Overview

The largest RAD development in Texas

The El Paso RAD I project stands as the largest Rental Assistance Demonstration (RAD) Program in the state of Texas to-date and represents the Housing Authority of the City of El Paso's (HACEP) effort to renovate its stock of aging public housing. Completed in 2017, the initial phase leveraged both public and private resources to rehabilitate 1,590 public housing apartment homes within HACEP's entire 6,100-unit portfolio, helping to improve the quality of housing for hundreds of El Paso households.

Project Details

Location

El Paso, TX

Size

1,590 homes

Tenancy

Families

Total Project Cost

$241 million

Total LIHTCs

$80.8 million in 4% Federal

Total Other Tax Credits

$2.2 million in 45L

Project Amenities

Energy Star-rated Appliances

Community Room

Playground

Energy Efficient Systems

Xeriscape Yards

Basketball Court

Gymnasiums

Awards & Recognition

The Bond's Buyer 2015 Award Recipient

Small Issuer Financing Deal of the Year

Addressing Public Housing Maintenance Shortages Addressing Public Housing Maintenance Shortages

01

Challenge

Addressing Public Housing Maintenance Shortages

Public housing across the country faced a backlog of deferred maintenance, reaching an estimated $26 billion according to a 2011 survey from the United States Department of Housing and Urban Development (HUD). The primary issue was the lack of funding for public housing, where federal subsidies were often insufficient to meet the growing maintenance and repair needs of its aging public housing stock.

In response to these challenges, HUD introduced the RAD Program in 2012 as a solution to help address the nationwide public housing capital improvement shortfall, allowing housing authorities to move their properties to a more stable funding platform. RAD became an imperative initiative for HUD as the United States lost, on average, 10,000 public housing units annually to demolition and disposition due to poor conditions.

02

Solution

Public-Private Partnerships are Pivotal

Not long after HUD launched the RAD Program, HACEP fully embraced it and showed how housing authorities can work through public-private partnerships, which included El Paso-based Hunt Companies and its affiliates, to revitalize its existing public housing stock. HACEP sought to transform its entire public housing portfolio, beginning with El Paso RAD I – a project that involved the renovation of 1,590 public housing units across 13 properties, under the RAD Program.

and $32 million in bond and loan financing provided by HACEP. Other Hunt Companies affiliates participated in the transaction: Hunt Development Group as the developer, Moss & Associates as the construction manager, and Hunt Mortgage Group as the lender.

Public-Private Partnerships are Pivotal Public-Private Partnerships are Pivotal
A Blueprint for Public Housing Revitalization

03

Result

A Blueprint for Public Housing Revitalization

The RAD Program enabled HACEP to convert the operating subsidies of all 13 properties to long-term project-based Section 8 rental assistance contracts, thereby increasing rents to levels that would generate positive cash flow while simultaneously lifting the public housing restrictions on the underlying real estate. The combination of these two factors allowed the properties to obtain allocations of LIHTCs, bringing in private equity and debt partners to finance the renovation of all 13 properties. The development allowed for significant improvements of what amounted to just over 25% of HACEP's portfolio; rehabilitating the properties with new floors, kitchens, windows and bathrooms, as well as upgrading community amenities such as basketball courts, playgrounds, gymnasiums, and community rooms.

El Paso RAD I serves as an exemplary model that housing authorities across the country can emulate to preserve and improve its stock of public housing. Through the RAD program, renovations to public housing help enhance the living environment for low-income families and further extends the life of these properties.

Developer Inquiries15
Dana Mayo

Dana Mayo

Executive Managing Director


Clearwater, FL
Investor Inquiries
Jeff Weiss

Jeff Weiss

President


Los Angeles, CA
Amy Dickerson

Amy Dickerson

Chief Operating Officer


Henderson, NV