1. 2014 MAHRA CONFERENCE REDEVELOPMENT FOR SMALL AND MEDIUM SIZED PHAS

2. PENNROSE PROPERTIES- HISTORY Over 35 years in business; leader in Multi-family development Recognized experts in complex, multi-phase urban and suburban development Developed over 12,000 units developed in 190 communities Launched market-rate platform in 2011

3. MISSION Pennrose, in cooperation with its partners and key stakeholders, develops high-quality, expertly managed residential properties -- which provide long-lasting enhancements to their communities and host municipalities.

4. CORE PRINCIPALS We are committed to high-quality development: Solidly financed; attractively designed and constructed for energy efficiency and durability We stay for the long-term: Our business model is based on sustained ownership and our properties are designed to stand the test of time We understand that quality management is the key to our ongoing success: Attentive maintenance, appropriate services, and a strong focus on our residents set Pennrose developments apart

5. PENNROSE’S HOUSING AUTHORITY JOINT VENTURES

6. PUBLIC HOUSING REDEVELOPMENT FINANCING PROGRAMS 1.HOPE VI – (No longer around) 2.MIXED FINANCE – ACC, Low Income Housing Tax Credits, State Resources, HA, FHLB 3.CHOICE NEIGHBORHOOD (Planning and Implementation Grant) – Education/Health Safety 4.RAD – Current HUD Demonstration Program – ACC conversion to Section 8 Project Based Contract

7. MARYLAND PUBLIC HOUSING REDEVELOPMENTS Hagerstown – HOPE VI Annapolis – Mixed Finance Housing Commission of Anne Arundel County – Mixed Finance Wicomico County – RAD

8. HOUSING AUTHORITY OF THE CITY OF ANNAPOLIS Obery Court and College Creek Terrace 164 public housing units Demo/Disposition Approval Public Planning Process Three Phases

9. OBERY COURT - BEFORE

10. OBERY COURT – PHASE I (AFTER)

11. COLLEGE CREEK TERRACE - BEFORE Before and After Picture

12. GREEN SPACE

13. FINANCING – OBERY PHASE I 50 Units and Community Building Two Head Start Classrooms Computer Lab Courtyard/Patio Tot Lot Walking Trail New Street with 22 Additional Parking Spaces ACC Subsidy, LIHTC, CDA – Partnership Rental Housing Funds $850,000 in Reserves Housing Authority Fees

14. OBERY PHASE I – DEAL POINTS Challenges Legal Aid One for One Replacement of Bedroom Sizes Families Over Housed Community Activists Capital Repairs Local Municipal Cooperation or Lack Thereof Resident Trust Relocation Resident Right to Return

15. PHASE II AND III - PLANNING

16. OBERY COURT/COLLEGE CREEK TERRACE - PHASE II

17. PHASE II

18. PHASE II - FINANCING 61 Units – Project Based-Section 8 (51 units) ACC units not feasible to get financing Conventional Loan, LIHTC, CDA – Rental Housing and PHRP Community Legacy Funds for Demolition Cooperation Agreement Developer Guarantees Developer Property Management Project Based Voucher program Conventional Debt

19. PHASE III - Currently in Development 63 Units – ACC, PBV, and LIHTC units 9% Credits (Consecutive Allocations) Conventional Loan, LIHTC, CDA – Rental Housing and PHRP Developer Guarantees Developer Property Management Last Phase of Redevelopment

20. HCAAC- BURWOOD GARDENS The Housing Commission has evaluated many different avenues to enhance accessibility and create an environment for the residents of the community. The design was obsolete from it’s origin, and has been extremely difficult to manage and sustain for years. Adding elevators or lifts to the existing garden building would be extremely expensive and impractical. Adding extensive ramps for accessibility would be impractical, unsafe and physically unappealing.

21. BURWOOD GARDENS - HCAAC

22. BEFORE

23. BURWOOD/HERITAGE CREST

24. HERITAGE CREST – PHASE I Completed December 2013 100 Units Elderly – Project Based Section 8 Conventional Loan, LIHTC, CDA – Rental Housing and PHRP Developer Guarantees Repayment of Capital Bond to CDA HCAAC Property Management Last Phase of Redevelopment

25. HERITAGE CREST – PHASE II 100 units – disabled and families ACC and LIHTC units and possibly conversion to RAD HCAAC management Last phase of Redevelopment

26. WICOMICO Two Phases RAD 9% Credits Finance Sources and Uses

27. Project Overview - RAD Partnership with Wicomico County Housing Authority Two-phase redevelopment of existing 1960’s era 100-unit Public Housing community 100 PBV’s through RAD program Phase I Demolish 50 Public Housing Units Construct 84 New Apartments (50 RAD / 34 LIHTC) Rehabbed Community Building with new resident amenities and management space Total Project Cost: $17.1M Schedule Close March 2015 Construction Completion May 2016 Booth Street Apartments Salisbury, MD

28. Existing Conditions Proposed Design

29. THINGS IN COMMON 9% Low Income Housing Credits Experienced Developer Required Compete Guarantees Tax Credit Compliance PM Experience Partnership with Housing Authority MDA Regulatory Agreement Ground Lease Tenant Protections

30. BENEFITS OF DEVELOPMENT Benefits for HA Fees – DF, Ground lease fee, cash flow sharing Improvements to a property that could no longer be maintained Safe, affordable housing for existing residents and residents on waitlist Maximizing site by including mixed income units to de-concentrate property

31. BENEFITS CONTINUED Employment Opportunities for residents Reduction in Crime Experience for future developments Mentorships for PM/Tax Credit Compliance RHF Diversification of portfolio Income for balance sheet – future development PRHP funds Right of First Refusal Offsite Development and Sale of Current Land (RADing units in other projects)

32. THANK YOU