making it a powerful tool for addressing the growing nationwide need for affordable housing.
Across all of these pathways, D3G provides unbiased, data-driven guidance grounded in our experience partnering with more than 500 PHAs across the country.
