Rental Assistance Demonstration Program Update June 8, 2017 2 RAD - PowerPoint PPT Presentation

1 Rental Assistance Demonstration Program Update June 8, 2017

2 RAD Conversion • First Conversions • Diggs Phase I Update • Franklin Arms • Tranche II/Broad Creek • RAD Cap • Summary Schedule

3 RAD Closings June • Grandy Village 275 Units • Grandy Village Phase V 16 Units • North Wellington 25 Unit 316 Units • Resident Briefings • Sign New Leases • Close With HUD (Legally) • Complete Conversion as of July/September 2017

4 Diggs Phase I Update • Finalizing Demolition/Disposition Application • Updated LIHTC Allocation to 2017 • Working with VHDA on Bond Financing • RFP for Equity Investor Proposals - Due This Week • Plan to Bid in July with proposals due in August • Financially there is still a GAP based on current estimates • GAP may be just over 2M or as much as 5M • Scope of Work including all items from VHDA • Equity Pay in amount by the investor • Ultimately the Construction Bid • Delay submitting Finance Plan to HUD Until after receive construction estimate and VHDA Approval (Sept/Oct)

5 Franklin Arms • Submitting the Financial Plan by June 15 • Close with HUD in November • Convert as of December 1, 2017

6 Tranche II • Broad Creek – 4 phases 169 Units – Received CHAPS Next Milestones • PIC removal Application July 7, 2017 • Finance Plan December 4, 2017 Also • Requesting Approval to resubmit for 2 phases (85 Units) that were withdrawn last year (Tranche I) • Requesting to add Broad Creek V (50 Units) just completed last year and not part of our Portfolio Award Broad Creek (TCB properties) - 304 Units

7 Tranche II • Oakleaf – Submitted have not received CHAP Yet • Will continue to evaluate –best to postpone conversion Young, Tidewater and Calvert – St. Paul’s Area Have not submitted as part of Tranche II Coordinating with the City on Broader Transformation RAD not best Redevelopment option

8 RAD Program Potential Change • Lifting the Cap Pro Remove Pressure for New Projects Submit When Ready All properties can convert – no more Tranches Con Program will be further formalized-more rules and less flexibility

9 Challenges • Financial • Administrative • Operational

10 Status Summary • July 2017 • 316 Units Convert (Grandy Village (2) and North Wellington) • December 2017 • 100 Units Convert (Franklin Arms) • 2018 • 222 Units Convert (Diggs Phase I) • 304 Broad Creek (all Phases) Total RAD Conversion by end of 2018 = 942 Units Also Phase II Diggs Town another 100 units (close TBD)