1. RAD LIVE Q&A February 28, 2014 Will Lavy Greg Byrne Patrick Costigan

2. W ELCOME 2 Ask questions at the end! Here’s how: “Raise your hand” by clicking on the hand icon and the presenter will un-mute your line so you can ask your question live Note: To do this, you MUST call the dial-in number shown on your attendee control panel and input the audio PIN shown, which is unique to each attendee Send in questions via the “Question” feature or email them to rad@hud.gov; answers to those questions will be provided after the webcast and posted to the FAQsrad@hud.gov

3. Program Update Expanding Authority Rent-setting: Current Authority v. Future Authority Ideas for PHAs to Move Quickly Upon Expanded Authority A GENDA 3

4. PROGRAM UPDATE

5. “RAD will only work for public housing projects with low needs” “RAD is for PHAs in strong markets” “RAD is for small PHAs” “Everyone will convert to PBRA” “Everyone will convert to PBV” “RAD only works with 9% Low Income Housing Tax Credits and there’s not enough to go around” “RAD will only work with FHA mortgage insurance – 99% of these transactions will go FHA” “RAD rents won’t work” E ARLY RAD P REDICTIONS 5

6. A PPLICATIONS, CHAP S, AND C LOSINGS 6 No. CHAPs/ Apps No. Units No. PHAs Public Housing CHAP Awardees – Active 32254,506158 Public Housing CHAP Awardees - Closed 141,28710 Mod Rehab CHAP Awardees4559N/A TOTAL CHAPs34056,352168 Public Housing Applications:674118,722365 MR Pending Applications:9974N/A TOTAL Pending Applications:683119,696365 Public Housing Total)1,010174,515384 Mod Rehab Total 131,533N/A Grand Total (All Pending + CHAP)1,023176,048382 (unique PHAs)

7. P ERCENTAGE OF P UBLIC H OUSING A PPLICATIONS BY C ENSUS R EGION C OMPARED TO C URRENT P UBIC H OUSING P ROJECTS 7 RAD: 11% PH: 8% RAD:16% PH: 29% RAD: 56% PH: 49% RAD: 17% PH: 13% Note: This data reflects the regional breakdown of RAD applications (“projects”) received compared to the number of existing PH projects in each region.

8. P ERCENTAGE OF C URRENT PH U NITS BY HUD R EGION THAT HAVE A PPLIED FOR RAD 8 6% 7% 16% 22% 15% 21% 3%7% 18% 21% Note: This data reflects the percentage of PH units in each HUD region that have applied for RAD; note that units are considered public housing until the RAD closing is complete.

9. G ENERAL P ROFILE OF A PPLICANTS TO D ATE 9 CHARACTERISTICPERCENTAGE Project Locations Urban81% Rural19% Project Type Elderly28% Family72% Section 8 Option PBV49% PBRA51% PHA Size* Small (less than 250 units)40% Medium (250-1,250 units)45% Large (more than 1,250 units)15% *unique PHAs that have applied

10. 76% of the PHAs with CHAP awards have proposed to convert their entire stock, including 52 small PHA (<250 units) 29 medium PHA (250-1,250 units) 26 large PHAs (>1,250 units) W HOLE P ORTFOLIO C ONVERSIONS 10

11. Indicated PHA Objectives Capital Needs – range of moderate repairs, substantial rehab and new construction, establishing replacement reserves ~ 20% of projects planning Demolition and New Construction (on site or off site) Average repair hard costs of ~ $45,000 per unit ($25,000 per unit excluding new construction) Thin densities/mix-incomes via transfer of assistance Streamline programs *Data based on most current CHAP awardee information RAD H ELPING PHA S WITH CHAP S A DDRESS C HALLENGES 11

12. D EVELOPMENT S OURCES 12

13. EXPANDING AUTHORITY

14. Authorizing steps FY15 Appropriations Admin budget 3/4

15. RENT-SETTING: Current Authority v. Future Authority

16. R ENT -S ETTING All applications submitted prior to 12/31/13 and approved under 60,000 unit cap have CHAPs with rents based on 2012 appropriations Approved applications (submitted before 12/31/13) pulled off of waiting list will also be awarded CHAPS with rents based on 2012 appropriations Upon expanded authority, HUD will establish rents for new awards based on current appropriation levels

17. 2014 A PPROPRIATIONS AND RAD R ENTS FY 2012ChangeFY 2014 Operating Fund $338-6.6%$316 Capital Fund$114- Tenant Rents $230+2.6%$236 Total PUM$682-2.3%$666 HUD will post rents as soon as data is available – estimated mid- April. *Data projections based on operating subsidy methodology /national averages for 2014

18. IDEAS FOR PHAs TO MOVE QUICKLY UPON EXPANDED AUTHORITY

19. Review pending applications PHAs should soon expect calls from HUD on their applications Issue “contingent approvals”, subject to expanded authority Clarify how rents will be determined for applications above 60,000 units Conduct a webinar on “successful” RPCAs; also provide PHAs with RPCA review checklist W HAT HUD C AN D O 19

20. Secure development partners and other team members Begin Annual Plan or Significant Amendment Process Use time to better consider timing/sequencing of the project, including tax credit deadlines and relocation planning Initiate RAD Physical Condition Assessment (PCA) Advance negotiations with CFFP/EPC lenders Advance negotiations with Mixed-finance owners Other? W HAT PHA S C AN DO 20

21. L IVE Q&A 21 Ask questions! Here’s how: “Raise your hand” by clicking on the hand icon and the presenter will un-mute your line so you can ask your question live Note: To do this, you MUST call the dial-in number shown on your attendee control panel and input the audio PIN shown, which is unique to each attendee Send in questions via the “Question” feature or email them to rad@hud.gov; answers to those questions will be provided after the webcast and posted to the FAQsrad@hud.gov

22. Applications available (by state) for download on www.hud.gov/radwww.hud.gov/rad Prerecorded webcasts available to walk you through completing an application FAQs available at www.hud.gov/rad or at the RAD Resource Desk - www.radresource.net www.hud.gov/radwww.radresource.net RAD R ESOURCES R EMINDER 22