The Washington Housing Conservancy (WHC) and NHT Communities (NHTC) have purchased a 245-unit development in a move to preserve the Hyattsville, Maryland, property’s long-term affordability.
The partners acquired Hamilton Manor from the Kushner Cos. for $39.5 million with the help of Prince George’s County’s Right of First Refusal program, which allows its Department of Housing and Community Development (DHCD) to exercise first refusal rights and purchase a multifamily property, according to WHC.
To facilitate the acquisition, DHCD assigned its purchasing rights to NHTC, the real estate arm of the National Housing Trust (NHT), a national nonprofit engaged in housing preservation and production. Under a regulatory agreement between the new owners and Prince George’s County, 75% of the units will remain affordable to low- and moderate- income families for 20 years. In addition, the new owners will make significant capital investments in the property.
“With support from Prince George’s County leadership and our partners at NHT Communities, we are making strides to defeat the threat from rapidly escalating rents and ensure that hundreds of Washington area residents—middle-income earners like health care professionals, teachers, and first responders—can stay in their homes and pursue new opportunities,” said Kimberly Driggins, WHC executive director. “By fusing private-sector expertise with a social impact mission, WHC is also fulfilling our vision for a new model that advances housing equity and sustains diverse and inclusive multi-family communities in great places like Prince George’s County.”
Hamilton Manor is naturally occurring affordable housing (NOAH), meaning its rents are not restricted by a formal program but have been affordable because of the property’s age.
The NOAH development was at risk of being sold to a market-rate owner who could have raised rents, forcing out existing residents and reducing housing options in the community.
Hamilton Manor is in a desirable, high-opportunity neighborhood with good accessibility to transit and quality amenities, according to Driggins, noting that these are areas where low- to moderate-income residents are often pushed out because of escalating rents.
“We’re getting in right before rents I think really take off,” Driggins said, explaining that while Hamilton Manor is largely affordable today, it likely wouldn’t be in five years.
The new mission-driven owners want to make improvements at the property and maintain the mixed-income, diverse composition of residents at the development, she said.
“The acquisition and preservation of existing multifamily rental homes, especially those that are currently 'naturally affordable,' is a critically important strategy in addressing the housing challenges of our time,” said Priya Jayachandran, CEO of NHT.
Since forming in 1999, NHT Communities has preserved over 1,000 units in the Washington metropolitan area and serves over 11,000 families with affordable homes and service navigation.
Berkadia Commercial Mortgage provided senior mortgage financing under the Fannie Mae Delegated Underwriting and Servicing program, and the Washington Housing Initiative Impact Pool provided mezzanine financing for the acquisition. The Impact Pool, managed by D.C.-area developer JBG Smith, provides subordinate financing for the acquisition and development of mixed-income properties. In addition, Prince George’s County will provide a DHCD loan totaling $1 million.
JBG Smith will also serve as the property manager.
The acquisition of Hamilton Manor comes eight months after the first WHC purchase of Crystal House in Arlington County, Virginia. The Crystal House acquisition provides for the preservation and creation of 1,300 affordable units near Amazon’s second headquarters.
