What Is SAC?

Section 18 allows Public Housing Authorities (PHAs) to demolish and/or develop their properties upon HUD’s Special Applications Center (SAC) approval. The process requires a formal application for ‘Demolition and Disposition,’ also known as Section 18, of the PHAs units. D3G provides critical guidance and required reporting for approval via our Physical Needs Assessment (PNA).

Our assessment helps determine if your property will qualify for Section 18 based on several factors, including the physical conditions, functional use, and location.

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We are unable to assist residents with rent supplements.

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These are great examples of a property likely to receive approval due to the fire damage, age, interior conditions, and location next to a noisy overpass.

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This probable candidate has extensive needs to be brought back to a safe and healthy living environment for residents.

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Demo/Dispo is for more than just scattered sites or smaller buildings. Façade and structural issues can also create significant needs beyond the PHA budget. Elevator buildings have different thresholds compared to garden-style buildings. Understanding the Total Development Cost differences is a key piece of the Physical Needs Assessment.

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To better visualize the SAC process, we have included an outline of possible outcomes and reports our team can produce based on the likelihood of your property's qualification.

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Here is another example of a borderline property we helped get approval for. Building exteriors, as well as functional use inside the units, are part of our evaluation. Not all properties will qualify based on their age or long-term needs.

Why D3G? Because We're SAC Experts

These are great examples of a property likely to receive approval due to the fire damage, age, interior conditions, and location next to a noisy overpass.

These are great examples of a property likely to receive approval due to the fire damage, age, interior conditions, and location next to a noisy overpass.

This probable candidate has extensive needs to be brought back to a safe and healthy living environment for residents.

Demo/Dispo is for more than just scattered sites or smaller buildings. Façade and structural issues can also create significant needs beyond the PHA budget. Elevator buildings have different thresholds compared to garden-style buildings. Understanding the Total Development Cost differences is a key piece of the Physical Needs Assessment.

Some properties are in better condition but have other factors that make qualifying more challenging. In this image, the overall condition of the building is fair but it lacks functionality, has sub-grade interiors, and has accessibility concerns.

Here is another example of a borderline property we assisted with approval. Building exteriors, as well as functional use inside the units, are part of our evaluation. Not all properties will qualify based on their age or long-term needs.

Demolition and disposition doesn't have to be complicated.

Reach out and get started today!

What Are The Benefits Of The Demolition And Disposition Process?

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  • PHAs can remove troubled, budget-straining properties from their portfolio that strain their budget
  • Residents will receive Tenant Protection Vouchers (TPVs)
  • Agencies can relocate residents to healthier living environments
  • The likelihood of land use for redevelopment is improved, creating investible communities

How Does The SAC Process Work?

1. We'll start the discussion to understand the current condition of your property. Our SAC subject matter experts will lead the conversation, focusing on your Physical Needs Assessment and providing consultation.

2. After learning more about your goals, general property conditions, and experience with the Rental Assistance Demonstration (RAD) and the Special Applications Center (SAC) process, we will conduct your inspection.

3. After the inspection, our team will determine if your property will likely qualify. If so, we will produce our SAC Physical Needs Assessment and move forward with the application. Unfortunately, not all properties will qualify. We understand that the application is intimidating and expensive. If your property does not qualify, we can produce a report usable for other RAD, SAC Blends, or Low-Income Housing Tax Credit (LIHTC) applications.

Section 18 Approaches

To better visualize the SAC process, we have included an outline of possible outcomes and reports our team can produce based on the likelihood of your property's qualification.

Your Special Applications Center Team

Shawn Hughes
Special Applications Center Specialist

Shawn Hughes

Shawn has over twelve years of experience in the property due diligence industry and over twenty-five years of prior experience in construction and construction management. He is currently responsible for preparing for Section 18 Physical Needs Assessments, Property Condition Reports, Capital Needs Assessments, and architectural, engineering, and cost reviews for rehabilitation and new multifamily housing and construction. With an extensive background in the Section 18 program as a subject matter expert relative to cost obsolescence, Shawn leads and overs a team of project managers and needs assessors primarily focused on Section 18 projects.

Amber S
Consulting Team Leader

Amber Skoby

Amber has two years in the due diligence industry. She provides expertise, innovation, and high-level support to housing agencies to improve, protect, and preserve their affordable housing communities. As a former Executive Director at Bloomington Housing Authority, Amber brings a wealth of knowledge and first-hand experience to D3G. In addition to her strategic planning efforts around preservation funding, physical improvements, and resident well-being Amber has successfully managed large-scale portfolio conversions through the Rental Assistance Demonstration (RAD) program and Special Applications Center (SAC).

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