Compounding Interests, Compounding Inequities


Palmer Park Meadows

Landover, MD

Housing Initiative Partnership (HIP) is a nonprofit housing developer and counseling agency based in Prince George's County. In 2015, HIP purchased a small parcel of land from the County Housing Authority in an existing, inner-beltway community called Palmer Park, surrounded by attached homes, a shopping center, and an affordable senior rental community. Consistent with the style of the community, HIP designed nine townhomes for sale to first-time homebuyers earning 80% or less of AMI. Homes are approximately 1,600 square feet with three bedrooms, 2.5 bathrooms, basement, and an open, modern floor plan. Homes will be highly energy efficient and sustainable with Net Zero Ready, Energy Star, Indoor Air Plus, and Water Sense Certifications.

The homes’ contract price is $330,000. To maintain affordability, the homebuyer will finance $265,000 and HIP provides a $65,000 2nd deed of trust for 15 years at 0% interest, no monthly payment, and due upon sale or transfer of the home. In years 6 through 15 the principal reduces until it is fully forgiven by year 15. This allows homeowners to purchase a high-quality home while building equity over time. Citi Mortgage offered purchasers a conventional mortgage with competitive rates, no PMI, and a $5,000 grant toward downpayment/closing costs. All purchasers completed a HUD-approved homebuyer education class as well as an individual appointment with a HIP counselor prior to closing on the home. All nine homes are under contract and will settle by September 30, 2020.

Palmer Park Meadows received significant financial support from Prince George’s County Housing Department’s HOME funds, Maryland DHCD’s Community Legacy, National Capital Economic Development Fund (NED), and Operating Assistance Grants, and the National Fair Housing Alliance. CityFirst Bank provided construction financing. ZAD is the architect, UrbanBuilt the general contractor, PANDO the energy rater, and Applied Civil Engineering the civil engineer.

The Maycroft

Washington, DC

Affordable Housing

  • Originally built in 1923, renovations completed in 2018
  • 64 units of deeply affordable housing available to families and individuals—two-thirds earning 30% of the area’s median income (AMI) or less.
    • 16 original residents will remain in new, refurbished units
    • 4 units will be reserved as Permanent Supportive Housing for formerly homeless residents.

Green Housing

  • Green Communities compliant - New energy efficient roof, solar panels, and a bike room.
  • In partnership with NP Solar, energy credits will be generated from community solar panels on the Maycroft roof and installations around DC, up to $50,000 per year in aggregate, decreasing the utility bills of Jubilee’s most rent burdened residents.
  • Pilots a resiliency program in partnership with Pepco that includes a battery storage system to help operate key functions in the event of extended power loss.

Community Housing

  • Martha’s Table will operate Healthy Start, an early childhood development center at the Maycroft, a Lobby Market, where families can pick up healthy food at no cost, and McKenna’s Wagon food truck, which prepares and delivers hot meals to hungry, homeless individuals at three DC locations 365 days year.
  • Jubilee Housing will offer a Teen Drop-In Center and Porter Room community space.
  • Maycroft residents and Martha’s Table will share access to a playground on the property.
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