The Five Essential Components of a Repositioning Analysis
It's more than just a report.
The purpose of a Repositioning Analysis is to review the public housing portfolio to assist with housing stabilization and recapitalization. This portfolio review of assets, liabilities, and highest and best use, combined with incorporating client expectations, is imperative in successfully transforming public housing to the Section 8 rental assistance platform. Early analysis of capital needs, environmental, and location aspects of each asset in a portfolio can identify both limitations and opportunities which should be considered during the pre-planning stages.
Our team will review and recommend the best repositioning pathway based on the long-term goals and vision of the Public Housing Authority as speciﬁed by the community’s housing and ﬁnancial needs. These program options include Rental Assistance Demonstration (RAD), RAD/Section 18 Blends, Section 18 Demolition/Disposition, and Faircloth-to-RAD.
Site photographs, property questionnaires, and public information will be reviewed to understand current property conditions, such as unit characteristics, repair needs, environmental concerns, construction deﬁciencies, or system issues. Recommendations will be made based on the information provided. Property research will be conducted to determine if a property falls within an Opportunity Zone (OZ), Qualiﬁed Census Tract (QCT), and/or Difficult Development Area (DDA).
Financial Feasibility Analysis
Financial considerations will be provided by comparing potential rent and revenue outcomes for different repositioning options. This comparison includes determining the maximum debt attained under these scenarios, the ﬁnancial beneﬁts for each repositioning option, and performing an operating expense analysis based on historical performance to estimate post-renovation expenses. We consider the feasibility of low-income housing tax credits (LIHTC) strategies, including guidance through the tax credit process and analyzing the potential benefits of implementing tax credits for substantial rehab projects. For smaller PHAs, entering LIHTC financing and compliance can be intimidating, so D3G’s repositioning analysis acts as an educational tool to understand why the extra steps LIHTC requires may be worth it.
Overall Repositioning Plan
Our team will recommend asset repositioning programs based on technical ﬁndings within the Repositioning Analysis to determine programmatic feasibility with appropriate repositioning options. This plan will include suggestions for further analyses to increase project understanding and viability, a realistic timeline for completion of transactions and recommended next steps, possible ﬁnancing programs, strategies for communication and feedback from residents, the public, and local government, and recommendations for relocation and developing a relocation plan.
Resident Consultation & Outreach
We will provide guidance on resident engagement requirements that outline resident communications throughout the conversion process. This consultation includes education on resident rights, best practices for public outreach, and strategies to increase participation of Section 3 and Minority Business Enterprise (MBE)/Women Business Enterprise (WBE) ﬁrms.