Hunt Capital Partners and the Housing Authority of the City of El Paso Celebrate the Grand Opening for the Largest RAD Redevelopment in the U.S.
LOS ANGELES, May 5, 2017– Hunt Capital Partners(HCP), in partnership with the Housing Authority of the City of El Paso (HACEP),announced the completion and grand opening of RAD I, comprising 1,590 rehabilitated public housing units across 13 properties in El Paso, Texas. This affordable housing undertaking is the largest Rental Assistance Demonstration redevelopment partnership in the United States. The RAD I grand reopening celebration will be held at the Kennedy Community Gym on May 5 and will feature live entertainment, games and food. Residents and employees will be in attendance as well as key partners for the initiative, including HACEP, Hunt Companies and HCP.
“The completion and grand reopening of RAD I is a significant milestone,” said Hunt Capital Partners President Jeffrey Weiss. “Rehabilitating 1,590 units in a span of two years is an impressive feat. More importantly, this initiative serves as an example to our industry of what can be achieved under RAD and how affordable housing can be preserved for more low-income families. We couldn’t be prouder to have been part of RAD I.”
Public housing properties have long been subject to deferred maintenance as they have lacked sufficient funds to make the needed repairs.To address this challenge, the U.S. Department of Housing and Urban Development introduced the Rental Assistance Demonstration (RAD) program, which enables public housing authorities to preserve and improve public housing units,leverage both public and private resources, and convert their current operating subsidies to long-term Project-Based Section 8 Rental Assistance Contracts. When the RAD program was first announced in 2013, HACEP was the first housing authority in the country to submit its entire portfolio (consisting of 6,100units), and upon approval, its allocation represented 10 percent of the initial 60,000 units approved under RAD.
RAD I is the first phase of the revitalization of HACEP’s public housing portfolio.The total cost of the initiative was $241 million,partially financed by the syndication of $80.7 million in 4% low-income housing tax credits (LIHTCs)by HCP. Construction began in April2015 and was completed in April 2017. The newly renovated homes feature state-of-the-art appliances, energy efficient systems and inviting community spaces; the properties also offer education programs and service coordination. All residents retained the right to return and full tenant occupancy is expected by summer 2017.
Other key partners for RAD I include affiliates of both HACEP and Hunt Companies. Paisano Housing Redevelopment Corporation, a wholly owned subsidiary of HACEP,was the co-developer and general partner. Affordable Housing Enterprises was the general contractor, and EPHOME was the property manager. Hunt Development Group was the co-developer, Hunt Mortgage Group was the lender, and Moss & Associates was the master subcontractor.
About Hunt Capital Partners
Hunt Capital Partners (HCP) is the syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the syndication of Federal and State Low-Income Housing, Historic and Solar Tax Credits. Since the successful launch of its first fund in the fall of 2011, HCP has raised over $1.4 billion in tax credit equity. Founded in 1947, Hunt is a privately held company that invests in businesses focused in the real estate and infrastructure markets. The activities of Hunt’s affiliates and investees include investment management, mortgage banking, direct lending, loan servicing, asset management, property management, development, construction, consulting and advisory. For more information on Hunt Capital Partners, please visit www.huntcapitalpartners.com, or for Hunt Companies, please visit www.huntcompanies.com.