Chapter 15/Mark-Up-To-Market Enables the Revitalization of Historic Housing
Savannah Neighborhood Action Project (SNAP) is a 233-unit affordable community located in Savannah, Georgia. The homes are scattered throughout Savannah’s Historic District near the Savannah College of Art and Design. They were originally constructed as early as 1900 and were converted to affordable housing in 1983. All units receive assistance under HUD’s project-based Section 8 program.
The project’s age, historic designation, and unique scattered layout made the rehabilitation plan particularly challenging. HAO worked with Vitus to obtain the approvals needed to acquire the project, secure a 20-year Chapter 15/MUTM HAP contract renewal with HUD’s pre-approval of post-rehabilitation rents, and restore the historic homes to their original charm.
Applicable HUD Programs
- Project-Based Section 8
- HAP Renewal
- Chapter 15/MUTM Rent Increase
Approvals Needed for a 20-Year HAP Renewal with a Post-Rehabilitation Rent Increase
To support the renovations, HAO obtained approvals to renew the combined HAP contract for a 20-year term with pre-approval of the post-rehabilitation rents to take effect at completion of the rehabilitation 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.
Initially, the project’s units were subsidized under three separate project-based Section 8 Housing Assistance Payments (HAP) contracts. HAO worked with HUD to combine the three HAP contracts to promote a more streamlined process for administering the project in accordance with HUD’s Section 8 program rules.
The Transaction and Project Outcomes
LIHTC Financing Utilized
The rehabilitation of the project was financed with tax exempt bonds as well as equity from 4% low income housing tax credits and state housing tax credits. HAO worked with Vitus to obtain the necessary HUD approvals, including HUD’s consent to the assignment of the HAP contract as security for the new financing.
Preservation of Valuable Affordable Housing Asset
The project’s unique structure, which can accommodate larger households, makes SNAP an especially valuable affordable housing asset. Vitus’s rehabilitation of SNAP ensured the preservation of a vital community resource.
View Examples of Our Other Work
Our partnership with Redwood Housing shows how HAO guides clients through complex, multi-phase projects. See other examples of our work by viewing our project portfolio.