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Maryland Department of Housing and Community Development Provides Cash Assistance to Projects in Anne Arundel and Kent Counties

Projects funded through the American Recovery and Rehabilitation Act (ARRA) are first to commence in Maryland

CROWNSVILLE, MD (September 30, 2009) – Maryland Department of Housing and Community Development Secretary Raymond A. Skinner has announced the commencement of the Annapolis Gardens/Bowman Court project in Anne Arundel County and the Calvert Heights development in Kent County.

Annapolis Gardens/Bowman Court is the acquisition/rehabilitation of a 150 unit family apartment property situated in the City of Annapolis. Originally constructed in 1961 and 1974 by the Housing Authority of the City of Annapolis (HACA), the property will undergo substantial rehabilitation of about $83,000 per unit.

The Calvert Heights project is the redevelopment of an existing 22-unit project-based Section 8 community located in Chestertown, an historic town on Maryland’s Eastern Shore. The existing buildings on the property will be demolished and replaced with 40 new construction townhouses for families.

This redevelopment, which was made possible by the Department’s rapid allocation of federal stimulus funds, will support almost 300 jobs.

The Section 1602 Tax Credit Exchange Program provides funding for rental housing developments with or without an award of federal Low Income Housing Tax Credits. The Program will help provide affordable housing opportunities for income-qualified families, persons with disabilities and senior citizens through the financing of the construction, acquisition, and rehabilitation of multi-family rental housing.

"Without funding from the American Recovery and Reinvestment Act, 200 units of affordable rental units would not be built," said Governor Martin O’Malley. "Low Income Housing Tax Credits are meant to help working families find good quality affordable housing. These two projects, in Anne Arundel County, and Kent County, mean that more Maryland families will have the chance to live better lives."

The Annapolis Gardens/Bowman Court property’s developer is Annapolis Community Development Partners, a joint venture between Landex Development, LLC and the Housing Authority for the City of Annapolis (HACA). The developer and owner of the Calvert Heights project is Delaware Valley Development Group. The Calvert Heights property will be professionally managed by Fairville Management Company, an affiliate of the project owner.

"“We are committed to being an active partner with local housing authorities and private sector developers in creating and preserving quality, affordable housing opportunities such as Annapolis Gardens/Bowman Court and Calvert Heights," according to Secretary Skinner.

Financing is a result of a federal, state and local government partnership with resources as follows:

Annapolis Gardens/Bowman Court
Maryland Department of Housing and Community Development (DHCD): $1.7 million loan
Anne Arundel County: $500,000
City of Annapolis: $93,000
HACA: $500,000
The project has also been awarded about $13.6 million in cash assistance in lieu of Low Income Housing Tax Credits under the Section 1602 Tax Credit Exchange Program of the American Recovery and Rehabilitation Act of 2009.

Calvert Heights
Rural Housing Service of the U.S. Department of Agriculture: first mortgage of $1,864,000
HOME loan from the Maryland Department of Housing and Community Development: $2,000,000
Contribution from the Town of Chestertown valued at $110,300
Section 1602 Tax Credit Exchange Program: Approximately $5,500,000 in proceeds

The Annapolis Gardens/Bowman Court project is close to significant economic development activities which include more than $600 million in local road improvements and major new mixed use commercial and residential projects that will stabilize the neighborhood and create long term employment and economic opportunities. All units in the completed project will be restricted for 40 years to tenants with incomes of no more than 60% of the area median income under IRS Section 42. There will be 75 public housing units and 8 special needs units. Tenant services include an on-site resident coordinator, literacy program, childcare, senior services, health education, and job training.

"The support and cooperation of the Department, the Arundel Development Community Services, the City of Annapolis, the Housing Authority as well as TD Bank and Enterprise Mortgage have collaborated and worked very hard with Landex in this challenging environment to ensure the viability of the redevelopment of this important housing community," said Peter Siegel, CEO of Landex Companies.

Physical improvements to the housing community will include refurbishing of the interiors and exteriors of all buildings and apartments as well as site grading, utility upgrades, landscaping and attractive fencing. The improvements to the property will be environmentally sensitive and aimed at conserving energy and reducing the carbon footprint.

The redevelopment of Calvert Heights as an affordable housing resource has long been a priority of the town of Chestertown. DHCD financing will spark this initiative in a manner that preserves and expands critically-needed affordable housing for the community. The 22 families currently residing at the property who receive Section 8 rental assistance will be temporarily relocated during construction and will be eligible to remain at the property after redevelopment. The 18 new units created will be available for families with incomes between 40% and 60% of Area Median Income.

"The state’s investment is important on many levels," said Glenn Worgan, Principal of Delaware Valley Development Company. "Residents will benefit from new, improved housing. Also, Chestertown embraced the project for its mixed income concept, contribution to revitalizing a section of its historic downtown, and the environmental sensitivity employed in the design. And, of equal importance, is the much needed economic activity spurred by the project."

The Annapolis Gardens/Bowman Court and Calvert Heights projects are the first projects that the Department has launched with ARRA funds and are just some of many DHCD projects that incorporate Smart, Green & Growing components. Smart, Green & Growing is a multi-agency, statewide initiative launched by Governor Martin O’Malley to help Maryland achieve a more sustainable future by linking community revitalization, transportation improvements, economic development, smart growth and environmental restoration efforts. For more information, please log on to:

The Maryland Department of Housing and Community Development works with partners to finance housing opportunities and revitalize great places for Maryland citizens to live, work and prosper. To learn more about DHCD’s foreclosure prevention efforts, log on to

Information on other DHCD programs is available on News updates also are available by following DHCD on Twitter ( and Facebook (

For more information:

Erlene Wilson
Director, Office of Communications and Marketing

Rosa Cruz
Deputy Director, Office of Communications and Marketing

Andy DeVilbiss
Public Information Officer, Office of Communications and Marketing

Smart, Green and Growing MD stateStat