Project Cost$15,000,000
Project Summary 50 single-family homes in disinvested neighborhoods in Baltimore City, with a focus on East Baltimore
Project LocationBaltimore neighborhoods in highly distressed QCTs:
POV: as high as 48.50%AMI: as low as 24.08%Unemp.: as high as 46% 5.54X Nat. Avg.
Projected Impacts50% of homes sold to LIPs;125 FTE Construction jobs; Plus 200 graduates of construction workforce development program
Project ReadinessStart Date: 1Q 2021 Project has site control and committed leverage.
Financial SupportMaryland Department of Housing & Community Development (DHCD);Baltimore City DHCD (City);Neighborhood Impact Investment Fund (NIIF);Reinvestment Fund (RF); and USBCDC
DevelopersCity Life Community Builders, Ltd (CLCB); Henderson Crossing, LLCHabitat for Humanity of the Chesapeake, Inc. (Habitat);ReBuild Metro, Inc

HOWARD SMITHSMITH NMTC ASSOCIATES, LLC314-680-7858hsmith@smithnmtc.com ANNE R. RIGGLERIGGLE CAPITAL 410-419-5426anne.riggle@rigglecapital.com

$15,000,000 Federal NMTC Allocation Request(Phase One of $45M Total Project)Affordable For-Sale Homeownership Project Public-Private Partnership – Baltimore, Maryland

• Targets Baltimore’s inner-city home vacancy crisis, among the highest in the nation
• Project is shovel ready: experienced single-family for-sale developers have site control
• Compelling public-private collaboration of State and City entities (comprising 45% of capital stack), demonstrating broad-based community engagement
• 90%+ homebuyers expected to be African American, first-time homebuyers
• At least 50% of homes anticipated to be affordable to LIPs
• Expansion of workforce training program within LICs as additional benefit

With a $15M NMTC allocation, Year 1 of the Project will construct 50 single-family homes in highly distressed LICs. In total, the $45M 3-year project will add 150 homes to Baltimore neighborhoods including Oliver, Broadway East, Collington, Station East, Orchard Ridge and Johnston Square. These neighborhoods are located within and around the footprint of the East Baltimore Development Initiative (EBDI), an ambitious partnership of the City, John Hopkins University and other key institutions who have begun the work of stabilizing and revitalizing East Baltimore into a healthier, thriving community with the addition of a life sciences research and office space building, grocery store, elementary school and community park. The affordable for-sale homes added through this Project will bring a catalytic impact to the progress already made through the EBDI. "An allocation of NMTCs to this targeted homeownership initiative is an innovative way to catalyze neighborhood revitalization and wealth building in Baltimore. The participating developers are doing critical work with local leaders in their neighborhoods." Carol Gilbert, Assistant Secretary, Division of Neighborhood Revitalization, DHCD Project Addresses Community Needs:

• Highly distressed neighborhoods with AMI as low as 24% and poverty as high as 48%.
• Homeownership rate in Baltimore is 33.5%, approx. half the national rate of 64%.
• Approx. 25% of housing units in the affected areas are boarded and vacant, making the neighborhoods unattractive to development and new businesses.
• History of exclusionary housing policy resulted in segregated, long-neglected neighborhoods evidenced through 31% gap between White/Black homeownership.
• Resident feedback, solicited through partnerships with embedded entities such as the Historic East Baltimore Community Action Coalition (HEBCAC), Johns Hopkins Hospital, neighborhood associations and community centers, shows dire need.

Anticipated Homeowner Outcomes:

• 50% of homes developed anticipated to be sold to homeowners at 80% AMI or below.
• At least 90% of homeowners will be African American, and first-time home buyers.
• Mortgages provide protection against rising rent and offer lower rate of cost-burden. Homes will be sold below market, and often below cost, with as much as $50,000 per home subsidized for low-income buyers through NTMC subsidy and additional programs. Without this support, homeownership would not be possible for LIPs.

“City Life Community Builders has been the leader on housing initiatives, workforce training programs for our young residents and community development projects. The New Markets Tax Credit program will enhance the revitalization of our neighborhood. We, the Collington Square Neighborhood Association, strongly advocate for this program.” Ella Durant, President, Collington Square Neighborhood Association Neighborhood Outcomes:

• Multiple new homes clustered in a single area, creating a community to spur additional development in the area faster than scattered site development.
• Rehab of historic homes preserves the character of the neighborhoods.
• New homeowners increase the community’s tax base, increase market value and prices in the neighborhood, and help keep neighborhoods safe and well-maintained.
• Homeowners are more likely to be engaged in neighborhoods, are more politically active and volunteer more in local organizations and church groups than renters
• Studies show children who grow up in stable, affordable homes are more likely to stay in school, attend post-secondary school and earn more as adults than their counterparts who grow up without stable, affordable homes.

Construction Workforce Training:Unique to this project is the additional community impact of a critically needed job training program. With the participation of all developers of the project, CLCB will provide a workforce development program focused on carpentry and construction training. This program will serve local residents, often who have never been employed or are returning to the workforce. Completing the program provides the skills to enter building trades, on a construction career track, and includes job readiness and job placement counseling. Program participants are primarily African American, between ages 18-35. This program will enroll approximately 32 residents annually, resulting in over 200 trained candidates to benefit area construction firms facing severe shortages of skilled workers.
“The beginning of my beginning, this is. This is my foundation, my platform, this is something I have wanted for years and it finally came through. My breakthrough, my chance, my everything.” Tamia Puckett, Graduate, City Life Community Builders Construction Workforce Training Program
Project Readiness: Project is shovel ready. The nonprofit developers have site control, and construction is expected to begin in 1Q2021. Leverage will be provided through collaboration of DHCD, the City, NIIF and RF.
“NIIF was launched in 2019 as an innovative public-private partnership to deliver capital to benefit historically disinvested neighborhoods in Baltimore City. To really drive reinvestment in Baltimore’s vacant housing and strengthen our struggling inner-city neighborhoods, we need to leverage our tools with new sources of capital and support. NMTCs are a vital tool that helps us reach our goals, improve communities and transform our City.” Mark Kaufman, President, NIIF
Even with these commitments, there is a large funding gap. Because the cost to construct a quality home in a distressed community often exceeds FMV and affordable purchase price for LMI buyers, developers need to bring subsidy to the project. NMTCs serve this purpose, helping the developers build more quality homes and subsidizing home sales at prices affordable to LMI buyers yet high enough to move the market forward and increase housing values in the neighborhoods. NMTC financing is essential for the project to move forward. But for the tax credit equity, this project cannot achieve the desired impacts and affordability targets to successfully address the housing needs in these Baltimore neighborhoods.
“Reducing the inventory of vacant homes and repopulating neighborhoods with new homebuyers is one of the ways that we can break the cycle of poverty and despair that plagues the City of Baltimore. Last year we developed a framework for community development that would be enhanced by New Markets Tax Credits to complement our funding mix. We have the utmost confidence that we have the strategy, and the will, to effect substantial improvement to the quality of life in Baltimore’s neighborhoods, and the New Markets Tax Credit is an essential tool for that.” Chris Ryer, Director of the Department of Planning, City of Baltimore

Smith NMTC Associates, LLC will serve as a partner in the transaction, from closing, throughout the 7-year compliance period and exit, providing NMTC accounting assistance and compliance monitoring and reporting, backed by a recapture guarantee. Smith has deployed more than $400M in allocation for for-sale housing projects. Learn more about the Smith NMTC homeownership model at www.smithnmtc.com.
Riggle Capital is a fully integrated real-estate investment company that specializes in urban and adaptive reuse properties that promote neighborhood revitalization and economic growth. In addition to supporting QALICBs in sourcing leverage and providing due diligence, Riggle will serve as the primary liaison to the State of Maryland and Baltimore City. To learn more about Riggle Capital visit us at www.rigglecapital.com.