Governor O'Malley Welcomes New Residents to Preston Place in Baltimore City
State of Maryland to provide mortgages and down payment assistance to community homebuyers
BALTIMORE, MD (July 28, 2008) – Governor Martin O’Malley joined Senator Barbara Mikulski, Baltimore City Mayor Sheila Dixon, Maryland Department of Housing and Community Development (DHCD) Secretary Raymond A. Skinner, and representatives from Baltimoreans United In Leadership Development (BUILD) and The Reinvestment Fund (TRF) at a housewarming celebration for new residents of Preston Place in the Oliver neighborhood of Baltimore City. Preston Place is the first redevelopment project in BUILD and TRF’s revitalization plan for the Oliver community and will feature 122 affordable, energy-efficient homeownership units.
“I am proud to stand with all of you and celebrate Preston Place, another important step towards the revitalization of this community," said Governor O'Malley. "We are committed to helping the people of Oliver and the surrounding areas maximize their full potential as strong, sustainable communities.”
In 2001 pastors and leaders from BUILD approached then-Mayor O’Malley to help them reclaim the Oliver neighborhood by transferring abandoned properties to their organization. BUILD secured $1.2 million to acquire 200 scattered site properties throughout the neighborhood. The following year, efforts were significantly increased in the wake of the tragic death of Angela Dawson and her five young children, killed when a drug dealer set fire their home as retaliation for Ms. Dawson’s efforts to combat drugs and violence in the neighborhood. The tragedy underscored the need for a comprehensive plan to rebuild the Oliver community and reclaim the neighborhood from violence and crime. BUILD partnered with TRF to form TRF Development Partners and crafted a revitalization strategy for the area to acquire and assemble underdeveloped real estate.
Through DHCD, the State provided $750,000 to TRF Development Partners for strategic demolition in the neighborhood and development of Preston Place. DHCD will also provide mortgage assistance to prospective Preston Place homebuyers through the Maryland Mortgage Program (MMP). MMP is the State’s flagship mortgage assistance program, providing a wide variety of low-interest, fixed-rate mortgage loans. Preston Place’s MMP borrowers can also access down payment and closing cost assistance through DHCD’s Down payment and Settlement Expense Loan Program (DSELP). DHCD has allocated $720,000 in DSELP funds, providing $10,000, zero percent, deferred loans for 72 units in Preston Place. With the DSELP commitment, combined with MMP mortgages and fund provided for acquisition and demolition, the State has invested over $10 million in Preston Place.
“Informed and empowered homeowners who are involved as stakeholders in their neighborhoods form the foundation of healthy communities,” said DHCD Secretary Raymond A. Skinner. “Through our mortgage, down payment, and closing cost assistance, we hope to position Preston Place as an affordable housing option for Baltimore City residents and attract those homeowners.”
Preston Place will have staggered price points, making affordable housing available to families ranging from 48 percent to 80 percent of Baltimore’s Area Median Income. The homes in Preston Place are also energy-efficient, supporting Governor O’Malley’s Smart Growth philosophy by promoting clean, safe, and green development.
“The State of Maryland has really understood what it takes to make affordable housing work and bring back vitality to Baltimore’s neighborhoods. The State joined with many private investors to provide TRFDP with the flexible capital needed to redevelop while at the same time making a mortgage commitment to homeowners during this uncertain credit market,” says Sean Closkey, President of TRF Development Partners.
Preston Place and the revitalization of the Oliver community will be supported by additional redevelopment efforts in surrounding areas in Baltimore City. These efforts include: East Baltimore Development, Inc.’s activities, which will strengthen the Oliver community’s eastern border; the East Baltimore Biotech Park, located adjacent to Johns Hopkins Hospital, featuring 22 acres of mixed use development and up to 8,000 jobs, and; Broadway Overlook, a successful new development of 166 mixed income housing units at the intersection of Fayette Street and Broadway.
