In an arrangement that could be the future of the industry, the Housing Authority of the City of El Paso (HACEP) is making renovations to units it owns and manages. Typically, HUD owns affordable housing units and local authorities run them.
Using the United States Department of Housing and Urban Development (HUD) Rental Assistance Demonstration (RAD) program, HACEP is moving forward on its own schedule in making renovations and reconstruction on all 6,400 residential units throughout its portfolio. HACEP is able to leverage the property and its guaranteed occupancy rates with private money, financing and tax credits to run an enterprise that stays out of debt.
Some of the work is being performed by Sundt Construction. We are renovating or constructing 1,200 combined high-rise and low-rise apartments.
“There’s a lot of interest nationally about what’s going on in El Paso because HACEP made a full conversion and they’re in the black (financially),” said Project Director Joe Riccillo.
HACEP officials are meeting with their counterparts in Baltimore and Chicago to help improve affordable housing there. Our development in El Paso also received a visit from HUD Regional Administrator Beth Van Duyne last month.
“She wanted to see first-hand what was going on … what the issues were with regulations and what could be done to help affordable housing programs across the country,” Joe said.
HACEP’s use of tax credits requires that work must be complete in two years, from design to completion. If deadlines are not met, the organization faces HUD penalties for every resident who is late moving back into his or her home.
“We’ve made a commitment to HACEP that we will complete this development according to schedule,” said Project Manager Fred Briscoe. “We’ll do everything we have to do to keep that promise.”