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HUD RAD Physical Condition Assessments

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.

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) and Mod Rehab properties from tenant-based vouchers to project-based assistance.

The RAD Program

The due diligence portion of the RAD Program consists of three parts: the RPCA, which generally follows the guidelines set out in the RAD Statement of Work; an Energy Audit; and a Utility Consumption Baseline analysis.

The RPCA (Part I) consists of a Physical Condition Assessment (PCA) which includes identifying not only traditional immediate repair needs, but also incorporates a green alternative comparison, in addition to an analysis of long-life building systems (i.e., intrusive analysis), as well as the 20-year reserve analysis.

The building Energy Audit (Part II) 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 final component of the RAD PCA is Part III, the Utility Consumption Baseline, which contains all utility date usage at the property. The baseline analysis includes all resident and owner-paid utilities, including common area, for a 12-month period. The collection of this data allows Partner to formulate a baseline for future energy benchmarking and measurement of consumption costs. Our knowledgeable staff and personnel have created a seamless process which takes into account a multitude of variables in establishing the strongest baseline for comparison, including utility data gaps, vacancy data, and even weather patterns.

A fourth part, the Integrated Pest Management (IPM) component was recently removed from the required scope of work (SOW), as it was seen as costly and cumbersome to the streamlined process. Ultimately, this component can be completed after the conversion of the asset, but will not be required as part of the RAD PCA.

RAD Fast Track Program

The Department of Housing and Urban Development (HUD) is implementing a new Fast Track component to its Rental Assistance Demonstration program. RAD Fast Track aims to address the overwhelming popularity of the RAD program by streamlining the process.

A review of some of the revisions that have separated the Fast Track Program from the regular RAD program are as follows:

  • Condenses the 30, 60, 90 & 150 day milestone process into a streamlined 60 day process (commences after receipt of the CHAP/Award Letter)

  • Codifies the existing documentation checklists, and eliminates some of the unnecessary/repetitive paperwork

  • The first phase is for “Non-FHA Insured” Submittals only (both 4% & 9% LIHTC programs); however, there will be a Fast Track Program for FHA Insured projects coming soon

The RAD program requires a number of third party reports to be included with the submittal package prepared by the lender and borrower. With the implementation of the RAD Fast Track, execution of the due diligence scopes of work becomes even more 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/RAD Excel Tool, as well as an Energy Audit and Utility Analysis.

  • 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 to the required guidelines to ensure a smooth and informative due diligence process. Partner is one of the nation's largest providers of Physical Condition Assessments, Energy Benchmarking and Building Energy Audits, providing services to the commercial real estate industry nationally. Partner employs building science professionals, Certified Energy Managers, Professional Mechanical Engineers, and career energy professionals. The combination of Partner Engineering and Science (ESI) and its sister company Partner Energy's nationwide contingency of building science professionals and deep expertise in Energy Audits and 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 Fannie Mae Physical Needs Assessment (PNA) guidance, in addition to elements of the HUD/ FHA Project Capital Needs Assessment (PCNA).