Enterprise Homes and Baltimore’s public housing agency finalized financing for renovations of the 75 apartments at Heritage Crossing in west Baltimore.
Improvements come via the federal government’s Rental Assistance Demonstration program. Primary financing comes from Low Income Housing Tax Credits, which cover the $4.6 million in projected hard costs. SunTrust Bank, the Maryland Department of Housing and Community Development, and the Housing Authority of Baltimore City also contributed funding.
“Enterprise Homes is proud to continue our work with Heritage Crossing,” Christine Madigan, executive vice president of Enterprise Homes, said in a statement Monday announcing the deal. “The Heritage Crossing community has improved hundreds of lives, as well as the neighborhood, and modernizing these 75 homes and keeping them affordable will enable the community to remain a vibrant part of west Baltimore.”
Planned improvements include a variety of upgrades, such as new roofing, HVAC systems and concrete repair.
Heritage Crossing marks the second time Enterprise Homes and Housing Authority of Baltimore City collaborated on a project through the U.S. Department of Housing and Urban Development’s Rental Assistance Demonstration Program. A $27 million renovation of the 12-story Allendale Apartments in Edmondson Village was the first project they worked on using the program.
The federal government uses the Rental Assistance Demonstration program to leverage private investment in order to clear a backlog of deferred maintenance on its public housing stock.
The program generally involves transferring ownership from the federal government’s local housing entity to a private owner that use products, such as tax credits, to complete improvements.
In the Allendale apartments deal, ownership was transferred to Allendale Limited Partnership, which included Enterprise Homes and the project’s equity investors. The Housing Authority of Baltimore City retained a limited partnership in the agreement.
The authority has used the program and similar arrangements for a host of other projects, including the recently completed work on the former McCulloh Homes Extension towers, now called View at McCulloh.
Enterprise Homes, in a joint venture with A&R Development Corp. delivered the community in 2003. The 32-acre site includes 185 for-sale townhomes with a landscaped community green space and 19th Century gazebo. The renewed apartments, according to Enterprise Homes, will remain affordable housing.