What Options Are Available To Your PHA During Repositioning?

Repositioning facilitates the preservation, rehabilitation, or demolition and new construction of public housing by increasing access to financing to address capital needs. Repositioning preserves the availability of affordable housing assistance, either through a physical unit or a voucher. An agency’s specific needs determine long-term repositioning goals and strategies. But what are your options as a Public Housing Authority in the Repositioning process? Do you meet the qualifications for the classification you’re looking for?

Hear directly from CEO Rob Hazelton, who discusses what the RAD program is: 

Rental Assistance Demonstration (RAD) allows Public Housing Authorities (PHAs) to convert their existing Public Housing subsidy into a project-based Section 8 subsidy. It is a one-for-one replacement of Public Housing units, in which residents have a right to return. RAD rents are based on the PHA’s operating subsidy and capital fund allocation levels under the public housing program.

Section 18 Demolition / Disposition: Section 18 of the Housing Act of 1937 supports the demolition and/or disposition of obsolete Public Housing. It qualifies PHAs for Section 8 Tenant Protection Vouchers (TPV) for any Public Housing unit occupied within the last 24 months. In many areas, these TPVs result in higher rents than seen under Public Housing or RAD. PHAs may dispose of Public Housing assets to a PHA-controlled entity to preserve affordable housing.

RAD/Section 18 Blends: A RAD/Section 18 blend permits some properties converting under RAD to receive Section 18 Demolition/Disposition approval and vouchers for a portion of the units involved. The Section 18 units are eligible for Section 8 Tenant Protection Vouchers (TPVs) and may be project-based. The higher TPV rent levels bring more subsidy income to the project, which leverages greater borrowing power to fund more renovation needs.

Green Retrofit and Resiliency Program (GRRP): GRRP, a provision of the Inflation Reduction Act (IRA), provides grants and loan funding to facilitate energy-efficient and climate-resilient retrofits of properties participating in HUD’s multifamily assisted housing programs. Eligible properties include those participating in the Section 8 Project-based Rental Assistance, Section 202 Supportive Housing for Low-Income Elderly, and Section 811 Supportive Housing for Low-Income Persons with Disabilities programs.

Faircloth-to-RAD: Faircloth-to-RAD allows Public Housing Authorities to develop new Public Housing units using HUD’s Mixed-Finance program with pre-approval to convert the property to a Section 8 contract following construction completion.

Section 22 Streamlined Voluntary Conversion (SVC): Streamlined Voluntary Conversion involves a PHA with up to 250 units voluntarily removing public housing units from an ACC in exchange for tenant protection vouchers. The PHA must also commit to closing out its public housing program. Unlike RAD, any remaining public housing funds cannot be used after SVC for rehab or operations of the property.

Choice Neighborhoods Initiative (CNI): Competitive Planning and Implementation Grants are awarded to support neighborhood revitalization efforts in communities with severely distressed HUD-subsidized housing. The goal is to coordinate with local stakeholders and residents to create a plan that improves housing opportunities, increases access to supportive services, and brings new amenities to the neighborhood.

Knowing what options are available during this process is essential to deciding the best ways to proceed. From this point, you can make a cohesive plan that best fits your needs and offer you a higher success rate in your repositioning efforts. D3G is one of the nation’s leading full-service environmental, engineering, and energy due diligence firms. Reach out today to see how our team of experts can help you navigate the repositioning process!

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