From the St. Paul Public Housing Agency's newsletter:
On October 3, 2019, the PHA successfully closed its RAD transaction converting 3,855 units to RAD Project-Based Rental Assistance (PBRA). Under RAD PBRA, the PHA retains full ownership, and will continue to maintain and operate this deeply affordable precious asset. And because we are a debt-free conversion, we have no need to access LIHTC funds or other forms of financing that require the creation of a non-profit affiliate to hold the asset. RAD also offers the following advantages over traditional public housing funding:
Through RAD, we are locking in for 20 years the better 2018 capital and operating funding Congress recently appropriated;
We will receive annual inflation adjustments of 2% to 3% on that better money over the next 20 years;
We will meet all projected capital needs for the next 20 years without the need for any debt financing. And we look forward to working within the HUD multi-family regulatory framework with the advantages it offers our converted properties.