Archive for month: September, 2021

Maryland DHCD’s Emergency Rental Assistance Program

September 28, 2021
September 28, 2021

The Maryland Department of Housing and Community Development is administering federal emergency rental funding in two ways, directly to local jurisdictions through the Maryland Eviction Partnership Program and to property management on behalf of tenants residing in affordable rental properties​ that received federal or state financing through the Assisted Housing Relief Program. Local jurisdictions are operating rental assistance programs independently, see here for each counties’ program details and directions for how to apply for assistance. As of July 31 2021, more than $58 million has been provided through Maryland DHCD’s Emergency Rental Assistance Program (ERAP) to nearly 10,000 renters in the state of Maryland. Maryland will also receive an additional $352 million through a second phase of the Emergency Rental Assistance Program and is currently making plans for distribution. 

Interested in Maryland’s relief fund distribution data? The Maryland DHCD launched its’ Emergency Rental Assistance Data Dashboard to track the progress local jurisdictions are making in distributing relief funds for tenants and landlords affected by the COVID-19 pandemic. The dashboard which will be updated on a monthly basis to show progress focuses on the first round of funding through the federal ERAP that was launched in Maryland in May 2021. The dashboard has information on specific county programs, demographics and data on marketing and outreach efforts. To access the dashboard, visit rentrelief.maryland.gov and click on “Data Dashboard.”

Housing Finance Professionals, Developers, Policymakers, Academics, & Other Affordable Housing Stakeholders: The NHP Foundation & Enterprise Wants You to Participate in Their Survey

September 28, 2021
September 28, 2021

 

The NHP Foundation & Enterprise Needs You!
The NHP Foundation and Enterprise invites you to participate in their survey. The goal of the survey is to offer a comprehensive look at lessons learned over the last 10 years of affordable housing policy challenges, starting from the Great Recession, up until now. Findings will be presented this fall at the NHP Foundation’s 5th Annual SymposiumA Decade of Rental Housing Vulnerability: Lessons Learned from Financial Crisis to Coronavirus. The survey should take only 15 minutes and is available hereThe survey deadline is September 24.

Five Minutes With EagleBank

September 27, 2021
September 27, 2021


Pictured:Rich Devaney and Dara Koller 

The HAND network is hard at work to address the growing housing affordability challenge across the Capital Region. Five Minutes With is a series highlighting these members and other stakeholders. This informal conversation delves into their recent projects, the affordable housing industry, and more. In the latest edition, we have a conversation with EagleBank‘s Rich Devaney, Senior Vice President and Dara Koller, SVP & Deputy Director. They chatted with us about their extensive experience in the affordable housing and community development industry and how they landed in this space. Rich highlights past challenges, lessons learned, and his advice to emerging leaders seeking to make an impact. Dara shares key takeaways from her experience, what she is bringing into her new role, and other her interest outside of affordable housing. Check out our dialogue below:

HAND: Both of you have extensive experience in the affordable housing and community development industry  – Can you tell us about your professional journey and how you landed in this space?
DK: I have 20 years of industry experience, working in leadership roles at Freddie Mac and agency lenders supporting Fannie Mae and Freddie Mac multifamily executions, primarily focused on affordable rental housing executions for both agencies, including new construction and preservation of affordable rental housing properties.  While at Freddie Mac, I was also involved in the development and roll-out of  a few new products supporting the affordable rental housing industry as well.  When I first began working on affordable rental housing transactions, it was not the most well understood or popular asset type in the industry compared to market rate rental housing, but I always believed it was extremely important and I was excited to be part of an industry focused on solving the growing need for affordable rental housing in the U.S.  
RD:  I began my career just after the passing of the CRA legislation and immediately prior to LIHTC legislation being rolled out, working with and for some of the most respected and innovative industry icons in the DC market.  It was an exciting time, fusing the tension between regulatory pressure in the banking industry and innovation and expansion of and in the community development and non-profit sector intent on increasing its impact in significantly underserved neighborhoods.  My focus and vision was grounded in building high-impact community development and affordable housing businesses within and with large institutions (Bank of America, Fannie Mae, top 5 Life Companies) under the rubric of profitability, sustainability and scalability.  My experiences took me through the capital stack and from neighborhoods to national presence.  Throughout, my greatest experience to date was setting up this FHA business within EagleBank, coupling the best of financial strength, innovation and flexibility in its ability to deliver capital within the community it serves. 

HAND: Rich, you launched EagleBank’s FHA Multifamily Lending Division in 2015, in addition to several other investment initiatives for the bank. Can you tell us about one of your largest challenges over the past six years and what you have learned?
RD: Our FHA Multifamily business is a product line that falls squarely within the Bank’s commercial real estate span of lending.  As such, our task was to integrate this business in a collaborative way, not competitive, with the balance sheet lending activity, getting the buy-in from the line lenders and alignment in goals and objectives…..”Enlightened self-interest”.  Having set up multiple businesses over my 35- year career, this one presented unique challenges, including how to integrate.  It took a solid 3 years of repetition, “proving the thesis” and trust building to get to the point where the value chain is clear and tangible.  Presently, every single transaction within the FHA pipeline will touch the Commercial Real Estate balance sheet.  Lesson learned was that you can get buy-in strategically at the highest level, but you must get buy-in tactically where the rubber hits the road with the people who make the business happen. 

HAND: Dara, you are fairly new to the bank – what key takeaway(s) from your experience thus far are you bringing into your new role?
DK:

  • There is a continuing need for safe, decent affordable rental housing and supportive services in our local communities and EagleBank has made a significant contribution to the growth across the Washington D.C. market and in communities throughout the Mid-Atlantic over the last 20 years. EagleBank continues to play an important role in financing affordable multifamily rental housing, which has helped build and maintain safe and economically stable communities which significantly improve the quality of life for its residents. 
  • We have a tremendous opportunity to continue to make a contribution to the local community to provide much needed affordable rental housing through our deep relationships with affordable housing developers and investors, as well as EagleBank’s FHA multifamily business, which allows us to do business anywhere in the U.S. We are a community bank, with national capabilities with our FHA multifamily licenses.  I think that is a powerful combination.
  • My strong affordable housing and multifamily experience will augment EagleBank’s growing FHA multifamily business. In this new role, I will be dedicated to FHA loan originations, business development as well as serving as a resource for the Bank’s focused efforts on affordable rental housing. 

HAND: Rich, do you believe there is a “secret sauce” to addressing housing affordability and creating more equitable communities in our region? If so, what do you think that is? What do you think is the largest obstacle?
RD: I believe the private financing vehicles and resources are readily accessible and in sufficient amounts to have great impact.  There needs to be, and always has been, focus on equity in the delivery and availability of affordable housing.  One of my greatest mentors emblazoned in my mind “you are what you measure”, so to solve issues related to equity, we need goals, transparency and accountability….period!  My perspective is that the largest obstacles in the production of affordable housing are the public entitlement process, zoning, planning, and permitting.  Some municipalities have processes that take up to 3-5 years which infuses risk, uncertainty and viability to the process. 

HANDRich, what advice would you give to emerging leaders who are seeking to make an impact in this space?
RD: Be flexible – issues are rarely binary choices, every situation is a learning experience – accept set-backs as a gift and surround yourself with diversity – holistically.

HAND: Rich and Dara, what are you most looking forward to over the coming months at EagleBank? Are there any projects or programs that you are particularly excited about?
RD & DK: Furthering the synergies within the Bank, our investment in the Washington Housing Initiative and further coupling our balance sheet and FHA business. 

The FHA Multifamily Group is an emerging contributor to the strategic goals and objectives of the CRE Group and EagleBank. 

EagleBank financed a handful of key affordable housing projects in the Washington D.C market including:

  • More than $81 million in financing to support a key affordable housing project in Bethesda MD, which includes 401 multifamily housing units situated on five separate land parcels.
  • Phase I of Addison Row Apartments, Capital Heights, MD a planned community consisting of a 321 unit multifamily building. The project is currently in lease-up. The community caters to workforce housing needs and in addition to affordability, offers large unit sizes compared to new construction in Washington, D.C. Phase II will add 327 units. 
  • A construction loan used in conjunction with 4% LIHTC to rehabilitate a 60 unit LIHTC affordable community located in the Barry Farms neighborhood of Southeast Washington, DC. After completion, a HUD FHA Section 223(f) refinance application to exit the bank construction loan.
  • A $50 million construction loan for a to-be-built low income housing project above retail space located in the Capital Hill area of Washington, DC. The project will utilize 4% LIHTC and a long-term rental subsidy contract with the DCHFA.
  • EagleBank is currently working on a few notable affordable housing transactions, including the renovation and recapitalization of a project-based Section 8 property located in the Anacostia neighborhood in Southeast Washington DC utilizing 4% LIHTC.

HAND: Rich and Dara, if you weren’t working in this space, what might you be doing?
DK:  I have always been interested in architecture and design, focused on creating and transforming spaces to meet the needs of a building’s occupants and looking for solutions to present and future issues, such as climate change.  Incorporating sustainable and green building design in construction projects is increasingly important to reduce the carbon footprint and use our energy and water resources more efficiently.
RD: I have been consistent in responding to this question when asked over the past 30 years.  I would be dedicating 100% of my time working in programs that focus on disadvantaged youth, focusing on education and financial literacy.  To me, one of the biggest gaps we have racially and socio-economically is knowledge of and access to financial tools, products and services. 

Five Minutes With Suman Sorg

September 27, 2021
September 27, 2021

The HAND network is hard at work to address the growing housing affordability challenge across the Capital Region. Five Minutes With is a series highlighting these members and other stakeholders. This informal conversation delves into their recent projects, the affordable housing industry, and more. In the latest edition, we have a conversation with Suman Sorg, Founder of A Complete Unknown. Sorg chatted with us about her extensive experience in the architecture and design space and her journey to this point. She tells us the origin and explains why she starting A Complete Unknown. She highlights what separates A Complete Unknown from other architecture firms. Check out our dialogue below:

HAND: You have extensive experience in the architecture and design space – can you tell us about your journey to this point?
SS: For over 26 years I grew my first firm, Sorg Architects, into one of the largest woman-owned architectural firms before its acquisition. During that time I was fortunate to have worked on projects in over 30 countries and was recognized with Fellowship in the American Institute of Architects (AIA). However, when I looked back the most meaningful work that I completed during that time were those that made the most impact on its occupants and the surrounding community. With this realization, I have now channeled my energies into this new non-profit design firm A Complete Unknown.

HAND: Tell us about how A Complete Unknown came to be. What prompted you to start this firm?
SS: With my previous firm, I did a lot of work in underserved communities or for people in need. They weren’t the largest or most glamorous buildings or the ones that made the most money but are the ones that I carry in my heart the most.

When we finished the John & Jill Ker Conway Residences in Washington, D.C., 120-units of permanent supportive housing, I was so touched by meeting the people who moved in and hearing about the impact that having this kind of housing has had on their lives. In fact, the first person to moved into the building was a guitarist in Elvis Presley’s band. After Elvis died, this gentleman joined the army and served in Vietnam. Hooked on heroin, and unable to connect with family, he landed in Washington DC after the war and was homeless ever since. At a computer room in the building, donated in part by my own family foundation which helps residents acquire basic computer skills, the staff was able to help locate his family. The joy on his face to learn that his sister lived just a few blocks away, was indescribable.

Now I want to only do buildings like these and serve communities, people, and nature in need.

HAND: What excites you about your work over the next year? Do you foresee any challenges?
SS: With A Complete Unknown, we hope to make an impact on a wide range of disadvantaged communities focusing on affordable and housing for the unhoused. There is an awareness now, that has been building for quite some time, actually, that empathetic architecture should be the norm. It’s not just what we design but how It impacts the surrounding communities, nature, and animals. The exciting part is seeing how other partners like developers or engineers are also understanding this and more importantly wanting to address this.

As for any challenges, It’s been clear to me in the first 7 months since we officially launched that there is a demand for the type of work we do. However, the big question is how can we get in front of the people who are doing this work such as non-profit developers and community leaders? If we can do that well, we can show them that we are here and are able to help you, right now.

HAND: What factor separates A Complete Unknown from other architecture firms?
SS: As a non-profit Architecture firm, we are driven by our mission which is making a difference through architecture and design in underserved communities worldwide. Therefore, the emphasis we place on equity and social justice is a critical part of what we do. We believe that good design should be accessible to all. Also, being a 501(c)3 organization we are able to pursue grants and to support our client’s philanthropic goals. Our services are offered at a discounted rate depending on the project, thus reducing the soft costs of development and helping more of these projects come to fruition.

HAND: What is one thing you wish you would have known at the beginning of your career?
SS: The act of designing and building is a long process so the relationship between a designer and client is like a marriage. You want a good partner who is going to trust you, have a good dialogue, and you can work with for a long time. We would like to get into a relationship like this with someone who matches our ethos, goals, and mission. It didn’t take me long to figure this out, but it’s especially true when working on projects where the economics are tight like affordable and housing for the homeless.

HAND: What do you think is the largest hurdle when it comes to designing spaces for underserved populations?
SS: Under-represented populations are often overlooked in a variety of ways and so there is often a lack of funding or commitment to these types of developments. When they do get funded they still tend to be underfunded for what needs to be built. This leads to buildings of lesser quality, with compromised programs and less durability. Also, these developments tend not to address the bigger picture. For example, truancy, literacy, and obesity are all issues that affect underserved communities disproportionately but are not addressed as regularly. These are the things that we also consider in every project that we take on.

HAND: What is your “why”? What keeps you motivated to continue your work in this space?
SS: In architecture school, I never heard about love, compassion, or empathy in our coursework. There is so much opportunity in the collaboration of architects, social workers, and volunteers and we need to promote listening, unselfconscious doing, and modesty in the profession. There is arguably no better sector to work with this perspective than in affordable and housing for the homeless. Being able to work collaboratively about how buildings fit within the context of the community and more importantly how they can serve those in need. That’s how we can make a difference.

With a design approach that is infused with the basic tenets of humanity, such as compassion, love and a pledge to nonviolence towards all – humans, animals and nature; we are searching for an architecture beyond one that does no harm or even withstands harm to one that can undo the harm. In this endeavor I happily find that the outcome and the path to it are both a complete unknown.

HAND: If you weren’t working in this industry, what might you be doing?
SS: Long before I became an architect my grandmother would say she thought I would be a doctor. I liked the idea as I would be doing something that helped people. But when my father met Louis Khan in Ahmedabad while working on the Management Institute and later Corbusier in Chandigarh, he suggested I look into architecture as a major in college. I did, and my artistic side fell in love. Without that guidance, I probably would have become a doctor. I have also painted for many years, so likely I would also be doing more of that.

 

Congrulations HAND Members | New Market Tax Credit Program Award Recipients

September 13, 2021
September 13, 2021

 A lack of investments, an unstimulated economy, and inadequate access to healthy foods, education and healthcare is not an unfamiliar reality of low-income communities. The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) created the New Market Tax Credit Program (NMTC Program) to reinvigorate struggling local economies of low-income communities by breaking the cycle of disinvestment. The NMTC Program accomplishes its goal by permitting investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. The CDFI Fund recently announced those awarded the 2020 NMTC allocation. We are excited to uplift and congratulate our members who have received this award:

  • Capital Impact Partners
  • Corporation for Supportive Housing
  • Enterprise 
  • Local Initiatives Support Corporation
  • Low Income Investment Fund
  • PNC Community Partners
  • Reinvestment Fund, Inc.
  • The Community Builders

For more information, please see the NMTC Program Fact Sheet (English / Español). A detailed overview of the NMTC Program, including information on eligible activities, can also be found in the Introduction to the NMTC Program presentation.

 

 

 

Still We Rise | A Collection of Learnings & Toolkit for Advancing Racial Equity

September 10, 2021
September 10, 2021
 
“The actual foundation of racism is not ignorance and hate, but self- interest, particularly economic and political and cultural. Self-interest drives racist policies that benefit that self-interest. When the policies are challenged because they produce inequalities, racist ideas spring up to justify those policies. Hate flows freely from there.”
 
-Ibram X. Kendi
 
 
For the last six years, HAND has been intentional in our approach of reaching beyond the symptoms of inequity to address the root causes that amplify housing disparities and restrict access to opportunity for communities of color. If you’ve been following our journey, you know we have prioritized educating our members on racial equity issues and how they intersect with our work in real estate and community development – from 2015 when we began integrating trainings on fair housing and best practices for working with returning citizens; to the 2018 Annual Meeting featuring the “Undesign the Redline” exhibit on the history of discrimination and housing policy; and last year’s launch of the “Red Lines, White Papers, and Blue Prints” learning series designed to further build members’ capacity in operationalizing racial equity.
 
Over the years as we saw an increasing need for this work, we doubled down on our commitment to provide ongoing learning; while also modeling for our members what it looks like to implement racial equity in our work. In 2020 alone, we launched both the Housing Indicator Tool – a policy platform grounded in a racial equity framework; and Equity in Action – a debt and equity platform designed to support black and brown real estate developers who too often face the obstacle of accessing the capital needed to execute their visions for equitable communities. Here at HAND, we believe that the change we seek is the cumulative impact of anti-racist interventions on the institutional and personal levels. In each of these spaces we must consider what role we play in dismantling these toxic systems and structures designed to benefit a select few at the expense of others. 
 
Today we are excited to release, “Still We Rise: A Collection of Learnings & Toolkit for Advancing Racial Equity.” This toolkit captures the learnings of HAND to date and will be useful for members wherever they are in their racial equity journey. Each section includes a session summary, how it relates to the housing industry, a series of reflection questions and search terms for continued education. We encourage you to take advantage of the toolkit, and share with your colleagues, family and friends. We look forward to hearing how you are leveraging this work to create positive change in the office, your home and our communities.