The developers plan to create affordable housing at that site.
Frederick, Md. (KM) A project which increases the affordable housing stock in Frederick moved a step closer to reality Thursday night. In a unanimous vote, the Board of Aldermen approved a Payment in Lieu of Taxes arrangement for 520 North Market Street.
Joe Adkins with the City Planning Department says the developer plans to renovate the building at that site into 59 housing units “with 90% of the units for certain families with incomes at 60% of the area mean income or lower. And that would be 53 affordable units and six market rate units.”
Under a PILOT program, the owner would make certain payments to the city in place of property taxes. “Under financial impact based on the estimated of assessed value after the rehabilitation construction from the developer, the estimated reduction in revenue to the city in the first year will approximately be $3800,” says Adkins.
Alderman Michael O’Connor welcomed this project. “I look at this as an opportunity to achieve the so-called win-win. We’re going to start to drive a little bit of revenue off of a product. But it’s going to produce much needed affordable housing, workforce housing in the city,” he said.
The property was sold last year by the county to the Interfaith Housing Alliance in order to develop affordable housing.
PIRHL Developers, LLC will renovate the building. “We expect to break ground hopefully mid to late September if all goes well,” says C.J. Terry, with PIRHL. “We have about a 14-month construction schedule so we should be delivering this units in November of 2017. And we expect to be leased up the day we open the door. There’s a great demand for this product.”
The Frederick County Council on Monday approved a PILOT program for 520 North Market Street.