Two affordable rental housing projects in Anne Arundel and Howard Counties are the first in the state to benefit from the U.S. Department of Housing and Urban Development's (HUD) Tax Credit Assistance Program (TCAP). The Admiral Oaks Apartments project is the acquisition and rehabilitation of eighteen 3-story garden apartment buildings located on the west side of the city of Annapolis. The Sierra Woods project involves the acquisition and rehabilitation of 160 units located in Columbia.
"These projects are vital to our commitment to preserving and growing the number quality affordable housing units for Maryland's hardworking families. TCAP loans are important to helping us and our project partners do that," says Maryland Department of Housing and Community Development Secretary Raymond A. Skinner. "In addition, HUD's support is beneficial in creating much needed construction jobs." The Admiral Oaks project is estimated to create 72 jobs while the Sierra Woods is expected to support the creation of 46 jobs.
Funded through American Recovery and Reinvestment Act of 2009 (Recovery Act), HUD's Tax Credit Assistance Program (TCAP) allows state housing finance agencies like DHCD to resume funding affordable rental housing projects while stimulating job creation in the hard-hit construction industry. TCAP provides grant funding for capital investment in Low Income Housing Tax Credit (LIHTC) projects through a formula-based allocation to DHCD.
The rehabilitated Admiral Oaks property, located on the 400 block of Captains Circle, will consist of 104 two-bedroom units, 43 three-bedroom units and 12 four-bedroom units. The property will also contain a new community room and updated management offices. Units will be available for families with incomes between 30 percent and 60 percent of the Area Median Income or between $24,650 and $49,250 for a four person household.
The project financing includes a permanent mortgage of $7.8 million and Low Income Housing Tax Credit (LIHTC) equity of $10.7 million through Bank of America. The equity was raised from the sale of $1.4 million of LIHTCs awarded by DHCD to the project. DHCD also provided $1.16 million in Rental Housing Program and $737,000 in Tax Credit Assistance Program loan funds.
The developer/owner of the project is Community Housing and Preservation Corporation of Washington, DC. The property will be professionally managed by Edgewood Management Corporation. The general contractor is Hamel Builders Inc and the architect is Wiencek & Associates.
The Sierra Woods property was originally built in 1973 and consists of two non-contiguous parcels containing four garden-style apartment buildings and eight townhouse buildings on 11.5 acres. The project will be the preservation of a mix of units including 28 one-bedroom apartments, 75 two-bedroom apartments, 39 three-bedroom townhomes, 16 four-bedroom townhomes, one leasing office, and one maintenance supervisor's unit. The proposed rehabilitation will allow the property to remain competitive in the market while preserving 32 project-based Section 8 units. One hundred eleven units will be targeted to serve families with household incomes at or below 60 percent of Area Median Income (AMI) or $39,420 for a two-person household.
The project received financing from a number of sources. DHCD provided a first mortgage of $7,605,000 from the proceeds of tax exempt bonds, a Tax Credit Assistance Program (TCAP) loan in the amount of $900,000; and $408,196 in Low Income Housing Tax Credit that raised equity in the amount of $3,223,502. Other sources included a $50,000 Green grant from Enterprise Partners and a $250,000 Multifamily Energy Efficiency and Housing Affordability grant (MEEHA) funded by the Maryland Energy Administration (MEA)
MEEHA provides grants for energy audits and the purchase and installation of equipment and materials for energy efficiency and renewable energy measures in affordable multifamily rental housing. The program is an ongoing partnership between the Department of Housing and Community Development and the Maryland Energy Administration and is part of Governor Martin O'Malley's emPOWER Maryland initiative, which aims to reduce the state's energy consumption by 15 percent by 2015.
The developer and owner of the Sierra Woods project is Enterprise Housing Corporation. The property will be professionally managed by Habitat America. The general contractor is Harkins Builders Inc.
Admiral Oaks and Sierra Woods are just some of the ARRA funded projects DHCD has undertaken that incorporate Smart, Green & Growing components. The rehabilitation of both projects will support local community revitalization efforts in areas served by public transportation and near employment centers. Energy efficiency improvements will include the installation of new Energy Star appliances and HVAC systems. Additional energy efficient building components include Energy Star replacement windows, site lighting and additional insulation to increase the energy efficiency of the units and reduce the projects' carbon footprints.
The Maryland Department of Housing and Community Development works with partners to finance housing opportunities and revitalize great places for Maryland citizens to live, work and prosper. To learn more about DHCD programs, log on to www.mdhousing.org.
News updates also are available by following DHCD on Twitter and Facebook.
Source: Maryland Department of Housing and Community Development
Writer: Walaika Haskins