HUD Secretary Shaun Donovan Visits the City Arts Site and Recognizes Jobs Created by Recovery Act Funds

On March 9, 2010, U.S. Secretary of Housing and Urban Development (HUD) Shaun Donovan joined Mayor Stephanie Rawlings-Blake, Baltimore Housing Commissioner Paul Graziano, Maryland Department of Housing and Community Development Secretary Raymond A. Skinner, Congressman Elijah Cummings, and a host of other community and business leaders to tour the City Arts Apartments construction site. In August 2009, City Arts received $2.6 million in funding through the federal Tax Credit Assistance Program (TCAP) to restart the project. The property will be the first new residential building to be built in the burgeoning Station North Arts & Entertainment District of Baltimore since the 19th century.

Designed to strengthen the Station North Arts and Entertainment District and revitalize the Greenmount West community, the City Arts project will create energy-efficient affordable housing geared towards local artists. When completed, there will be 69 rental apartments and 8 for-sale townhomes. In addition to creating affordable housing, the City Arts Apartments, which is being developed by Homes for America, Jubilee and TRF, is expected to create or save over 160 jobs for Baltimore residents. "The City Arts development is an excellent example of how the Recovery Act is helping to quickly put Americans to work in Baltimore," said HUD Secretary Shaun Donovan. "This project will not only provide additional affordable housing for area residents, but it will also serve as a catalyst to revitalize the Station North neighborhood, returning it to its former status as a major arts hub in Baltimore."

In July 2009, HUD approved the Maryland State Department of Housing and Community Development (DHCD) to award $31.7 million in funding through TCAP. A component of the American Recovery and Reinvestment Act of 2009, TCAP supplies Low Income Housing Tax Credit (LIHTC) projects with additional funding for capital investment through a formula-based allocation to State housing credit allocation agencies. The TCAP funds are competitively distributed by State agencies in accordance to their Qualified Allocation Plan. TCAP funding is intended to reignite stalled projects by filling the funding gaps between the amount of private equity originally projected to be generated by the sale of Low Income Housing Tax Credits and the actual reduced amount generated due to changes in the market for tax credits. "Due to fluctuations in the market, many affordable rental housing projects funded by tax credits were forced to slow or, in some cases, stall their progress," said Secretary Skinner. "By providing TCAP assistance to shovel-ready developments such as the City Arts project, we can revive these projects, have a positive impact on the economy and put housing back to work in Maryland."

In August 2009, the Maryland State DHCD competitively awarded the $31.7 million in TCAP funds to 14 multifamily rental housing projects throughout the State, including City Arts. These projects will collectively create 1,403 units of affordable rental housing. "I am grateful to President Obama and Secretary Donovan for their commitment to America's cities," said Mayor Stephanie Rawlings-Blake. "By helping to create or support jobs in Baltimore, the stimulus helps keep this city moving forward."