RADBlast! Transformation of Merritt Homes, Green and Resilient Program Launch, Choice Mobility and more!
The McKinney Housing Authority (Texas) successfully redeveloped Merritt Homes. The original property, constructed in the 1950s, was overdue for renovation and needed to be demolished due to failing infrastructure.
In this Issue of the RADBlast!:
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Transformation of Merritt Homes
The McKinney Housing Authority (Texas) successfully redeveloped Merritt Homes. The original property, constructed in the 1950s, was overdue for renovation and needed to be demolished due to failing infrastructure. Using RAD, and an investment of over $30 million from debt, equity, and local funds, the PHA replaced 150 homes with new deeply affordable housing in a community that has experienced steady economic growth since 2012, including a 400% population increase. Residents now enjoy a brand-new community center, an educational computer lab and library, and updates to outdoor spaces. Additionally, Merritt Homes is equipped with accessibility ramps and solar panels to reduce energy bills and the property's carbon impacts. Merritt is the second of three public housing properties that the PHA plans to renovate through RAD. Read more about how the McKinney Housing Authority used RAD to improve the quality of affordable housing for its residents by addressing issues that impact their health and safety.
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Green and Resilient Retrofit Program Launch
On May 11, 2023, HUD launched the Green and Resilient Retrofit Program (GRRP) which provides funding for direct loans and grants to fund projects that improve energy or water efficiency, enhance indoor air quality or sustainability, implement the use of zero-emission electricity generation, low-emission building materials or processes, energy storage, or building electrification strategies, or address climate resilience, of eligible HUD-assisted multifamily properties.
Owners who receive HUD assistance through Sections 202, 811, Section 8 project-based rental assistance, including PBRA properties that converted through RAD before September 30, 2021, may be eligible for a grant or loan award under one of three cohorts:
- Elements - targets properties that are already advanced in a rehabilitation transaction and need gap financing to fund specific utility-efficient or resilient elements.
- Leading Edge - targets properties that are in the early stages of recapitalization planning. These awards fund projects that will achieve a high-level third-party green certification, such as Phius ZERO REVIVE
- Comprehensive - targets properties with high needs where HUD-procured Multifamily Assessment Contractors will support owners by commissioning third-party reports and assessments to develop a scope of work. The resulting plan will include whole-building retrofits to incorporate green retrofit and resilient design elements.
For Fact Sheets and training on each cohort go to the GRRP website. Questions can also be directed to grrp@hud.gov and the GRRP implementation notice can be accessed here.
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Choice-Mobility Guidebook is Now Available
Choice-Mobility provides eligible residents the right to request a tenant-based voucher after an initial period of occupancy and move to a rental home in the private market. In response to recent feedback that many residents were unaware of their right to exercise the Choice-Mobility option and from PHAs that were looking for the best ways to implement Choice-Mobility, HUD developed a “best practices” guidebook that PHAs and owners can use as a comprehensive resource. The Choice-Mobility Guidebook discusses components of a comprehensive Choice-Mobility policy, guidance for communications with residents, turnover voucher management, and many more topic areas. Additionally, the guide is supplemented with sample materials PHAs and owners can use such as an info sheets for residents, a sample Choice-Mobility request form, and sample language that can be included in a PHA Plan or Housing Choice Voucher Administrative Plan.
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RAD-for-Project Rental Assistance Contracts (PRAC) Conversions and Capital Needs Assessments
On March 29, 2023, HUD published Housing Notice 2023-03 “Capital Needs Assessment (CNA) eTool for Asset Management” which requires that any CNAs used in a request for a budget-based rent increases (BBRI) or in the submission of a RAD Conversion Plan for properties assisted under a Section 202 Project Rental Assistance Contract must utilize the CNA eTool. Accordingly, all requests for a BBRI or submissions of a RAD Conversion Plan submitted on or after June 28th, 2023 must utilize the eTool. More information on the CNA eTool is available at this website.
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2023 Year-End Closing Timelines Established
On May 23, 2023, the RAD Resource Desk sent an email notification regarding the Calendar Year 2023 RAD closing timelines for Public Housing and PRAC conversions.
- If you have any questions and you have a RAD Conversion Commitment (RCC) or Conditional Approval letter, contact your Closing Coordinator.
- If you do not yet have an RCC or Conditional Approval letter for your transaction, contact your Transaction Manager.
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On-site Technical Assistance on Resident Rights
The Office of Recapitalization's Resident Engagement and Protections team produces educational materials and provides technical assistance (TA) to residents, PHAs, and owners around resident rights. Their purpose is to ensure that the robust resident protections built into RAD are implemented effectively on the ground. As part of this work, HUD staff have been reaching out to PHAs to arrange on-site or virtual visits to communicate resident program requirements. We appreciate your collaboration! If you have any questions about this outreach, know of residents that want to talk directly to HUD, or would like our TA support, please reach out to rad@hud.gov.
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New Website for Post-Conversion RAD PBRA
HUD launched a new website that provides useful resources to PHAs and owners that are in the process or have recently converted public housing, Section 8 Moderate Rehabilitation, Rent Supplement, Rental Assistance Payment, and Section 202 PRAC assistance to Project Based Rental Assistance (PBRA). Online information available to owners includes, but is not limited to, finding Tenant Rental Assistance Certification System (TRACS) compliant software and preparing TRACS submissions, Rent Adjustments and Utility Analysis requirements, Violence Against Women Act guidance, and more.
For RAD conversions to Project-Based Vouchers (PBV), please refer to HUD's RAD PBV site. All RAD-PBV program administrators are encouraged to sign up for the RAD PBV quarterly newsletter (RADvisor).
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