1. Rental Assistance Demonstration (RAD) PIH Notice 2012-32

2. Build on the proven Section 8 platform Leverage private capital to rehabilitate or develop housing assets Fulfill long term preservation needs K EY RAD G OALS 2

3. Authorized as part of the Consolidated Further Continuing Appropriations Act of 2012 (Public Law 112-55)Public Law 112-55 – Final program rules outlined in PIH Notice 2012-32 – Update of 2012-32 Coming Soon! Allows public housing and certain at-risk multifamily legacy programs to convert to long-term Section 8 rental assistance contracts 2 components – 1 st Component, Competitive: Public Housing & Moderate Rehabilitation (Mod Rehab) – 2 nd Component, Non-competitive: Mod Rehab, Rent Supplement (Rent Supp) & Rental Assistance Payment (RAP) RAD A UTHORITY 3

4. RAD C ONVERSION A UTHORITY 4 Public HousingMod RehabRS & RAP Cap of 60,000 Units, at current funding PBRAPBV No Cap, but subject to availability of TPVs PBV

5. P UBLIC H OUSING C ONVERSION R ENT L EVELS ACCSection 8 5

6. RAD P ROVISIONS 6 After award, must complete a Physical Condition Assessment (PCA) to identify conditions at the property Can use other PH Funding Sources in the transactions Reserves Cap Fund RHF Ownership – Public or non-profit, except to facilitate tax credits Initial Contract Terms – PBRA – 20 years, with mandatory renewals PBV – 15-20, also with mandatory renewals, but PHA also can extend initial contract for additional 15 years Annual Adjustments to rents – based on Operating Cost Adjustment Factor (OCAF), i.e., lock in funding long term with an increase of inflation factor each year (OCAF)

7. 30-D AY C OMPETITIVE I NITIAL A WARDS – P UBLIC H OUSING & M OD R EHAB A WARDS Initial Public Housing Awards Total Public Housing Applications113 Total Awarded Public Housing Projects110 Total Awarded PHAs68 Total Awarded Public Housing Units11,910 Initial Mod-Rehab Awards Total Mod Rehab Applications3 Total Awarded Mod Rehab Projects2 Total Awarded Mod Rehab Owners2 Total Awarded Mod Rehab Units343

8. Type of Section 8 Subsidy 54% Project Based Vouchers (PBV) 46% Project Based Rental Assistance (PBRA) P UBLIC H OUSING I NITIAL A WARDS – K EY C HARACTERISTICS 8

9. PHA Size 20% Small (<250 Units) 58% Medium (251-1,249 Units) 22% Large (1,250+ Units) P UBLIC H OUSING I NITIAL A WARDS – K EY C HARACTERISTICS 9

10. $ 977 Million in Total Financing Sources $74 million PHA Supplied (just 7.5% of all financing sources) $257 million 1 st Mortgage $409 million in 4% & 9% LIHTC $237 million in Secondary Financing P UBLIC H OUSING I NITIAL A WARDS – K EY C HARACTERISTICS 10

11. I NITIAL C ONVERSION A WARDS – 2 ND C OMPONENT Rent Supp/RAP & MR Requests to Date Total Rent Supp & RAP Conversion Requests Mod Rehab Conversion Requests Additional Requests in Pipeline** 40 (~4,997 units) 2 (~302 units) 24 (~2,000 units) Total Awards Approved Total Awards Closed Total Awards Under Review 17 12 (~3,200 units) 11 (~2,099 units) Total Letters of Interest Received by 4/01/13121 (10,600 contract units & 9,700 potentially eligible units) **Additional requests in the pipeline are those that have received short-term extension to prepare and submit applications by September 30, 2013. 11

12. RAD C APITAL M ARKETPLACE 12 www.radcapitalmarketplace.com

13. RAD Notice, application materials, and additional resources can be found at www.hud.gov/rad Email questions to rad@hud.gov rad@hud.gov RAD W EB P AGE 13