REDEVELOPMENT FOR
SMALL AND MEDIUM
SIZED PHAS
2014 MAHRA CONFERENCE
PENNROSE PROPERTIES - HISTORY
• Over 35 years in business;
leader in Multi-family
development
• Recognized experts in
complex, multi-phase urban
and suburban development
• Developed over 12,000 units
developed in 190
communities
• Launched market-rate
platform in 2011
MISSION
Pennrose, in cooperation with its partners and key
stakeholders, develops high-quality, expertly
managed residential properties -- which provide
long-lasting enhancements to their communities
and host municipalities.
CORE PRINCIPALS
• We are committed to high-quality development:
• Solidly financed; attractively designed and constructed for energy
efficiency and durability
• We stay for the long-term:
• Our business model is based on sustained ownership and our properties
are designed to stand the test of time
• We understand that quality management is the key to our
ongoing success:
• Attentive maintenance, appropriate services, and a strong focus on our
residents set Pennrose developments apart
PENNROSE’S HOUSING AUTHORITY JOINT VENTURES
Housing Authority
Project Name
Allegheny County Housing Authority Ohioview Acres
Units
232
Camden Housing Authority
Branch Village
58
Camden Housing Authority
Baldwin's Run
507
Camden Housing Authority
Roosevelt Manor
316
Chattanooga Housing Authority
Steiner Redevelopment
Chattanooga Housing Authority
McCallie Homes
Chester Housing Authority
Wellington Heights
Chester Housing Authority
Wellington Ridge
136
Chester Housing Authority
Chatham Estates
40
Delaware County Housing Authority Fairgrounds
48
400
50
299
Housing Authority
Housing Authority of the City of
Allentown
Housing Authority of the City of
Allentown
Housing Authority of the City of
Annapolis
Housing Authority of the City of
Easton
Housing Authority of the City of
Hagerstown
Housing Authority of the City of
Hagerstown
Housing Authority of the City of
Paterson
Housing Authority of The City of
Pittsburgh
Housing Commissi. of Anne Arundel
County
Project Name
Units
Cumberland Gardens
200
Hanover Acres / Riverview
Terrace
322
Obery Court
174
Delaware Terrace / DT
Annex
144
C.W. Brooks
60
Gateway Crossing
400
Alexander Hamilton
201
Manchester
118
Burwood Gardens
200
Jersey City Housing Authority
A. Harry Moore
186
Long Branch Housing Authority
Sea View Hope VI
262
Memphis Housing Authority
Cleaborn Deveopment
400
Mercer County Housing Authority
Centennial Place
128
Mobile Housing Board
Downtown Renaissance
175
New Brunswick Housing Authority
Providence Square II
Newark Housing Authority
Brick Towers
250
Delaware County Housing Authority Upland Terrace
51
Delaware County Housing Authority Calcon Gardens
50
Delaware County Housing Authority Highland Homes
51
Fayette County
Laurel Estates
65
Monroe Meadows
48
Groveton Village
69
Housing Authority of Baltimore City
Orchard Ridge
444
Philadelphia Housing Authority
Martin Luther King
300
Housing Authority of Baltimore City
Uplands
761
Philadelphia Housing Authority
Schuylkill Falls
360
Springfield Housing Authority
Lincoln Park
171
Trenton Housing Authority
Carl Miller Homes
182
Housing Authority of Allegheny
County
Housing Authority of Allegheny
County
Housing Authority of Chester County Fairview Village
Housing Authority of Newport
Newport
35
327
Youngstown Metropolitan Housing
53
PUBLIC HOUSING
REDEVELOPMENT
FINANCING PROGRAMS
1. HOPE VI – (No longer around)
2. MIXED FINANCE – ACC, Low Income Housing Tax
Credits, State Resources, HA, FHLB
3. CHOICE NEIGHBORHOOD (Planning and
Implementation Grant) – Education/Health Safety
4. RAD – Current HUD Demonstration Program – ACC
conversion to Section 8 Project Based Contract
MARYLAND PUBLIC HOUSING
REDEVELOPMENTS
• Hagerstown – HOPE VI
• Annapolis – Mixed Finance
• Housing Commission of Anne Arundel
County – Mixed Finance
• Wicomico County – RAD
HOUSING AUTHORITY OF THE CITY OF
ANNAPOLIS
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Obery Court and College Creek Terrace
164 public housing units
Demo/Disposition Approval
Public Planning Process
Three Phases
OBERY COURT - BEFORE
OBERY COURT – PHASE I (AFTER)
COLLEGE CREEK TERRACE - BEFORE
• Before and After Picture
GREEN SPACE
FINANCING – OBERY PHASE I
• 50 Units and Community Building
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Two Head Start Classrooms
Computer Lab
Courtyard/Patio
Tot Lot
Walking Trail
New Street with 22 Additional Parking Spaces
• ACC Subsidy, LIHTC, CDA – Partnership Rental
Housing Funds
• $850,000 in Reserves
• Housing Authority Fees
OBERY PHASE I – DEAL POINTS
• Challenges
• Legal Aid
• One for One Replacement of Bedroom Sizes
• Families Over Housed
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Community Activists
Capital Repairs
Local Municipal Cooperation or Lack Thereof
Resident Trust
Relocation
Resident Right to Return
PHASE II AND III - PLANNING
OBERY COURT/COLLEGE CREEK
TERRACE - PHASE II
PHASE II
PHASE II - FINANCING
• 61 Units – Project Based-Section 8 (51 units)
• ACC units not feasible to get financing
• Conventional Loan, LIHTC, CDA – Rental Housing
and PHRP
• Community Legacy Funds for Demolition
• Cooperation Agreement
• Developer Guarantees
• Developer Property Management
• Project Based Voucher program
• Conventional Debt
PHASE III Currently in Development
63 Units – ACC, PBV, and LIHTC units
9% Credits (Consecutive Allocations)
Conventional Loan, LIHTC, CDA – Rental Housing
and PHRP
• Developer Guarantees
• Developer Property Management
• Last Phase of Redevelopment
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HCAAC - BURWOOD GARDENS
• The Housing Commission has evaluated many different
avenues to enhance accessibility and create an environment for
the residents of the community.
• The design was obsolete from it’s origin, and has been
extremely difficult to manage and sustain for years.
• Adding elevators or lifts to the existing garden building would
be extremely expensive and impractical.
• Adding extensive ramps for accessibility would be impractical ,
unsafe and physically unappealing.
BURWOOD GARDENS - HCAAC
BEFORE
BURWOOD/HERITAGE CREST
HERITAGE CREST – PHASE I
• Completed December 2013
• 100 Units Elderly – Project Based Section 8
• Conventional Loan, LIHTC, CDA – Rental Housing
and PHRP
• Developer Guarantees
• Repayment of Capital Bond to CDA
• HCAAC Property Management
• Last Phase of Redevelopment
HERITAGE CREST – PHASE II
• 100 units – disabled and families
• ACC and LIHTC units and possibly conversion to
RAD
• HCAAC management
• Last phase of Redevelopment
WICOMICO
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Two Phases
RAD
9% Credits
Finance Sources and Uses
Booth Street Apartments
Salisbury, MD
Project Overview - RAD
• Partnership with Wicomico County Housing
Authority
• Two-phase redevelopment of existing 1960’s era
100-unit Public Housing community
• 100 PBV’s through RAD program
Phase I
• Demolish 50 Public Housing Units
• Construct 84 New Apartments (50 RAD / 34
LIHTC)
• Rehabbed Community Building with new
resident amenities and management space
• Total Project Cost: $17.1M
Schedule
• Close March 2015
• Construction Completion May 2016
Booth Street Apartments
Salisbury, MD
Existing Conditions
Proposed Design
THINGS IN COMMON
• 9% Low Income Housing Credits
• Experienced Developer Required
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Compete
Guarantees
Tax Credit Compliance
PM Experience
• Partnership with Housing Authority
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MDA
Regulatory Agreement
Ground Lease
Tenant Protections
BENEFITS OF DEVELOPMENT
• Benefits for HA
• Fees – DF, Ground lease fee, cash flow sharing
• Improvements to a property that could no longer
be maintained
• Safe, affordable housing for existing residents and
residents on waitlist
• Maximizing site by including mixed income units to
de-concentrate property
BENEFITS CONTINUED
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Employment Opportunities for residents
Reduction in Crime
Experience for future developments
Mentorships for PM/Tax Credit Compliance
RHF
Diversification of portfolio
Income for balance sheet – future development
PRHP funds
Right of First Refusal
Offsite Development and Sale of Current Land
(RADing units in other projects)
THANK YOU