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[Please standby. This event will begin shortly.] >>> Good afternoon, everyone.
My name is Patrick Cobb. Welcome to the third webcast in a series on
HUD's notice on the rental assistance demonstration or RAD.
Today we want to share with you the imposed implementation and the options for owners
of the properties first let me introduce you to my colleagues, and the office of public
and Indian housing Diane Thompson, and also in the office of PIH, Margaret Sal SALISAR.
RAD was authorized by Congress last November and HUD's 2012 appropriations bill budget
proposal from last year. You may have also viewed some of our previous
webcasts on RAD all of which will be posted on RAD web page at WWW.HUD.gov/RAD.
It will go into the eligibility criteria, and application procedures that comply to
converting assistance to MOD rerehab properties. We encourage you to send in your E mail questions
particularly as they relate to mod rehab under the demonstration, and you can send it to
RAD at HUD.gov. It would be helpful if you in submitting your
questions if you would offer your name and organization, along with your question.
Once we conclude our overview of today's presentation, we will take those questions.
Most of you know one of the main purposes of RAD is to generate sources of financing
in three of the multifamily legacy programs sometimes called the orphan programs.
And we have the Rent Supp/RAP program. It's RAD will test this by converting assistance
to long term project base secretaries 8 rental assistance to better access private debt and
equity investments. Mod rehab properties, given it's been been
many years, the need to rehab housing in section 8 contract will be especially critical.
Also, another important goal of the rental assistance demonstration is to offer residents
choice and mobility in where they live, which we will be discussing in some detail today,
but you will also find information on the choice mobility in the notice.
As a reminder, public housing notice 2012 18 with respect to mod rehab is proposed and
intended to solicit your comments. Once we have the comments, we will thoroughly
review them and issue a final notice guiding RAD's implementation later this spring.
To get us started, I'm going to turn it over to Greg and ask him to give us an overview
of the rental assistance demonstration. >> I'm going to go over towards the white
board which we used for the previous webinars as well.
Here we have RAD, and what's important to understand about the RAD program is there's
three different ownership types, and two elements of the program or two components.
The three ownership types, and what we will show here is mod rehab is unique in the sense
it's eligible for both. Under the component, these properties can
convert either to project based rental assistance, or what we often say multifamily housing administered
in Margaret's shop or a voucher. You have the choice of doing it, but one of
the constraints under this is that Congress gave us the authority to have 60,000 units
convert under this first component of the program.
So mod rehab owner can compete, and the second part, under this component, there's a competition.
They have to sort of compete for it and the third major defining element under this here,
it's current funding. So for the mod rehab owners will talk more
during the presentation, because really you are bringing over your current contact rents
if you elect for this element of the program and you are selected.
The other alternative for mod rehab or the second component of the implementation of
the Rent Supp/RAP, they can take the tenant protection vouchers or what we call PBV's.
Here one of the major differences is that there's no cap.
There's no program cap on the number of units, although it is subject to the availability
of funding for tenant protection vouchers, and each year they have public housing common
litions, and disposition, and opt outs, and the contract terminations and expirations.
Our notices organize PIH notice 2012 18. The second section of the notice is mod rehab,
and the third section is rent subpoena and rap.
Mod rehab is the one inventory that's actually allowed or has the ability to go to both components
of the demonstration. A last couple things before I turn it back
to you, there's 60,000 units for this first component of the demonstration, and since
we were given this authority by the Congress, and that's 58,750 units that would allowed
for public houses and the reasons for that is because public housing has 1.2 million
units, and mod rehab has about 25,000 units, and those figures, 58,750, and 1250 over here
are representative so the proportions of the inventory is how we sort of divided this up.
The last thing to emphasize is the only part of this notice that is effective today is
the Rent Supp/RAP. We will still take comments, but everything
else, the public housing and the mod rehab, this is all proposed, and so we have a schedule.
It's a 30 day for public comments and ends April 9th.
We will look at the comments and expect to turn them back around and issue a final notice
in June, but until the final notice is issued, everything we are talking about for mod rehab
is proposed. >> Thanks for the overview, Greg, and we have
a few options under mod rehab. You have done a lot of work with mod rehab
over the years. Can you help us understand let's start with
the eligibility criteria. How does this work for mod rehab?
>> Under the first component, eligible properties are those that are under either a mod rehab
contract that has not actually reached the end of the original 15 year contract term
or mod rehab contracts that are currently under a one year renewal contract.
Under the second component of RAD that's applicable to mod rehab, projects are only eligible if
they are under a mod rehab contract subject to a renewal.
The difference between the two is under the first component we are allowing owners to
terminate their contract before the actual expiration date of the initial contract.
We are not allowing owners to terminate early to introduce any extra strain.
>> Beyond that, are there any other differences between the first component and the second
component as it relates to mod rehab that we should be aware of?
>> You said the first and secretary components, the eligibility requirements must be the same.
They must have a history of compliance, and all units must be indecent, safe and sanitary
condition as of the date of the PHA's inspection. The owner must be in compliance with housing
and civil rights requirements. >> Let's go back to the first component for
a minute and talk how rent setting will work. >> Generally, pat, rent setting is going to
work for the first component based on whether or not it is a PBIA conversion or PBV conversion.
It will be established and capped at the lesser of current funding or 120% of the applicable
fair market rent minus any utility allows, and under vouchers under the first component
of the demonstration rents also cannot exceed current funding and at the lower current funding
the reasonable rent up to 110% minus any utility allowance or the rent requested by the owner.
>> So that's the initial rent setting. Can you now tell us how rents can be adjusted
over the term of the contract? >> Sure.
For both PBV and PBRA rents will be adjusted in an operating cost adjust can't factor.
>> Tell us about the term of the contracts. We have a couple of options here.
>> Right, right, right. The initial term is for 20 years, and project
based contracts the initial term is for 15 years.
However, the owner can request an additional five years for a total of 20 if they make
that request to the PHA. The PHA approves.
>> And the latter part to go to 20 years is something we can do under the statutory authority,
is that correct? >> That's correct.
>> It's not typical to the PBV program but under the RAD you will request up to 20 years,
but that will be a possibility. >> Yes.
>> Great. That's pretty clear.
Let's talk a bit about how mod rehab owners will work to compete under the first component.
What do they need to submit to HUD in the way of an application or other materials?
>> PBRA and PBV conversions under the first component of RAD is are subject to competition,
and Greg will describe that a little later in the presentation.
Owners must submit a financing plan to demonstrate the long term viability of the project.
Again, Greg is going to describe that a little later.
>> All right. That's really helpful.
One of the things we mentioned at the top was choice mobility is an important component
of the demonstration. How will Joyce be offered to residents under
mod rehab. >> For all PBV conversions whether it will
be public housing Rent Supp/RAP, after one year of occupancy, in a PBV unit, a resident
can choose to move with continued tenant based assistance.
So the housing authority would have to offer that family the first housing choice voucher
or other comparable assistance that becomes available when the family makes their request.
For only properties that are converting to PBIA which can only be public housing or mod
rehab under the first component, they are required to offer a resident a choice voucher
after a minimum of two years in occupancy in the PBIA unit.
>> We should remind all the viewers today that the details of this are laid out pretty
clearly hopefully in the notice, and we urge you to go back and review that.
Let's switch, now, Diane to the second component of the demonstration as it relates to mod
rehab. Can you give us some idea of some of the key
provisions under the second component? What do we need to know about there?
>> Actually I think there's a PowerPoint on the screen for viewers to kind of follow along
as well. But under the second component of the demonstration,
PBV's will be provided to mod rehab owners who are eligible and apply, and they will
be provided in lieu of tenant protection vouchers that otherwise would be provided to the tenant.
Conversions under the second component are noncompetitive but they are subject to the
tenant protection doctor funding and contract rents are set to the according to the voucher
rent rules. Without the current funding limits that will
have under the first conversion or component of the demonstration, and rent increases will
be based on the PBV requirements and the rent can be increased by the PHA according to the
normal PBV requirements. >> Great.
That's helpful. Now that we understand that there are really
two distinct paths for mod rehab that owners can take, why don't we go into the how the
owner actually initiates the conversion process. Maybe, Greg, you can help us out with this.
Let's go back to how an owner would begin to apply under the first component of the
demonstration you applied to us on the white board.
>> The first thing they need to do is approach the PHA and get their approval.
If you have a PHA that is the contract administrator for that project, we want to make sure the
PHA is okay with this proposal to convert and so first get the PHA's approval.
But once you get the PHA's approval, the owner will submit an application, similar to the
procedures we described in the earlier webinars are public housing authorities that on the
website we posted a proposed application form, and they will submit an application form that
essentially it's Xcel based and will require the owner to walk through a pro forma and
say here is the operating costs and here is the capital needs that I identify for my property.
Here is where my first mortgage financing or other sources of funds are going to be
able to meet my needs for this project. We ask the owner to submit us that application,
and whether they are going to be requiring first mortgage financing or outside financing
as part of the application that they will submit to us, we want to see a letter of interest.
It doesn't have to be a firm commitment at this stage or nailed down but we want to make
sure someone has taken another step and talked to them and the owner says yes, it seems like
a feasible project for us. >> The owner submits this application, these
materials, and then what happens? How does it get scored and how does an owner
become aware it's been selected to move to the next step?
>> Pat, we only have 60,000 units in which we can award and we said 1250 will go to mod
rehab. We have some process in which we decide which
mod rehab owners will award to. So what's going to happen is that we are going
to first of all, we have divided the 1250 units into four regions so THA's and northeast
and south midwest, will compete against themselves. We have three ranking criteria, and for those
projects that are proposing to do more capital work have sort of a higher score than those
that propose lower capital work. Those owners who agree to a green doabing
standard get a priority. To the extend mod rehab owners sponsor housing
authority, then for choice mobility they also get some points for that.
But essentially by the time they submit the application to us, Xcel application will automatically
sort of score those, the PHA, and the mod rehab owners, and we expect if the application
window opens in the first of August if all the quell goes well by the end of August,
then we will close the application window and look at all the application we receive
and expect we would then make awards by September 30th. >> Let's stay on the path for a minute.
Maybe Margaret you can help us as we are shifting over to the second 8 platform.
Once the mod rehab project has been approved, then what happens?
>> After the approval, HUD will enter a chap, a commitment to enter into the a project and
it's to put together a financing plan for the recapitalization of the property.
The chap period is a 180 day period during which the owner is seeking other financing
sources. As Greg mentioned when the owner applies,
they are submitting a finance letter of intent, but we fully understand that is not a full
commitment of financing of the during the chap period, the owner will be following up
and reporting a series of milestones, and that includes things like letter of engagement
with a lender, due diligence reports for the capital needs assessment and evidence of a
firm commitment application. >> We don't have to have the financing in
place, but you described the steps that have to follow after that initial approval, if
you will. What happens after that?
What's the next step? >> Again, the intent of this chap period is
for the financing to come together, and HUD will review the financing plan, and there's
a series of various financing sources that an owner might look to, and the intent is
to provide the mod rehab owners with the ability to seek outside financing which many owners
have been looking for. That financing may include things like FHA
insured mortgage or 221D4 loan could be a good option for folks, and a moderate level
of repairs needed, there are other sources of finances, like conventional loans, lower
income tax credits. Financing from state and local government
sources and other sources. >> Pretty typical financing options that are
available to any developer for affordable housing.
>> That was designed to be flexible so owners can look to multiple sources of financing.
>> That's helpful. Let's talk about post conversion.
This has been approved by HUD, and we have gone through the process you just described.
Stick with PBRA. As it moves to post conversion, under the
first component of RAD, what happens then? >> When the mod rehab owner, signs a PBRA
contract, essentially what they are doing is moving over to section 8 contracts that
will be administered under the regulations at 24CFR part 880 and it will be overseen
by the office of multifamily housing programs, and it will be under the guidance standing.
What that will look like is things like inspections from the real estate inspection center.
Management occupancy reviews performed by a performance based contract administrator
and other processes like submission of annual statements and observe for placement releases
and things like that. But I do want to know there are a few special
conversions, so if you are selecting a PBRA contract under section 8, it is a section
8 contract but there are few distinctions, and some of you may have noticed in our notice
we include an attachment that has the regs at part 880.
But there are strike throughs, and we are trying to show some of the distinctions for
the regulations for these RAD PBRA contracts that are a little bit different than our regular
section 8 contracts. Just a couple things to highlight there.
This will be a 20 year contract term as Diane mentioned and the rent setting adjustments
will be a little different than the section 8 contract in that there will be OCAF adjustments,
and they will have the choice mobility component whether there will be the opportunity for
tenants to move over a two year period. >> Let's come back to you, Diane and you can
walk us through what rules apply if an owner chooses to convert to project based vouchers.
>> Under the first component of RAD, if an owner chooses to convert to project based
vouchers, generally the regular PBV rules will apply.
But under the first component, the conference actually gave us broad waiver authority.
We have weighed a number of regulatory provisions, a couple of statutory provisions and provided
for alternative provisions as well. All of those things are in the notice and
can be found in section 2 of the notice, which is the section for mod rehab.
But there are things I wanted to note that would be of interest to mod rehab owners.
Under the regular project based program, housing authority is required to run a competition
to select owner proposals, and under RAD, under the first and second components, that
provision is waived. So the owner will not have to compete for
the project based voucher assistance, and another important waiver has to do with the
income mixing requirements that are mandatorynd the PVBV program.
What the regular program requires is that not more than 25% of the units in a project
may be assisted under the PBV program unless exceptions are met, and they are for elderly
programs, and family properties where the tenants are actually receiving supportive
services that are offered by the PHA. One modification that we made with that provision
under the top of the first component of RAD is to offer services to the family as opposed
to requiring receiving those services. We do not want to displace families who choose
not to participate in the services and the assistance changing through know fault of
their own. That's one important change as well.
As far as PHA's are concerned, that would be happy to know that the waiver authority
provided to us by Congress allows us to not require that these PBV contracts count towards
their 20% limitation on the part of the project based voucher assistance or tenant based assistance
that can actually be project based. >> RAD conversions in effect are except from
that cap so they really don't count against that.
>> Right. >> You have been describing the competitive
portion of mod rehab or the left side of the white board, if you will, that we talked about
earlier. There's also we mentioned the ability to
convert to PBV's on the second part of the demonstration.
We talked a little bit about how that works, but if an owner chooses to go that route,
what should he or she expect would be some of the things that would have to do here.
>> It's provided in lieu of tenant protection vouchers that would otherwise be provided
to tenants when an owner opts not to renew the contracts.
The owner has to submit a request to the PHA that is currently administering the mod contract.
The information is also in the notice to kind of give the procedure in terms of providing
submitting the request to the PHA and the time frames involved.
But there are a couple of important things that I would like to point out.
The request, it has to be submitted within 120 days prior to the contract expiration.
So that's just an important date to keep in mind.
>> Let me stop you on it. It's a pretty complex diagram up there.
What happens if a mod rehab contract is set to expire within before that 124 day period.
What are the options for the owner then? >> Those that are looking to convert their
properties prospectively to facilitate the process when the expiration will occur within
that 120 days. So that's basically our attempt at trying
to make the process easier. >> To get to that point and then convert in
that fashion. >> Yes.
>> Great. >> I just wanted to get back to the section
that deals with conversions under the second component of RAD.
It's important to note there's a tenant notification requirement that tenants are provided with
a 30 day period to provide comments on the conversion.
The PHA will review their owner's request and the tenant comments, and if more than
50% of the written comments that are received by the housing authority disapprove of the
conversion, then the PHA will contact the owner to discuss options for proceeding with
the conversion request or they may decline the request.
However if they do consent they present the financing plan that we spoke of earlier and
the PHA version that in fact the conversion does satisfy the requirements of the notice,
and that would be submitted to HUD headquarters. HUD headquarters will review the financing
plan, and make sure that the benchmarks for feasibility are met, and HUD headquarters
will then issue the vouchers to the housing authority, and the housing authority will
enter into a project based voucher contract. >> There's a lot of details there, and we
are going to urge all the participants that are interested to take special attention to
this section of the notice and review these details.
But we are not done yet. Just to make it interesting, I think, Congress
also granted us the authority under the second component of the demonstration we are talking
about to go back retroactively, and there's authority to convert these vouchers to project
based vouchers that goes back. Can you explain how that works?
>> Sure, sure. Projects where the mod rehab contract or renewal
contract expired after October 1st, 2006 are eligible under RAD, but there's one important
distinction I would like to make. Under section 18 of the United States housing
act, mod rehab owners that choose not to renew their contracts are the the tenants in those
units are allowed to receive enhanced voucher assistance, and that's a category of tenant
protection vouchers, and readers will note in the notice we refer to enhanced vouchers
and I want to make clear that is a category of tenant protection assistance, and the owners
will be able to convert that assistance to project based voucher assistance retroactively
and one of the main differences has to do with the tenant notification and comment.
Families under the prospective conversion are given the ability to comment.
Families have to actually consent to the conversion since they have enhanced vouchers, they have
to be notified, and they have to be briefed on the differences between the two programs,
and how the conversion will impact their rent payments and how it will impact their ability
to move with their voucher, and those are important things that the families have to
be briefed on under the retroactive conversion. >> And that would make a lot of sense.
They were living with an enhanced voucher and now it's being converted.
We ar encouraging both the residents and the owners to work together on that.
That's the only way forward, correct? >> Correct.
>> Before we turned to taking some of the questions that are starting to come in now,
Diane, can I ask you, are there other important details on mod rehab that we should be paying
attention to that you would like to highlight? And then we will go to questions.
>> Most of the details are certainly covered in our notice under section 2.
We touched on some of them here but please review and get an idea of what's required.
There's a lot of detail. But a couple of things we want to remind folks
of is that the comments are due April 9th. The mod rehab portion of the notice is proposed
and we are looking to receive public comment on the notice.
There's a 30 day application period for conversions under the first component, and it's expected
to begin on August 1st. Mod rehab conversions under the second component
can get started with submissions 120 days prior to the expiration day of the hat contract
after the final notice is published. >> Before we go to questions, I want to remind
all of our participants that we are now in our third webcast this week, and those are
archived on our web page at WWW.HUD.gov/RAD, and so you can find those if you haven't had
a chance to tune in, and further you can send us questions about mod rehab or public housing
or Rent Supp/RAP which we will cover in an up coming webcast in the next hour.
You can submit those questions, you need to follow the comment procedures in the notice
to register a formal comment. But we are happy to take your questions, and
you can submit those to us via E mail at RAD at HUD.gov.
We have a few questions that have come in by E mail.
So let's turn to those and see if we can help out with some of that.
We talked a bit about this. Isn't there a rule not more than 25% of the
units in the building can be assisted? You mentioned that's being changed under RAD.
Can you go through that again. We have authority to do this.
>> We do, we do. >> Under the first component of RAD, we have
broad authority. But under the second component of RAD we waive
the statutory provisions and regulatory provisions and one of those is the income mixing requirement
for the PBV program. Basically what that requires is that not more
than 25% of units in a project may be project based with the exception of elderly, disabled,
single family properties, and family properties where the tenants are actually receiving supportive
services and for the purposes of RAD, however, we have increased that percentage to 50%,
and so 50% of the units are eligible to be project based under the voucher program.
Where an owner wishes to go beyond the 50% in a family property, the family under the
normal program would be required to receive the supportive services offered by the public
housing authority. Under RAD, we are lessening the impact on
families who choose not to participate in the supportive services and only requiring
that the PHA offer those services but if the family declines to participate, their assistance
is not affected, and they are not terminated and they are not required to move out of the
accepted unit, but rather, they can continue in occupancy, but once the family does vacate
the unit, the next family referred to the unit off of their waiting list would have
to comply with the normal PBV requirements, which is to receive supportive services in
order for that to be accepted under the PBV program.
>> Thank you. A couple more questions here, but let me just
remind the viewers that you can still submit your E mail questions before we wrap up probably
in another five or 10 minutes at most to RAD at HUD.gov.
Another one that's a bit related, Diane, so if a mod rehab owner converts its project
to project based vouchers, I think Margaret talked about what happens here, the participant
wants to know who will administer the PBV contract?
How does that work? >> It will be the housing authority.
Mod rehab contracts are administered by local public housing authorities.
The same housing authority that admin sisters the mod rehab currently will be the housing
authority that will administer the project based voucher contract.
>> Great. >> There's a couple questions related to choice
mobility for residents. Maybe Greg you can help with one of these.
The first one is when a resident exercises his or her choice mobility or right to move
option, does the subsidy remain on the property or only with the family?
I think the answer is? >> For the owner, be clear that the assistance
remains with the property. It's project based assistance, whether it's
PBRA or PBV. It's project based.
Were the family getting the subject to move, what it's doing is accessing the vouchers
that the voucher agency has in its voucher program but definitely the assistance of the
property owner mod rehab owner has 100 units and converting all to PBV.
They are fixed at that property. >> So this is a little bit like public housing
that we talked about yesterday. A lot of this is going to depend on the ability
of a housing authority to have turnover vouchers to support the choice program.
But not all has the authority to do this. What are we doing to kind of get housing authority
maybe to help one another or relieve the obvious constraints?
>> The first component is converting to PBRA, and mod rehab owners converting to PBRA.
We have a housing authority that will be providing the turnover vouchers to limit up to 1 third
of the turnover vouchers. So it's a way of capping it so it doesn't
create too much of a burden on the program. >> You were the director.
>> You face a lot of demand on your turnover vouchers for the homeless?
>> In recent years, the turn back rates have been turn down.
People holding on to their vouchers, and unable to not crowd out others, this is a way of
limiting the choice vouchers under RAD. >> Great.
>> We have one well, there's a two part question here.
I'm not sure if it's from two viewers or one. Let's try it.
Margaret you talked a little bit about financing, and you expect lenders to participate in the
program. Will they be eligible for FHA insurance and
textbooks and other tools. You touched on that a little bit.
But let's talk a little bit about the lender participation.
Do you work with a lot of the lenders on the section 8 part of the program?
And I had an opportunity to speak with lenders and investors yesterday, and I think the yen
reaction is that these are section 8 contracts, be they PBRA or PBV and they have a lot of
experience with that. But if you want to comment on that.
>> Absolutely. Really one of our one of the components
here of RAD is this idea that the section 8 contract and the idea you can lever a section
8 contract is it's really a proven model. It's something we do with both conventional
lending and FHA insured lending, and it's something lenders are familiar with, are comfortable
with, and it's a source of rental assistance that folks have been able to leverage successfully.
FHA insured financing might be a good vehicle, and if owners are interested in pursuing that,
they should work with what we call a map approved lender so a HUD approved FHA lender, and they
can also approach the multifamily field office who can help them with that financing application.
>> That's helpful. There's a related question that's come up,
and Diane, maybe you can help me, but the question is basically this.
If under the demonstration there are no additional funds provided, what's the advantage of an
owner thinking about converting to this form of assistance?
There's no more money, we are not going to be able to adjust the initial contract runs,
and limited OCAF adjustments. They are wondering what am I doing this.
But you can talk about your strengths in the advantages of this.
>> The first component of RAD, this is an excellent subject for them to leverage funding
as Margaret was discussing through the ability to take long term contract to the bank or
to their investors and say hey, I have the long term contract and that's one of the advantages
and for owners that are interested the advantage there is to get long term contract up to 15
years and also in many cases, they will be able to get increased rents that they have
been restrained from receiving under the regular mod rehab option.
Under the second component of RAD, an owner is eligible to get rents up to 110% of the
FMR. Currently under the renewal contract, the
rents are restrained to the lower of the contract rent adjusted by OCAF.
100% of the FMR or the comparable rent. I have heard from many owners that the restrains
on the rents are not enough to allow them to do repairs that they need to do to the
units to just be able to financially stay above water.
This will be a great opportunity for owners to, you know, get a long term contract and
get rents that hopefully will help them manage and repair their projects in an efficient
way. >> The real obvious benefit is and mod rehab
owners know as well. It's nice to come and see once a year the
local PHA but basically they have to come in once a year, but now we are essentially
converting to long term contracts. That's basically the advantage.
>> Right. That's one thing we heard from many mod rehab
owners they would like long term contracts to coincide.
It's an opportunity to get a 15 year project based contract.
Project based rental assistance contract, and of course with all federal programs, it's
subject to annual appropriations. However, the track record is that these contracts
are being funded. >> I see one last question, and there may
be another coming. But let's consider this the last question
for now. Greg, maybe again, putting your hat back on
as the former ED. Housing authority here is the question.
What if the public housing authority does not operate a PBV program, has no record experience
in doing it up to date or declines to participate in the conversion?
How come we are having to involve them with the mod rehab process?
>> So first off the project based program is discretionary, and if they have a voucher
program, they can choose to operate a PBV program.
The housing authorities that are administering mod rehab contracts, I would say 99.9% of
them also administer a voucher program. The housing authority at its discretion could
enter into a project based voucher relationship with a mod rehab owner under RAD.
I would recommend that they familiarize themselves of course with the project based voucher program
regulations and if they have any questions, they can feel free to contact us here at HUD
and we will be happy to walk them through any concerns we have about initiating a PBV
program. One thing that has to be done is they will
have to provide in their administrative plan. There are certain section criteria, and there's
a number of issues that have to be addressed in their section 8 administrative plan.
The thing westbound to make sure they understand the voucher based program.
But we don't have to give them any authority to do so.
In terms of a PHA having to consent, the statute actually requires that the administering agency
also admin sisters the conversions, the RAD conversions for RAD rehab projects, and if
that particular agency declines, then the owner is not eligible to participate under
the second component of the conversion. >> Right.
The thinking there is that local public housing agency is going to know a lot about the project,
the market, and if there's some problem there, they would be in the better position to make
that judgment, correct? >> And if the PHA does not want to enter to
the PBV contract, there is the contract to go the PBRA route.
>> So we would have to look at whatever issues might have been raised in the PHA.
We are going to have some understanding of that, but that would be that option.
>> I think that is our last question. Let's wrap up today or remind our viewers
that in about 15 minutes, we are going to turn to focus in another webcast on the rent
SUPP and rap. Frankly residents are interested in those
properties being stepped. We will come back in about 15 minutes, and
we will begin to focus on that. Thank you, everyone.
Again, you can find this webcast or previous webcasts and a general overview earlier in
the week. We had a detailed discussion yesterday with
Greg about public housing, and those will be listed on our web page.
One or two of them will be up there now. But they will all be up there as soon as possible.
Thank you, everyone.
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