Project Objectives:
Westminster House Apartments was put in service in 1965 and formerly owned by a local, Baltimore-based not-for-profit organization, United Presbyterian Ministries (UPM). UPM was also the onsite manager of the building. The HUD 202 senior apartment complex is located in the historic Mount Vernon neighborhood of Baltimore, and is open to seniors of 62 years and older. Westminster House provides many attractive amenities to residents including a library, lounge, solarium, private underground parking, convenience store, beauty salon, and fitness center.
The property had aged over its lifetime and was in need of a substantial renovation to resident units, as well as major building system upgrades. Furthermore, many residents at the property were not receiving sufficient rental subsidy. UPM expressed interest in partnering with Hudson Valley Property Group to complete a tax-credit redevelopment of the property while retaining long-term involvement and management.
HVPG Solution:
Hudson Valley formed a partnership entity with UPM that acquired the building and provided an innovative solution that has: enabled the essential renovation at no out-of-pocket cost to the organization, generated proceeds that the organization can use to further its mission, and preserved affordability for hundreds of tenants without any increase in tenant paid rents. UPM and HVPG worked hand-in-hand to create a thorough scope of work tailored to the property’s needs, while also improving operations through increased subsidy, PILOT extension, and investment in building systems.
Results:
- Substantial $20M renovation at no out-of-pocket cost to the organization that will improve resident quality of life and reduce future operating costs the property
- Generated over a million dollars in proceeds that the organization could use to further its mission
- No increase in tenant paid rents and 168 income-qualified residents received new tenant protection vouchers
- No tenants were displaced
- UPM was heavily involved in the development of the scope of work, and continues to provide excellent management for the building and its residents
Financing and subsidy:
The ~$40MM (total development costs) project was funded by tax-exempt bonds issued by the Maryland Department of Housing and Community Development (“DHCD”) and 4% as-of-right Low Income Housing Tax Credits (“LIHTC”). Currently, many residents receive rental subsidy through a variety of programs including Tenant and Project based vouchers (HUD 202 HAP contract). Hudson Valley was able to secure tenant protection vouchers for 168 additional residents that income-qualified but did not previously receive subsidy through the project-based contract.
Scope of work:
Environmental: New HVAC control system and new energy-star appliances and lighting
Safety: Addition of 16 new ADA units with ADA bathrooms, ADA handrails in hallways, ADA accessible restrooms, new smoke detectors and fire alarm system, new intercoms and wireless emergency call system
Building exterior and grounds: Roof replacement and exterior beautification
Building interior: New windows and shades, new automatic sliding doors at entry of lobby, new painting and flooring, upgraded elevator cab finishes
Resident units: New kitchen cabinets and counter tops, new carpeting and bathroom floor tiles, painting and new blinds, new bathroom and kitchen fixtures
