Our Services
Our Core Work Focus
- Portfolio and Project Strategic Planning
- Team leader for refinance and rehabilitation projects
- Section 8 HAP Contract optimization and restructuring
- Contract Renewal preparation and submission
- Rent Adjustment and budget preparation and submission
- HAP Assignment preparation and submission
- Staff and board training
- RAD Conversions
Successful Projects
Section 8(bb) Transfer of Budget Authority
Sunstone Team facilitated the transfer of budget authority from an owner who chose to opt out of the Section 8 program to our client’s partially assisted project. We gathered and prepared needed documentation, worked closely with HUD, prepared and submitted tenant notifications, and all contract renewal paperwork. As a result of Sunstone’s proactive planning and connections, the property was able to add 32 units of Section 8 assistance at the property all while coordinating a 4% + Bond Acquisition and Rehab transaction. Good stuff!
Section 8 Renewal Mark Up to Market Option 1b + Chp. 15 and HAP Assignment
Sunstone was the development consultant and team leader for the substantial rehabilitation of a 101-unit, HUD 202 100% project-based Section 8 owned by a small local non-profit. We were involved in all aspects of the recapitalization and HAP restructure and HAP Assignment.
This multidisciplinary effort ensured that maximum MUTM + Chp. 15 post rehab rents were obtained by considering the rent optimization, HUD 221d4 loan underwriting and future operations which was particularly important because this project was eligible for annual surplus cash distributions. Sunstone strategically managed the RCS process and timing of the MUTM + Chp. 15 renewal with the loan underwriting process culminating in a coordinated loan closing and HAP Renewal and HAP Assignment.
Public Housing Authority – 11 Properties
The PHA needed assistance to prepare budgets for their PRAC and multifamily 202 properties, with the goal of recapitalizing with LIHTC equity and HUD debt at the optimum time. Sunstone reviewed audits and contractual documents, made assessments, prepared proformas, and provided draft plans/assessments to the PHA. Once the PHA determined the plan that best fit their needs, we prepared budgets and submitted to the CA/HUD for approval, networking with all parties until the budget-based rents were approved.
Lessons Learned
Our natural inclination as affordable housing mavens (pathologically helpful) means we find ourselves deep in the details, taking responsibility of large and small tasks. Here are just a few lessons we have learned:
Temporary Relocation is directly Linked with MUTM + Chp. 15 Renewals
Section 8 properties usually have very low vacancy with a long wait list so operators try to turn units as fast as they can, while deferring interior upgrades and improvements. Because the MUTM + Chp. 15 allows the project to receive post rehab rents at renewal, most projects must plan a significant rehab scope to maximize rents and financing. Kitchens and bathrooms generate the biggest rent increases but also require the most time and tenant disruption. This means a well thought out relocation plan and budget must be part of the early stage planning in order to maximize benefits.
Parallel and Iterative Processing is a MUST
After experiencing slowdowns and inefficiencies because of lock step or siloed processes, Sunstone Team believes in getting involved as early as possible. We are involved in planning the scope of work and participate in team meetings with the architect and general contractor so that relocation, schedule and rent increases are strategically considered, minimizing expensive report updates. Keeping the end in mind, Sunstone identifies legal and regulatory matters early so that closing is not delayed.
Early and Continuous Communication with the Whole Team is Crucial
With many, many people involved in these complicated projects, we at Sunstone Team have learned to take it upon ourselves to establish relationships, facilitate team meetings and provide reliable updates and action items. There have been many occasions where this practice has brought issues to light, sometimes from the most unlikely source. But more importantly, it is a sign of respect for everyone’s schedule to let them know what is coming so the team can galvanize for the big milestones.
