MD-BRAC Preservation Initiative
Purpose of Initiative:
With the support of the John D. and Catherine T. MacArthur Foundation, DHCD has
joined with nine county governments to preserve affordable rental housing located
in the path of growth brought on by the federal Base Realignment and Closure (BRAC)
process, which will bring over 25,000 new households to the region beginning in
2011. In a regional partnership, DHCD is working with Anne Arundel, Baltimore, Cecil,
Frederick, Harford, Howard, Montgomery, Prince George’s and St. Mary’s Counties to implement
the MD-BRAC Preservation Initiative, which will ensure that rental housing preservation
is a key element of the region’s response to the challenges and complexities of
BRAC-related growth.
The MacArthur Foundation’s support for the Preservation Initiative is part of their
Window of Opportunity campaign,
a $150 million, 10-year effort to preserve affordable rental homes across the nation.
Maryland is one of only 12 states and cities to have been awarded funding under
Window of Opportunity.
Preservation Components:
The Preservation Initiative is composed of five related components listed below:
Preservation Loan Fund – MD-BRAC:
The MacArthur Foundation’s Program Related Investment (PRI) of $4 million will leverage
DHCD, federal, local and private funds totaling approximately $915 million to preserve
9,000 additional units of affordable rental housing in 60 developments during the
initial 10-year period of the BRAC process. The Loan Fund provides flexible, short-term
(typically 12-24 months) loans which complement other financing, and are repaid
through long-term financing made available through DHCD and its partners. For more
information, please contact:
John Maneval, Deputy Director, Multifamily Housing Development, CDA
Tel: (410) 514-7451
Fax: (410) 987-4097
E-mail: mdbracpreservation@mdhousing.org
BRAC Countywide Market Studies, Data Analysis and Assessment
MacArthur Foundation funds are being used to create a database of existing affordable
multifamily rental properties in the nine BRAC counties, and to develop a methodology
of ranking those properties best suited for affordability preservation. The first step in this
process is to commission individual countywide market studies for each of the nine BRAC counties.
As a result,
DHCD and its partner counties will be able to specifically target financial and
non-financial resources towards “at-risk” properties, thereby maximizing the impact
of their preservation activities.
Follow this link for access to the final market study reports and database information available to date
Education and Outreach
DHCD’s experience indicates that direct technical assistance is needed for owners
to understand and recognize the benefits of the preservation process. To that end,
MacArthur Foundation funds are being used to provide outreach and targeted technical
assistance to owners and buyers of multifamily rental housing to encourage them
to preserve their properties as affordable housing, using DHCD short-term and long-term
financing, including the MD-BRAC Preservation Loan Fund. In addition to property
owners, our outreach team also meets with local officials and community leaders
to better understand the needs of individual communities. For more information please
contact Stuart Wechsler at 410-514-7457 or at
mdbracpreservation@mdhousing.org
Rental Preservation Compact
MacArthur Foundation funds are being used to support the development of a common
set of loan Documents, underwriting and rehabilitation standards, and agreed upon
processing times between DHCD and local jurisdictions and other public and private
lenders. This is a year-long process that is being undertaken by a Workgroup of
State, local, and federal rental housing managers, lawyers, and real estate professionals.
The impact will be to reduce the legal and carrying costs of preservation projects,
allowing funds to go further, and preserving more units. The additional goal is
to provide a model for other state and local governments to use nationally.
Green Grant - Rental Housing Preservation Program
MacArthur Foundation funds are being used in partnership with funding from the Maryland
Energy Administration to promote energy efficiency in affordable rental housing
developments, through the Green Grant Rental Housing Energy Efficiency Program.
The Green Grant program reimburses eligible applicants for costs
associated with Energy Audits for multi-family rental housing or for the U.S. Green
Building Council’s Leadership in Energy and Environmental Design (LEED) accreditation
and training, in certain communities affected by BRAC.
For more information...