Enterprise Homes to use Low-Income Housing Tax Credit to renovate rental homes in Heritage Crossing, a mixed-income community
BALTIMORE (December 7, 2018) – (RealEstateRama) — Enterprise Homes and the Housing Authority of Baltimore City (HABC) have closed on financing to renovate 75 apartment homes comprising the rental component of the Heritage Crossing community in West Baltimore. All its rental homes will be renovated while remaining affordable.
The Heritage Crossing neighborhood includes 75 rental townhomes and 185 for-sale townhomes. All are organized around a central, landscaped community green with a historic nineteenth-century gazebo, and feature the same architectural standards, styles and quality. It was developed in 2003 under HUD’s HOPE VI program as a joint venture between Enterprise Homes and A&R Development Corporation.
Located on a 32-acre site at the western edge of Baltimore’s central business district, Heritage Crossing connects its residents to opportunity. It is within walking distance of the University of Maryland graduate schools, University Hospital, University of Maryland BioPark, Lexington Market, as well as a subway station, light rail and other transit.
“Enterprise Homes is proud to continue our work with Heritage Crossing,” said Christine Madigan, executive vice president of Enterprise Homes. “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.”
The work will take place under HUD’s Rental Assistance Demonstration (RAD) program, which enables public housing agencies to leverage public and private funds to reinvest in public housing. This approach is critical given the $26-billion backlog of public housing capital improvements across the country. Heritage Crossing is the second RAD development on which HABC and Enterprise have collaborated; the first was The Allendale Apartments in Edmondson Village area of Baltimore City, which reopened last year after a full renovation.
“We are excited to partner with Enterprise Homes on the renovation of Heritage Crossing through HUD’s Rental Assistance Demonstration Program,” said HABC Executive Director Janet Abrahams. “This public-private partnership will enhance the living environment for 75 families in this West Baltimore community. Converting these affordable units to RAD allows HABC to fulfill its mission of creating and providing quality affordable housing opportunities in sustainable neighborhoods for the people we serve.”
Exterior renovations will include new roofing, shutters, entry door repairs, and concrete repairs where necessary. The homes will also become more environmentally-friendly and cost-efficient, with Energy Star windows, light fixtures and HVAC systems; new hot water heaters; and improvements to the building envelope and air sealing.
Primary financing for the renovations, which are projected to total $4.6 million in hard costs, came from the Low-Income Housing Tax Credit, a federal program that finances most of America’s affordable rental homes. Additional financing was provided by SunTrust Bank, the Maryland Department of Housing and Community Development, and HABC.
The development team includes Moseley Architects and Harkins Builders. R Home Communities is the property manager.