The RAD program will ensure those who live in Hollins House and the other sites being renovated throughout the City will live in affordable comfort for years to come. ~Paul T. Graziano, Executive Director, HABC
Silver Spring, MD (PRWEB) December 17, 2015
Community Preservation and Development Corporation (CPDC) today announced the successful conclusion of financing for the renovation of Hollins House, a senior and non-elderly disabled community in Baltimore, Maryland.
Hollins House marks CPDC’s first redevelopment project in the City of Baltimore and second partnership with a public housing authority, furthering the organization’s geographic expansion goals and commitment to leveraging innovative financing tools to develop critically-needed affordable housing.
“We are pleased to take this major step in the renovation of Hollins House, in collaboration with CPDC and the residents”, said Paul T. Graziano, Executive Director of The Housing Authority of Baltimore City (HABC). “The RAD program will ensure that those who live in Hollins House and the other sites being renovated throughout the City will live in affordable comfort for years to come.”
HABC selected CPDC in 2013 as its development partner to convert all 130 units at Hollins House from public housing into project-based Section 8 rental units under HUD’s Rental Assistance Demonstration (RAD) program.
“This deal represents an important partnership with HABC to raise private capital via the conversion of public housing to project-based Section 8 through HUD’s RAD program,” said Christopher LoPiano, CPDC Senior Vice President for Real Estate. “This conversion will allow us to undertake more than $10 million in needed renovations while preserving the property’s long-term affordability."
Located in the Hollins Market neighborhood of Baltimore, the Hollins House high-rise building features 130 one-bedroom apartments. During renovations, all apartments will receive new windows, upgraded floors, kitchens, bathrooms and HVAC. Existing balconies will also be enclosed, solving existing water infiltration problems, expanding the indoor living space in each apartment, enhancing the building’s energy efficiency and significantly improving the building’s exterior appearance.
Additionally, first floor common areas will see substantial upgrades including an expanded vestibule, a new game room, a library with computer stations, new and expanded community program space, resident services office, and seating areas. The leasing and management office, mail room, and laundry room will be updated, and there will be a new door entry system and upgraded security. Renovations are expected to be complete by early 2017.
“CPDC is committed to providing safe, high-quality affordable housing to low- and moderate-income individuals and families,” said LoPiano. “These renovations will preserve the long-term affordability of this community and provide much needed support to some of our most vulnerable citizens, creating a home environment where they can thrive.”
Financing for Hollins House consists of $7.5 million in tax credit equity through the purchase of 4% Low Income Housing Tax Credits by Enterprise Community Investment; an $11.475 million permanent FHA insured loan provided by Red Mortgage Capital; $12 million in tax exempt bonds issued from the Maryland Community Development Administration; and a $900,000 bridge loan from Enterprise Community Loan Fund. HABC also provided a seller take back loan in the amount of $6.1 million.
For more information on CPDC’s affordable housing communities in Washington D.C., Maryland and Virginia, visit http://www.cpdc.org.
For over 25 years, Community Preservation and Development Corporation (CPDC) has served D.C., MD and VA as a leading not-for-profit real estate developer through the acquisition and redevelopment of award-winning affordable housing. We specialize in mixed-income and mixed-use developments, historic preservation, adaptive reuse and are recognized for innovative financing, green building design and public-private partnerships.
With more than 9,000 residents in over 4,500 apartment homes, CPDC is committed to the long-term success of our portfolio and our residents. We deliver innovative Community Impact Strategies (CIS) designed to help individuals and entire neighborhoods grow and thrive. CPDC is a community developer and proud member of NeighborWorks America, the nation’s leading trainer of community development and affordable housing professionals.
Luann Tia Blount
CPDC, Vice President of External Relations
Momenta Creative, Media Relations