Pennrose, HACA Break Ground on Newtowne 20 Affordable Housing Redevelopment Project in Annapolis, Maryland
ANNAPOLIS, MD. — Pennrose and the Housing Authority of the City of Annapolis (HACA) have broken ground on the Newtowne 20 revitalization at 810 Brooke Court in Annapolis. The redevelopment will replace the previous public housing property with new apartments, a new community building and open space. The project is slated to be complete in spring 2022.
The Newtowne 20 redevelopment will replace the former 78 units with energy-efficient apartments in a mix of both stacked and garden-style apartment buildings with a central green space. Plans for the site also include a 3,500-square-foot community clubhouse with amenity spaces, new basketball court and a tot lot. Previous Newtowne 20 residents have been temporarily rehoused and will have the opportunity to return to the new development once complete.
The Newtowne 20 redevelopment involves a U.S. Department of Housing and Urban Development (HUD) program that enables housing authorities to convert public housing properties to a more stable Section 8, voucher-based model. This program allows housing authorities to leverage private funding sources for projects like Newtowne 20.
The owner, a joint venture doing business as Newtowne 20 LLC, is funding the roughly $24 million project with multiple layers of capital sources, including multifamily bonds, Rental Housing Works, Rental Housing Funds and Housing Trust Funds from the Maryland Department of Housing and Community Development. Other financing is coming from 4 percent Low Income Housing Tax Credit (LIHTC) equity proceeds, a construction loan from Bank of America and seller financing from HACA. Additionally, Lument is providing a permanent tax-exempt Freddie Mac loan for the project.
Pennrose and HACA have partnered on public housing redevelopments in the past, including the three-phase redevelopment of Obery Court and College Creek in downtown Annapolis. With a regional office in Baltimore, Pennrose is active throughout Maryland, Virginia and Washington, D.C.