Columbia Downtown Housing Corporation

TO MAKE LOW-INCOME HOUSING AVAILABLE TO LOW AND MODERATE INCOME INDIVIDUALS AND FAMILIES.

CDHC WORKS WITH THE COUNTY ADMINISTRATION (THE "COUNTY"), THE HOWARD RESEARCH AND DEVELOPMENT CORPORATION ("HRD"), AND HOWARD COUNTY HOUSING COMMISSION (THE "COMMISSION") TO IMPLEMENT THE VARIOUS OBJECTIVES FOR AFFORDABLE HOUSING IN DOWNTOWN COLUMBIA, MARYLAND. THESE FOUR PARTIES, CDHC, HRD, THE COMMISSION, AND THE COUNTY, ENTERED INTO A LONG-TERM PARTNERSHIP WRITTEN AGREEMENT TITLED "AGREEMENT FOR AFFORDABLE HOUSING DOWNTOWN COLUMBIA" ( 4-PARTY AGREEMENT) ON FEBRUARY 3, 2017, WHICH IS TO BE READ IN CONFORMITY WITH THE DEVELOPMENT RIGHTS AND RESPONSIBILITIES AGREEMENT ("DRRA") EXECUTED BY THE COUNTY AND HRD ON THAT SAME DATE. AS PART OF THE DRRA, HRD ALLOWED THE COMMISSION TO MASTER LEASE UNITS IN A NUMBER OF THEIR DEVELOPMENTS IN DOWNTOWN COLUMBIA, MARYLAND; THE FIRST BEING JUNIPER WHICH INCLUDES THE FIRST 24 INCLUSIONARY UNITS IN DOWNTOWN, COLUMBIA, MARYLAND, 12 UNITS MASTER-LEASED BY THE COMMISSION AND 12 MIDDLE-INCOME UNITS (MIUS) FOR HOUSEHOLDS EARNING 80% OR LESS OF THE HOWARD COUNTY MEDIAN INCOME. ALL UNITS WERE OCCUPIED IN 2020 -2021. MARLOW, THE SECOND BUILDING WITH INCLUSIONARY UNITS TO BE DEVELOPED IN DOWNTOWN COLUMBIA BEGAN CONSTRUCTION IN EARLY 2021. IT WILL INCLUDE 15 MASTER-LEASED UNITS AND 15 MIUS. OCCUPANCY IS EXPECTED IN 2022-2023. AS PROVIDED IN SECTION 5 OF EXHIBIT B OF THE DRRA, CDHC PAYS THE COMMISSION A PORTION OF ITS COMMERCIAL FEE REVENUE TO COVER UTILITY COSTS FOR THE MASTER-LEASED UNITS.

THE DRRA REQUIRES HRD TO PROVIDE CDHC WITH AN AMOUNT INTENDED TO BE AT LEAST $7,775,000 TO SUPPORT A LIVE-WHERE-YOU-WORK PROGRAM ("LWYW") WITHIN DOWNTOWN COLUMBIA, MD. CDHC HAS DEVELOPED A PROGRAM WHICH PROVIDES RENTAL SUBSIDIES TO EMPLOYEES WHO RENT IN DOWNTOWN COLUMBIA, MD. THE SUBSIDIES ARE EQUAL TO THE DIFFERENCE BETWEEN THE MARKET RENT FOR THE RENTAL UNIT AND THE LIHU RENT OR THE MIHU RENT FOR THE UNIT (BASED ON THE TENANT FAMILY INCOME). CDHC HAS AN AGREEMENT WITH EACH EMPLOYER WHEREBY THE EMPLOYER SOLICITS APPLICATIONS FROM ITS EMPLOYEES AND SELECTS THE PARTICIPANTS. CDHC AND THE EMPLOYER EACH PAY ONE-HALF OF THE SUBSIDY.HOWARD COUNTY GENERAL HOSPITAL AND THE RESIDENCES AT VANTAGE POINT PARTICIPATE IN THE PROGRAM AND 5 OF THEIR EMPLOYEES HAVE BENEFITED FROM THE PROGRAM. IN 2021 THE CDHC BOARD HAD NUMEROUS INTERNAL DISCUSSIONS FOCUSED ON INCREASING PARTICIPATION IN THE PROGRAM. CDHC INCREASED ITS PROGRAM OF OUTREACH TO COLUMBIA EMPLOYERS BY MEETING WITH PROSPECTIVE EMPLOYERS. THE OUTREACH DID NOT PRODUCE ADDITIONAL PARTICIPATION SO THE BOARD ALSO CONSIDERED MAKING MODIFICATIONS TO THE LWYW PROGRAM. ONE ISSUE DISCUSSED WAS WHETHER, GIVEN THE UNCERTAIN BUSINESS CONDITIONS CAUSED BY COVID, EMPLOYERS WERE RELUCTANT TO MAKE COMMITMENTS TO RENTAL SUBSIDY PAYMENTS. AFTER MUCH DISCUSSION, THE BOARD DECIDED TO EXPLORE MODIFYING THE PROGRAM TO CREATE FLEXIBILITY IN CALCULATING THE EMPLOYER'S SHARE OF THE SUBSIDY. THE BOARD RECOGNIZED THAT REDUCING THE EMPLOYER'S SHARE OF THE SUBSIDY WOULD LIKELY RESULT IN AN INCREASE IN CDHC'S SHARE. THE BOARD ALSO WORKED WITH THE OFFICE OF THE COUNTY EXECUTIVE TO PURSUE USING SOME OF THE COUNTY'S AMERICAN RESCUE PLAN (ARP) GRANT TO COVER ALL OR PART OF THE EMPLOYER'S SHARE OF THE SUBSIDY.

THE DRRA DESIGNATES FIVE SITES IN DOWNTOWN TO BE DEVELOPED AS LOW-INCOME HOUSING TAX CREDIT ("LIHTC") PROJECTS. THE PROJECTS WILL BE LOCATED ON LAND OR IN AIR RIGHTS CONVEYED TO THE COMMISSION BY EITHER HRD OR THE COUNTY. IN 2021, THE BOARD WORKED TO ADVANCE 3 OF THESE PROJECTS:ARTIST FLATS TO BE DEVELOPED AS PART OF THE NEW CULTURAL CENTER. FINANCING SHORTFALLS RESULTING FROM INCREASED CONSTRUCTION COSTS AND LOWER PROJECTED TIF REVENUES HAVE DELAYED THE CLOSING ON THE SITE AND CONSTRUCTION OF THE NEW CULTURAL CENTER ("NCC") WHICH INCLUDES ARTIST FLATS. CDHC HAS COMMITTED TO A $2.5 MILLION LOAN TO FINANCE THE PROJECT. CDHC HAS CONSULTED WITH THE COUNTY ADMINISTRATION AND MEMBERS OF THE COMMISSION CONCERNING RESOLUTION OF THE ARTIST FLATS FINANCING ISSUES. EFFORTS ARE BEING MADE TO VALUE-ENGINEER THE NCC CONSTRUCTION COSTS AND TO IDENTIFY ADDITIONAL SOURCES OF FUNDS. THOSE EFFORTS ARE ONGOING.BANNEKER FIRE STATION & SENIOR HOUSING TO BE DEVELOPED ON THE SITE OF THE RENOVATED BANNEKER FIRE STATION. DEVELOPMENT OF THE BANNEKER FIRE STATION, TO INCLUDE A LIHTC PROJECT, CANNOT BEGIN UNTIL CONSTRUCTION OF THE NORTH COLUMBIA FIRE STATION IS COMPLETED SO THAT BANNEKER FIRE STATION CAN TEMPORARILY RELOCATE. DURING 2021, THE CDHC BOARD ADVOCATED FOR TIMELY SITING AND CONSTRUCTION OF THE NORTH COLUMBIA FIRE STATION, INCLUDING REACHING OUT TO MEMBERS OF THE SCHOOL BOARD BECAUSE THE BOARD OWNS THE PREFERRED SITE. NEW CENTRAL LIBRARY RESIDENCES TO BE DEVELOPED AS PART OF A MIXED USE DEVELOPMENT IN THE MERRIWEATHER DISTRICT BY THE COMMISSION. THE SITE WOULD CONTAIN 40% - 50% LOW INCOME UNITS. CDHC ADVOCATED FOR PLANNING FUNDS IN THE COUNTY'S FY 2023 BUDGET TO KEEP THE PROJECT ON SCHEDULE. THOSE FUNDS WERE PLACED IN CONTINGENCY BY THE COUNTY COUNCIL THEREBY DELAYING PROGRESS ON THE PROJECT. CDHC WILL CONTINUE TO ACTIVELY MONITOR THE SITUATION.CDHC INTENDS TO MAKE SUBORDINATE LOANS FROM THE FUND TO THE DEVELOPERS OF THE LIHTC PROJECTS TO PROVIDE GAP FINANCING FOR EACH PROJECT.