Project Overview
Chapter 15/Mark-Up-To-Market and Green and Resilient Retrofit Program Enable the Revitalization of Elderly Housing
Alpha Towers is a 165-unit elderly affordable housing community located in Toledo, Ohio. All units in the building receive rental subsidy from HUD through a project-based Section 8 Housing Assistance Payments Contract. In order to preserve the project as affordable housing for the long-term, Essence completed a rehabilitation of the project which included numerous repairs to the building exterior, improved units, common area upgrades, and the addition of accessible units and energy efficiency features.
Applicable HUD Programs
- Project-Based Section 8
- Chapter 15/MUTM Renewal and Rent Increase
- Green and Resilient Retrofit Program (GRRP)
Project Details
Securing Regulatory and GRRP Approvals
HAO helped Essence obtain the appropriate HUD approvals for its rehabilitation plan and guided the project through the HUD approval process. To support the renovations, HAO obtained approvals to renew the HAP contract for a 20-year term with pre-approval of a post-rehabilitation rent increase under Chapter 15 of HUD’s Section 8 Renewal Policy Guide. This pre-approval was necessary to secure the financing needed to accomplish the large-scale rehabilitation and ensure the long-term affordability of the project. In addition, HAO helped Essence get the approvals needed in connection with the ownership transfer, as well as pass-through lease authority that allowed them to continue to receive Section 8 payments for tenants who were offsite during renovations. Finally, HAO helped Essence secure HUD approvals and close one of the agency’s first GRRP Elements Surplus Cash Loans, which provided some of the financing for the project’s energy efficient features including new windows, lighting, and low-flow fixtures.
Project Outcomes
Rehabilitation Leads to Preservation and Improved Energy-Efficiency of Elderly Housing
Essence’s rehabilitation of Alpha Towers will preserve the project as affordable housing for the long-term and provide the Toledo community with an important affordable housing asset. Through its work with HUD, HAO helped Essence make this rehabilitation possible and provide long-term subsidy for 165 elderly households.
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