Hud Rental Assistance Demonstration Program (RAD)
In early 2012 the United States Department of Urban Development (HUD) invited housing authorities throughout the country to participate in a demonstration program entitled the Rental Assistance Demonstration Program (RAD). Under this initiative, housing authorities would be able to convert Public Housing subsidies to Section 8 Project Based subsidies on an individual development basis, so that these developments could borrow funds for renovations, accumulate reserves and otherwise support themselves in the same manner as other subsidized rental housing. The hope was also that Section 8 would continue to be supported by the Congressional appropriations process, and thus that conversion would place the former Public Housing stock on a better long-term financial footing than remaining in the Public Housing program.
HUD had proposed to make awards for up to 60,000 Public Housing units nationwide but only received applications for 20% of these units. The Housing Authority of the County of Santa Barbara (HACSB) did make an application along with six other California housing authorities. In December 2012 the HACSB was awarded a commitment from HUD to commence the steps needed to fully transition to this program. The following HACSB properties are part of RAD-1 and their progress toward this goal is described herein:
Lompoc Terrace – 40 units (Lompoc)
This property was awarded 9% Federal tax credits in September 2013, which will fund the majority of the renovation, and is the site of our groundbreaking ceremony today. The renovation commenced the last week of March and we expect completion by the fall of this year.
Grossman Homes -14 units (Goleta)
Leland Park – 16 units (Orcutt)
Sandpiper Apartments – 68 units (Goleta)
We plan to submit applications for 4% Federal tax credits and tax exempt bonds to the State of California in May for these properties as a three parcel financing package. Renovation could then commence later this summer with completion expected by 2015.
Photos of these properties are attached.
Since HUD did not receive enough applications for all of the 60,000 units it later invited housing authorities to apply for a second round of competition (RAD-2). The HACSB submitted an application for this round of competition and was awarded a commitment in December 2013 to commence conversion for the following properties under RAD-2:
Lompoc Gardens I & II -75 units (Lompoc)
Miller Plaza – 24 units (Lompoc)
Stanley Horn Homes – 44 units (Lompoc)
We plan to submit two applications for 9% tax credits to the State of California by the second round deadline of July 1. Lompoc Gardens I & II would be one application and Miller Plaza and Stanley Horn Homes would be the other application. If we were successful in being awarded these tax credits in the fall of 2014 we could commence the renovation by the spring of 2015 and possibly be completed by the end of 2015.
Photos of these properties are attached.
All the residents of these properties will need to be temporarily relocated during the renovation but will all have the opportunity to move back in after the renovations are completed.
