Greystone Affordable Development announced the closing of a $79.2 million Rental Assistance Demonstration (RAD) transaction that will improve public housing properties throughout Greensboro, N.C.
The deal will convert the financial structure of 645 units of affordable housing across nine affordable housing communities, providing the Greensboro Housing Authority (GHA) access to capital for physical improvements and overall increased operational efficiency.
The RAD transaction marks a critical step towards renovating the properties, which were built between 1959 and 1996, according to Greystone Affordable Development, a leading services provider for affordable housing recapitalization, rehabilitation, and development transactions.
Restructured with new debt from sources such as tax-exempt bonds, low-income housing tax credit equity from Boston Financial Investment Management, and Fannie Mae loans from PGIM Real Estate, the housing authority now has the cash infusion for deferred maintenance, which is estimated at $44,000 per unit.
“Having the ability to complete a widespread preservation effort such as this across nine separate properties has been an incredible feat, and we thank Greystone for partnering with us in the RAD process,” said Tina Akers Brown, CEO of GHA. “We are excited to embark on the renovation process and can’t wait for the final result.”
The federal RAD program converts public housing properties to a Sec. 8 platform, enabling housing agencies to leverage public and private debt and equity.
“Navigating the RAD process can be incredibly challenging, but the long-term benefits—for both the owning entity and for the residents themselves—are well worth the effort,” said Tanya Eastwood, president, Greystone Affordable Development. “Public housing authorities such as Greensboro have seen a great benefit from utilizing the RAD program to allow for certainty in funding capital improvements to their properties.”
“Executing a RAD conversion can help extend the life of critical affordable housing, and the portfolio concept, which addresses multiple properties at once, is a model for preservation and for the success of public-private partnerships—all thankfully still accessible under the latest tax reform,” added Will Eckstein, senior vice president, Greystone Affordable Development.
Greystone’s team has preserved over 10,000 affordable housing units as both financial advisor and developer. Greystone Affordable Development is an affiliate of Greystone & Co., a real estate lending, investor, and advisory company.
