Richard M. Joseph with Miller, Hall & Triggs, LLC closed on two RAD Low Income Housing Tax Credit Transactions resulting in the conversion of all 390 public housing units of the Housing Authority of the City of Texarkana, Arkansas.
The RAD program, administered by HUD, was established in order to give public housing authorities a powerful tool to preserve and improve public housing projects and address issues of deferred maintenance by providing for the voluntary conversion of public housing and other HUD-assisted properties to long-term, project-based Section 8 rental assistance, utilizing either project-based vouchers or project-based rental assistance contracts. RAD allows public housing agencies to leverage public and private debt and equity to help ensure that the units remain affordable to low income households.
The Texarkana RAD Conversion project made possible the conversion and rehabilitation of 335 units in eight separate apartment complexes through the use of 4% low income housing tax credits generating $6,356,897 in equity, $13,100,000 Multi-family Housing Revenue Bonds issued through the Arkansas Development Finance Authority, $10,000,000 non-recourse loan through the HUD 221(d)(4) program, and use of Public Housing Operating Reserve Funds.
The Housing Alliance 2 project made possible the conversion and substantial rehabilitation of 55 units in two separate apartment complexes and five single-family homes through the use of 4% low income housing tax credits generating $1,234,370 in equity, $2,900,000 Multi-family Housing Revenue Bonds issued through the Arkansas Development Finance Authority and use of Public Housing Operating Reserve Funds and Public Housing Capital Funds.