Wyman House is a 175-unit existing elderly and disabled rental property located in Baltimore City, Maryland. The property includes 112 studio and 63 one-bedroom apartments. Using HUD’s Section 221d4 program for substantial rehabilitation, AGM obtained a HUD-insured mortgage of $7,339,000 with a fixed rate and 40-year term. The subject was acquired by the sponsor and will be substantially renovated and preserved as affordable housing. The sponsor plans to invest approximately $60,860 per unit in rehabilitation costs.
The project will also be financed with equity from the sale of 4% low-income housing tax credits (LIHTC). The Housing Authority of Baltimore City (HABC) will maintain its participation in the tenant selection and oversight of the property, and has provided a seller take-back mortgage loan. One hundred and sixty-eight of the units are expected to be converted from public housing to long-term, Section 8 project-based rental assistance (PBRA), and an additional seven units are being added from space that was previously leased as office and medical suites.
HUD’s Rental Assistance Demonstration (RAD) program was utilized to convert the subject from public housing to long-term Section 8 rental assistance with a Housing Assistance Payment (HAP) contract. The HAP contract will provide PBRA to 96% of the units at the property. The seven new units (4% of the total) will not have Section 8 assistance, but will be LIHTC-restricted. Additionally, the low-income housing tax credits include the long-term use restriction of 100% of the units to serve tax credit eligible tenants.
