ACQUISITION / PRESERVATION Affordable Housing Increased in Baltimore City
“Areas of Opportunity” National Not-for-Profit Welcomes Residents to Hollander Ridge Scattered Site Rental Housing
April 20, 2021, New York, NY— The NHP Foundation (NHPF) announced the completion of rehabilitation work on 94 scattered site single family affordable rental homes in Hollander Ridge, which spans several “neighborhoods of opportunity” in Baltimore City. All completed homes have been leased. To accomplish the goal of redeveloping the 94 units, primary funding for this work came from a HOPE VI grant of approximately $18 million, DHCD funds, tax credits and Housing Authority of Baltimore City (HABC) funds. This transaction received $4 million in funding from the Maryland Department of Housing and Community Development (DHCD) consisting of $2.5 million in Rental Housing Works funding and $1.5 million in Partnership Rental funding. “Financing the Hollander Ridge project would have been impossible without the low-income tax credit program (LIHTC),” added Janet Abrahams, President & CEO, HABC, “It allowed us together with NHPF to leverage these tax credits with other financing to be able to rehabilitate all 94 properties and allow our residents to move into newly renovated homes.” These one to four-bedroom single family homes are in Areas of Opportunity with thriving and diverse communities, high performing schools, low crime, low rates of poverty and with neighborhood amenities including grocery stores, medical facilities and community centers. The flood of foreclosures that began in 2007 added more than a million rental homes to the nation’s rental inventory and turned single family homes into the fastest growing rental category. However, an NLIHC report from 2012 (nlihc.org) estimates that 20% of properties foreclosed upon were affordable rentals, causing evictions, creating hardship and displacing families. The Hollander Ridge rehabilitation stems from a decades-old class action lawsuit filed against the US Department of Housing and Urban Development (“HUD”), the Mayor and City Council of Baltimore, and HABC on behalf of public housing residents who alleged they were intentionally being segregated in high poverty areas. This case was partially resolved in 1996 in a partial consent decree. A trial was held in 2003 in federal court on the portions of the lawsuit not resolved by the partial consent decree. In 2005, the federal court judge issued an opinion holding that HABC and the City were not liable, but that HUD was liable for failing to affirmatively further fair housing. Although HABC was found not to be liable, HABC participated in the settlement with HUD and the plaintiffs, which replaced the partial consent decree and included this rehabilitation program. The current HABC administration fulfilled the promise of completing the rehabilitation program. “The housing at Hollander Ridge extends this promise. This rental housing provides opportunity for significant improvement in academic prospects and social mobility for families who
formerly did not have access, and will result in children with better educations, higher likelihood of attaining higher education and college degrees leading to higher paying jobs and an improved quality of life,” said NHPF Vice President, Mansur Abdul-Malik, the lead developer on Hollander Ridge. “Children in the next ten to fifteen years are really going to show the impact of Hollander Ridge and its effect on the community.” The housing types at Hollander Ridge are representative of Baltimore’s architectural diversity, with house types including townhomes, single-family detached and semi-detached homes. These homes are spread across several neighborhoods of the City and are grouped into six sections based on their geographical location. As part of the Hollander Ridge development, each home underwent renovation to upgrade both the exterior and interior of the buildings, as well as the creation of five units that are 100% accessible and compliant with the American with Disabilities Act. “Scattered site housing as an asset class presents unique challenges and benefits to a developer,” added NHPF President and CEO Richard F. Burns, “This type of housing is more expensive than a multifamily building renovation. However, it is the most equitable form of affordable housing that can be built. There is no concentration of poverty since units are scattered. The affordable units are seamlessly integrated making for a diverse socio-economic community and residents have the ability to enjoy homeownership style amenities.” Those living in Hollander Ridge will also benefit from individualized coaching programs offered by NHPF’s Resident Services subsidiary, Operation Pathways. “A resident services coordinator will coach families in achieving goals they set for themselves,” said Ken White, Executive Director of Operation Pathways continuing, “This strengths-based, resident-centered approach meets residents and families where they are and provides them resources, strategies, and motivation to assist them in defining their own success. As many Hollander Ridge residents will be caring for single-family homes for the first time, the service coordinator will develop resources and provide training and assistance as needed.” Residents thus far have commented that the impact on children is going to be the most notable. Life in single-family housing has been shown to give children more opportunity including diversity, neighborhoods with low crime, and community amenities not always available in apartment living such as parks, playgrounds, and improved academic access. About HABC HABC is the fifth largest public housing authority in the US, providing quality affordable housing for more than 23,000 households. The agency creates diverse and vibrant communities, provides opportunities for self-sufficiency, and builds pathways for strong partnerships. #bmoreHABC.
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