Multifamily/PBRA Housing
The Rental Assistance Demonstration (RAD) is a voluntary Department of Housing and Urban Development (HUD) program. RAD seeks to preserve public housing by providing Public Housing Agencies (PHAs) access to more stable funding to make needed property improvements.
CHRC evaluated the RAD opportunity after assessing our strategic plan goal to become the choice provider of affordable housing. One of our most important concerns was to improve the quality of life for our residents by renovating all our properties and improving our financial position. The HUD public housing and capital fund programs created a lot of financial instability due to continued funding proration that did not keep pace with the growing capital needs of our apartments. We reviewed all the potential pros and cons with a knowledgeable group of advisors. CHRC worked with LHP Development and Knoxville's Community Development Corporation to secure financing for the project. The deal utilizes the U.S. Department of Housing and Urban Development's Rental Assistance Demonstration (RAD) program, which allows public housing authorities to leverage private capital to renovate aging affordable housing stock. The program not only ensures that public housing converted to RAD remain affordable to low- and very low-income households, but also brings much-needed financial stability to our organization.
CHRC is financing the projects using a combination of RAD Multifamily project-based rental assistance and low-income housing tax credits (LIHTC) from the Tennessee Housing Development Agency. The financing includes more than $6.8 million in equity provided by First Tennessee Housing Corporation as an investor-limited partner.
After receiving a Multi-Phase Development Award from the United States Department of Housing and Urban Development (HUD) in 2017, CHRC converted all Public Housing units into Multifamily / Project-Based Rental Assistance (PBRA) units under the Rental Assistance Demonstration (RAD) program. CHRC owns, operates, and manages 295 Multifamily / PBRA units in three fabulous communities: Creekside, Oakwood, and Northridge.
The federally funded and income-based RAD program is designed to provide decent and safe housing to qualified persons. Unlike the Housing Choice Voucher (HCV) program, which provides rental assistance that is not tied to a specific unit, the Multifamily / PBRA Housing rental assistance under the RAD program is attached to the structure or a specific unit, ensuring that the assistance is directly benefiting the residents and provides preservation of affordable housing in the community for years to come.
