Stewart Duggan and William Richardson, partners with Brinson Askew Berry’s Public and Affordable housing group, advised and guided the City of LaGrange Housing Authority through a successful close of its first Rental Assistance Demonstration (RAD) conversion and low-income-housing-tax-credit (LIHTC) development.
This RAD and LIHTC development, consisting of 90 dwelling units and involving a bond issuance of approximately $10 million dollars, closed at the end of first quarter of this year. This affordable-housing development will have 100 percent Section 8 participation through HUD’s Housing Choice Voucher Program (Section 8).
Duggan and Richardson provided legal counsel and guidance on this development project, at the outset, from the time of the initial request for proposals and co-development partner selection process, through the operational and ownership structure, the bond-validation process, financing, drafting of the limited and partnership agreements, to satisfying the HUD-regulatory requirements leading to the final closing of the development.
Funding sources included obtaining millions of dollars from The Kresge Foundation and also from the sale of state and federal tax credits to outside investors. LaGrange Housing Authority remains in control of the RAD development through a long-term ground lease and through positioning itself such that it will become the sole and controlling member of the General Partnership.
If you have any questions about affordable or LIHTC housing developments and strategies, please contact Stewart Duggan or William Richardson in the firm’s Public and Affordable Housing Group.