Flaherty & Collins Properties and the Evansville Housing Authority (EHA) broke ground on two Rental Assistance Demonstration (RAD) projects, June 29 in Evansville, Indiana, to provide public housing for seniors.
EHA will use low-income tax credits awarded for HUD’s RAD, along with funds from private investors, to repair 888 units of assisted housing upon completion of phase 1 and 2 properties.
RAD Phase 1 consists of Buckner Tower, Kennedy Tower, Schnute Apartments, White Oak Manor, and Caldwell Homes. RAD Phase 2 will include Fulton Square & Scattered Sites. The projects are the first in the state of Indiana utilizing RAD alongside the FHA 221(d)4 program. RADs allow Public Housing Authority’s (PHAs) and owners of HUD-assisted housing to preserve and improve affordable housing units that could be subject to vouchers and demolition.
These types of projects provide a greater funding certainty for potential lenders and increase the operational flexibility for PHAs and owners to service their communities. Originally built over 50 years ago, between 1965 and 1971, the properties will be substantially rehabilitated by Flaherty & Collins Properties using financing provided by PR Mortgage & Investments.
RAD is a new, voluntary pilot program designed to renovate and rehabilitate public housing facilities and to put funding for ongoing maintenance on a sustainable footing. Fewer than 60,000 public housing units around the country were selected.
The complete rehab will include installation of geo-thermal HVAC systems, replacement of sanitary sewer risers, new signage, repairs to exterior and interior buildings, installation of new fire alarm systems as well as other needed maintenance. The properties will be also become modernized and energy efficient.
The cost associated with the combined rehab is approximately $18 million and will be spread out over four phases.
Currently, Flaherty & Collins Properties manages 105 properties and over 15,409 units nationwide, with over one-half billion in projects under development in Indianapolis, St. Paul, Kansas City, Tulsa, Cincinnati, Chicago, Washington, D.C., Covington (KY), New Albany, Kokomo, Mishawaka and Elkhart.