Rental Assistance Demonstration Physical Condition Assessments (RAD PCA/RPCA)
The Rental Assistance Demonstration (RAD) program is an initiative lead by the Department of Housing and Urban Development (HUD) to provide additional funding to public housing agencies and owners to make physical improvements to their properties. The program aims to support affordable rental housing and promotes efficiency of HUD’s programs.
Partner provides RAD Physical Condition Assessments (RPCAs) in support of converting existing Public Housing Agency (PHA) and Moderate Rehabilitation (Mod Rehab) properties to long-term Section 8 rental assistance contracts. The RAD program also supports the conversion of Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), Mod Rehab properties from tenant-based vouchers to project-based assistance, and RAD for PRAC (Project Rental Assistance Contract - Section 202/811).
The RAD Program
The due diligence portion of the RAD Program consists of two parts: the RPCA and an Energy Audit, which generally follow the guidelines set out in the RAD Statement of Work (H-2019-09 PIH-2019-23 HA REV-4). A Utility Consumption Baseline analysis may also be required if pursuing site specific utility allowances.
The RPCA consists of a Physical Condition Assessment (PCA) which includes identifying not only traditional Critical Repair needs (i.e., accessibility compliance and life safety), and Non-Critical Repair needs (i.e., deferred maintenance/physical deficiencies), as well as Energy & Water Conservation Measures (EWCMs), in addition to an analysis of long-life building systems (i.e., intrusive analysis) and a 20-year reserve for replacement analysis.
The Building Energy Audit is a comprehensive model of the properties energy usage, its energy using equipment, and building conditions that may cause excessive energy consumption. The Energy Audit evaluates energy and water consumption at the property, inclusive of the existing utility improvements, cost of the improvements, and presents a payback analysis. The audit also includes further assessment for potential money saving improvements and alternatives. Partner’s energy audit also identifies Energy Efficiency Measures (EEMs) in a detailed manner to allow building owners and managers to make implementation decisions based on the RAD programs goals.
The RAD program requires a number of third party reports to be included with the submittal package prepared by the lender and borrower. Execution of the due diligence scopes of work is vital to the process, and a quality provider can identify a lot of unforeseen conditions early in the process that come along with assessing aging properties. The related due diligence scopes of work include:
- A Part 50 review by HUD (which in essence would require supplying them with a Phase I) is required for all borrowers wishing to convert to a Section 8 Project Based Rental Assistance Program (PBRA).
- Borrowers wishing to convert to a Section 8 Project Based Voucher (PBV) requires a part 58 review by a local agency; however, if the local agency will not or cannot do the review, then a Phase I is recommended so that HUD can do the Part 50 review.
- A RAD PCA is required for ALL RAD conversion submittals. The RAD PCA includes an Intrusive level HUD compliant Property Condition Assessment with a Reserve for Replacement Analysis/CNA E-Tool, as well as the Energy Audit.
- Projects submitted under the RAD program are also encouraged to bolster their accessible dwelling unit inventory as part of the proposed substantial improvements. The relocation of tenants, and modification and adaptation of existing buildings/units to meet current accessibility standards requires design and consultation by a qualified third party.
Partner’s RAD Services
Partner offers Physical Condition Assessments (PCA) for the required guidelines to ensure a smooth and informative due diligence process. Partner is one of the nation's largest providers of PCAs, Energy Benchmarking and Building Energy Audits. Partner employs building science professionals, Certified Energy Managers, Professional Mechanical Engineers, and career energy professionals. The combination of Partner (ESI) and Partner Energy's nationwide contingency of building science professionals and deep expertise in Energy Audits with the implementation of EEMs makes Partner a great choice for your RAD PCAs.
Our RAD PCAs are completed as a modified and expanded scope of work according to the ASTM E2018-15 Standard for Property Condition Assessments, as well as elements of the HUD/ FHA Capital Needs Assessment (CNA).
