HUD Closes Rental Assistance Demonstration Conversion Transaction as Part of Neighborhood Redevelopment Plan in Baltimore, MD

HUD CLOSES DEMONSTRATION OF RENTAL ASSISTANCE DEMONSTRATION CONVERSION TRANSACTION AS PART OF A NEIGHBORHOOD REDEVELOPMENT PLAN IN BALTIMORE, MD
The $27.8 million transaction with the Baltimore City Housing Authority and the City of Baltimore includes the development of 93 new affordable rental homes and is part of the redevelopment plan for Baltimore’s Perkins-Somerset-Oldtown neighborhood.

WASHINGTON, DC — The Office of Multifamily Housing of the United States Department of Housing and Urban Development closed a Rental Assistance Demonstration (RAD) transaction on June 30, 2022 with the Housing Authority of Baltimore City (HABC) and the City of Baltimore to purchase 93 units. of newly built affordable rental housing at HABC’s Perkins I property. This transaction is the first of four planned RAD transactions for the property of Perkins Homes.

This RAD conversion will replace the original and now obsolete public housing in Perkins Homes, built in 1942, with two townhomes and a four-story multi-family building with a courtyard, underground parking and 7,400 square feet of commercial space on the first floor. Of the 93 affordable homes to be built in this phase of the project, 48 will be replacement social housing and 45 will be Low Income Housing Tax Credit (LIHTC) units that subsidize affordable rental housing for low-income tenants. Another 10 units will be market conform housing. As part of the development plan, 14 of the units will be accessible units for people with reduced mobility and a further four units will be equipped for people with visual/hearing disabilities. The buildings will be Energy Star certified and will feature Energy Star rated appliances and water-saving fixtures.

In total, the RAD transaction construction budget for this project is $27.8 million ($270,000 per unit) and is fully funded by:

• Commercial First Mortgage Loan
• 4% Tax Credit for Low Income Homes
• HUD Choice Neighborhoods Implementation Grant
• Maryland and City of Baltimore Grants

This transaction is part of the fourth phase of HABC and the City of Baltimore’s ten-phase Perkins-Somerset-Oldtown (PSO) transformation plan to revitalize the Perkins Somerset Oldtown neighborhood, located near downtown Baltimore and the Baltimore waterfront. the city lies.

The overall effort for the transformation of the neighborhood includes the creation of a new school, the development of two new parks, and updates to several existing parks and recreational and community facilities, a new community health clinic, and other infrastructure improvements. In addition, the plan includes several other economic development initiatives, public safety strategies, and a comprehensive human services plan to improve the lives of community residents. The total redevelopment effort, when complete, will replace 629 units of existing social housing with 1,346 new mixed housing units. Phase one, consisting of 104 units, was completed in 2021. Phases two and three are under construction and will deliver a total of 264 units. For more information on the plan and progress to date, please visit: PSO Transformation (habc.org)†

About RAD
RAD was designed to address the multi-billion dollar backlog of deferred maintenance in the public housing portfolio nationwide and the loss of affordable housing that could no longer be held to decent standards. From the start of the program until April 1, 2022, the Rental assistance demonstration has facilitated more than $14.4 billion in capital investment to improve or replace nearly 175,000 high-rent homes, most of which house extremely low-income families, seniors and individuals with disabilities.

Under RAD, projects funded under the public housing program convert their social housing assistance into project-based Section 8 rental assistance. Under Article 8, residents continue to pay 30% of their income in rent and the housing must continue to serve very low and extremely low incomes, as was the case when the property was supported through the public housing programme. Residents should be notified and consulted before construction, given the right to return to assisted living after construction, so that the same tenants can enjoy these newly preserved and upgraded apartments and retain the same fundamental rights they had as residents of social housing.

RAD Resources

More programmatic information is available on the RAD website† Data on RAD is available on the RAD Resource Desk†

View photo essays and read case studies where RAD works to successfully maintain and improve public housing for low-income families.

Watch an educationalvideofor public housing residents or for those new to the RAD program.