November 17, 2003
HUD APPROVES INNOVATIVE $90 MILLION BOND TRANSACTION FOR FIVE
MARYLAND PUBLIC HOUSING AUTHORITIES
ANNAPOLIS - Five local public housing authorities in the state of Maryland
have joined forces with the state to raise $90 million that will be used to
make major capital improvements in public housing.
HUD Assistant Secretary Michael Liu made the announcement today with Maryland Governor Robert Ehrlich Jr. and the Secretary of the Maryland Department of Housing and Community Development Victor Hoskins.
"HUD and public housing authorities must continually look for creative ways to supplement the federal government's assistance," said Liu at a signing ceremony in Annapolis at the State House. "The proceeds from these bonds will address capital needs in two years that would normally take five to 10 years."
HUD's approval of Maryland's Pooled Bond Financing Program gives the PHAs in Baltimore City, Annapolis, Anne Arundel County, Prince Georges County and Montgomery County the financial resources to accelerate necessary improvements such as renovating vacant units, replacing plumbing and electrical systems, improving security and other general preventive maintenance measures.
The Quality Housing and Work Responsibility Act of 1998 gave PHAs the opportunity to act more like private sector landlords by pledging a percentage of their income to repay debt. The housing authorities participating in this bond issuance will repay the $90 million bond initiative by using a portion of its annual federal Capital Fund grants over the next 20 years.
This is the first time HUD has approved a financing transaction that was facilitated
by a State Housing Finance Agency. City government has facilitated previous
transactions of this type.
The Housing Authority of Baltimore City will use its bond proceeds of $75,285,000 to complete rehabilitation of on-going capital needs, including renovating vacant public housing units, replacing plumbing systems, adding to security measures, landscaping and other exterior improvements. HABC will also use the funds to create more accessible units.
The Housing Authority of the City of Annapolis will use its bond proceeds of $4.9 million to make various safety and sanitary and general preventive repairs.
The Anne Arundel County Housing Commission will use its bond proceeds of $5,845,000 to modernize and upgrade units. It will also make extensive exterior and landscaping improvements.
The Housing Opportunity Commission of Montgomery County will use its bond proceeds of $2,720,000 million to demolish and repair Middlebrook Square and make emergency roof repairs at Waverly House.
The Prince Georges County Housing Authority will use its bond proceeds of $1,395,000 to correct design flaws at the Owens Road and Rollingcrest Village senior developments. The current parking lot design is not accessible to persons using walkers and wheelchairs.
Earlier this year, HUD approved a $130.8 million bond issue by 37 Alabama public housing authorities to modernize and construct new public housing units.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet.