D3G’s Housing Preservation Services (HPS) assembled a dedicated Affordable Housing Consulting team to support a private owner and developer repositioning a PRAC property through a RAD for PRAC conversion, while also securing a Preservation Rent Increase (PRI). The goal of this effort is to rehabilitate the physical asset and transition the subsidy platform to a more stable Section 8 structure, thereby preserving long-term affordability and enabling residents to better age in place.
Location: Ohio
Property Type: Federally Subsidized Elderly Apartments
Timeline: 1 year (expedited)
Program Focus: RAD for PRAC conversion + Preservation Rent Increase (PRI)
Services Provided: RAD for PRAC Consulting
Dominion Due Diligence’s (D3G) Housing Preservation Services (HPS) assembled a team of Affordable Housing Consultants to assist a private owner and developer in repositioning their PRAC property through a RAD for PRAC conversion, obtaining a Preservation Rent Increase (PRI) along the way. The repositioning effort is aimed at rehabilitating the physical structure and converting the subsidy program to a more stable Section 8 program, preserving the critical affordable housing asset and allowing the residents to better age in place.
Our Affordable Housing Consulting team stepped in to assist our client with the RAD for PRAC conversion. Initial steps with the client included evaluating and comparing rental increase strategies, ultimately leading to the request of a PRI at the 60% Hard Construction Cost threshold, obtaining an additional $300 per unit per month in rental income for the client. Initial steps also include understanding important environmental and Capital Needs Assessment reports and recommendations, as well as Resident Rights and Relocation Requirements, and other various components that contribute to the submission of a complete Conversion Plan. Because this RAD for PRAC conversion is looking to utilize the PRI, it must receive the RAD Conditional Approval (RCA) by July 31, 2026, and is therefore on an expedited timeline. The team is participating in bi-weekly planning calls, to strategize with the owner’s leadership, ensuring HUD and PRAC regulations are considered and met throughout the repositioning project. This dedication helps avoid mistakes and meet critical deadlines. Upon receipt of the RCA, D3G will assist in coordinating the closing to ensure a timely and smooth financial close for the client.
By staying abreast of policy and industry changes, understanding how to navigate regulatory agencies and programs, and leveraging partnerships as needed, our Affordable Housing Consulting team enhances efficiency in repositioning efforts within the RAD for PRAC process.
The team will assist the client over the span of approximately 12 months, which is about six months shorter than the typical duration for a RAD for PRAC conversion. D3G’s assistance on this RAD for PRAC conversion will lead to a comprehensive rehabilitation of the properties, which includes energy efficiency updates, accessibility modifications, interior common area and unit finish upgrades, and mechanical and life safety repairs and replacements.
Two of D3G’s Specialists from the Housing Preservation Services Affordable Housing Consulting team contributed to the project, bringing expertise in various disciplines, including:
This diverse and highly skilled team ensured the project met its financial, environmental, and regulatory objectives, ultimately helping to reposition and preserve a vital affordable housing asset for the community.
