Rental Assistance Demonstration RAD Program Spartanburg Housing Authority

Rental Assistance Demonstration (RAD) Program Spartanburg Housing Authority Daryl Dalton Director of Housing Operations

Who is the Spartanburg Housing Authority (SHA)?

SHA is a medium sized Housing Authority. • We manage 1, 132 Public Housing Units in 10 AMPS, 14 different locations. • We manage 1, 827 Section 8 Vouchers and 132 Section 8 Projected Based Units. • We administer 331 Section 8 Mod Rehab Units and 383 Tax Credit Units.

Why is SHA participating in the RAD (Rental Assistance Demonstration) Program?

SHA has a backlog of needed repairs. SHA has $37. 5 million in needs (Cammie Clagett alone has $12 million) and HUD has $25. 6 Billion. Currently SHA cannot borrow against these properties. Once converted to private ownership, owner could borrow against property to make needed repairs.

Breakdown of Funding Needs Exigent Needs Immediate Health & Safety Needs Other Immediate 1 -5 Years 6 -10 Years 11 -15 Years 16 -20 Years $1, 207, 100 $72, 000 $12, 299, 800 $21, 000 $1, 352, 500 $3, 377, 900 $60, 000 $20, 000 $ - $5, 051, 425 $60, 000 $1, 057, 500 $ - $2, 299, 800 $2, 300 $4, 828, 800 $2, 629, 500 $2, 584, 700 Archibald High Rise $0, 025 Archibald Villages Tobias Court Prince Hall Camp Croft Victoria Gardens Leland Spruce Gooch Barksdale Watson J C Anderson Totals Total $975, 400 Cammie Clagett $220, 000 Other $- $444, 800 $252, 500 $485, 000 $- $35, 400 $460, 200 $60, 400 $796, 500 $35, 400 $ - $1, 387, 900 $352, 500 $714, 500 $1, 760, 000 $382, 500 $680, 000 $222, 500 $ - $4, 112, 000 $50, 000 $1, 921, 000 $173, 200 $470, 400 $575, 200 $ - $3, 199, 800 $24, 300 $40, 800 $398, 800 $752, 200 $315, 900 $1, 045, 000 $ - $2, 577, 000 $23, 600 $5, 800 $364, 200 $531, 300 $480, 900 $142, 600 $20, 000 $1, 500 $102, 400 $138, 600 $169, 800 $36, 000 $- $468, 300 $10, 800 $- $313, 200 $334, 800 $63, 000 $118, 800 $- $840, 600 $20, 000 $38, 000 $80, 700 $348, 800 $508, 200 $462, 600 $132, 000 $1, 590, 300 $35, 200 $1, 500 $225, 600 $323, 400 $316, 200 $84, 000 $- $985, 900 $- $102, 600 $16, 200 $605, 500 $- $724, 300 $22, 325 $5, 603, 200 $3, 985, 500 $10, 083, 900 $8, 145, 500 $3, 891, 500 $5, 281, 600 $462, 500 $2, 010, 900 $534, 500 $37, 548, 025

To pay off CFFP Debt. In 2006 SHA Participated in HUD’s Capital Fund Financing Program (CFFP) and borrowed $5, 763, 000 to construct JC Anderson Apartments. This had several negative impacts as follows:

1) Each year SHA now receives approximately $1. 2 million for Capital Improvements. Off the top comes $440, 940 towards repayment leaving SHA with only $759, 060. This debt will not be repaid until 2024. We are not receiving sufficient Capital Funds to adequately maintain our Public Housing properties.

2) SHA cannot demolish or dispose of any Public Housing Units until the CFFP Debt is repaid. This prevents us from demolishing Cammie Clagett until all or a portion of the debt is repaid. There are specific limitations on how the debt must be repaid.

The current balance on our CFFP Loan is $3, 810, 249. 43 our 7 Property Deal will allow us to retire $2. 5 million leaving a balance of $1, 310, 249. 43. This remaining balance of should be wiped out with the 72 unit deal at Cammie Clagett.

DEAL 1 No. Property 1 Barksdale 2 Gooch 3 JC Anderson 4 Leland 5 Spruce 6 Tobias 7 Watson Total No. of Units 44 36 54 46 12 118 28 338 Financing Bond + 4% LIHTC Bond + 4% LIHTC

• 4% Low Income Housing Tax Credits • Private Activity Bonds • Rental Assistance Demonstration Program • 221 d 4 HUD Loan Permanent Financing • SHA is acting as its own Developer • A SHA affiliate will manage these tax -credit units

JC ANDERSON APARTMENTS Constructed 2008 54 Units $480, 952 in needs ($8, 906 per unit)

TOBIAS BOOKER HARTWELL APARTMENTS Constructed 1997 118 Units $2, 404, 762 in needs ($20, 379 per unit)

LELAND APARTMENTS Constructed 1984 46 Units $1, 576, 321 in needs ($34, 268 per unit)

FRANK GOOCH APARTMENTS Constructed 1975 36 Units $1, 245, 667 in needs ($34, 602 per unit)

ELLEN C. WATSON APARTMENTS Constructed 1984 28 Units $988, 357 in needs ($35, 298 per unit)

SPRUCE APARTMENTS Constructed 1984 12 Units $426, 845 in needs ($35, 570 per unit)

BARKSDALE APARTMENTS Constructed 1984 44 Units $1, 714, 595 in needs ($38, 968 per unit)

• 9% Low Income Housing Tax Credits • Rental Assistance Demonstration Program • Private Loan Permanent Financing • SHA is partnering with a Non-Profit Developer • Non-Profit Developer will manage the tax-credit units initially

CAMMIE CLAGETT APARTMENTS Constructed 1971 150 Units $12, 299, 800 in needs ($81, 998 per unit)

Sources of Funds

Uses of Funds

Concept

Operating Costs Measured at a PUPA Level PUPA = Per Unit Per Annum Our Typical Public Housing - PUPA = $5, 200 Our Typical Post RAD Section 8 Project Based Unit - PUPA = $4, 200 Differences Less Maintenance Personnel Per Unit (Every unit is new or like new) No Family Self-Sufficiency Requirements No Community Service Requirements

Operating Costs If you are a Housing Authority consider keeping the property in the name of the HA and put it into the deal through a long-term ground lease. • Possibly remain tax exempt, financial savings. • May still qualify for participation in the South Carolina State Insurance Reserve Fund, financial savings.

Other Important Things PBV vs PBRA Developer’s Fees Choice Neighborhoods Mod Rehab Portfolio Applications Consider converting current PH in current Tax Credit Deals to increase revenue • Applications (number of units, 60, 000) • Utilities can change (recommended) • Existing PH residents over income • • •