RAD Live Q&A - Program Update and Early Predictions
February 28, 2014, marked a significant RAD Live Q&A session featuring Will Lavy, Greg Byrne, and Patrick Costigan, discussing topics like expanding authority in Rent-setting, early RAD predictions, application statistics, and percentage breakdowns by census region. Attendees were encouraged to ask questions live during the Q&A session. The event provided valuable insights into the future of public housing projects and PHAs.
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Presentation Transcript
RAD LIVE Q&A February 28, 2014 Will Lavy Greg Byrne Patrick Costigan
WELCOME Ask questions at the end! Here s how: Raise your hand by clicking on the hand icon and the presenter will un-mute your line so you can ask your question live Note: To do this, you MUST call the dial-in number shown on your attendee control panel and input the audio PIN shown, which is unique to each attendee Send in questions via the Question feature or email them to rad@hud.gov; answers to those questions will be provided after the webcast and posted to the FAQs 2
AGENDA Program Update Expanding Authority Rent-setting: Current Authority v. Future Authority Ideas for PHAs to Move Quickly Upon Expanded Authority 3
EARLY RAD PREDICTIONS RAD will only work for public housing projects with low needs RAD is for PHAs in strong markets RAD is for small PHAs Everyone will convert to PBRA Everyone will convert to PBV RAD only works with 9% Low Income Housing Tax Credits and there s not enough to go around RAD will only work with FHA mortgage insurance 99% of these transactions will go FHA RAD rents won t work 5
APPLICATIONS, CHAPS, AND CLOSINGS No. PHAs No. CHAPs/ Apps 322 No. Units 54,506 158 Public Housing CHAP Awardees Active Public Housing CHAP Awardees - Closed Mod Rehab CHAP Awardees 14 10 1,287 4 N/A 168 365 559 56,352 118,722 TOTAL CHAPs 340 674 Public Housing Applications: MR Pending Applications: 9 N/A 974 TOTAL Pending Applications: 683 365 119,696 Public Housing Total) 1,010 384 174,515 13 N/A 1,533 Mod Rehab Total Grand Total (All Pending + CHAP) 1,023 176,048 382 (unique PHAs) 6
PERCENTAGEOF PUBLIC HOUSING APPLICATIONSBY CENSUS REGION COMPAREDTO CURRENT PUBIC HOUSING PROJECTS RAD: 11% PH: 8% RAD:16% PH: 29% RAD: 17% PH: 13% RAD: 56% PH: 49% Note: This data reflects the regional breakdown of RAD applications ( projects ) received compared to the number of existing PH projects in each region. 7
PERCENTAGEOF CURRENT PH UNITSBY HUD REGIONTHATHAVE APPLIEDFOR RAD 15% 6% 7% 3% 7% 18% 16% 21% 22% 21% Note: This data reflects the percentage of PH units in each HUD region that have applied for RAD; note that units are considered public housing until the RAD closing is complete. 8
GENERAL PROFILEOF APPLICANTSTO DATE CHARACTERISTIC Project Locations Urban Rural PERCENTAGE 81% 19% Project Type Elderly Family 28% 72% Section 8 Option PBV PBRA 49% 51% PHA Size* Small (less than 250 units) Medium (250-1,250 units) Large (more than 1,250 units) 40% 45% 15% *unique PHAs that have applied 9
WHOLE PORTFOLIO CONVERSIONS 76% of the PHAs with CHAP awards have proposed to convert their entire stock, including 52 small PHA (<250 units) 29 medium PHA (250-1,250 units) 26 large PHAs (>1,250 units) 10
RAD HELPING PHASWITH CHAPS ADDRESS CHALLENGES Indicated PHA Objectives Capital Needs range of moderate repairs, substantial rehab and new construction, establishing replacement reserves ~ 20% of projects planning Demolition and New Construction (on site or off site) Average repair hard costs of ~ $45,000 per unit ($25,000 per unit excluding new construction) Thin densities/mix-incomes via transfer of assistance Streamline programs *Data based on most current CHAP awardee information 11
DEVELOPMENT SOURCES Operating Reserves 4.40% RHF 0.90% Capital Funds 4.30% Debt, Tax Credit Equity, Other 90.40% 12
EXPANDING AUTHORITY Authorizing steps FY15 Appropriations Admin budget 3/4
RENT-SETTING: Current Authority v. Future Authority
RENT-SETTING All applications submitted prior to 12/31/13 and approved under 60,000 unit cap have CHAPs with rents based on 2012 appropriations Approved applications (submitted before 12/31/13) pulled off of waiting list will also be awarded CHAPS with rents based on 2012 appropriations Upon expanded authority, HUD will establish rents for new awards based on current appropriation levels
2014 APPROPRIATIONSAND RAD RENTS FY 2012 Change FY 2014 Operating Fund Capital Fund $338 -6.6% $316 $114 - $114 Tenant Rents Total PUM $230 +2.6% $236 $682 -2.3% $666 HUD will post rents as soon as data is available estimated mid- April. *Data projections based on operating subsidy methodology /national averages for 2014
IDEAS FOR PHAs TO MOVE QUICKLY UPON EXPANDED AUTHORITY
WHAT HUD CAN DO Review pending applications PHAs should soon expect calls from HUD on their applications Issue contingent approvals , subject to expanded authority Clarify how rents will be determined for applications above 60,000 units Conduct a webinar on successful RPCAs; also provide PHAs with RPCA review checklist 19
WHAT PHAS CAN DO Secure development partners and other team members Begin Annual Plan or Significant Amendment Process Use time to better consider timing/sequencing of the project, including tax credit deadlines and relocation planning Initiate RAD Physical Condition Assessment (PCA) Advance negotiations with CFFP/EPC lenders Advance negotiations with Mixed-finance owners Other? 20
LIVE Q&A Ask questions! Here s how: Raise your hand by clicking on the hand icon and the presenter will un-mute your line so you can ask your question live Note: To do this, you MUST call the dial-in number shown on your attendee control panel and input the audio PIN shown, which is unique to each attendee Send in questions via the Question feature or email them to rad@hud.gov; answers to those questions will be provided after the webcast and posted to the FAQs 21
RAD RESOURCES REMINDER Applications available (by state) for download on www.hud.gov/rad Prerecorded webcasts available to walk you through completing an application FAQs available at www.hud.gov/rad or at the RAD Resource Desk - www.radresource.net 22
