RAD Communications

RAD decisions are being made on a weekly basis between HUD, HACEP, and vendors. Keeping each other informed is crucial to our success.

• The HACEP website: www.hacep.org/about-us/rad

• “HACEP News” monthly resident newsletter

• RAD Hotline: (915) 849-3888

• Facebook: www.facebook.com/HACEP

• YouTube: www.youtube.com @ EPHousingAuthority

• Twitter: #ephousingauthority

• RAD Presentations by Oscar Arriaga, Public Information Specialist: oarriaga@hacep.org, (915) 849-3640

RAD Communications

Other forms of communication HACEP uses to communicate with residents include the following:

• RAD presentations to JWRC and Resident Councils by Oscar Arriaga, Public Information Specialist: oarriaga@hacep.org, (915) 849-3640

• Presentations and meetings by the RAD Team

• Handouts such as this one that we will also upload to the HACEP website.

• Monthly presentations to the JWRC.

• Presentations to Resident Councils upon invitation.

• Emails to personal accounts once furnished by residents to HACEP.

Construction Updates

HACEP will renovate and rebuild public housing communities in two construction phases. Since HACEP first published the breakdown of RAD properties, some changes have occurred to the schedule.

RAD Phase I Communities: 2015-2017

Anderson, Alvarez, Baines+, Baird, Bean, Eisenhower (194 units),

Hart, Johnson, Kennedy Brothers, Kennedy Estates, Krupp*, Marmolejo, Ochoa, Tays (Phase I)*, Telles, Truman, Webber, Westfall+

No Renovation/Reconstruction

Alamito, Paisano Green, Morehead, Montwood Heights, Scattered Sites, DeWetter Replacement

Construction Updates

RAD Phase II Communities: 2017-2019

Chelsea, Cramer, DeWetter, Fr. Pinto, Graham, Guillen, Kathy White#, Pooley, Rio Grande, Robinson, Roosevelt#, Salazar, Sandoval, Sherman, Sun Plaza, Tays (Phase II), Valle Verde, Williams

No Renovation/Reconstruction

Eastside Crossings, Eisenhower (66 flood plain units), Gonzalez (flood plain), King (flood plain), Machuca, Rubin Heights, Scattered Sites

Construction Updates

*Tays and Krupp Update

• HACEP received financing from the State of Texas to rebuild both properties.

• Tays: 81 Units Demolished and Rebuilt, 2015-2017

• Krupp: 96 Units Demolished and Rebuilt, 2015-2017

+Baines/Westfall Update

• HACEP’s application for financing with the State is on hold. – Outcome of status will be available end of October.

• Plan is to demolish and rebuild both properties.

#Kathy White and Roosevelt Update

• Both properties were originally part of RAD Phase I, but are now part of RAD Phase II.

• No construction or renovation will occur until at least 2017.

Construction Schedules

Final construction schedule for RAD Phase II properties will not be complete until the end of this year. Here are the facts that are current as of September 6, 2014:

• No resident relocations will occur prior to January 1, 2015.

• Construction will begin in March 2015 with Kennedy Brothers and Eisenhower. The next properties will be Marmolejo and Ochoa in June 2015.

• HACEP will issue 30-day notices to each family prior to their move beginning in January 2015.

• Hunt, the construction company, will use two construction crews operating at the same time at up to six different properties.

• HACEP will pay for allowable relocation expenses using a variety of professional moving companies.

Refrigerated Air Swamp Coolers

Construction Work

Work performed in each site will vary based on each property’s age and design. Generally speaking, the following work will apply to all properties:

• Permanently remove all asbestos (if present).

• Kitchen and bathroom upgrades.

• Replace decaying ventilation shafts and ducts behind the walls.

• Replace outdated electrical, plumbing, and lighting systems and fixtures.

• Replace appliances with new Energy Star certified appliances.

• Installing more energy efficient insulation, windows, and doors (where necessary).

• New landscaping and playgrounds.

• Install new property signs.

• New parking lots.

• Improvements to common area lighting.

WE CAN DO IT.

AFTER ALL…

WE’VE DONE IT BEFORE!

Eastside Crossings (2013-2015) 12019 Sarah H. Circle 79938 $22 million funded in part by 9% tax credits.

Paisano Green Community (2009-2012) 4000 East Paisano Drive 79905 $15 million

Alamito Community HOPE VI (2005-2010) 509 South St. Vrain (Segundo Barrio) $58 million

Kennedy Brothers HOPE VI (1995-2000) 400 South Zaragoza 79907 $38 million

• HACEP has a successful track record of revitalizing distressed neighborhoods.

HACEP’s Successful Revitalization Record

RAD Inspections

To prepare for the renovations, HACEP’s construction company, HUNT, performed inspections in 10 percent of the RAD Phase I communities.

• Wall, floor, ceiling samples to test for asbestos.

• Installed air monitors for air samples.

• Notices were sent 48-hours in advance to occupied units, but they were in English and did not explain the purpose of the inspections.

• HACEP is working with HUNT to ensure future notices are in Spanish and English and include the nature of the inspection.

Utility Service Updates

HACEP is working with all utility companies (water, electric, gas) so that HACEP will handle all transfers of service.

• Upon move out, service will be transferred to HACEP.

• Upon move in, service will be transferred back to resident.

• Burden is lifted from families and fees are avoided.

• Sub electric meters will be installed in all units, so residents will be able to track and be responsible for their personal electric use.

RAD Changes to HACEP

HACEP always has been, and always will be, a public entity funded by the Federal Government.

- We are not “privatizing.”

• Through RAD, HACEP will become the owners of the public housing communities and federal revenue guaranteed for 40 years.

• Converted properties will operate the same as our four Section 8 New Construction properties (Henderson, Hervey, Muñoz, Sitgraves).

• HACEP can now access capital in the private market to raise over $500 million that we will invest back in to the properties.

• This is the only way to do what residents have been asking us to do for decades.

Program Differences

Section 9 Public Housing

• What residents live in now.

• HUD owns the communities; HACEP maintains and leases them.

• Centralized wait list.

• Units offered based on availability, not preference.

• Congress determines how much money HACEP receives each year to determine rent and maintain the properties.

This is an unsustainable business model.

Program Differences

Section 8 Project Based Rental Assistance (PBRA)

• HACEP will convert all Public Housing to PBRA through RAD.

• HACEP owns the communities and continues to maintain and lease them.

• Site based wait lists. Residents choose where they want to live!

• Federal funds are guaranteed for 40 years.

• HACEP can access capital in the private market that was previously inaccessible.

This is a sustainable business model.

From PH to PBRA

No Differences Based on RAD Conversion

• The process by which the amount of rent a family pays.

• The right to establish and operate a resident council and be eligible for resident participation funds.

• Minimum rents will remain the same at $25 per month.

• Current participants in a family self-sufficiency program (PH-FSS and ROSS-SC) will continue their FSS participation.

• Residents who are enrolled in an Earned Income Disregard at the time of conversion will continue until changes to income occur.

• All inspections (annual, move in, move out, housekeeping) will continue in the same manner.

From PH to PBRA

Differences Based on RAD Conversion

• No re-screening of tenants upon conversion, except for properties that will become tax credit properties. (Tays, Krupp)

• Late rent charges: $5 fee on the 6th day of the month and $1 for each additional day the rent remains unpaid during the month it is due.

• New participants to a self-sufficiency program (PH-FSS and ROSS-SC) will not be admitted.

• Residents have a right to return to their community, not necessarily their original unit.

• The Earned Income Disregard (EID) does not apply for new participants after conversion.

• After 24 months following the conversion to RAD, residents have the option to apply for the Housing Choice Voucher (Section 8) Program under the “Choice Mobility” option, subject to program requirements and availability.

Program Differences

Tax Credit Properties

• Also known as known as Low Income Housing Tax Credit (LIHTC or simply Tax Credit

• Rents are not subsidized by federal tax dollars through HUD.

• Properties feature reduced rents for income-qualified residents.

• Income qualifications and eligibility requirements are slightly different than Section 9 Public Housing.

Program Differences

Housing Choice Voucher (HCV) Program

• Formerly known as Section 8

• Provides rental assistance vouchers to help low-income families live in privately-owned apartments and houses.

• Program participants can select the home of their choice, the vouchers are portable, and you can apply the voucher to your own mortgage through the Family Self Sufficiency Program.

• Family pays the difference between the actual rent charged by the landlord and the amount of the voucher.

RAD Impact to Residents

HACEP developed an initial set of RAD goals, including the goal to keep 100 percent of children enrolled in the school that they currently attend.

• This goal has changed to where we will try our best to keep as many children in the same schools, but we cannot guarantee this.

• HACEP must finish construction of the RAD Phase I communities by 2017 and RAD Phase II properties by 2019.

• We can only renovate and remove asbestos when the entire building is vacant for health and safety reasons.

• HACEP needs hundreds of vacancies to begin renovations and have flexibility to accommodate relocated families with the least inconvenience as possible.

HCV Option

Families living in a RAD Phase I property have the option to permanently move out of Public Housing and in to the private market through the Housing Choice Voucher (HCV) Program.

• This is option is a choice, it is not a requirement or obligation.

• Eligible families must qualify based on income by earning less that 50 percent of area median income ($25,100 per year for a family of four).

• Families are responsible for paying security deposits and to turn on utilities just like all other clients of the HCV Program.

• Utility allowances apply unless landlord pays for utilities.

Rent Calculations

No changes will occur to the manner in which rents are calculated for residents through the RAD conversion to project based rental assistance (PBRA).

• The only exception occurs when a property is financed with a tax credit such as Tays and Krupp.

• Residents will be placed in renovated units according to current occupancy standards and reasonable accommodation requirements.

Flat Rents Changes

Rents will increase for families who are currently paying a “flat rent,” which is based on the fair market value of the unit.

• This is NOT related to RAD. It happens to coincide with our conversion.

• Changes to flat rents required by 2014 Appropriations Act and affect all public housing authorities across the United States.

• Law states that flat rents may not fall below 80 percent of fair market rent (FMR).

Flat Rents Changes

Unit Type 2014 FMR Proposed

2015 FMR

HACEP Flat

Rent Rate Difference Increase

# Families

Affected

Efficiency $553 $588 $408 $ 180 44% 2

1BR 605 643 408 235 58 20

2BR 747 794 496 298 60 89

3BR 1059 1,125 595 530 89 91

4BR 1270 1,350 718 632 88 20

5BR 1460 1,552 826 726 88 5

6BR 1651 1,755 950 805 85 0

Total Families Paying Flat Rent (Aug. 19, 2014): 227

Over Income Families

A family is “over income” when their total family income exceeds 80 percent of area median income.

• A few hundred families who are over income currently reside in Public Housing, including all families who pay a flat rent.

• After the RAD conversion, over income families will have the option to pay the revised flat rent at 100 percent of fair market value.

• HACEP strongly encourages over income families to find living accommodations in the private market so that these units can be available to the 10,000 families who are currently waiting for housing assistance.

Earned Income Disregard

Earned Income Disregard (EID) defers wage increases from rent calculations for up to 48 months when public housing residents gain employment.

• Under PBRA, the EID exclusion will end after conversion.

• Families who have an EID exclusion at the time of conversion may continue to receive it until the tenant endures a break in employment, ceases to use the EID exclusion, or if the EID exclusion expires.

• Tenants whose EID ceases or expires after conversion shall not be subject to the rent phase-in provisions; instead, the rent will automatically be adjusted to the appropriate rent level based upon tenant income at the time.

Refrigerated Air Tips

HACEP will replace evaporative coolers (swamp coolers) to refrigerated air conditioners. Residents need to know how to use them to maximize their comfort and not waste money on excess electricity.

• Close blinds during summer days so that the hot sunlight does not come in, but keep them open during winter days.

• Do not keep a window open when running your refrigerated air conditioner.

• When home during the summer, set your thermostat to a comfortable 78 degrees during the day and 74 degrees at night.

• When you leave your unit for an extended period, turn your air conditioner off.

HACEP’s success is dependent on our partnership and effective communication with our residents. HACEP exists to serve you. There will be some short term inconveniences, but our goal is to ensure the sustainability of our communities for many generations to come.

Website: www.hacep.org/about-us/rad

RAD Hotline: (915) 849-3888