It is our pleasure to congratulate Victory Housing and several other HAND members, who recently received the Maryland Department of Housing and Community Development (DHCD) Commitment to Excellence award in the Financial Innovation category at the Maryland Housing Conference! The groups were recognized for the first use of the Freddie Tax-Exempt Loan (TEL) in Maryland.
Montgomery County, Maryland boasts the highest income in the state, as well as the highest median housing prices. However, seniors in this area are often unable to afford quality housing on a fixed income. Enter Victory Housing and Capital One (and a host of other HAND members and partners).
Two years ago, the two organizations started to work together on Victory Crossing, a mixed-income rental community in Silver Spring. Capital One’s Community Finance team provided an $11.3 million tax exempt construction loan as well as a $5.8 million investment in low income housing tax credit equity via its partner Hudson Housing Capital. Capital One Multifamily Finance served as the Freddie Mac/Seller Servicer providing an $8 million tax exempt permanent loan takeout. Other financing support came from the Maryland Department of Housing and Community Development Administration (DHCD), Montgomery County Department of Housing and Community Affairs (DHCA), and the Housing Opportunities Commission of Montgomery County (HOC). Other important players in the development include: Hamel Builders (General Contractor); Habitat America (Management); Krooth & Altman and Eichner, Norris and Neumann (Legal – Lender).
Victory Crossing will provide 105 units of housing for senior households, 95 of which are for households with incomes at or below 40%, 50%, and 60% of area median income. In addition, HOC will provide a Housing Assistance Payment Contract for 39 units, under which each household will pay only 30% of their income towards rent.
Victory Crossing will be comprised of one- and two-bedroom units for households with at least one resident 62 years of age or older. The building will offer several amenities for the residents, including a community room, theater room, library, sun room, computer room, game room, art and crafts room and a wellness room. It is is slated for completion in 2018.