CONCOURSE ADVISES HOUSING AUTHORITY ON PORTFOLIO REDEVELOPMENT USING HUD’S RAD PROGRAM
January 10, 2018
Annapolis, MD, January 9, 2018 – The Concourse Group, LLC’s (Concourse) client, the Vicksburg Housing Authority (VHA) of Mississippi, has secured financing and approvals to redevelop its affordable housing portfolio under HUD’s Rental Assistance Demonstration (RAD) program. The RAD program is transforming the way the housing authorities fund redevelopment using debt and equity, combined with other capital sources, to cover the cost of repairs or new construction, and increase reserves.
The $39.9 million redevelopment cost for the 430-unit VHA portfolio is financed using a range of sources including $13.1 million in LIHTC syndicated proceeds at $1.07 a credit and an $8.3 million HUD guaranteed permanent mortgage, among other sources. The Portfolio consists of a mixture of garden apartments, four-plex, duplex, and free-standing units and provides affordable housing to residents at or below 60% of area median income for Warren County, Mississippi. Construction is to start immediately and conclude mid-2019.
VHA engaged Concourse to provide a full range of RAD support to reach a closing. Ben Washington, Executive Director of the Vicksburg Housing Authority said, “VHA is overjoyed with the closing of its RAD deal and cannot express the gratitude it has for the role and performance of its partners in this deal, especially the services that were provided by Concourse. VHA was able to get this deal done in time to secure a great deal of leveraged funding and a premium on its LIHTC’s. Closing a deal of this magnitude took full effort from an entire team and having a quarterback with the capacity of Concourse proved vital in providing the continuity and assurance VHA needed. The residents and staff of VHA will have a project that is comparable to or better than any market rate development in the city.”
John Benton, Director of Affordable Housing at Concourse, led the project. Thomas Shea, Concourse co-founder, said, “John excels at providing creative solutions and has deep experience with affordable housing finance, development, and HUD policies, which has a tremendous impact on our client’s ability to successfully realize their important missions.”
About The Concourse Group, LLC
Concourse, headquartered in Annapolis, Maryland, was founded in 2001 and provides consulting support in real estate, finance, development, public-private partnerships, planning, and economics. The firm provides end-to-end consulting throughout the entire property lifecycle to optimize its client’s portfolio. Concourse represents numerous federal clients as well as public housing authorities across the country.