Stewart Duggan and William Richardson, partners with Brinson Askew Berry’s Public and Affordable Housing Group, represented, advised, and handled Northwest Georgia Housing Authority’s closings on two (2) new RAD (Rental Assistance Demonstration) conversions. These included financing, in part, with the sale of low-income-housing-tax-credits (LIHTCs) awarded by the Georgia Department of Community Affairs (DCA).
Northwest Georgia Housing Authority converted approximately 200 public housing units to HUD’s Housing Choice Voucher (HCV) program and also issued bonds as part of the financing package. These two 4% tax-credit projects, which closed on July 23, 2019, are valued at approximately $30 million.
Duggan, Richardson, and their partner, Wright Smith, provided legal counsel and guidance on these two RAD development projects, with the initial selection of a co-development partner, the creation of the operational and ownership structures, completion of the HUD/RAD transactional work, completion of the bond-validation process, financing, drafting of the limited and partnership agreements and completing the title work and commitments required to satisfy all HUD and DCA regulatory requirements leading to the final closing of these two RAD developments. Funding sources involved millions of dollars through the sale of state and federal tax credits to outside investors.
Northwest Georgia Housing Authority will remain in control of these RAD developments through a long-term ground lease and also by serving as the property manager. Ultimately, the contract documents provide that Northwest Georgia Housing Authority will ultimately be 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.