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Revitalizing Baltimore: Non-Profit Housing Development Perspective

Learn about St. Ambrose Housing Aid Center's comprehensive housing services in Baltimore since 1968. Discover their mission to create housing opportunities for low & moderate-income individuals and support strong neighborhoods. Explore their successful acquisition, renovation, and resale program in targeted Baltimore City neighborhoods. Gain insights into challenges faced in the current market and the valuable lessons learned. Find out how St. Ambrose is contributing to the revitalization of Baltimore through strategic housing development efforts.

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Revitalizing Baltimore: Non-Profit Housing Development Perspective

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  1. A Non-Profit Developer’s Perspective Acquisition, Renovation and Resale in Baltimore City’s Middle Neighborhoods David Sann, St. Ambrose Housing Aid Center, Inc. 4/21/09

  2. Comprehensive housing services in Baltimore since 1968 Mission to create and maintain housing opportunities for low & moderate income people and support strong neighborhoods Five silos of services Quality rental housing Home-sharing Pre-purchase counseling Foreclosure prevention counseling Housing Development St. Ambrose Housing AidCenter, Inc.

  3. Housing Development Program • Acquisition, rehab and resale of FHA & Conventional foreclosures in targeted Baltimore City neighborhoods • Scattered-site nature of program works well in relatively stable neighborhoods. Fully renovated house in Belair-Edison

  4. Community Revitalization Model • Ideal for “neighborhoods in the middle” • Stagnated housing values • Lack of investment by residents • Potential buyers with choices looking elsewhere • Existing / emerging foreclosure problem • Development objectives include • Improve the housing stock with targeted acquisitions • Jump start the real estate market • Reduce instability caused by foreclosures • Inspire current residents to invest in their homes • The community is the “client”

  5. HUD Asset Control Area (ACA) Program (2004 – Present) • Acquisition, rehab and resale of FHA foreclosures • Discounted purchase • Quality renovations • Market sales • High impact in neighborhoods with many FHA foreclosures

  6. ACA Program Success since October 2004 • Acquired, renovated and sold 150 houses to qualified moderate income buyers • Helped to jump start stagnated real estate markets in the communities we serve • Helped create significant equity for current homeowners • Have been able to expand the ACA program to new Baltimore neighborhoods

  7. Challenges in Current Market • Slow sales pace resulting in higher costs • Falling prices reducing margins • Apprehensive buyers • Lack of closing cost funds for buyers • Lack of market comps pushing prices down further • St. Ambrose’s market sales are cushioning the fall by maintaining market comps

  8. Lesson Learned # 1: It Doesn’t Work Everywhere • Scattered-site acquisition, rehab, resale typically does not work in highly distressed neighborhoods • Not enough scale to overcome community challenges • Scattered-site projects can work in relatively stable neighborhoods • Serviceable, functional housing stock • A functioning real estate market • Not too many vacant houses

  9. Lesson Learned # 2: Develop a Production Model Components of a production model include: • Research capacity for smart planning and development decisions • Financing in-place (speed & ease of use) • Construction management in-house • Quality general & sub-contractors lined-up • Marketing and sales expertise in-house

  10. Lesson Learned # 3: Choose Your Neighborhoods Carefully • Know your market niche and price points • A functioning real estate market is essential • Look for housing stock that can be affordably rehabbed: • Brick townhouse (3-bedroom preferable) • 1940’s & 1950’s construction has fewer structural issues • Modest, consistent, functional layouts • Contractor familiarity results in lower construction costs • Look for a community-based partner

  11. Lesson Learned # 4:Have a Marketing Plan In-Place • Develop to your market and price points • Work with realtors in the community • Include sales commissions in your budget • Provide pre-purchase counseling services • Include closing cost help in your budget • Partner with community groups & non-profits

  12. The NSP Program:Applying Lessons Learned • Neighborhoods that were chosen are the middle neighborhoods: • Higher foreclosure rates • Low vacant housing rates • Functional real estate markets • Moderate housing prices • Community based marketing and mortgage lending capacity in-place

  13. St. Ambrose and the NSP Program • St. Ambrose chosen to help implement the homeownership portion of the NSP Plan • St. Ambrose will be working in most of the neighborhoods designated by the City • Many of the neighborhoods overlap our existing program areas.

  14. The Development Model Applied to the NSP Plan • Research and acquisition expertise • Extensive lines of credit from local lenders • Experienced general contractors ready • Experienced construction management • Sales and marketing expertise • In-house real estate brokerage to list our houses • Network of realtors (100+) who know and appreciate St. Ambrose’s work

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