Paca House Partners, LP, a joint venture between Somerset Development Company and Volunteers of America Chesapeake (VOAC), has acquired Paca House, an apartment building that currently provides housing for homeless individuals in 76 single-room occupancy (SRO) units and 30 efficiencies. The redevelopment of the property, which is now underway, is slated to be complete in the 4th Quarter of 2019. The project will provide 41 efficiencies and 51 one-bedrooms for a total of 92 units of which 82 units are permanent supportive housing for the homeless and veterans, and 10 units are market rate housing, eliminating the out-of-date SROs and providing significantly higher quality apartments to the building's residents. The building's amenities include a computer lab, library, lounge, two community rooms, on-site laundry and free Wi-Fi. On-site case management and a robust set of supportive services will be provided by VOAC.
All 82 units of permanent supportive housing will be subsidized using Project Based Vouchers from the Housing Authority of Baltimore City. Of the 82 vouchers, 19 are reserved for Veterans and 63 will provide housing for the homeless. All the building's affordable units will feature a preference for Veterans.
The new project will be a mix of rehabilitation and new construction, working within the footprints of 3 existing buildings and incorporating 3 new additions that will double the affordable square footage of the building. One of the building's additions will fill in a vacant parcel along North Paca Street, restoring the urban fabric of that block. The building will also meet Enterprise Green Community Standards for energy efficiency and incorporate a photovoltaic system on the roof.
The redevelopment is being financed using an allocation of 9% Low Income Housing Tax Credits awarded by the Maryland Community Development Administration (CDA) and syndicated by Boston Financial Investment Management, a new first mortgage and bridge loan provided Capital One National Association; soft loans from CDA, Baltimore City Department of Housing and Community Development, Volunteers of America National Services and VOAC; and a grant from the Local Initiatives Support Corporation financed by Northrup Grumman and Citi Community Development.