RAD PIH Notice 2012-32 (.pdf, 1 MB) - National Low Income ...

Attachment 1A – Conversion Documentation and GuidelinesAttachment 1A – Conversion Documentation and GuidelinesThis Attachment contains two sections, describing:1A.1 Financing Plan Requirements and Feasibility Benchmarks, and1A.2 Contents of the RAD Conversion Commitment (RCC).1A.1 Financing Plan Requirements and Feasibility BenchmarksThe following items must be included in a PHA’s Financing Plan. A Financing Plan will not bereviewed until all required documentation specified in the submission requirements is submitted.HUD’s purpose in reviewing Financing Plans is to ensure the long-term physical and financialviability of the project. HUD reserves the right to reject any Financing Plan if the informationprovided is not complete, accurate, or in compliance with the submission requirements listedbelow.Note: The Department will issue additional guidance on processing milestones, submissionrequirements, and feasibility benchmarks for RAD conversions that will utilize FHA mortgageinsurance.A. Type of conversion. The PHA must identify whether the project will convert to PBV orPBRA assistance.B. Physical Condition Assessment (PCA). The PCA submission is required on every property,regardless of whether third-party financing is involved, except for units replaced with newconstruction. The PCA must be performed by a qualified third-party provider under aStatement of Work and Contractor Qualifications that is currently used for debt restructuringtransactions in HUD’s Mark-to-Market program, as may be modified to specifically meet therequirements of RAD, or, in HUD’s sole and absolute discretion, is substantially equivalentstandard approved in advance in writing by HUD. (This prescribed PCA exceeds ASHRAELevel II requirements. Any substantial equivalent PCA must meet or exceed ASHRAE LevelII requirements.)C. Scope of Work for Rehabilitation or New Construction. The scope of work must:1. Identify and address all repairs required in the PCA (including all items identified inthe PCA as not functioning at the time of the site visit) or provide a writtenjustification why those items are not included. Briefly discuss any differences betweenPIH-2012-32 (HA) Rental Assistance Demonstration – Final Implementation 65