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Case Study

Public housing authority uses RAD/Section 18 blend for $5 million rehab project

Baker Tilly’s RAD consulting leads housing authority to greater rehab for the building and its residents.
Curved building looking up to the sky
Case Study

Public housing authority uses RAD/Section 18 blend for $5 million rehab project

Baker Tilly’s RAD consulting leads housing authority to greater rehab for the building and its residents.

Our client’s need

Kaukauna Housing Authority is a public housing authority with a mission to provide safe and affordable housing to elderly and low-income members of the community. In an effort to bring additional affordable housing to the surrounding community, Kaukauna had crafted plans to rehab an existing 69-unit public housing building and two fourplex housing assets. The scope of the project included combining some of the smaller units and rehabbing interiors, common areas, electrical and plumbing. In order to move forward on the project, Kaukauna needed guidance on how to use the Department of Housing and Urban Development (HUD)’s Rental Assistance Demonstration (RAD) program to convert housing to the Section 8 platform, while also achieving the desired level of rehab on the properties.

Baker Tilly solution

Since the RAD program’s inception, Baker Tilly has played an integral part educating housing authorities of the benefits of the program and how it can be utilized for public housing assets. As such, Baker Tilly was selected as a RAD consultant for Kaukauna, assisting with the RAD application, concept call, financing plan, RCC package and other requirements needed to complete closeout. Our team of housing specialists recommended using a close out blend by converting 19 of the units under RAD leaving 50 units to qualify for tenant protection vouchers under Section 18. This effectively blends the RAD units with the Section 18 units for a unique RAD conversion. Thus, permitting more rehab for the building and its residents. Baker Tilly was also essential in composing an RFP to solicit services from a local developer and providing review and input to tax credit applications.

Results achieved

Kaukauna Housing Authority closed on the deal and is currently in construction.

After the rehab, the project’s total unit count will include 74 units – a 69-unit building converted to 66 units plus two fourplexes. The anticipated rehab costs are an estimated $5 million with approximately $65,000 of rehab per unit.

The project for our Housing Authority has been a very unique project with many components to the RAD conversion. Baker Tilly excels with their expertise and knowledge to work through all the different aspects of this project.
Executive Director of Kaukauna Housing Authority

For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.

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