1. Multifamily Excellence Submission: HOC’s RAD 6 Conversion
Through HUD’s Rental Assistance Demonstration (RAD), HOC leveraged the value of its assets to bring in private capital and support the comprehensive rehabilitation of 268 formerly Public Housing units.
HOC used the opportunity to deconcontrate poverty, swapping 59 deeply affordable units at the sites with market rate units, affordable at 80% of AMI. The 59 deeply affordable units were relocated to other properties, preserving the total number of affordable units in the community.
HOC used an innovative approach to pool the finance transaction for the six scattered site developments, augmenting the overall debt service potential.
By pooling the sites and inserting 59 (22%) market rate units, the supportable loan value increased, enhancing the net rentable area of 284,897 square feet. Taken separately, the net rentable area of the properties ranged from between 22,525 to 72,659 square feet. This financing strategy supported just over $60,000 in per unit hard cost investments.
As a result, HOC has preserved 268 low-density, affordable and deeply affordable, multi-family and single-family units across a 500 square mile area just outside of Washington D.C., reducing the average age of these assets from years to 1.5 years.