The Housing Investment Trust Fund (HITF), established through CB-21-2012, and amended in CB-57-2017, serves as a vehicle to provide Workforce Housing Gap Financing with an emphasis on supporting the development of new construction, rehabilitation and preservation of existing workforce and affordable housing while targeting households earning up to 120% of the area median income (AMI).
On March 30, 2021, the County Council enacted CB-004-2021, which established a sustainable source of funding for the Housing Investment Trust Fund by reallocating a certain percentage of the County’s recordation taxes to provide support for the fund; requiring certain financing for the fund.
DHCD will apply the underwriting guidance and procedures for the HOME program to the HITF; however, where necessary, exceptions or specific points of departure may be applied to HITF underwriting criteria at the discretion of the DHCD Director.
Additionally, projects may be assisted with both HOME and HITF funds; however, HOME and HITF funds may not be used for the same unit.
Here’s an example of a real estate developer utilizing the Housing Investment Trust Fund together with a Payment In Lieu of Taxes (PILOT):
The Villas at Langley ownership is carrying out a capital improvement project to remedy deferred maintenance items. Inclusive of the original $87,500,000 acquisition price, the total cost of acquiring the Villas at Langley and carrying out needed repairs will total $108,184,556. The Developer is applying for a Prince George’s County payment in lieu of taxes (“PILOT”) and a Housing Investment Trust Fund (“HITF”) loan since these subsidies will allow half the Project’s units to be rent-restricted and ensure the Project is able to adequately service its debt and equity capital. This additionally permits affordability preservation since the rents for the affordable units can be increased more gradually as existing leases expire and the market shows a demand for units at a higher price point.