Submitted by: David Cristeal
Submitting Department: Community & Economic Development
Agenda Section: Presentation
Item Title:
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Pennrose - Sanctuary at Hyattsville Crossing - Request of City Payment in Lieu of Taxes (PILOT)
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Suggested Action:
recommendation
For Presentation
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Summary Background:
Pennrose, in partnership with Sanctuary AP3 and the First United Methodist Church is proposing to develop Sanctuary at Hyattsville Crossing, an affordable apartment community with two components. The first component consists of 50-units of affordable senior housing. The second component consists of 70-units of affordable family housing. This affordable rental community would be located on underutilized Church property, at 6201 Belcrest Road. This property is in Ward 3 and has easy, walkable access to employment, shopping, recreation, schools, and transportation amenities including the Hyattsville Crossing Metro Station.
Pennrose is an affordable housing developer with extensive experience in the region and is the lead entity for this proposed affordable rental community. Pennrose has requested the City Council consider a 40-year City of Hyattsville PILOT to assist with the construction and long-term operation of the new affordable rental community. Pennrose has requested a term of 40-years in order to coincide with both affordability needs and financing requirements. Pennrose is also requesting that Prince George’s County provide a 40-year PILOT. It will also seek grants, loans, and tax credits from the County, State, and federal sources.
Based on financing information provided by Pennrose, the City- provided PILOT would provide an estimated first year benefit of $45,360, should the City Council vote to approve it at its April 17, 2025 meeting.
Next Steps:
The City Attorney will draft an Ordinance for the City Council’s consideration.
Fiscal Impact:
If approved, the requested PILOT, would result in an estimated annual reduction in City taxes of $45,360 in the first year of the 40-year term.
City Administrator Comments:
TBD
Community Engagement:
The drafted Ordinance will require the approval and adoption by the City Council.
Strategic Goals:
Goal 2 - Ensure the Long-Term Economic Viability of the City
Legal Review Required?
Pending