Harford County and Maryland governments are involved in heavily subsidizing a planned housing development in Perryman that will cater to low- and moderate-income senior citizens.

The new development, called Perryman Station, will be built in the same neighborhood as one of Harford County’s most troubled low-income housing complexes. The developer is getting a tax break from Harford County and other incentives, including financing breaks from the state of Maryland and the federal government.

Despite the expected income restrictions on those who can live in the new development, supporters say Perryman Station will support the area’s BRAC-related needs.

Perryman Station will be at 1220 Perryman Road on nearly eight acres. Its development and construction cost is estimated at $14.5 million.

The development will consist of 80 units in three-story apartment buildings, including 37 one-bedroom and 43 two-bedroom units. Construction is due to begin this winter.

“I think it serves a need of local seniors in the area to have a quality affordable housing option in Harford County,” Stephen Moore, vice president of Stavrou Companies, the developer of the project, said in an interview last month.

Harford County Councilwoman Mary Ann Lisanti, whose district includes Perryman Station, agrees with Moore.

“It’s affordable senior housing and time and time again, that is a demand that we keep hearing,” Lisanti said. “There’s a large population of elderly folks who need to change their living arrangements and, unfortunately, the opportunities for that in Harford County are very limited.”

The development will include such amenities as a parlor, billiards room, cyber cafe, library, exercise room, art studio, sports lounge, greenhouse, yoga room and hospitality suite for visiting guests.

“Really our philosophy is we want the seniors to have an extremely active lifestyle by using these amenities and an extremely social lifestyle,” Moore said.

Harford Community Action Agency, a nonprofit organization, will provide services, such as bus trips and activities on site.

“It’s really for seniors who don’t want to take care of their home anymore,” Moore said. “It’s a low-maintenance option for them.”

The design for Perryman Station will also include the historic house on the property, which was acquired from a private owner, and will be used for office space and conference rooms, Moore said.

“We’re also trying to be as environmentally-conscious as possible,” Moore said. “We have all new energy-efficient appliances to keep energy consumption and costs low.”

Income restrictions

The Perryman Station units will be available for households with at least one resident 62 years or older with incomes at or below 60 percent of the Area Median Income, or $19,700 to $39,420 for a two-person household.

Rent for the units will be determined according to the tenant’s income level, according to Patricia Rynn Sylvester, director of Multifamily Housing for the Maryland Department of Housing and Community Development.

In some of the restricted occupancy units, residents earning 30 percent of the Area Median Income will pay about $300 per month. The remaining units, with residents who earn between 50 and 60 percent of the Area Median Income, will pay $650 to $736 for a one-bedroom apartment and $650 to $833 for a two-bedroom unit.

“The department works really hard to create affordable housing units throughout the state,” Sylvester said.

With BRAC coming to the area, Sylvester said the department wanted to provide additional incentives for affordable housing.

“It [Perryman Station] will meet the existing need for seniors in Harford County and be positioned to address any future needs in the community as the BRAC impact is felt in Harford County,” Sylvester said.

Enabling BRAC?

Perryman Station serves a two-prong purpose when it comes to BRAC, according to Sylvester.

“Even before, and with BRAC, Harford County established through a market study forecast that 55 percent of seniors were paying more than 30 percent of income for rent,” Sylvester said. “Long before BRAC, there was a need for housing that was more affordable for the existing seniors that are living in Harford County.”

Looking forward, Sylvester also said if some seniors want to stay in Harford County to age, they may leave their existing homes to move into an affordable rental community.

“It opens up affordable housing for younger families coming along,” Sylvester said. “It’s smart growth. You don’t have to keep building something new. They [seniors] can move into something safer that better meets those needs, while opening units for the next families moving in.”

Perryman Station will provide a high quality of living and opportunities for seniors to be safe, Sylvester said.

Government backing

Government programs at several levels are enabling financing for Perryman Station.

Financing for the project includes a first mortgage from Bank of America N.A., for $3,126,900, a $270,643 HOME Loan from Harford County, a $3 million loan under the American Reinvestment Recovery Act, or ARRA, Tax Credit Assistance Program and a $200,000 grant through the state’s Multifamily Energy Efficiency and Housing Affordability Program.

The Maryland Department of Housing and Community Development, or DHCD, also provided more than $816,000 in Low Income Housing Tax Credits, which raised about $5.7 million in private equity through Bank of America N.A.

Jim Richardson, director of Harford County’s office of economic development, said the county has also agreed to reduce the real property tax on the project to lower the cost to the senior residents.

“The reduced taxes is also part of the commitment to supporting the project and for state and federal funding,” Richardson wrote in an e-mail last month. “The county has not and will not put any money into the project other than a reduced real property tax.”

The Harford County Council has already approved a Payment In Lieu Of Taxes, or PILOT, agreement between Harford County and Perryman Station Associates LP. The agreement makes the project exempt from county real property taxes in consideration of Perryman Station Associates’ agreement to pay a negotiated amount each tax year to the county in lieu of county real property taxes.

Perryman Station Associates qualifies for the PILOT agreement because a portion of the construction cost of the project will be financed through a loan by the state, acting by and through the Community Development Administration, a division of the DHCD.

Perryman Station Associates will pay to the county each tax year in lieu of county real property taxes a minimum of $500 per unit per year, with such amounts to increase annually at 3 percent per year beginning in the second calendar year following substantial completion for 15 years as part of the PILOT agreement.

Close to Perrywood Gardens

Perryman Station will be less than a mile from Perrywood Gardens, the troubled low-income housing complex which has been the site of numerous crimes throughout the years, including the murder of Yamar Auntrez Martin, 26, of Edgewood, in May 2009.

In 2009, there were 1,468 calls for service for Perrywood Gardens, according to figures from the Harford County Sheriff’s Office. The calls amounted to 1 percent of the sheriff’s office calls for service last year. In 2008, there were 1,519 calls for service and 752 calls in 2007.

Meanwhile, there were 46 arrests and reports for Perrywood Gardens in 2009, 61 in 2008 and 90 in 2007.

Despite its proximity to Perrywood Gardens, Harford County Sheriff Jesse Bane says the new development is in a “fairly quiet area of the county.”

“Senior housing usually doesn’t present too much of a challenge for us,” Bane said last month. “Usually those communities are very quiet for us, not high-crime communities. It’s in a patrol area and it will become a part of our patrols.”

While the sheriff doesn’t appear to be overly concerned about potential crime at Perryman Station at the moment, he said his office is preparing to monitor the construction site.

“Right now, right offhand, I don’t really see anything that is glaring,” Bane said, adding, “As soon as construction starts, we will be concerned with construction site crime that is usually theft. We will gear up for that.”

With construction expected to begin shortly, the state’s Sylvester said she is eager to see the job creation that will result from the project.

“We’re excited that it’s starting. With construction, it is jobs in this economy, which is very critical for us, and we’re very pleased to have the contractors and developers moving forward,” Sylvester said. “It’s stimulating the housing industry in Harford County and providing housing at the same time.”

Sylvester also said she is eagerly looking forward to the completion of Perryman Station.

“We try to build a quality place any of us would be happy to have our moms and dads live in,” she said. “I’m looking forward to that quality opportunity.”

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