D3G was engaged by a developer, The Michaels Organization (TMO) to assist with a public-private partnership involving HUD’s Rental Assistance Demonstration (RAD) between the Richmond Redevelopment and Housing Authority (RRHA), the City of Richmond and TMO.
D3G was engaged by a developer, The Michaels Organization (TMO) to assist with a public-private partnership involving HUD’s Rental Assistance Demonstration (RAD) between the Richmond Redevelopment and Housing Authority (RRHA), the City of Richmond and TMO. The property consists of 30 townhouse units in 10 two-story buildings constructed in 1982 and has not received significant capital expenditures since construction. The property presented itself as an excellent candidate for conversion of Section 9 to a project-based assistance contract using the Rental Assistance Demonstration (RAD) program; coupled with competitive 9% Virginia Housing LIHTC.
The goals for the project were to successfully transfer the current property rental income to a Section 8 HAP contract, whereby dissolving the declaration of trust on the property and allowing for leverage. The financing plan for RAD included the use of Virginia Housing 9% LIHTC funds, as well as their direct affordable housing loan program. Additional goals were to be “resident-first” centric in the rehabilitation and listening to their specific needs. One of the goals of residents was the cost of utilities, therefore a big part of the rehabilitation was to seek advanced energy saving measures and obtain a nationally recognized green building certification.
To comply with RAD, the property needed a variety of technical studies including environmental, engineering, and utility analysis. Concluding analysis and due diligence, D3G worked closely with the Developer and Owner on the proposed renovation schedule. Notations from resident meetings were reviewed and included in the scope of work; as were the compliance elements of the Virginia Qualified Allocation Plan (QAP). The RAD conversion resulted in the project obtaining a highly competitive 9% LIHTC award which enabled them to achieve NGBS green building certification.
To facilitate the RAD transaction D3G provided the full multifamily assessment suite, which included complete building engineering, environmental, and green/energy studies. Upon completion of the technical services, D3G worked with the P3 and their design architect on a potential scope of renovations which would achieve both RAD and LIHTC compliance and score highly against the Virginia Housing QAP. Our studies included all hazardous material testing, EPA Portfolio Manager benchmarking, capital needs assessment and use of the CNA e-Tool, environmental assessment including 24 CFR Part 50 and 58 and use of the HEROS electronic platform. D3G had to work closing with the “Responsible Entity”, which was the City of Richmond, for this transaction.
The rehabilitation project resulted in the preservation of affordable housing while increasing energy performance, decreasing carbon emissions, all while reducing indoor airborne hazards and creating a healthy living environment for the residents.
