A unique Rental Assistance Demonstration (RAD) transaction will help preserve and rehabilitate 99 affordable homes in Newark, Ohio.
The Licking Metropolitan Housing Authority (LMHA) and TFG Housing Resources (TFGHR) have joined forces to modernize Terrace Gardens, a cornerstone of the community since its construction in 1976.
The seven-story building, which provides vital housing for elderly and near-elderly residents, veterans, and individuals with disabilities, is LMHA’s sole public housing development.
The Terrace Gardens project is made possible by a component of the RAD program that allows for blending RAD with Section 18 of the National Housing Act, facilitating the preservation of affordable housing that would become obsolete. In addition to securing federal RAD approval, the development team is utilizing 4% low-income housing tax credits allocated by Ohio Housing Finance Agency and syndicated by Ohio Capital Corporation for Housing.
The Department of Housing and Urban Development’s (HUD’s) RAD/Section 18 PHA Blend is designed for public housing authorities (PHAs) managing portfolios with fewer than 250 public housing units, enabling them to secure critical funding for the preservation of their housing stock.
The Terrace Gardens initiative is the first use of the RAD/Section 18 Blend by a housing authority in Ohio, according to officials.
"Utilizing the RAD Blend was essential to bringing this project to fruition. This partnership was successful because LMHA was able to bring their depth of experience of serving over 2,500 residents in Licking County. By modernizing the property, we’re not only enhancing the buildings but also improving the overall quality of life for residents who depend on the stability this housing provides," said Brad Carman, president of Columbus, Ohio-based TFGHR. " While HUD's support was invaluable, the collaboration of numerous public and private partners significantly contributed to the success of the Terrace Gardens RAD conversion.”
The property will undergo extensive exterior and interior renovations, including replacing windows, flooring, and cabinetry, and updating kitchens, bathrooms, and building systems. The renovation will also incorporate energy-efficient building techniques.
“Terrace Gardens is an important example of the work we do at LMHA to provide stable and supportive housing for the Newark community. Without the RAD program, this transformation would not have been possible,” said LMHA executive director Jody Hull-Arthur. “Given the building’s age, Terrace Gardens was long overdue for significant updates, and this extensive renovation will provide residents with safe, affordable, and decent housing for years to come. Safe and decent housing is not just a roof over our heads; it is the foundation for a life of dignity, opportunity, and well-being.”
Officials noted that the project comes as Intel is investing in the area, creating a major hub for semiconductor manufacturing. This is expected to increase the population and put pressure on the demand for housing in the region.
Project partners include:
· Ruscilli Construction (general contractor);· Moody Nolan (architect);
· Ohio Housing Finance Agency (awarded 4% LIHTCs, housing development loan, and National Housing Trust Funds);
· Ohio Capital Corporation for Housing (LIHTC syndicator);
· Lument (permanent lender);
· Huntington Bank (construction lender and Huntington Digital Inclusion Grant);
· Reno & Cavanaugh (partnership attorney)
· Department of Housing and Urban Development;
· City of Newark; and
· Licking County.
