FOUNDATION HISTORY

The Foundation, organized in 1990, has since its inception recognized the tax implications being faced by general partners and limited partners in the multifamily industry and has been able to structure creative transactions for current owners seeking exit strategies. Since 1991, the Foundation has been integrally involved in the recapitalization and preservation of over 50,000 units of multifamily housing with transaction values totaling in excess of $2.5 billion. The Foundation, through its 509(a)(3) supporting organizations, has acquired a portfolio of properties in Alabama, Delaware, Illinois, Maryland, Minnesota, New Jersey, Pennsylvania, Virginia, Tennessee and Washington, DC with additional focus now on target markets in California, Kentucky, New York, Oregon, Texas, Washington and West Virginia.

1990

The Foundation was founded by Martin Schwartzberg following his departure from CRI, Inc.  Its prime mission was to focus on the development of various techniques to ensure preservation of the existing inventory of government assisted affordable portfolio.  The Foundation’s initial approach was that solely of a “hands-on think tank” with written proposals and models presented on Capitol Hill and to HUD.

 
1993

The Foundation makes its first direct property acquisitions – Claiborne Place, a 175-unit multifamily Section 8 housing development located in Annapolis, MD and Londonderry Towers, another Section 8 150-unit multifamily housing property located in Gaithersburg, MD.  In recognizing that the Foundation could have a stronger influence on national policy by actually demonstrating preservation capability, these properties were preserved and improved through a commitment to long-term rent affordability, carefully planned renovations and enhanced resident services such as senior health center programs and learning center programs for the younger residents.

 
1995

Three additional properties are acquired in Pennsylvania to aid in the preservation of existing Section 8 assisted properties:  Chemung View, a 100-unit multifamily property located in Athens; Kish Apartments, a 142-unit multifamily property located in Lewistown; and Mount Carmel Apartments, a 100 unit elderly property project located in Mt. Carmel.

 
1997

The Foundation acquired four properties through the Low Income Housing Preservation and Resident Homeownership Act of 1990 (“LIHPRHA”), a program designed to keep owners of older assisted projects from opting out of subsidized mortgages, thereby reducing the number of available affordable housing units. Enacted as part of the National Affordable Housing Act, the law codified steps an owner had to take in order to sell an assisted property or end HUD’s affordability restrictions, provided incentives to owners to remain with HUD’s programs, and gave benefits to nonprofits in purchasing these assets should an owner choose to sell.  The Foundation participated in this legislated program to guide other nonprofits and assisted housing owners in preserving multifamily housing properties utilizing the program’s benefits.  Four affordable multifamily properties were acquired to include Glenarden Apartments, a 153-unit property located in Glenarden, Maryland; Glenreed Apartments, a 105-unit property located in Lanham, Maryland; King Towers Apartments, 129-unit property located in Washington, DC; and Glenview Garden Apartments, a 204-unit property located in Glen Burnie, MD.

 
1998-2010

The Foundation focused its efforts on unlocking the value contained in the Foundation’s portfolio and developing replicable techniques to be used to preserve and improve the national affordable inventory.

The Foundation was at the forefront in the creation of public/private partnerships making additional capital available to preserve affordable housing.  The Foundation also utilized a variety of financial tools and funding sources to include various grants, 4% and 9%  low income housing tax credits, tax exempt bond financing, TCAP funds, real estate tax exemption, NIBP financing, 1602 Exchange funds, weatherization grants, MEEHA grants and the FHLB Affordable Housing Program.

The Foundation continued its commitment to long-term rent affordability, practical and innovative property renovations which included incorporating green building practices, maximizing energy efficiency, and creating or improving resident services.

 
2010-2012

The Foundation has pursued a number of opportunities involving either the direct acquisition of a property or partnering with a local developer to preserve and improve an additional twenty assisted affordable properties comprised of 2,020 units across Alabama, Delaware, Illinois,  Maryland, Minnesota, New Jersey Tennessee, and Virginia.