RAD Project & Portfolio Strategies
After assessing for threshold issues and determining rehab needs, devise appropriate development strategies—
- Determine RAD Rents: Once on the RAD Tools page, click on "2016 RAD Rents" presuming that the PHA is just now applying for the newly awarded authority in 2017 or submitting a Letter of Interest or Application to the RAD Waiting List. (Projects awarded CHAPs under RAD's previous cap of 185,000 units should click on “2014 RAD Rents"). Each public housing AMP converted under RAD will receive these applicable base rents, adjusted by the allowed 2017 and 2018 OCAF factors if working with 2016 RAD Rents (those using 2014 rents would apply allowed OCAF adjustments from 2015 through 2018). For allowed OCAF adjustments, click on the desired years below
- Download the RAD Inventory Assessment Tool: This tool is currently based on the 2012 RAD Rent levels, and will be updated shortly. In the meantime, manually change the 2014 Rents adjusted by the 2015, 2016, 2017 and 2018 OCAFs as follows
- Currently, the Inventory Tool has the 2012 RAD rents and applicants are directed to check the 2014 RAD rents (also on the HUD RAD website under Tools). If the 2014 rents are higher, the difference between the 2012 rents and the 2014 rents should be added to the Tool (and the Application) under “additional income”. If the 2014 rents are lower, again enter the difference, this time subtracting in the “additional income” space (i.e., making it negative. Once this net rent has be calculated, the user should update (increase) the rents by the 2015, 2016 and 2017 (recently published) OCAFs.
- HUD is expected to upload an updated Application format to the RAD website soon. However, it will be based on 2014 RAD rents, so that users will still have to update (increase) the rents by the 2015, 2016, 2017 and 2018 OCAFs.
- Enter Rehab Needs Into the Inventory Assessment Tool: Following the embedded directions, enter the rehab needs for each RAD project and outline the most feasible Financing Plan over a 20-year period.
- Use Special RAD Tools: Relative to preliminary Financing Plan concepts, review the special tools available for structuring various types of RAD Applications for a defined portfolio of projects to be converted, how to "bundle" and re-allocate RAD rents from multiple properties, tap RAD's transfer of assistance provisions for unworkable properties and/or combine multiple AMPs into a single RAD application
- PBVs or PBRA?: Review the RAD PBV vs PBRA Comparison Guide and assess the pros/cons of converting to either Section 8 Project-Based Vouchers or Project-Based Rental Assistance; indicate the chosen form of contract assistance in the Application.
- Mixed-Finance Projects/Portfolios: HUD has recently devised alternative underwriting procedures for conversion of certain existing Mixed- Finance projects, which should be reviewed as applicable.