"RAD is working," said HUD Secretary Ben Carson. Create Grants for Public Housing Rebuilding.
Written by Stephanie Taylor, Editor-in-Chief and Owner, Intelligent Luxury
I visited a Brooklyn housing project - perhaps they should be rebuilt! They should build townhomes or garden apartments upstate for the current residents to stay in while the apartments are being rebuilt. Safety is living in a vermin free apartment and a narcotic dealing - free residential property! Former and current public housing residents - help design new homes for public housing residents! Architecture and urban planning are good college and university majors. Temple University has a Geography and Urban Studies major; and study for a M.S. in City and Regional Planning. Police do you have suggestions about safer public housing projects or complexes?
"This evaluation validates our long-held belief that RAD is working," said HUD Secretary Ben Carson. "Our aging public housing stock is at extreme risk of being lost and the capital needs of these properties are beyond what we can hope to get from Congress. RAD provides us the solution to preserve this critically needed housing so it remains permanently affordable for future generations."
RAD is Rental Assistance Demonstration, a program that uses capital investment funds to renovate public housing units. They should rebuild public housing that needs to be rebuilt. H.U.D. is the U.S. Department of Housing and Urban Development (HUD).
"Increased Financial Leveraging - The report finds that RAD has been extremely successful at attracting capital to stabilize and improve public housing. From the program's inception in November 2011 through the October 2018, a total of 956 public housing projects with 103,268 units of public housing converted to Project-Based Section 8 (PBRA) or Project-based Vouchers (PBV). These projects raised a total of $12.6 billion of capital through a variety of sources, an average of $121,747 per unit," a representative from the U.S. Department of Housing and Urban Development wrote in a statement on October 22, 2019.
The Rental Assistance Demonstration (RAD) The President Barack Obama Administration in 2011 started The Rental Assistance Demonstration (RAD).
Contracting opportunities with HUD.
The various financing options under RAD include—
• Debt financing at a fixed rate and term through public or private lenders, including
construction loans, permanent loans, first liens, and second loans.
• Federal Housing Administration (FHA)-insured mortgage loan financing, including risk - sharing programs offered through state agencies, Fannie Mae, or Freddie Mac.
• Four percent and 9 percent LIHTCs. 5
5 LIHTCs are dollar-for-dollar tax credits for affordable housing investments, administered by the Internal Revenue Service. They provide funding for the development costs of low-income housing by allowing investors to take a federal tax credit over a 10-year period equal to a percentage of the present value of the cost incurred for development of the low-income units in a rental housing project. Projects for new construction and rehabilitation, if not funded by tax - exempt bonds, can receive a maximum annual tax credit allocation of 9 percent of the project’s eligible basis, which consists of building acquisition costs plus construction and other construction-related costs. The cost of acquiring an existing building (but not the land), and projects financed with tax-exempt bonds, are eligible for a credit of 4 percent annually.
• Operating reserves, consisting of the cumulative balance of operating subsidies and other
receipts less project operating expenses.
• Replacement Housing Factor (RHF) funds, Demolition and Disposition Transitional
Funding, and/or unobligated capital funds that are part of a PHA’s available public
housing funding.
• Grant funds and soft loans that do not require repayments, which could be provided out
of Community Development Block Grant funds; Choice Neighborhoods Implementation
(CNI) monies; HOME Investment Partnerships Program (HOME) grants; Affordable Housing Program (AHP) grants; and loans available from Federal Home Loan Banks, state and local grants, and grants from private philanthropies.
• “Seller” or “take-back” financing, used in some LIHTC transactions when the as-is value
of the property increases the basis for determining the amount of qualified tax credits.
• Deferred developer fees, which are the portion of the fees to the developer that are not
payable before occupancy.
Source: U.S. Department of Housing and Urban Development (HUD)
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