Porting Section 8 at

Grove Parc Apartments Preservation of Affordable Housing

Patricia Belden November 13, 2013

Parting of Section 8 Contract with HUD’s 8bb Program

• Why split the contract?

• Timing of split

• Rent setting

• Master leasing

Why split the contract?

• 504 apartments of substandard housing on 12 acre site

• 250 three-bedrooms apartments, many on a busy thoroughfare

• REAC score of 16

• Need to build de-densify and maintain all 504 units of Section 8 contract authority

Timing

• Purchased property in 2008

• Split contract in 2010

• Bucket contract remains to be split later in process

• Master lease agreement allowed us to pay for relocation

Rent Setting

before

after

ORIGINAL HAP CONTRACT Bedroom Size # of Units Rent UA Gross Rent 0 BR 6 $ 654 $ 25 $ 679 0 BR 54 $ 644 $ 25 $ 669 1 BR 66 $ 804 $ 30 $ 834 2 BR 126 $ 976 $ 41 $ 1,017 3 BR 126 $ 1,210 $ 48 $ 1,258 3 BR 126 $ 1,145 $ 49 $ 1,194 Current Monthly Rent Potential (without UA) $ 511,470 Current Monthly Rent Potential (with UA) $ 532,212

CONTRACT A - 60 UNITS CONTRACT B - 65 UNITS Bedroom Size # of Units Rent UA Gross Rent Bedroom Size # of Units Rent UA Gross Rent 1 BR 17 $ 804 $ 30 $ 834 0 BR 19 $ 645 $ 25 $ 670 2 BR 27 $ 976 $ 41 $ 1,017 1 BR 41 $ 804 $ 30 $ 834 3 BR 16 $ 1,177 $ 48 $ 1,225 2 BR 5 $ 976 $ 41 $ 1,017 Current Monthly Rent Potential (without UA) $ 58,852 Current Monthly Rent Potential (without UA) $ 50,099 Current Monthly Rent Potential (with UA) $ 61,237 Current Monthly Rent Potential (with UA) $ 52,009

CONTRACT C - 85 UNITS CONTRACT D - 294 UNITS Bedroom Size # of Units Rent UA Gross Rent Bedroom Size # of Units Rent UA Gross Rent 1 BR 8 $ 804 $ 30 $ 834 0 BR 41 $ 645 $ 25 $ 670 2 BR 29 $ 976 $ 41 $ 1,017 2 BR 65 $ 976 $ 41 $ 1,017 3 BR 48 $ 1,177 $ 48 $ 1,225 3 BR 188 $ 1,177 $ 48 $ 1,225 Current Monthly Rent Potential (without UA) $ 91,232 Current Monthly Rent Potential (without UA) $ 311,161 Current Monthly Rent Potential (with UA) $ 94,965 Current Monthly Rent Potential (with UA) $ 323,875

Proposed Budget Authority (without UA) $ 511,344 Proposed Budget Authority (with UA) $ 532,086

Average 3-BR rent: $1,226

Average 3-BR rent: $1,117

Key Take-Aways

• Takes time

• Master leasing is key • Helped pay for relocation • Pre-Choice decisions

• Flexibility in unit sizes is

important

• This allowed us to rebuilt and preserve in the neighborhood

Wrap up

Questions?