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With nearly 2,000 applicants on its waiting list for housing, the Northwest Georgia Housing Authority is looking to amend its current five-year plan to create financing by disposing of current units to build its inventory.

“Disposedâ€� or “dispositionâ€� is Housing and Urban DevelopmentÐÔÊӽ紫ý term for “transferâ€� of the units, said authority Chief Executive Officer Justin Jones.

“The units are being transferred from HUDÐÔÊӽ紫ý section 9 platform to HUDÐÔÊӽ紫ý section 8 platform, and they are also being transferred to a new entity under the control of the NWGHA,â€� Jones said.

With this option, the project has a much better chance of getting the rest of the financing that it needs to start construction and receive a long-term rental subsidy commitment from HUD to operate the units, Jones added.

Estimates for the long-term rental subsidy commitment, known as a RAD Conversion Commitment, are still preliminary, as both projects are in the predevelopment phase, Jones said

“We should have more precise estimates for the Floyd Street project by December 2025, and for John Graham ÐÔÊӽ紫ýs in the fourth quarter of 2026,â€� Jones said.

In an effort to chip away at the waiting list, Jones said the authority is seeking a significant amendment to convert 56 units at John Graham ÐÔÊӽ紫ýs and all 20 units at the Floyd Street Apartments in Cave Spring to RAD project-based rental assistance properties, in conjunction with the Section 8 Program.

“The new rental subsidy under the HUD Section 8 program is higher than the current rent levels available under Section 9 (aka public housing). The new Section 8 subsidy blends a rent level available under RAD (10%) with a higher rent level available in HUDÐÔÊӽ紫ý Section 18 pathway (90%).â€�

Jones said some units will actually be demolished instead of transferred to make way for new construction — that is, if the authority is awarded a low-income housing tax credit.

“The Cave Spring new construction units will be built within the same footprint as the existing units along Fincher Street,â€� Jones said. “For the John Graham ÐÔÊӽ紫ýs units, if awarded 9% low-income housing tax credits in this yearÐÔÊӽ紫ý round, the first phase will involve demolition of 28 existing units above East 13th Street and new construction of 56 units.â€�

It will be some time before units could become available, he added.

“The Floyd Street Apartments project is further along in terms of predevelopment planning than the John Graham ÐÔÊӽ紫ýs project is,â€� Jones said. “Both projects are proposed for new construction. Please note that these projects must first get firm commitments from HUD to proceed with their RAD transactions before each project can close on financing. We are projecting a construction schedule of around 16 months for the Floyd Street Apartments project to be completed, but that comes after there is a closing on financing. So, the earliest that new units will become available for the Floyd Street property will be in 2027. The John Graham ÐÔÊӽ紫ýs project would have a similar construction schedule and process to complete before new units become available.â€�

The RAD significant amendment is not uncommon, Jones said.

“These are common changes — the RAD platform offers a higher level of rental subsidy on these units than HUDÐÔÊӽ紫ý public housing program provides,â€� Jones said. “The type of RAD transaction that is being pursued for each property is a blend of RAD rents and Section 18 Fair Market Rents. The higher rents help to make each project financially feasible. Put another way, the higher rents attract the level of financing needed to construct new units for our residents.â€�

For the 150-unit John Graham ÐÔÊӽ紫ýs, there are short-term plans to prepare units for tenants sooner.

“The authority has contracted with a general contractor to make ready 20 units by the second week of August, expediting the leasing of these units to low-income families in need,� Jones said.

Long-term, the next phase will see 56 units converted to the higher rent levels available under Section 8 by converting to RAD/Section 18 blended rents, Jones said.

“The project is contemplated as a conversion to HUDÐÔÊӽ紫ý Rental Assistance Demonstration platform,â€� Jones said. “NWGHA is the financial feasibility of utilizing HUDÐÔÊӽ紫ý RAD platform for a future phase involving approximately 79 units at John Graham homes.â€�

Some 75 of the units at the property are currently occupied and Jones said existing tenants in a public housing property that will convert to RAD have a guaranteed right to return to a unit within the development after the RAD conversion is complete.

The application to HUD for receipt of the higher, RAD blended rents requires a board resolution, as does the change to the five-year plan.

A public hearing regarding the amendment is set for Aug. 27 at 8:30 a.m. at 326 W. Ninth St.