June 18, 2024
Richmond Housing Authority (RHA)
Economic Development
DATE: June 18, 2024
TO: Chairperson Martinez and Housing Authority Board of Commissioners
FROM:
Nannette J. Beacham, Economic Development Director
Gabino Arredondo, Interim Richmond Housing Authority
Executive Director
Subject:
Rental Assistance Demonstration (RAD) Program
Application for Richmond Village.
FINANCIAL IMPACT: Submission of the RAD application to U.S. Department of Housing and Urban Development (HUD) is part of
Richmond Housing Authority’s (RHA) asset repositioning
efforts. It will reduce RHA’s total public housing assets.
The application submittal facilitates implementing
provisions in the Public Housing Agency Recovery and
Sustainability (PHARS) agreement. It will increase
operating subsidies for the affordable housing project, making it more financially stable.
PREVIOUS COUNCIL
ACTION:
December 4, 2018; December 6, 2022
STATEMENT OF THE
ISSUE:
As an implementing action of the RHA asset
repositioning efforts, RHA is prepared to submit a Rental Assistance Demonstration Program (RAD) application to
HUD for Richmond Village I, II, and III (collectively
Richmond Village). The application submittal facilitates efforts to reposition Richmond Village as outlined in the PHARS Agreement with HUD.
AGENDA
REPORT
June 18, 2024
RECOMMENDED ACTION:
ADOPT a resolution authorizing the Richmond Housing
Authority to submit a Rental Assistance Demonstration
(RAD) application and any Section 18 Disposition
application elements required to support blending RAD
and Section 18 Disposition programs to the U.S.
Department of Housing and Urban Development (HUD)
for Richmond Village - Richmond Housing Authority
(Gabino Arredondo 620-6606).
DISCUSSION:
Richmond Housing Authority's (RHA) purpose is to provide quality, safe, and sanitary housing for very low-income individuals and families in the City of Richmond by administering the Low-Income Public Housing Program. Richmond Village, located at and around 700 S. 26th Street, contains 167 public housing units. The property is currently owned by Easter Hill Development, L.P. and Easter Hill Phase II, L.P., both California limited partnerships. RHA is a Managing General Partner in both limited partnerships. These ownership entities were created to facilitate the use of low-income housing tax credits (LIHTC) to finance the development approximately 15 years ago.
On December 4, 2018, the RHA Board of Commissioners directed staff to reposition RHA’s public housing developments and other real estate holdings. This strategy supports RHA's underlying goals of ensuring no reduction in rental housing options for Richmond residents and maximizing the benefit/utilization of federal funds.
This Rental Assistance Demonstration (RAD) application will begin the process of converting the existing public housing operating subsidy to project-based Section 8 vouchers. Converting these units is one aspect of Richmond Village's larger repositioning. The application submittal facilitates efforts to reposition Richmond Village as provided in the Public Housing Agency Recovery and Sustainability Agreement with HUD, Tasks 5 & 6 (Attachment 2).
Community engagement activities are designed to inform residents on the application process. Most recently, community meetings were held on-site at Richmond Village and online on Tuesday, April 26, 2024, and Wednesday, May 8, 2024. A PowerPoint presentation was provided, factsheets were shared, and a question-and-answer period occurred. All materials have been provided to tenants participating in the community engagement processes and are available at the Richmond Village offices.
DOCUMENTS ATTACHED:
Attachment 1 - Resolution
Attachment 2 - PHARS Agreement
Attachment 3 - Community Meeting Materials (Agenda, PowerPoint, Fact Sheets)