Somerset Court is an existing 60-unit rental property for low-income households in Baltimore City, Maryland. Under HUD’s Rental Assistance Demonstration (RAD) program, the property converted its existing public housing subsidies into a long-term Section 8 contract. In conjunction with the planned rehabilitation, the property will be expanded to 64 total rental units. Utilizing HUD’s Section 221(d)(4) program for substantial rehabilitation, AGM obtained a HUD-insured mortgage of $2,650,000 at a fixed interest rate and a 40-year term. Equity of approximately $5,980,202 was provided through the sale of 4% low-income housing tax credits (LIHTC). Additional sources included a $2,500,000 Rental Housing Works (RHW) loan from Maryland Department of Community Development (CDA) and $4,110,000 in Public Housing Capital Funds from the Housing Authority of Baltimore City (HABC). Site control was achieved through an upfront payment on a ground lease evidenced by a note.
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