Boston Capital is investing in the rehabilitation of Federalsburg Square, a combination of two existing multifamily communities for families in Denton and Federalsburg, Md.
Located about 17 miles apart, the developments will be rehabilitated with equity raised from the low-income housing tax credit (LIHTC) program. The properties have a combined 88 units, and homes will be available to families earning 60% percent or less of the area median income.
The general partner is Annapolis, Md.-based Severn Development Co.
"Boston Capital is pleased to partner with Arthur Edwards Jr. and Jeff Paxson, principals of co-developers Severn Development and Pax-Edwards, to bring much-needed housing to Denton and Federalsburg," said Jack Manning, president and CEO of Boston Capital. "Our residents of these two outstanding properties will benefit from the communities' proximity to health-care and education facilities, retail centers, and public transportation."
The firm is investing approximately $3.4 million in LIHTC equity.
Federalsburg Square will feature 44 one-bedroom and 44 two-bedroom apartments. All units will offer patios or balconies, dishwashers, and thru-wall air conditioning. Unit renovations will include new Energy Star windows, light fixtures, and kitchen appliances, as well as entry doors, flooring, bath fixtures, HVAC systems, water heaters, window coverings, ceiling fans, paint, kitchen cabinets, sinks, and countertops.
Substantial rehabilitation to both communities will include the replacement of the roof shingles, siding, new lighting, improved laundry rooms and enhanced air sealing and insulation. Additionally, the Denton property will include a new 900-square-foot community center, featuring a kitchenette, computer center/learning center, library nook, and a management/leasing office.
The rehabilitation of Federalsburg Square will generate nearly $2.8 million in local salaries and create nearly 30 new jobs in the Denton and Federalsburg areas. To date, Boston Capital, a real estate investment and advisory firm, has invested in nearly 6,600 affordable apartments in Maryland. The firm is a LIHTC syndicator.