Historic Affordable Housing Initiative in Baltimore County

Baltimore County Executive John Olszewski Jr., alongside MCB Real Estate and the Urban Investment Group within Goldman Sachs Asset Management, recently unveiled an unprecedented affordable housing initiative. This ambitious plan is set to preserve 460 housing units across three multifamily properties located in Nottingham, Parkville, and Sparrows Point in Baltimore County. The deal stands as the largest of its kind in the history of the county and underscores a significant commitment to ensuring accessible housing for residents of diverse economic backgrounds for up to 40 years.

Partnership for Progress: A Collaborative Effort

The groundbreaking partnership between Baltimore County, MCB Real Estate, and Goldman Sachs Asset Management marks a strategic approach to address the critical need for attainable housing. By securing over half of the 918 units across the three communities at affordable rates, this collaboration aims to safeguard modern and safe living spaces for working families. This initiative not only provides immediate benefits but also promises long-term protection for residents, ensuring stability and quality of life for decades to come.

MCB Real Estate, a privately-held institutional investment management firm based in Baltimore, played a pivotal role by acquiring significant properties including the Springs Townhomes in Parkville, the BLVD at White Springs Apartments in Nottingham, and the Beacon Pointe Apartments and Townhomes in Sparrows Point. The acquisition, completed in July 2022, is a testament to MCB’s commitment to community development and affordable housing.

Comprehensive Affordable Housing Strategy

The affordable housing strategy encompasses a detailed plan to preserve a diverse range of housing units. Specifically, MCB commits to:

• Preserving 350 units at rates affordable to households earning 80 percent or below the Area Median Income (AMI) for up to 40 years.
• Ensuring rates for 110 units remain accessible to those earning 60 percent or below AMI for the same duration.
• Implementing an extensive renovation plan to enhance the living conditions for residents while maintaining affordability.

To facilitate these efforts, MCB will benefit from a 20-year PILOT (Payment instead of Taxes) arrangement for all 918 units concerning annual real estate taxes. Additionally, a deferred loan of approximately $6 million, with the potential for a 20-year extension, will be provided through the County’s new Housing Opportunities Fund. This fund, bolstered by federal dollars from the American Rescue Plan Act, aims to promote the development, rehabilitation, and preservation of affordable housing throughout Baltimore County.

Impact and Future Outlook

This landmark deal not only fulfills one of Olszewski’s key priorities but also significantly advances Baltimore County’s attainable housing goals. With the county now halfway to its target of adding 1,000 units by private developers by 2028, this agreement represents an 11% step forward in meeting that commitment. The initiative expects to catalyze further progress in providing accessible and affordable housing, demonstrating a proactive approach to ensure all residents have the opportunity to live in safe, quality, and affordable homes.