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Debt & Equity

CDT commits $100M to public housing program

The Community Development Trust (CDT) announced its $100 million commitment to the Rental Assistance Demonstration (RAD) program, a program developed by the U.S. Department of Housing and Urban Development (HUD) designed to supplement congressionally allocated funds that alone are insufficient to keep up with the capital needs of public housing units across the country.

RAD allows projects currently funded under the public housing and Section 8 Moderate Rehabilitation (Mod Rehab) programs to convert their assistance to long-term, project based Section 8 rental assistance contracts.
Since the inception of RAD in 2012, CDT has provided approximately $20 million in commitments to support a number of communities benefitting from the RAD program.

RAD’s goal is to assist public housing agencies and private owners in obtaining private debt and equity to address capital needs. It is a tool to assist in the preservation and improvement of public housing developments while ensuring that existing tenants remain in their homes.

“We believe there is tremendous value in the RAD program and through our $100 million commitment, we are prepared to expand our investment of capital to public housing developments, both new and rehabilitated,” said Joseph F. Reilly, president and CEO of CDT.

“Our involvement increases public housing financing options and positively impacts the lives of residents. Working with our partners we look forward to our continued involvement in the RAD program and this new opportunity to transform these communities.”

Scale model of the Ribicoff Apartments development
Scale model of the Ribicoff Apartments development

CDT most recently approved a long term forward commitment for a permanent first mortgage of $4.4 million for the Ribicoff Cottages, a 55-unit multifamily housing development in New Haven, Connecticut.

This is a two-phase project that requires demolition of the existing structures, originally built in the 1950s, and the construction of the new 106-unit Ribicoff Apartments. Once the second phase is complete, the community will consist of one-, two-, three-, and four-bedroom units of town houses and small cottages. This mixed-income community will serve a full range of low and middle income families working in New Haven and surrounding neighborhoods.

The partnership which owns the Ribicoff Apartments is comprised of entities controlled by The Glendower Group and Red Stone Equity Partners.

Red Stone is also the tax credit syndicator. The Glendower Group, in conjunction with HANH, will serve as the management company for the Ribicoff Apartments.

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