Donaldson Impact Investments and AHC Lead $63M Affordable Housing Initiative in Maryland

Milestone Acquisition for Affordable Housing in Maryland

In a significant advancement for affordable housing, Donaldson Impact Investments has announced its successful partnership with Affordable Homes & Communities (AHC) to acquire the Country Place Apartments in Burtonsville, Maryland. This landmark $63 million deal represents the very first utilization of the By-Right Payment in Lieu of Taxes (PILOT) program integrated with market-rate equity within the region, specifically facilitated by New York Life and Declaration Partners, a private investment firm led by prominent financier David M. Rubenstein.

The transaction encompasses the 312-unit, Class B apartment community, marking it as Donaldson Impact Investments' inaugural acquisition since its formation. The strategic collaboration with AHC aims not only to maintain affordable housing but also to introduce vital resident services designed to enhance living standards.

Kevin H. Smith, the co-founder and managing partner of Donaldson Impact Investments, expressed enthusiasm about the acquisition, stating, "This acquisition is a strategic long-term investment for our company and aligns perfectly with our mission to acquire and preserve mature, naturally occurring affordable housing." He further emphasized their commitment to reducing operational costs, enhancing resident experiences, and delivering solid returns for investors.

As part of this initiative, the partnership will designate 172 homes as permanently affordable, with 164 units allocated for households earning up to 60% of the area median income (AMI). Furthermore, 8 units will be set aside for those earning up to 50% of the AMI. In terms of community engagement, AHC intends to create and oversee various resident programs focusing on financial literacy, social services, and health education. To ensure the effective delivery of these services, a full-time onsite staff member will be appointed.

Montgomery County has been recognized as one of Maryland's leading areas for fostering affordable housing initiatives. The local government consistently employs tax incentives such as PILOTs to encourage the development of affordable housing by both non-profit organizations and private developers when applicable. The PILOT payment structure is designed to ensure that the local government is reimbursed for municipal services while allowing developers to fulfill their mission of creating affordable housing solutions or social services.

Donaldson Impact Investments, founded by industry veterans Kevin H. Smith and Carlton Einsel, is committed to revamping multi-family properties with a focus on achieving sustainable financial, environmental, and societal outcomes. Their operational philosophy emphasizes responsible property management, active resident involvement, and enhancements at the community level.

This strategic move not only signifies Donaldson Impact Investments' commitment to affordable housing but also underscores the growing trend of innovative funding solutions necessary to tackle the housing crisis effectively. By merging the goals of profitability with the dedications to social responsibility, this acquisition serves as a beacon of hope for residents and aspiring homeowners in Maryland.