Linden Park in Bolton Hill was formerly a 286-unit affordable housing project for seniors known as Memorial Apartments, originally financed under the HUD 202 program in 1967. By 2012, the property had become housing of last resort, with no sprinklers, non-functioning elevators, leaking pipes and roof, poor and expensive HVAC and other serious conditions of disrepair. NCP partnered with Somerset Development Company and the former non-profit owner of the property, Memorial Apartments Corporation (MAC), to undertake a complete renovation of the property, preserving 266 units of affordable housing for low-income seniors and adding major new amenities to the property. The new amenities include a large multi-purpose room with a catering kitchen, recreation and fitness rooms, a quiet / private meeting room, a library, a computer center, a wellness center, a hair stylist and nail salon and new management and resident services offices with a conference room. The $54 million redevelopment effort began with 200+ tenants in place in May, 2014 and is now complete.
The project was financed with $26 million of cash-collateralized bonds issued by the Maryland Community Development Administration, Rental Housing Works loan from the Maryland Department of Housing and Community Development, a $14 million 224(d) HUD-insured loan arranged by Red Mortgage Capital, the assumption of existing HUD 202 debt, a seller note, a deferred developer fee note, proceeds from the sale of a portion of the property (see below), and Low Income Housing Tax Credit investor equity and a bridge loan and LIHTC equity from JP Morgan Chase arranged by Boston Capital. Capital One also participated as a co-purchaser, with JP Morgan Chase, of the bonds.
The Project architect was Wiencek & Associates; interior design and furnishings were coordinated by Ingrid Frailey; the general contractor was Hamel Commercial; the civil engineer was STV Engineering; planning and permitting services were provided by AB Associates; legal services were provided by Pepper Hamilton and Gallagher, Evelius & Jones. The property is being managed by Habitat America, and is stabilized at 95%+ occupancy.
The new LIHTC partnership that developed and owns the property includes MAC as a member of the general partner and co-developer. The project fees and cash flow received by MAC are being reinvested in the project to fund a substantial program of resident services. Coordinated by two on-site staff persons, the programs include partnerships with health care providers, social service providers, government agencies and local educational and other institutions, as well as daily recreational and social activities and regular off-site activities.
Early in the project, the development team participated in a community “visioning” process as part of the planning for a HUD Choice Neighborhood grant. That process resulted in the idea of building a new market-rate project on the 3.57 acres on which Memorial Apartments was located at the corner of Eutaw Place and McMechen Street to “fix the broken tooth” in the urban fabric where currently there sat at that prominent location a mere parking lot. NCP and Somerset subdivided the parcel of land, creating a new development site for what will become The Jordan (see Projejct tab). MAC then sold the site for The Jordan to a newly-formed affiliate partnership among NCP, Somerset and MAC, using the proceeds from the sale to help fund the redevelopment of Memorial Apartments. Development of The Jordan will help realize the community’s vision for itself as a mixed-income community.