Bernard E. Mason is a 225-unit existing elderly and disabled rental property located on approximately 11.662 acres in Baltimore, Maryland. Using HUD’s Section 221d4 program for substantial rehabilitation, AGM obtained a HUD-insured mortgage of $13,000,000 with a fixed rate and 40-year term. The property was acquired by the sponsor, and will be substantially renovated and preserved as affordable housing. The sponsor plans to invest approximately $62,098/unit in rehabilitation costs for the property.
The project will also be financed with equity from the sale of 4% Low Income Housing Tax Credits. The Housing Authority of Baltimore City will maintain its participation in the tenant selection and oversight of the property, and has provided a seller take-back mortgage loan. Two hundred twenty-three of the units are expected to be converted from public housing to long-term, Section 8 project-based rental assistance (“PBRA”), and an additional two units are being added from space that is currently medical space.
The property participated in HUD’s Rental Assistance Demonstration (RAD) Program and received a Housing Assistance Payment (HAP) contract to replace the former public housing funds that HABC received from HUD. The HAP contract will provide project-based rental assistance (“PBRA”) to 100% of the units at the property. Additionally, the low income housing tax credits include the long-term use restriction of 99.4% (all but one) of the units to serve tax credit eligible tenants.
