More than 4,100 Rental Homes to Remain Affordable through Enterprise Homes’ Purchase of The Shelter Group’s Affordable Housing Portfolio
Acquisition to triple the size of properties owned by Enterprise Homes, positioning the company as a leading developer and owner of affordable housing in the Mid-Atlantic
BALTIMORE – Aug. 2, 2017 – More than 4,100 rental homes will remain affordable to low-income residents in Maryland, Pennsylvania and Virginia through the acquisition by Enterprise Homes of a portfolio of The Shelter Group’s affordable housing properties in the mid-Atlantic. The acquisition by Enterprise Homes, a nonprofit affordable housing developer affiliated with the Enterprise Community Partners family of companies (Enterprise), is a significant move toward achieving Enterprise’s goal of ending housing insecurity nationwide.
The 4,153 apartments are located in 43 quality properties financed through the Low-Income Housing Tax Credit (Housing Credit), America’s main tool for creating and preserving homes affordable to low-income families, seniors, veterans and people with special needs. The Shelter Group and Enterprise Homes signed a contract in September 2016, and the transaction closed on Aug. 1, tripling the number of properties owned by Enterprise Homes and adding approximately 175 employees to its staff.
“We cannot think of a better steward than Enterprise to both oversee and grow the portfolio that we helped build with years of hard work and dedication, as well as maintain its affordability for the residents of our communities,” said Jeffrey Hettleman, executive vice president at The Shelter Group.
“The quality of the Shelter Group’s affordable housing portfolio, their excellent management of the properties, the geographic location and alignment with Enterprise’s mission made this a very special and attractive opportunity,” said Chickie Grayson, president & CEO of Enterprise Homes. “It enables us to preserve the affordability of thousands of homes and strengthens our ability to serve more residents and communities across the mid-Atlantic.”
When Housing Credit properties meet federal and state requirements for the number of years they must remain affordable, they are at risk of conversion to market-rate apartments. The conversion can lead to rising rents, which can displace long-time tenants, exacerbating growing housing insecurity across the country.
The U.S. faces worsening housing insecurity challenges, with nearly 19 million low-income families who are homeless or paying at least half of their monthly income on housing. Enterprise’s goal is to end housing insecurity in the U.S within a generation. Any serious solution to housing insecurity must involve increasing the supply of affordable homes through both new construction and the preservation of existing properties. Enterprise Homes’ acquisition of The Shelter Group’s affordable housing portfolio is a bold step toward the affordable preservation of thousands of homes.
As part of the acquisition, Enterprise Homes plans to continuously preserve the affordability of the 43 properties in the portfolio, offering tenants stable, affordable rental homes over the long term. Seventy-five percent of residents in properties within the Shelter portfolio are seniors. Preservation of housing for seniors is especially critical since many states do not fund it, little new construction has occurred in recent years and the senior population is projected to more than double to 98 million in 2060, according to a recent report from the Administration for Community Living.
Enterprise Homes, based in Baltimore, is a developer that creates thoughtfully planned, quality, mixed-income communities throughout the mid-Atlantic region. With the acquisition, its communities total more than 7,000 homes and rental residences for families and seniors.
Enterprise is a proven and powerful nonprofit that improves communities and people’s lives by making well-designed homes affordable. We bring together the nationwide know-how, partners, policy leadership and investments to multiply the impact of local affordable housing development. Over 35 years, Enterprise has created nearly 470,000 homes, invested $28.9 billion and touched millions of lives.
Over more than three decades, Enterprise Homes, Inc. has earned an unparalleled reputation for creating thoughtfully-planned communities that deliver exceptional value and quality of life. Enterprise Homes has developed communities that include more than 6,600 homes throughout the mid-Atlantic Region. Join us at www.EnterpriseHomes.com.
The Shelter Group is a national real estate development and property management company specializing in multi-family and senior living communities. A leader in its industry, Shelter has developed and acquired a real estate portfolio totaling over $2 billion.