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RAD for Mod Rehab properties

RAD for Mod Rehab properties. 11/12/13. Mod Rehab Transactions in Massachusetts.

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RAD for Mod Rehab properties

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  1. RAD for Mod Rehab properties 11/12/13 MTM Consulting LLC

  2. Mod Rehab Transactions in Massachusetts RAD also provides assistance for MR deals, but its utility is untested here in MA. Limited personal experience – 2 applications pending and one to be filed by year’s end. We know we can make financing work for two; still testing whether we can make the third work.All filed under first component; second component currently closed. MTM Consulting LLC

  3. Allows for conversion of one year MR contract to long-term section 8 contract BENEFITS • Consolidate multiple contracts • Enhance access to capital • Owners can request portfolio award • Multi-phase awards possible Important considerations • Must address capital needs • Must provide for resident mobility over time • Not applicable to SRO Mod Rehab MTM Consulting LLC

  4. Two Paths –if rejected under one can apply under the other First component • Rents set at current levels • Will require outside resources to address capital needs • Must provide financing plan and letters of interest • Choice of PBV or PBRA • Currently over-enrolled; HUD has requested increased authority MTM Consulting LLC

  5. MTM Consulting LLC

  6. Second component • PBV in lieu of EV assistance • Rents at up to 110% FMR (or exception standard if applicable), if reasonable • PBV only • 15-year HAP • Must provide financing plan MTM Consulting LLC

  7. SECOND COMPONENT, cont’d • Services required with more than 50% PBV • Residents must recertify • HQS inspections required • Funded from TPV pool; HUD may suspend Notice if there is insufficient funding • Currently closed; Congressional reauthorization needed MTM Consulting LLC

  8. Wrap up First component is easier and more flexible if you can make the deal work with no rent increase. Considerations: • What are your rents relative to market? • What is your tenant composition? Will you have to provide services to maximize PBV? Are you able to provide services? • Do you like your current administrator and want to continue that relationship? Or is this an opportunity get new administration? • Are you willing to transfer your wait list to the PHA or is it critical that you maintain control over it? MTM Consulting LLC

  9. Maria T. Maffei617-515-8022mmaffei@gmail.com MTM Consulting LLC MTM Consulting LLC

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