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Navigating RAD and Mod Rehab Options for Massachusetts Property Owners

MTM Consulting LLC offers guidance on RAD and Mod Rehab transactions in Massachusetts, focusing on the intricate aspects of the process, including the two available components of financing assistance. We emphasize the importance of addressing capital needs, providing for resident mobility, and the potential benefits of consolidating contracts. With multiple applications pending and strategies to manage capital effectively, we provide a pathway to secure long-term Section 8 contracts. Contact us to learn more about navigating these opportunities and enhancing your property's financing.

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Navigating RAD and Mod Rehab Options for Massachusetts Property Owners

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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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