BIEGGER ESTATES. Project Update and Rental Assistance Demonstration (RAD) Presentation

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1 BIEGGER ESTATES Project Update and Rental Assistance Demonstration (RAD) Presentation SOUTHERN NEVADA REGIONAL HOUSING AUTHORITY DEVELOPMENT/MODERNIZATION DEPARTMENT Thursday, August 27, :00 am & 4:00 pm 1

2 Comp Mod Progress Update The SNRHA is moving forward with the Comprehensive Modernization (Comp Mod) plans for Biegger Estates. Biegger Estates is a family public housing site, built in 1985 and is located at 5701 Missouri Street, Las Vegas, NV (Parcel No ). This property currently contains 33 residential buildings for a total of 119 units (87-2Bdrm, 22-3Bdrm and 10-4Bdrm) plus two non-dwelling building (a Community Center/Management Office Building plus a Maintenance Building). In 2012 the property was certified to be compliant with wheelchair accessibility requirements which include the site, five (5) wheelchair accessible units and three (3) hearing impaired units. 2

3 Comp Mod Progress Update Overall Vision/Goals for the Site: The SNRHA envisions a fully renovated and attractive development that is comparable to market-rate housing in terms of amenity, is financially viable and is maintained in the long-term as rent-restricted affordable housing. On or about August 2012 the U.S. Department of Housing and Urban Development (HUD) announced an innovated new program called Rental Assistance Demonstration (RAD). Under this program HUD is allowing Housing authorities (HA) to rehabilitate and preserve their aging public housing developments by allowing HAs to combine the tenant rent and the operating subsidy with the capital funds allocations for the property and to create a Section 8 voucher 3

4 Comp Mod Progress Update Also, under the RAD Program the residents relocated as the result of the RAD conversion have the right to return without additional screening and after a year the tenant will be eligible to request a mobility voucher, as long as Section 8 income requirements are met and the tenant is compliant with the lease agreement. Under the HUD RAD program, the SNRHA plans to convert the 119 units at Biegger Estates from public housing to project-based Section 8 Housing. The SNRHA will self develop and will assemble the financing for the complete redevelopment of the project, using 9% tax credits, conventional debt, supported by the RAD rent, and other soft subsidy sources, including HUD HOME funds and Federal Home Loan Bank of San Francisco (FHLBSF) and Affordable Housing Program (AHP) funds. 4

5 February 2015 Meetings 5

6 RAD Next Steps February 2015 Resident Notification 2 Meetings Task Complete March 2015 Board Authorization Task Complete Submit RAD Application Task Complete April 2015 Conditional Housing Assistance Payment (CHAP) Award. Received 07/27/15 - Task Complete May 2015 Submit 9% Tax Credit Application. Allocation Letter received 07/13/15 - Task Complete. August 2015 Secure Pre-development Funds & A/E Contract with RAFI Architecture. Approved by SNRHA Board of Commissioners 08/21/15 Task Complete. Residents Updates 2 Meeting 08/27/15 6

7 RAD Next Steps September 2015 February 2016 o Design Process and Financial Plan Preparation Process February 2016 o o o o Close Financing Start Relocation of Phase I Construction Notice to Proceed Property under New Management June 2016 o Phase I Construction Completion & Relocation of Phase II October 2016 o Phase II Construction Completion & Relocation of Phase III February 2017 o Phase III Construction Completion April 2017 o Move-In Process 7

8 RAD Next Steps Key CHAP Milestones 30 days (after issuance of CHAP): Submit Inventory Removal (IR) Application confirming acceptance of CHAP. 60 days: Significant Amendment to Annual/5-Year Plan; Choose PBV or PBRA 90 days: Submit evidence of 9% Tax Credits Application 180 days (following the 9% Tax Credits Award): Submit final financing plan to HUD; HUD issues RAD Conversion Commitment (RCC) 320 days: Agency provides HUD with evidence of firm commitment from all financing sources 360 days: PHA must close and start construction 8

9 RAD Key Elements & Relocation 9

10 RAD: Key Elements Current households are not subject to rescreening, income eligibility or income targeting provisions. Once the household moves out, the unit must then be leased to an Section 8 eligible family. Residents temporarily relocated will have right to return to development once rehab or construction is complete. PHA must renew all leases upon lease expiration unless cause exists. The tenant s existing security deposit will transfer at the RAD closing. Future tenants will pay security deposits according to PBRA / PBV rules. Tenant monthly rent increase of greater than 10% or $25 purely as a result of conversion will be phased in over 3 years or extended up to 5 years by the PHA. 10

11 RAD: Key Elements FSS and ROSS-SC participants will be allowed to continue in those programs for as long as current funding is available under those programs. PHAs with HCV FSS programs will have PH FSS participants convert into the HCV FSS program. Residents will have the right to establish and operate a resident organization to address issues related to the living environment and be eligible for resident participation funding. Tenants that are employed and currently receiving the Earned Income Disregard (EID) exclusion at the time of conversion will continue to receive the EID after conversion in accordance with 24CFR Upon de expiration of the EID for such families, the rent adjustment shall not be subject to rent phase-in, instead the rent will be automatically rise to the appropriate rent level based upon tenant income at that time. Additional termination notification and grievance procedural rights are being incorporated by HUD under RAD. PHAs must provide data as requested by HUD for evaluation purposes including financial statements, operating data, Choice-Mobility utilization, and rehabilitation work. 11

12 RAD: Key Elements PHA Board must approve operating budget for project annually. Davis-Bacon and Section 3 requirements apply for all initial repairs identified in the Financing Plan regardless whether project involves rehabilitation or new construction. PHA will use project-specific waiting list that existed at the time of conversion. If none, project-specific wait list will be established giving applicants currently on the public housing community-wide waiting list the opportunity to be placed on the waiting list according to the date and time of their original application. Federal accessibility requirements apply to all RAD conversions whether they entail new construction, alterations or existing facilities. Applicable laws include Section 504 of the Rehabilitation Act of 1973 (Section 504), the Fair Housing Act (FHAct) and American with Disabilities Act (ADA). Public Housing must comply with each law that applies. 12

13 INCOME LIMITS Biegger Estates - Household income will be restricted to 50% of Area Median Income (AMI). INCOME LIMITS FOR S8 AND PH PROGRAMS EFFECTIVE 03/06/2015 FAMILY SIZE LOW (PH) 80% 34,400 39,300 44,200 49,100 53,050 57,000 60,900 64,850 68,750 72,650 76,600 80,500 VERY LOW 50% 21,500 24,600 27,650 30,700 33,200 35,650 38,100 40,550 43,000 45,450 47,900 50,350 EXTREMELY LOW 30% 12,900 15,930 20,090 24,250 28,410 32,570 36,730 40,550 43,000 45,450 47,900 50,350 Household income limits are based on Family Size 13

14 Relocation Process A Relocation Plan, detailing the SNRHA s and the Resident s roles and responsibilities will be presented to the residents in advance and prior relocation. SNRHA Supportive Services will be coordinating and assisting with the relocation process. The construction work will be completed in phases to minimize disturbance to the residents. The first group of residents will be temporarily relocated off-site. The following groups of residents will then be relocated on-site as units become available. Families over the income limit will be offered a comparable public housing unit. 14

15 Relocation (cont.) The SNRHA will notify each family residing in a unit affected by the proposed disposition at least ninety (90) days prior to the displacement date, except in cases of imminent threat to health and safety. The SNRHA will provide for all actual and reasonable relocation expenses for each resident displaced by this proposed disposition, including residents requiring reasonable accommodation because of disabilities. The SNRHA will provide any necessary counseling for residents displaced by this proposed disposition. The SNRHA will not commence the construction work of any occupied building until all residents residing in the units affected by this proposed construction work are actually relocated; 15

16 Relocation (cont.) The Relocation Team will schedule an initial meeting with each family to identify their needs and to provide any reasonable accommodations that they may require. The Relocation Team will also coordinate with the moving companies on when and where you will be relocated. You will be provided with boxes, wrapping paper, tape and basic instructions on how to pack and how to label boxes so the movers can place boxes in the correct rooms. Biegger Estates tenants will be reimbursed for any additional cost associated with the move such as, changing your driver s license, etc. therefore; the entire relocation process will be at no cost to the tenant. 16

17 Relocation (cont.) The SNRHA will offer each family affected by this proposed disposition with comparable housing that meets Housing Quality Standards (HQS) and that is located in an area that is generally not less desirable that the location of the displaced person's housing. This comparable housing may include: (a) actual relocation into the private rental market with Housing Choice Voucher assistance; (b) actual relocation into housing with project-based assistance; or other PHA properties. Public Housing Agencies are not eligible to receive Tenant Protection Vouchers as a result of RAD conversion. Your comments are important to us since the proposed disposition for this property must be developed in consultation with the residents, the Resident Council of Biegger Estates and SNRHA s Resident Advisory Board (RAB). SNRHA will maintain this supporting documentation on file for future reference. 17

18 RAD: Q&A Questions & Answers regarding RAD 18

19 Resident Meeting Thursday, August 27, :00 am & 4:00 pm Biegger Estate Community Center 5701 Missouri # 34 Las Vegas, NV For questions please contact Mrs. Amparo Gamazo at (702) Office (702) Fax (702) TDD 19

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