Harborplace developer and Baltimore County leaders make affordable housing deal
BALTIMORE -- Baltimore County leaders have reached a multi-million dollar deal to continue preserving 460 units of attainable housing at three multi-family properties in Baltimore County in Nottingham, Parkville and Sparrows Point for up to 40 years.
Leaders made the announcement Friday morning.
According to Baltimore County Executive Johnny Olszewski, this is the largest attainable housing deal in Baltimore County history, and fulfills a priority to ensure that people of all socio-economic backgrounds have access to a home.
"And that is, frankly, why I use the term attainable housing because the affordability relative to one's income level is just one piece of it," said Baltimore County Executive Johnny Olszewski. "These units will be preserved at affordable rates for at least 20 and up to 40 years protecting renters from sudden or unexpected increases."
The deal is in partnership with Goldman Sachs' Urban Investment Group and a familiar face – MCB Real Estate — best known as the developer working to rebuild Baltimore's Harborplace.
"In achieving this milestone the county has established a framework to sustain these efforts," said David Bramble, the Managing Partner of MCB.
Under the terms of the deal, MCB will preserve over half of the 918 total units in three multi-family communities in Nottingham, Parkville and Sparrows Point at affordable rates for up to 40 years. This aims to help provide safe and modern units for working families.
MCB acquired the 258-unit Springs Townhomes in Parkville, the 459-unit tBLVD at White Springs Apartments in Nottingham, and the 201-unit Beacon Pointe Apartments and Townhomes in Sparrows Point in July of 2022.
Under the terms of the deal MCB will also:
- Preserve 350 units, in a variety of bedroom sizes, at rates that are at 80 percent or below Area Median Income (AMI) for up to 40 years;
- Preserve 110 units, in a variety of bedroom sizes, at rates that are at 60 percent or below AMI for up to 40 years; and
- Undertake an extensive renovation plan intended to improve the quality of life for the residents while preserving affordability.
MCB will initially receive a 20-year PILOT (Payment In Lieu Of Taxes) on all 918 units for annual real estate taxes and a deferred loan of approximately $6 million, with the possibility of an additional 20-year extension.
According to county leaders, the loan will be executed through the county's new Housing Opportunities Fund, which is designed to incentivize the ongoing development, rehabilitation, and preservation of affordable, accessible, and attainable housing across the county. The Fund includes federal dollars from the American Rescue Plan Act.
"A tremendous part of this strategy is taking those older units, preserving them at their rent level that is attainable but making them nicer," said Brian McLaughlin with MCB Real Estate.
This deal is also expected to accelerate Baltimore County's progress in meeting attainable housing goals as it is approximately halfway to the target of 1,000 units by private developers by 2028.
This agreement represents an 11% increase towards meeting that obligation, according to the county executive.
Baltimore County Council already has approved the loan agreement.. and will review the terms of the PILOT in a resolution in the next few months.
The proposed terms of the loan agreements have been approved by the County Council and the PILOT terms will be submitted to the Council via Resolution in the coming months.
MCB reports they have already begun renovations on the properties.
