Love Funding is proud of our experience with the Rental Assistance Demonstration (RAD) program, a program created to address the daunting backlog of capital repairs in the nation’s public housing stock and to stem the loss of affordable units. Public housing authorities (PHAs) can now use RAD Component I to access private debt and equity to fund repairs and stabilize properties. Learn more about the specifics of the RAD program, HERE.
In the video above, Love Funding Originator Dave Strachan takes a closer look at one of our recent deals, Central Park Towers. The Housing Authority of Elgin used the RAD program to substantially renovate the project’s existing 11-story building and construct a new six-story structure on an adjacent lot.
If you are interested in learning more about the benefits of the RAD contact one of our experienced team members today. Love Funding has extensive RAD experience, and we are proud to help bring affordable housing to those communities that need it most.
I’m Dave Strachan with Love Funding out of the Cleveland office focusing on affordable housing and I wanted to talk briefly about the RAD program and a success story that we had seen come out of that program and the deal that we’ve done.
We’ve had the privilege of working with a lot of public housing authorities across the country. One, in particular, that was a success story, I think amongst others, was the Elgin Housing Authority in Elgin Illinois.
We took a project called Central Park Towers and really revitalized it and changed in its entirety. We took a look at the project, which was almost made up entirely of studio units that were obsolete and not attractive in that market and we decided to convert all those units – an 11-story project. That takes a lot of thought and architectural help, but we were able to convert all the studio units to either one or two-bedroom units and make both the units a lot more attractive to tenants in the market but also rehabbed and in almost like new condition.
In addition to doing so, we looked at the project and saw there was space on the first floor. And we were able to take a project that didn’t have office space for management and actually convert some of the space over to full management offices, as well as the management space for the Housing Authority themselves. So, the Housing Authority, at the end of the day, had brand-new office space in the building that they owned and operated.
And we went even further, and we took a look at the land owned next door – an old building that was there was just obsolete and knocked it down and built a 6-story new construction project. Not only were we able to rehab and convert units in the large 11-story project, we were able to provide the housing authority with brand new units and therefore their tenants with brand new units.
It’s a success story in the RAD program amongst others that are out there across the country. It is a story to be told, it’s a program that’s successful and it’s something that we’re seeing on a daily basis. There’s work to be done and that work is going to eventually provide a lot of people with a lot better affordable housing across the country. This is just the beginning of what we’re going to see as the RAD program grows and we’re very excited to be a part of it and are there to help with any needs for the Housing Authorities have across the country.