With paintbrushes in hand, executives from The Michaels Organization, the city of Philadelphia, and The Philadelphia Housing Authority (PHA), joined residents to celebrate the kick-off of major renovations at Courtyard at Riverview, a 470-unit affordable housing community located adjacent to the Italian Market area in Philadelphia.
The rehabilitation of Courtyard is the result of a record-setting deal under HUD's Rental Assistance Demonstration (RAD) program.
Courtyard consists of 165 senior unit high-rise apartments and 305 modern low-rise homes. The rehabilitation activities at the senior tower will include: exterior facade repairs, roofing and window repairs and replacements, reconstruction or replacement of the elevators as well as heating and ventilation system upgrades. Kitchens and baths will also be upgraded with new counters, fixtures and vanities. The townhouses will be similarly upgraded.
“This transaction ensures that the Courtyard Apartments at Riverview is preserved for low-income seniors and families. Even as our city’s neighborhoods grow in value we must not forget about the less fortunate among us who need a decent place to live,” said PHA President and CEO Kelvin Jeremiah.
“Courtyard is yet the latest example of PHA’s desire to work with likeminded partners that understand the importance and the need to preserve affordable housing. I want to thank HUD for providing an innovative solution to attract private sector dollars to assist in reducing the housing crisis. I would also like to thank The Michaels Organization for making a real investment into the lives of the City’s most vulnerable population,” said Jeremiah.
The RAD transaction changes the subsidy from public housing to Project Based Housing Choice Voucher (Section 8) assistance. This allows the owner to generate private capital for the much needed repairs and upgrades. By switching subsidy platforms, the RAD program allows the owners of public housing developments to leverage debt in order to generate capital for re-investment in the development, including a set-aside for reserves. Under RAD, the project is subject to a RAD Use Agreement that automatically renews every 20 years. This ensures that the units remain permanently affordable to low-income households.
“We are proud to be a partner with PHA, whose forward thinking vision ensures that Courtyard will be revitalized into modern, energy efficient, high quality housing that will improve the lives of our residents and enhance the community,” said John J. O’Donnell, President of The Michaels Organization.
Courtyard at Riverview was built starting in 1999 following demolition of the Southwark public housing development. The original housing dated back to 1963.
This transaction represents one of the largest RAD agreements in Pennsylvannia and a significant deal for RAD transactions across the country.
TMO Companies involved in this deal include Michaels Development, which is serving as the developer, Interstate Realty Management, the property manager, Riverside Capital, which invested in the tax credits, and Prestige Building Company, which is serving as the general contractor.