U.S.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Regional Administrator
Region IV

July 7, 2022
The Honorable Rick W. Allen
Member, United States
House of Representatives
570 Cannon House Office Building
Washington, DC 20515-0001

Dear Representative Allen:

Thank you for the correspondence dated May 18, 2022, regarding Bon Air Apartments
located in Augusta, Georgia. To provide you with the most recent information on this matter, the
Office of Multifamily Housing (MFH) Southeast Regional staff provided the following response,
which includes reporting from Nick Boehm, Director for Redwood Housing Realty, LLC, the
controlling participant for ownership:

• HUD’s Real Estate Assessment Center (REAC) conducted an inspection of the project on
June 14, 2022. The property received a failing score of 55c* but 17 points were deducted
by the inspector for building exterior deficiencies associated with a hailstorm on May 6,
2022. The owner will appeal the score pursuant to REAC’s protocol, and Multifamily
staff will require corrective action by the owner to bring the property into compliance.

• A Management and Occupancy Review (MOR) will be conducted later this year by
National Housing Compliance, HUD’s Performance-Based Contract Administrator for
Georgia. The results of a MOR are generally available 30 days after the site visit, and
your office may request information regarding the results at that time. The last MOR
which took place on June 25, 2021, resulted in a score of above average.

• The owner applied for the first open round of Low Income Housing Tax Credit (LIHTC)
funding in April 2022 and will be applying for another open round in October 2022.
They anticipate a decision on the LIHTC applications later this year and if awarded,
renovations will begin in the first half of 2023. MFH considers this an acceptable
timeframe for substantial rehabilitation finance processing.

• The owner advised MFH that if the LIHTC applications are not approved they will
explore alternative financing options, which will include a meaningful investment in the
property in an effort to provide the highest quality affordable housing available.

• The owner has no plans to locate other investors or to sell the property if the LIHTC
transaction does not materialize.

• Regarding tenant notification of a pending renovation, the owner advised they have
contracted with a third party relocation specialist, Housing Opportunities Unlimited, who

Create strong, sustainable, inclusive communities and quality affordable homes for all.
www.hud.gov espanol.hud.gov
 will be responsible for delivering timely notices to residents in accordance with state and
federal guidelines. During the course of the rehab, residents will be temporarily moved to
a vacant onsite unit while renovations occur. Once a tenant’s unit has been fully
renovated, the resident will return to the original unit.

• Regarding your inquiry about the project having unlivable units or units in need of major
renovations, the owner advised there are no units offline at the property. MFH records
indicate that 200 of the 202 units are currently occupied.

• Concerning your requests for certain updates, quarterly reports, etc., let our office know
the specific information and frequency by which you would like to receive said
information.

• We welcome the opportunity to meet with you and your staff for an on-site visit at this
property. Please have your staff contact Shea Johnson, Georgia Field Office Director, at
shea.d.johnson@hud.gov or by phone at 678-732-2195 and provide proposed dates for
such a meeting.

If you have additional property-specific questions, your staff may contact William
Duckworth, Resolution Specialist, at william.j.duckworth@hud.gov or phone number 678-732-
2853.
I hope this information is helpful in responding to your request. If you need further
assistance or have additional concerns, please have a member of your staff contact Johnnie
Lattimore, Senior Management Analyst, at 678-732-2314 or via email at
johnnie.a.lattimore@hud.gov.

Sincerely,

José A. Alvarez
Regional Administrator
Southeast Region