Multifamily Affordable Housing Preservation

Recap assists owners/agents of multifamily affordable housing properties navigate complex HUD regulations and guidance in order to ensure the long-term preservation of their assets. Recap has the financial expertise and experience to execute transactions to accomplish our client’s unique project objectives.


Currently owners with 202 PRAC-funded properties have no options for refinancing and recapitalizing their properties. To address this HUD will be publishing new legislation by the end of February, 2019 to allow PRAC owners to convert their PRAC to a more leveragable form of subsidy through the “Rental Assistance Demonstration” (RAD) Program. As of the time of this submittal, the RAD for PRAC program has been authorized by Congress, and our team is working closely with HUD to shepherd the development of the program. Should you have any questions, please contact us.

RAD Conversion of Mod Rehab Projects

In 2012, Congress authorized the conversion of Mod Rehab properties, including Mod Rehab SROs, to long-term project-based Section 8 contracts, either Project-Based Vouchers (“PBVS”) or Project-Based Rental Assistance (“PBRA”) through the Second Component of RAD. Recap has successfully closed many RAD Second Component transactions. We can assist owners of Mod Rehab properties meet the requirements of PIH Notice 2012-32 REV 3 in order to convert, including completing due diligence, determining financial feasibility, deciding between PBV and PBRA, securing debt and equity, closing, and transitioning to long-term Section 8.

Section 8 Contract Renewals/Preservation Transactions

Recap has closed a broad range of multifamily affordable housing preservation and recapitalization transactions using all of the renewal options outlined in the Section 8 Renewal Policy Guidebook including Mark-to-Market, Mark-up-to-Market, Chapter 15 MUTM and LIHPRHA Preservation. In each case, Recap can assist the client with:

• Initial assessment of physical, financial, and operational issues
• Project feasibility analysis, including timing and sequencing issues
• Development of a transaction plan
• Preparation of funding applications, as appropriate
• Due diligence coordination and management
• Identification, analysis, and thorough comparison of potential debt sources
• Assistance with development of recapitalization scope of work, as appropriate