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MHA Board Approves Funding Request to Invest $39M for Capital Improvements

At its June 2016 meeting, the Board of Commissioners for the Metropolitan Housing Alliance approved a funding request to invest $39 million for capital improvements in connection with the U.S. Department of Housing and Urban Development (“HUD”) Rental Assistance Demonstration (“RAD”) program. In February of 2015, MHA received a portfolio-wide RAD award and Commitment to Enter into Housing Assistance Payments (“CHAP”) letters for nine MHA properties. RAD allows public housing agencies (PHAs) and owners of HUD‐assisted properties to convert units to project‐based Section 8 programs and provides an opportunity to leverage private debt and equity to make capital improvements.

After several months of thoughtful planning and teambuilding, MHA envisions executing the RAD conversions in several phases. The first major phase involves the renovation of Cumberland Towers, consisting of 178 dwelling units, Fred Parris Towers consisting of 250 dwelling units; and Jesse Powell Towers, consisting of 168 dwelling units (collectively, the “Towers RAD Project”). MHA and procured development partner, Gorman & Company, seek to utilize 4% low-income housing tax credits and tax-exempt bonds through the Arkansas Development Finance Authority (“ADFA”), along with other public and/or private sources to finance capital improvements and related costs. Total investment in the Towers RAD Project is projected to be approximately $39 million.

“As a landlord, MHA is excited to modernize our housing stock for our residents. As an Arkansan, I’m excited about the economic impact to the city and region,” said Rodney Forte, MHA’s Executive Director.

“Gorman & Company is honored and excited to play a role in the rejuvenation of these three historically significant properties,” said Tom Capp, Chief Operating Officer of Gorman & Company. “As a trusted development partner, we are committed to delivering revitalized properties that will be long-term, valuable assets to both the MHA and the community of Little Rock.”

The Towers RAD Project is projected to be completed in the fourth quarter of 2018.

MHA seeks to attract public and private debt and equity to convert 902 public housing units to project-based Section 8 and recapitalize approximately 1,200 units through the RAD program.

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About Metropolitan Housing Alliance (MHA)

MHA develops, owns and operates quality affordable and accessible housing that provides assistance to citizens of Little Rock utilizing various federal, state and local programs.  Currently, MHA owns 902 public housing units, 200 affordable housing units, 158 market-rate units. MHA also administers 2,083 Housing Choice Vouchers and operates two homeownership programs.

About Gorman & Company, Inc. Gorman & Company, Inc. specializes in revitalizing communities through innovative housing partnerships. As a trusted partner and respected industry leader since 1984, they specialize in downtown revitalization, the preservation of affordable housing, workforce housing and the adaptive reuse of significant historic buildings. Gorman & Company has offices in Denver, Co; Milwaukee & Madison, WI; Chicago, IL; Phoenix, AZ; and Miami, FL. Learn more at www.GormanUSA.com.

About RAD The Rental Assistance Demonstration (RAD) program is a new voluntary program authorized by the U.S. Department of Housing and Urban Development (HUD) to address the demanding capital improvement funding needs for participating public housing authorities across the United States. For more information, please visit www.hud.gov/rad.

 

 

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