2 0 1 4 M A H RA C O N F E R E N C E

REDEVELOPMENT FOR SMALL AND MEDIUM

SIZED PHAS

PENNROSE PROPERTIES - HISTORY

• Over 35 years in business; leader in Multi-family development

• Recognized experts in complex, multi-phase urban and suburban development

• Developed over 12,000 units developed in 190 communities

• Launched market-rate platform in 2011

MISSION

Pennrose, in cooperation with its partners and keystakeholders, develops high-quality, expertlymanaged residential properties -- which providelong-lasting enhancements to their communitiesand host municipalities.

CORE PRINCIPALS

• We are committed to high-quality development:• Solidly financed; attractively designed and constructed for energy

efficiency and durability

• We stay for the long-term:• Our business model is based on sustained ownership and our properties

are designed to stand the test of time

• We understand that quality management is the key to our ongoing success:• Attentive maintenance, appropriate services, and a strong focus on our

residents set Pennrose developments apart

PENNROSE’S HOUSING AUTHORITY JOINT VENTURESHousing Authority Project Name Units

Allegheny County Housing Authority Ohioview Acres 232

Camden Housing Authority Branch Village 58

Camden Housing Authority Baldwin's Run 507

Camden Housing Authority Roosevelt Manor 316

Chattanooga Housing Authority Steiner Redevelopment 48

Chattanooga Housing Authority McCallie Homes 400

Chester Housing Authority Wellington Heights 50

Chester Housing Authority Wellington Ridge 136

Chester Housing Authority Chatham Estates 40

Delaware County Housing Authority Fairgrounds 299

Delaware County Housing Authority Upland Terrace 51

Delaware County Housing Authority Calcon Gardens 50

Delaware County Housing Authority Highland Homes 51

Fayette County Laurel Estates 65

Housing Authority of Allegheny County

Monroe Meadows 48

Housing Authority of Allegheny County

Groveton Village 69

Housing Authority of Baltimore City Orchard Ridge 444

Housing Authority of Baltimore City Uplands 761

Housing Authority of Chester County Fairview Village 35

Housing Authority of Newport Newport 327

Housing Authority Project Name Units

Housing Authority of the City of Allentown

Cumberland Gardens 200

Housing Authority of the City of Allentown

Hanover Acres / Riverview Terrace

322

Housing Authority of the City of Annapolis

Obery Court 174

Housing Authority of the City of Easton

Delaware Terrace / DT Annex

144

Housing Authority of the City of Hagerstown

C.W. Brooks 60

Housing Authority of the City of Hagerstown

Gateway Crossing 400

Housing Authority of the City of Paterson

Alexander Hamilton 201

Housing Authority of The City of Pittsburgh

Manchester 118

Housing Commissi. of Anne Arundel County

Burwood Gardens 200

Jersey City Housing Authority A. Harry Moore 186

Long Branch Housing Authority Sea View Hope VI 262

Memphis Housing Authority Cleaborn Deveopment 400

Mercer County Housing Authority Centennial Place 128

Mobile Housing Board Downtown Renaissance 175

New Brunswick Housing Authority Providence Square II 53

Newark Housing Authority Brick Towers 250

Philadelphia Housing Authority Martin Luther King 300

Philadelphia Housing Authority Schuylkill Falls 360

Springfield Housing Authority Lincoln Park 171

Trenton Housing Authority Carl Miller Homes 182

Youngstown Metropolitan Housing Authority

Arlington Heights 130

PUBLIC HOUSING REDEVELOPMENT

FINANCING PROGRAMS

1. HOPE VI – (No longer around)2. MIXED FINANCE – ACC, Low Income Housing Tax

Credits, State Resources, HA, FHLB3. CHOICE NEIGHBORHOOD (Planning and

Implementation Grant) – Education/Health Safety4. RAD – Current HUD Demonstration Program – ACC

conversion to Section 8 Project Based Contract

MARYLAND PUBLIC HOUSING REDEVELOPMENTS

• Hagerstown – HOPE VI• Annapolis – Mixed Finance • Housing Commission of Anne Arundel

County – Mixed Finance• Wicomico County – RAD

HOUSING AUTHORITY OF THE CITY OF ANNAPOLIS

• Obery Court and College Creek Terrace• 164 public housing units• Demo/Disposition Approval• Public Planning Process• Three Phases

OBERY COURT - BEFORE

OBERY COURT – PHASE I (AFTER)

COLLEGE CREEK TERRACE - BEFORE

• Before and After Picture

GREEN SPACE

FINANCING – OBERY PHASE I

• 50 Units and Community Building• Two Head Start Classrooms• Computer Lab• Courtyard/Patio• Tot Lot• Walking Trail• New Street with 22 Additional Parking Spaces

• ACC Subsidy, LIHTC, CDA – Partnership Rental Housing Funds

• $850,000 in Reserves• Housing Authority Fees

OBERY PHASE I – DEAL POINTS

• Challenges• Legal Aid

• One for One Replacement of Bedroom Sizes• Families Over Housed

• Community Activists• Capital Repairs • Local Municipal Cooperation or Lack Thereof• Resident Trust• Relocation• Resident Right to Return

PHASE II AND III - PLANNING

OBERY COURT/COLLEGE CREEK TERRACE - PHASE II

PHASE II

PHASE II - FINANCING

• 61 Units – Project Based-Section 8 (51 units)• ACC units not feasible to get financing

• Conventional Loan, LIHTC, CDA – Rental Housing and PHRP

• Community Legacy Funds for Demolition• Cooperation Agreement• Developer Guarantees• Developer Property Management• Project Based Voucher program

• Conventional Debt

PHASE III -

• Currently in Development• 63 Units – ACC, PBV, and LIHTC units• 9% Credits (Consecutive Allocations)• Conventional Loan, LIHTC, CDA – Rental Housing

and PHRP• Developer Guarantees• Developer Property Management• Last Phase of Redevelopment

HCAAC - BURWOOD GARDENS

• The Housing Commission has evaluated many different avenues to enhance accessibility and create an environment for the residents of the community.

• The design was obsolete from it’s origin, and has been extremely difficult to manage and sustain for years.

• Adding elevators or lifts to the existing garden building would be extremely expensive and impractical.

• Adding extensive ramps for accessibility would be impractical , unsafe and physically unappealing.

BURWOOD GARDENS - HCAAC

BEFORE

BURWOOD/HERITAGE CREST

HERITAGE CREST – PHASE I

• Completed December 2013• 100 Units Elderly – Project Based Section 8• Conventional Loan, LIHTC, CDA – Rental Housing

and PHRP• Developer Guarantees• Repayment of Capital Bond to CDA• HCAAC Property Management• Last Phase of Redevelopment

HERITAGE CREST – PHASE II

• 100 units – disabled and families• ACC and LIHTC units and possibly conversion to

RAD• HCAAC management• Last phase of Redevelopment

WICOMICO

• Two Phases• RAD• 9% Credits• Finance Sources and Uses

Project Overview - RAD

• Partnership with Wicomico County Housing Authority

• Two-phase redevelopment of existing 1960’s era 100-unit Public Housing community

• 100 PBV’s through RAD program

Phase I• Demolish 50 Public Housing Units• Construct 84 New Apartments (50 RAD / 34

LIHTC)• Rehabbed Community Building with new

resident amenities and management space• Total Project Cost: $17.1M

Schedule• Close March 2015• Construction Completion May 2016

Booth Street ApartmentsSalisbury, MD

Booth Street ApartmentsSalisbury, MD

Existing Conditions Proposed Design

THINGS IN COMMON

• 9% Low Income Housing Credits• Experienced Developer Required

• Compete • Guarantees• Tax Credit Compliance• PM Experience

• Partnership with Housing Authority• MDA• Regulatory Agreement• Ground Lease• Tenant Protections

BENEFITS OF DEVELOPMENT

• Benefits for HA• Fees – DF, Ground lease fee, cash flow sharing• Improvements to a property that could no

longer be maintained• Safe, affordable housing for existing residents

and residents on waitlist• Maximizing site by including mixed income

units to de-concentrate property

BENEFITS CONTINUED

• Employment Opportunities for residents• Reduction in Crime• Experience for future developments• Mentorships for PM/Tax Credit Compliance• RHF • Diversification of portfolio• Income for balance sheet – future development• PRHP funds• Right of First Refusal• Offsite Development and Sale of Current Land

(RADing units in other projects)

THANK YOU