Submitted by: David Cristeal
Submitting Department: Community & Economic Development
Agenda Section: Consent
Item Title:
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Grant Application to the State of Maryland, Department of Housing and Community Development (MD-DHCD) - State Revitalization Program (SRP) - National Capital Strategy Economic Development Fund (NCSED)
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Suggested Action:
I move the Mayor and City Council authorize the City Administrator to prepare an application to the State for grant funds to support the Sanctuary at Hyattsville Crossing and provide any needed documentation required, including a Letter of Support and Disclosure Authorization to the State.
recommendation
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Summary Background:
The First United Methodist Church (FUMC) partnered with Pennrose to develop a plan to build The Sanctuary at Hyattsville Crossing, an all-affordable rental community of 120 homes - 70 apartment homes for seniors and 50 apartment homes for families, on an underutilized portion of its, FUMC’s, property. The estimated total development cost is $53.8 million. Pennrose is seeking funding to support the proposed development from a wide range of public and private sources.
Through an engagement process with the City and Prince George’s County, the FUMC/Pennrose partnership has obtained initial financing support from both and has applied to the State for both loan funds and Low-Income Housing Tax Credits (LIHTC). Pennrose will know by the end of summer of 2025 if they have received a LIHTC award. The State anticipates making grant award announcements during the fall of 2025.
The State has FY2026 funds available through its State Revitalization Program - National Capital Strategic Economic Development Fund. Pennrose, as a private entity, is not an eligible applicant for the State Revitalization Program grant funds. Therefore, the City’s grant application to the State, acting as the Local Government Application Sponsor, is a creative way to access these funds to meet an identified and acute need (affordable rental homes for seniors and families).
Because the proposed affordable rental community will be developed as two separate components, a 70-unit senior apartment complex and a 50-unit family apartment complex, the City would submit 2 separate grant applications to the State (requesting up $750,000 for each component, or up to $1,500,000 total).
The City would apply to the State for up to $1.5 million in grant funds from this Program. The City will act as pass-through entity and if awarded funds, the City will lend these funds to Pennrose at a 0% interest rate loan, who will then finish its financing package and entitlements from the County needed to complete the affordable rental community of 120 apartment homes. The grant applications are due on July 2, 2025. The State anticipates making grant award announcements by the end of 2025.
Next Steps:
If awarded FY 2026 grant funds from the State, the City would then enter into a Memorandum of Understanding (MOU) with the FUMC/Pennose development entity. The MOU would describe the terms and conditions of the City passing through the State grant Fund monies to the FUMC/Pennrose development entity. The MOU would likely be prepared for City Council consideration in early 2026.
Fiscal Impact:
Up to $1.5 million dollars in grant funding which will be passed through to Pennrose via a 0% interest rate loan.
City Administrator Comments:
Recommend support. This initiative aligns with the City’s goal of supporting affordable housing.
Community Engagement:
N/A
Strategic Goals:
Goal 2 - Ensure the Long-Term Economic Viability of the City
Legal Review Required?
Pending