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R en t a l A ssis t a n c e D e m o n s t r a t i o n ( R A D ):

R en t a l A ssis t a n c e D e m o n s t r a t i o n ( R A D ):. W h a t R esi d ents & A dv o c a t es Need t o Kn o w N o w N L IH C P u bl i c H o usi ng R es id ent W eb i nar S ep t e m ber 18, 2012. A MY. A G E N DA. T o d a y ’ s P r e s e n t a t i on

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R en t a l A ssis t a n c e D e m o n s t r a t i o n ( R A D ):

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  1. RentalAssistanceDemonstration(RAD): WhatResidents&Advocates NeedtoKnowNow NLIHCPublicHousingResidentWebinarSeptember18,2012

  2. AMY AGENDA • Today’sPresentation • WhytheRentalAssistanceDemonstration(RAD)? • RoleofResidentsinDevelopingRAD • MajorFeaturesofRAD • ResidentConsiderationsabout RAD • Today’sPresenters • PatrickCostigan,HUDOfficeoftheSecretary • RonAshford,HUDPublicHousingSupportiveServices • EdGramlich,National LowIncomeHousingCoalition

  3. PAT WHYRAD? • HUDprovidesrentalassistancetoover4.6M households • 1.1MPHhouseholds • 3.5MhouseholdsinMForSection8likeunits • Plus1.8MLIHTCunits—throughTreasury • Insufficientfederalfundingforpublichousinghasleft • $25.6B,or$23,365/unit,incapital needsacrossthenation • Losing10,000-15,000hardunitseachyear • Federalgovernmentalone cannotmeetthecapitalrepairandreplacementneedsofPublic Housing • CurrentrulesprohibitPHAsfromaccessingthesameresources Section8orlowincomehousingtaxcredit(LIHTC)propertiescan

  4. ED ROLEOFRESIDENTSINDEVELOPINGRAD • ResidentinputakeydriverintheevolutionofTRAPETRARAD • PartneredwithNationalHousingLawProject(NHLP)toconductnationwideresidentoutreachforTRA • FormedResidentEngagementGroup(REG) • HeldhistoricresidentconveningsatHUD • MetwithSecretaryDonovanandseniorHUDstaff • ContinuedmeetingswithresidentsandadvocatesduringRADdevelopment • RADisnotTRAorPETRA • Reflectsinputfromresidentsandadvocatesthatwerepartoftheprocessfromthestart

  5. RON RADKEYGOALS • RADallowsselectedPublicHousing,andat-riskassistedMultifamily“legacy”programstoconvert theirformofassistancetolong-termSection8HousingAssistancePayment(HAP)contracts • KeyRADGoals • BuildontheprovenSection8platform • Leverageprivatecapitaltomakeneededrepairsandpreserveaffordablehousingunits • Offerresidentsgreaterchoiceandmobility

  6. PAT RADCONVERSIONELIGIBILITY PublicHousing ModRehab RentSupp&RAP 1stComponent:Competitive,60,000Units PBRA PBV PBV Long-TermProject-BasedSection8RentalAssistanceContracts

  7. PAT RADCONVERSIONPROCESS • RADisvoluntary–PHAschoosetoapply • StartingSeptember24 • Upto60,000PublicHousingunitscanconvert assistance • Assistanceconvertstolong-term,property-basedSection8contracts,either • ProjectBasedVoucher(PBV)Contracts,administeredbyHUD’sOfficePublicandIndianHousing(PIH) • ProjectBasedRentalAssistance(PBRA)Contracts,administeredbyHUD’sOffice MultifamilyPrograms (OMFP)

  8. PAT 1-1PRESERVATIONOFPUBLICHOUSING • PHAsmustmaintainthesame #ofdeeplyaffordable units • One-for-onereplacementofunitswitha“de-minimus”orminorexception • “De-minimus”allowsPHAstoreducethe# ofassistedunitsbyupto5%or5units,whicheveris greater,withoutHUDapproval • PHAscanalsoreduceunitsthathave been • Vacantfor2ormoreyears • Reconfigured,suchasanefficiencymadeintoa1-bedroomunit • Convertedtouseforsocialservices • Nopermanentinvoluntarydisplacementofresidentscanoccurasaresultofconversion

  9. ED PUBLICHOUSINGOWNERSHIP • Conversionwillnotrequireachangeinownership • Publicornon-profitownershiporcontrol • Twoexceptions • For-profitownershiptofacilitatelow-incometaxcredits (LIHTCs) • Ifforeclosure,bankruptcy,orterminationforcause– disposefirsttocapable publicentity,thenothercapableentitiesasdeterminedby Secretary

  10. ED LONG-TERMAFFORDABILITY • InitialContractTerm • PBRA:20years • PBV:15years(or20yearswithPHAapproval) • SecretarymustrenewcontractandPHAmustaccept • Long-termuseagreementextendedwitheachcontractrenewal

  11. ED RESIDENTCHOICE-MOBILITY • PBV—adherestocurrentprogramrules • Minimumresidency:1year • Waitlistpriorityiftenant-basedassistanceisnot immediatelyavailable • PBRA—differentrules • Minimumresidency:2years • PHAmaylimitChoice-Mobilityvouchersto1/3ofturnovervouchers,or movesto15%ofthe project’sassistedunits • – If limited,residentwait-listpolicyforHCVsto exercisechoice-mobility option • HUDmayexemptupto10%ofconvertedunitsunderRADfromthisrequirementwhere novouchersareavailable

  12. ED RESIDENTNOTIFICATION&CONSULTATION • PHAsmustnotifyandconsultwithresidentsinadvance of, andthroughout,theconversionofassistance • PriortoConversion • Conductatleasttwomeetingswithresidentsofprojectsproposedforinitialapplication • Provideopportunityforresidentsofproposedprojectstocomment • Addressresidentcommentsinwriting • Uponapprovalofinitialapplication(CommitmenttoEnterinto HAP,orCHAP),conductatleastonemoreresidentmeeting • UponIssuanceofRADConversionCommitment • Notifyeachaffectedhouseholdofconversionapproval • Informhouseholdsofspecificconversionplans/impacts • AffectedhouseholdsthatdonotwanttotransitiontonewprogramcanbeofferedtransfertootherPublicHousingasavailable

  13. RON SIGNIFICANTAMENDMENTCHANGE • HUDconsidersRADconversionstobea“SignificantAmendment”toaPHAPlan • Discussionswithresidentorganizationsandotherresidentscanbeginatany time • Ideallybeforethetworequiredmeetingswithresidentsofprojectsproposedforconversion,andpriortotheinitialapplication • HUDrequiresthattheSignificantAmendmentbemadeafterpreliminaryapprovalisgranted(CHAP) • Canbe2monthsafteraconversionapplicationissubmitted • Wellbeforefinalconversionisapproved(HAP) • RABinvolvement,PHA-wide notice,broadpublicoutreach

  14. RON RADRENT&TENANCYPROVISIONS • Residentswillcontinuetopay30%adjustedincome • –Ifmonthlyrentincreasesbymorethangreaterof10%or$25 purelyasaresultofconversion(onlylikelyin“flatrent” scenarios),rentincreaseswillbephasedinover3years(or5yearsifPHAelects) • Norescreeningofresidentsuponconversion–willnotaffectcontinuedresidency • Residentswillhave thefirstrightto returnifrehaborconstructionrequirestemporaryrelocation • Permanentinvoluntarydisplacementofresidentsmaynotoccurasaresultoftheproject’sconversionofassistance

  15. RON RADRESIDENTPROVISIONS • FamilySelf-Sufficiency(FSS)&ResidentOpportunitiesandSelf-Sufficiency(ROSS-SC) • FSS&ROSS-SCparticipantsmaycontinueinprograms • ResidentParticipation&Funding • Residentscanestablish&operatelegitimateresidentorganizations • PHAsmustrecognizelegitimateresidentorganizations • PHAsmustprovide$25peroccupiedunitannuallyforresidentparticipationpercurrentPHprogramrules • ResidentProceduralRights • PHAsmustabidebyadditional(toPBV&PBRA)grievanceandterminationprovisionstobeconsistentwithrightsaffordedby Section6oftheHousingAct

  16. RON RADRESIDENTPROVISIONS • ResidentParticipation—insteadofSection964provisionsforPublic Housing • IfconverttoPBRA,thenMultifamilySection245participationprovisionsapply • IfconverttoPBV,thenprovisionssimilartoSection245apply • Section245-like rightsinclude • Righttoestablishandoperatea“legitimateresidentorganization,”including • Leafleting,surveys,sitemeetings • RespondtoPHArequeststoincreaserents,changesin utilities,makemajorcapitalrepairs,prepayloans

  17. RON KEYRADDATES

  18. RON IFYOURPHAISAPPLYINGFORRAD • SomeGoodQuestionstoAsk • Whichdevelopmentsarebeingconsideredforconversion? • DoesthePHAintendtoapplyforPBVorPBRA,andwhy? • WhenisthePHAdiscussingconversionplanswithresidents? • HowdoIsubmitmyfeedbackontheplans? • Whenwill thePHAsharetheirresponsestofeedback? • HowcanIbeinvolvedmovingforward?

  19. RON RADWEBPAGE RADNotice,applicationmaterials,andadditionalresourcescan befoundat www.hud.gov/rad Email questionstorad@hud.gov

  20. APPENDIX

  21. PROJECT-BASEDVOUCHERS • PBVsNow(viaPHAs) • Projectbaseupto20%ofvoucherinventory • 25%capforprojectsunlessunitsqualifyforexceptions • Elderly • Disabled • Familiesreceivingsupportive services • Use“turnovervouchers”tosupportmobilitycomponent • PBVsunderRAD • Liftsthe20%voucherinventorycap • Raisesper-projectcapto50% • Exceptionsstillapply,howeverif familydeclinessupportive services,“grandfathered”in • Onceinitialfamilyvacates,supportive servicerequirement applies • Long-termcontracts/affordabilitycontrols/PHAmustrenew • Improvedresidentprovisionsthroughadditionalgrievanceproceduresandterminationnoticerequirements 21

  22. PROJECT-BASEDRENTALASSISTANCE • PBRANow • NocurrentauthorityforPHtoconverttoPBRA • Nocurrent“choice-mobility”provisions • PBRAunderRAD • Long-termrenewablecontractanduserestriction • Choice-mobilityrequirementintroduced • Improvedresidentprovisionsthroughadditionalgrievanceproceduresandterminationnoticerequirements

  23. RADEVALUATION • 3-YearAuthority(toSeptember30,2015)forPublic Housing • &ModRehab • PublicHousingconversions • Impactonpreservationandimprovementofcoveredprojects • Impactofconversionsonresidents • Amountofprivatecapitalleveragedforrehabasaresultofconversion • ModRehab,RentSupp,&RAPconversions • FY2006-2014Authority • ComptrollerGeneral ofUStoconductstudyoflong-termimpactonratiooftenant-basedvoucherstoproject-basedvouchers

  24. KEYPROGRAMPROVISIONS:PUBLICHOUSING

  25. KEYPROGRAMPROVISIONS:PUBLICHOUSING Continued

  26. KEYPROGRAMPROVISIONS:PUBLICHOUSING Continued

  27. KEYPROGRAMPROVISIONS: NON-PUBLICHOUSING ModRehab,RentSupp,&RAP

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