Baltimore Launches Nation’s Largest Housing Redevelopment Program
Some of the nation's biggest banks are involved in the effort.
Baltimore is launching a $6 billion community reinvestment program that aims to revitalize more 65,000 vacant or at-risk properties across the city.
The 15-year plan is backed by $1.2 billion in public commitments and an anticipated $5 billion in private financing. The redevelopment program calls for initially revitalizing more than 37,000 vacant or at-risk properties and attracting private development for an additional 33,000 houses and lots. The focus will be on eliminating tens of thousands of vacant homes and restoring neighborhoods with a focus on block-level renewal that pairs housing redevelopment with infrastructure, commercial corridors and public spaces.
The State of Maryland has pledged $900 million over the coming years to support housing and neighborhood reinvestment. The City of Baltimore will provide at least $300 million through its first tax increment financing (TIF) program. The TIF program will use future increases in property tax revenue from revitalized areas to fund current improvements to accelerate redevelopment. The goal is to reach about $3 billion in public funding over the next 15 years.
Public-private team
The work is being led by the Greater Baltimore Committee, the region’s leading economic and civic organization, which is comprised of more than 300 private sector partners including large, mid-size and small companies as well as nonprofits, foundations and educational and healthcare organizations. The Mayor’s Office and BUILD Baltimore are also leading the effort. The plan is being coordinated through Reinvest Baltimore, which Gov. Wes Moore established in October 2024.
“What sets this initiative apart from past efforts is both its scale and its structure,” Jennifer Vey, GBC executive vice president and chief strategy officer, told Multi-Housing News. “Baltimore has tried targeted housing programs before, but this is the first time we’re aligning billions in public investment with a long-term strategy to leverage even greater private capital. By doing this, we can move beyond scattered projects and instead catalyze large-scale redevelopment at the block and neighborhood.”
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Vey said the private investment piece is essential because without it, they won’t be able to achieve the volume of housing restoration and new construction needed to eliminate vacancy and meet the city’s housing demand.
At this time, the plan calls for revitalizing existing properties as well as redeveloping vacant lots but Vey said it could lead to ground-up construction of multifamily housing.
Private capital strategy
This week, GBC issued a Request for Information (RFI) to find a partner to design a private capital strategy that will direct funds for the mission. GBC and its partners aim to mobilize capital through a structured set of investment vehicles that will align with market realities and public priorities.
The plan for private sector investment, developed by Forsyth Street Advisors, suggests multiple funding structures such as shared-appreciation mortgages and scattered-site rental loans for small developers. PNC, Bank of America, JPMorganChase and T. Rowe Price are engaged in the effort. Public Financial Management Systems, a national consulting firm that advises governments on fiscal strategies, projects more than $7.3 billion in economic value from the program can be created over 30 years, driven by increased tax revenue, job creation and rising property values.
Building on success stories
The plan will build on the proven success of ReBUILD Metro in East Baltimore, which also focused on whole-block revitalization. Over the last two decades, ReBUILD Metro has invested more than $150 million in East Baltimore, remediating more than 500 vacant properties and lots into new homes. The group’s actions have reduced vacancy by more than 90 percent in the first two focus areas and substantially increased neighborhood population and average home values without displacing existing residents. The program was originally funded with philanthropic support but is now receiving state funds as well.
Vey said they expect vacant housing rehabilitation, vacant property redevelopment and related activity to scale as their program gets underway combined with efforts like the ReBUILD program, other community-based organizations and unsubsidized developer activity. She said the goal of the GBC program alone is to redevelop 5,000 vacant properties into homeownership or other positive outcomes through Fiscal Year 2029.
“With GBC’s private capital strategy, we expect this public funding to leverage millions of dollars of private capital in the form of working capital and construction loans, rental term debt and mortgages,” Vey told MHN.
This isn’t the first major housing initiative to be announcement this month, either. In the fall of next year, MCB will start the $900 million redevelopment of Baltimore Harbor into a 2-acre mixed-use district with 900 apartments and more than 200,000 square feet of retail space.
