Enterprise Community Development Lands Affordable Financing

Nonprofit affordable housing provider Enterprise Community Development has closed financing for the redevelopment of Ranleagh Court and Waverly Winds, two affordable projects in Columbia, Md. The upcoming communities will replace the existing 1960s-built properties and bring a total of 205 new units online.

Ranleagh Court and Waverly Winds will feature a mixed-income model, with one-third of units reserved for the lowest-income residents, one-third allocated for workforce housing and one-third available at market rate.

Both properties were previously under Community Homes Housing Inc.’s ownership, a Howard County-based nonprofit organization. The former owner contributed to the project with $14 million through favorable seller financing and additional support through its affordable housing fund.

Ranleagh Court

The developer will replace a 41-unit asset with Ranleagh Court, set to encompass 82 new apartment homes in a four-story building. The units will have one- to four-bedroom layouts. Shared amenities will include access to a clubroom, after-school homework space, business center, fitness center, a playground and a dog park. The project will also improve the community’s accessibility, with all units visitable and 5 percent of them built to comply with UFAS standards.

Enterprise Community Development obtained $47.9 million in financing for Ranleagh Court, through a combination of public and private investment. JPMorgan contributed with $21.4 million in short-term bonds and M&T Realty Capital Corporation with a $13 million HUD 221(d)(4) permanent loan. Moreover, the project benefited from $13.04 million in LIHTC and Section 45L and Investment Tax Credit equity syndicated by Enterprise’s housing credit investments business.

Rental Housing Works financed the redevelopment with an additional $3 million soft loan from the Maryland Community Development Administration. This was supplemented by a $5.5 million grant from Howard County’s Housing Opportunities Trust Fund and MIHU Fee In Lieu program, $2.8 million in loan funds through HUD’s Section 108 Loan Guarantee Program, $850,000 in Congressionally directed Community Project Funding, and project-based rental assistance contracts supporting 29 units.

Waverly Winds

Enterprise Community will redevelop the other existing asset into Waverly Winds, planned to encompass 123 units across two four-story buildings. The units will feature one- to four-bedroom floorplans. On-site amenities will include a resident lounge, business center with co-working space, fitness center, outdoor patio, and playground.

The project is structured using both 4 percent and 9 percent LIHTC, with equity provided through syndication by Enterprise’s housing credit investments business. The 4 percent LIHTC portion of the project will be certified by Enterprise Green Communities, while the 9 percent portion will be built to meet the Department of Energy Zero Energy Ready Homes standards. Both buildings will include rooftop solar arrays.

The developer obtained financing for Waverly Winds through a similar combination of private and public sources, totaling $64.2 million. Bank of America originated a $32.2 million construction loan; Bellwether Enterprise issued a $18.3 million permanent first mortgage and the Maryland Community Development Administration’s Housing Trust Fund and Rental Housing Works programs provided and additional $4.6 million. Howard County’s Housing Opportunities Trust Fund and MIHU Fee In Lieu programs contributed with $4.8 million, while HUD’s Section 108 Loan Guarantee Program originated loans totaling $3 million, in collaboration with Howard County.

Affordable housing completions are expected to peak at 78,377 units this year, marking a 12.6 percent increase from 2024, according to a recent Yardi Matrix National Affordable Housing Report. Despite this record, the U.S. still faces a significant shortage of affordable housing, estimated at over 7 million units.