Macon Housing Authority to convert six public housing properties to Section 8
The Macon Housing Authority has announced six public housing properties in Macon have been selected for participation in a nationwide HUD Rental Assistance Demonstration (RAD).
According to a press release, RAD is a program designed to convert traditional low-rent public housing to Section 8. It was sponsored by the Obama administration and authorized by the Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112-55).
Executive Director John Hiscox says RAD would allow the Macon Housing Authority to exchange its existing public housing funding stream for a fixed Housing Assistance Payments (HAP) contract with guaranteed funding for 20 years.
The preliminary budget for capital improvements to the chosen properties is $7.5 million.
Hiscox says the Macon Housing Authority is "uniquely equipped" to take advantage of the RAD program. Macon Housing Authority has experience at “mixed finance”, which combines traditional public housing with new housing finance tools such as bonds and tax credits.
The press release states Macon Housing Authority has also acquired and redeveloped five privately owned Project-Based Section 8 developments and has a sixth development in the pipeline.
Macon Housing Authority says the majority of residents will not experience an increase in their income-based rents. Those that do will have these increases phased in over a five year period. Existing resident lease and grievance procedure protections remain in place. No residents will be displaced, but those who wish to move will be able to put their names on a waiting list for Section 8 Housing Choice Vouchers.
The developments included in the announcement are Anthony Homes, Pendleton Homes, Bowden Homes, McAfee Towers, Felton Homes and Bartlett Crossing. The projects total 932 units at $7,505,692.
On Tuesday, the Department of Housing and Urban Development offered Macon Housing Authority preliminary agreements which confirmed the selection of the developments.
After Macon Housing Authority executes the agreements, it will then have a year in which to plan and budget physical improvements, arrange and close financing and begin capital improvements.