Maryland Department of Housing and Community Development
(DHCD) recently announced financing of the North Creek Run development in Cecil County and the Perryman Station project in Harford County. The developments will provide much-needed affordable housing in an area expecting an influx of working families through the Base Realignment and Closure (BRAC) process.
"These developments great examples of how federal, state and local collaboration can revitalize communities and expand affordable housing options for Maryland's hardworking families and seniors," said Secretary Richard A. Skinner. "They also are a boost to the area's labor pool with the creation of an estimated 107 jobs."
Funded through the American Recovery and Reinvestment Act of 2009, the U.S. Department of Housing and Urban Development's Tax Credit Assistance Program (TCAP) allows state housing finance agencies such as 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 North Creek Run project financing includes a Bank of America construction-to-permanent mortgage of $2.1 million. DHCD provided $821,050 of Low Income Housing Tax Credits (LIHTC), which raised equity of $5.4 million through PNC Bank. DHCD also provided $3 million in Tax Credit Assistance Program loan funds and a $132,500 Maryland Energy Efficiency and Housing Affordability Grant (MEEHA).
The development, located on Stony Run Creek Road, includes a garden apartment building with eight one-bedroom apartments and 45 two-story family townhouse rental units. The property also will contain a community room, exercise center and computer room. Units will be available for families with incomes between 30 percent and 60 percent of the Area Median Income or $15,600 to $46,080 for a four-person household.
The Perryman Station, located on Perryman Road, project involves the new construction of a senior residential community. The property will consist of 80 units in 3-story apartment buildings, including 37 one-bedroom and 43 two-bedroom units. The units will be available for households with at least one resident being 62 years or older with incomes at or below 60% of Area Median Income (AMI) or $19,700 to $39,420 for a two-person household.
Project financing includes a first mortgage from Bank of America, N.A. for $3,126,900, a $270,643 HOME Loan from Harford County, a $3 million Loan under the ARRA Tax Credit Assistance Program (TCAP), and a $200,000 Grant through the Multifamily Energy Efficiency and Housing Affordability Program (MEEHA). DHCD also provided more than $816,000 in Low Income Housing Tax Credits (LIHTC), which raised about $5.7 million in private equity through Bank of America, N.A.
The developer and owner of the project are Stavrou Associates, Inc. and Rellim Development, LLC. The property will be professionally managed by HAI Management, Inc. d/b/a Humphrey Management. The general contractor is Hamel Builders Inc.
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