RAD consultant, HUD housing consultant, affordable housing, Low income housing tax creditPreservation Consulting Services

Tapestry Development Group is experienced in collaborating with owners of properties originally financed with HUD Section 202 Direct Loans and Section 236 loans, Low Income Housing Tax Credits, and properties with HUD Section 8 contracts, to help them determine their best path to a refinancing and preservation of their property.  Typical strategies include refinancing with FHA 223(f) or 221(d)4 debt, with Low Income Housing Tax Credits, with Tax Exempt Bond financing, and with AHP Grants.  In addition, we can assist owners with analyzing Section 8 contract renewals and applying for the HUD Rental Assistance Demonstration (RAD) program. We also determine various hurdles to the strategy, including pre-payment conditions, deferral requests required, and Section 8 conditions for renewal.
We have found that owners of these properties are very experienced in operating their property well, maintaining compliance with HUD regulations, and managing the day-to-day connections with the tenants and support services.  However, some owners express a need for the specialized skill-set required for analyzing, facilitating, and executing refinancing strategies.  Tapestry brings that expertise to its clients, working with them as an owner’s representative through the entire refinancing and renovation process.

We can tailor our services to meet an owner’s needs. Below is a list of the typical services offered to an owner of a HUD-assisted, LIHTC, and/or Section 8 property:

  • Financial evaluation – Tapestry provides an initial evaluation and underwriting of the property, which includes a discussion of the goals of the owner and an estimate of the size of the construction budget.
  • Board of Directors education and facilitation – For non-profit owners, Tapestry facilitates informational sessions with the Board of Directors and staff, which helps the organization to reach a decision on the most appropriate refinancing approach.
  • Facilitation of bank introductions – Once a strategy is determined, Tapestry works with the owner to find the right lender.
  • Loan application – Tapestry oversees the entire loan application process, working directly with the lender as an owner’s representative to avoid adding additional work to the owner’s staff.
  • Loan closing – Working directly with the lender and legal team, Tapestry walks the owner through the closing process and the start of the construction/repair process.
  • Owner representative and advisor for LIHTC transactions- When the best route for a refinancing involves Low Income Housing Tax Credits, Tapestry works with the owner to facilitate a successful application for funding, and when appropriate, pairing the owner up with experienced partners and developers in their state.
  • Construction and rehabilitation – Upon a closing of the new financing, Tapestry works with the owner to finalize the construction contracts and scope of work, oversee the construction, prepare the funding draws, manage the construction meetings, and communicate with the lender and HUD on any issues during the renovation process.
  • Close-out process – Upon completion of the construction work, Tapestry handles the “close-out” of the loan, making sure that the lender and HUD receive the paperwork required, and that the construction team is paid and their contract is fulfilled. 

Our fees are built into the refinancing, and are typically less than the total “developer fee” allowed by HUD.  This potentially allows the owner to share in the developer fee, while outsourcing all of the typical “developer” responsibilities to Tapestry. 

For more information on this service, please contact Richelle (Shelly) Patton at 404-997-6786 or at richellepatton@tapestrydevelopment.org.

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