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Innovative Financing Approaches

Innovative Financing Approaches. Restoration Gardens. Restoration Gardens Project Objective. Provide affordable housing targeted to youth aged 18-24 years Provide support services to ensure a positive housing experience Provide furnished apartments

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Innovative Financing Approaches

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  1. Innovative Financing Approaches

  2. Restoration Gardens

  3. Restoration GardensProject Objective • Provide affordable housing targeted to youth aged 18-24 years • Provide support services to ensure a positive housing experience • Provide furnished apartments • Provide safe, inviting environment with 24 hour support/security

  4. Advantages • Commitment of 100% Section 8 Project Based Vouchers • Vacant former school purchased at tax sale by neighborhood charity that supported the project objectives • Strong political support with award of non-traditional funding sources – HOWPA, State Bond Bill, Baltimore City Bond Bill

  5. Advantages • Two nonprofit organizations committed to the project – • Empire Homes a property management and service company and its parent worked for years on the concept, created strong support and connected to the nonprofit controlling the building • Homes for America a developer/owner

  6. Challenges • Could not access traditional sources (9% LIHTC, Rental Housing Funds) • Plan to use 4% LIHTC and Tax Exempt Bonds collapsed when market collapsed • Needed a primary funding source to supplement the many small grants and awards in a market with few resources

  7. The Solution • Maryland DHCD determined the project qualified for the multi-family/special needs set aside of the Neighborhood Stabilization Program and awarded $3.5 million • Baltimore City filled the remaining gap with supplemental CDBG funds from the housing stimulus

  8. Restoration Gardens Financing Content

  9. Restoration Gardens Uses

  10. Is Restoration Gardens Replicable? • We believe in current markets permanent housing for youth is viable. Requires initiative, a member of the team that knows the population and tenacity in seeking out non-traditional funding sources.

  11. Restoration Gardens

  12. City Arts

  13. City ArtsProject Objective • Create affordable artist housing and 11 homes for NEDS • Create a gallery to show work of residents and community • Stimulate activity in community

  14. Advantages • Baltimore City owned land at below market price • Strong neighborhood support

  15. Advantages • 3 Non-Profit Partners • Homes for America – Developer, Guarantor and Managing Partner • Jubilee Baltimore – Strong connections to artist community and community association • TRF Development Partners – Townhouse developer 8 new homes, rehabilitated existing homes

  16. City Arts Challenges • LIHTC pricing dropped from $.95 to $.68 • Large gap with no sources available • Limited first mortgage capital available in the market

  17. The Solution • Federal stimulus provided funds to DHCD to fill the gap (TCAP) • Bank of America stepped up to buy the LIHTC and provide a first mortgage loan

  18. City ArtsSources and Uses

  19. Community Impact • Stimulated significant development • Long vacant building redeveloped to provide a charter school for the arts • Badly deteriorated row housing demolished by Baltimore City • Baltimore City implemented Vacants to Value program in the neighborhood

  20. Is City Arts Replicable? • City Arts II is in predevelopment now on land acquired from Baltimore City under the Vacants to Value program. The current markets support this type of housing. Because the public purpose is serving artists, strengthening the community, and stimulating development fewer deep subsidies are needed.

  21. City Arts

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