MHP Purchases Apartment Community in Twinbrook
Oct 7, 2009 8:04 - 14 Comments
On September 24, 2009, Montgomery Housing Partnership (MHP) purchased Halpine Hamlet, a 67-unit garden apartment community on Twinbrook Parkway (and across the street from Rockville city limits). MHP paid $5.9 million to the Slavin family of Bethesda and received financing from the M&T Bank, The Housing Partnership Network, NeighborWorks Capital and MHP equity.
With the planned development of the 2.2 million square foot Twinbrook Station, MHP was concerned that housing prices in this area would increase and force many low-and-moderate-income families out of the market. MHP will now be able to keep this affordable housing within walking distance of the Metro and retail stores.
In their press release, MHP describes their plans for the renovation of the buildings:
MHP is planning a two phase renovation. Phase 1 will begin in October with The Michael Group Contractors replacing 50% of the HVAC units with energy efficient units and replacing the roofs on all buildings. These improvements are expected to be completed in two to three months. The Montgomery County Department of Housing and Community Affairs is providing financing for this work.
Phase 2 renovations, which are anticipated to begin in 2011, will include new kitchens and baths, new windows and doors, and the balance of the HVAC units will be replaced. MHP will integrate many of Enterprise’s Green Communities Criteria into Halpine Hamlet’s buildings including energy efficient appliances and lighting to reduce electricity consumption, energy efficient windows and doors to reduce energy loss, low-flow toilets and plumbing fixtures to reduce water consumption, environmentally friendly paints and floor coverings, and landscaping with native plants.
In Rockville, MHP, a private nonprofit housing development organization, already owns Beall’s Grant on North Washington Street and has been planning a second building on the site amidst protest from some in the neighborhood. When I worked for them 17 years ago, we were concerned about preserving existing affordable apartment communities, so this is welcome news on the east side of Rockville.
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I cannot give my name or I might be sued by Montgomery Housing Partnership (MHP) or one of their subsidiaries, but I have a different view of MHP. In the past, I saw MHP begin eviction proceedings against several low-income tenants, on different occasions, who fell behind in their rent only one month. They were merciless. While MHP is technically a “non-profit” business, make no mistake about it — making money is their highest priority, not providing affordable housing.
I call BS as far as being sued. Has MHP ever sued anyone for making a public statement, or for slander? There are plenty of apartment-rating websites where you can go post whatever feedback you want, and I don’t know of any cases where that’s resulted in retribution.
As a resident of Bealls Grant (an MHP property), I have no doubt that they do begin the eviction process almost immediately once the rent is technical in arrears, and that’s their right. It says so in the lease, and their management is very explicit that the rent needs to be paid on time. I’m fortunate that I’ve not yet been in that position, and I’m sure that they would be very businesslike and unsentimental in that scenario.
There’s a difference between making money, and making an obscene profit. MHP still needs to pay property taxes and mortgages on their buildings, and utilities, and salaries of their management and maintenance staffs. They don’t have the luxury of giving away free rent.
Several other points should be noted:
- MHP’s rentals have extremely low turnover rates, and very high retention rates. People who live here realize it’s a good place, and we want to stay. Most of my fellow tenants at Bealls Grant have been here for 10 or more years.
- MHP doesn’t raise the rents annually at greedy rates. I just got my annual renewal letter, and it’s less than 4%. When I was living at a rental complex for over 10 years managed by Grady Management, they would increase it at least 3 or 4 percent ABOVE the county’s recommended rates (often at 7 or 8% a year), and then just laughed in my face when I told them that they should give me a break because I was a loyal long-term tenant.
- The contemptuous attitude I encountered from Grady Management’s employees was 180 degrees different from what I’m experiencing with MHP.
- I know for a fact that MHP does try to work with folks who are having a financial tough time. As for how much they should be expected to “slack off”, I don’t know - that’s a call that no one can make unless they’re intimately involved with the individual case.
If you know of a case where MHP treated someone really shabbily, I’d like to know about it. Perhaps you could cite a legal case#, anonymously of course.
For you to attribute the motives of all of MHP’s employees and management to sheer greed is ridiculous. You don’t know what their motivations are, but I am certain that there are far easier ways to make a lot of money than to own and operate rental housing. If it was such a lucrative field, then investors would be falling all over themselves to do it, and we’d have a surplus of affordable housing. Instead, it’s an extremely scarce resource, since it’s far easier and vastly more profitable to be a real estate developer and sell housing instead of building and maintaining rentals on a long-term basis.
To Ms. Blalock:
No, I doubt if Montgomery Housing Partnership (MHP) has sued anyone for libel; it would look bad for them to do that. However, I don’t want my name known, because it would compromise my career and put others and other agencies with whom I have worked in jeopardy.
Yes, there is a market for everything, including rental real estate. The cases I’m citing did not go to court, because other third parties, who I cannot name because I am concerned about retaliation against these third parties could affect their work, intervened on the renters’ behalves. These renters fell behind, because they lost their jobs or had the hours at their jobs severly cut back, through no fault of their own. I saw no effort, whatsoever, on the part of MHP to work with these renters.
MHP gets some of its funding and/or loans from the County’s Housing Opportunity Commission, whose mission is to help low-incomes or homeless people with housing. To me, what MHP was doing went directly against what the Housing Opportunitiy Commission’s mission is.
I have no problem with a business making money; what I have a problem with is a supposedly “non-profit” organization, using County tax dollars, which is supposed to help low income and homeless people, not work with them when they hit hard times.
This is not even to mention Montgomery Housing Partnership’s policy about not renting or renting very, very few of its apartments to homeless people, who are working with professionals at homeless agencies in the County, to better themselves, until they get on their feet. In my experience, MHP wants people who have the means to pay their full rent, right now, regardless of their situation, regardless of whether or not they are being helped by professionals in the County’s homeless agencies. To me, this is compassionless.
With MHP, if you can pay your rent, which I found really isn’t very much below market rent, for the QUALITY of housing they provide, you’re fine. If you hit hard times, though, watch out; you’ll be on the street in short order — doesn’t sound like a helping “non-profit” organization to me.
I suspect the “truthiness” and the motives of anyone who won’t post using their real name and attacks people and organizations.
You should give up smearing MHP; it didn’t work before; it’s not going to work now. There was no “community victory,” so you should quit celebrating.
I, for one, am thrilled MHP acquired property outside of Rockville after the shabby way they were treated by some members of the current city council.
See you both on Wednesday, “MJ.”
Landlords do need to file for eviction right away because it takes a couple of months to actually evict. If it is not done in a timely manner, the loss of income from an apartment (or several at a time) can become quite substantial. An eviction notice triggers services, especially rental assistance, from agencies that help families in dire circumstances. There are safety nets in place on both the City and County levels.
In a mixed-income community, the profit from the market-rate units is pumped back into the community to subsidize the rents of the lower-income apartments. This scatters the lower-income apartments so the development cannot be referred to as a “massing” of lower-income apartments in one location. This doesn’t allow for a profit or “extra money” to subsidize the rents any further than what is budgeted — no matter what the circumstance.
Allowing people to live rent free would require a funding source. The money has to come from someplace.
Advocates for the homeless and others living at the poverty level would love to see everyone on the wait list obtain a housing voucher. That’s how they will all get an affordable, decent place to live. I don’t expect landlords to provide free rental units no matter what their tax status. We need more funding for housing vouchers.
I have been on record several times at Human Service Advisory Commission meetings making sure that we are not putting people out onto the street with their possessions in Rockville. Although this is rare, I do not want to ever see it happen again. Services are provided when people seek assistance but not by the landlords.
To Ms. Delfino #4, Mr. Cotte Griffiths #5, Ms. Blalock #2 and any other interested readers :
I have explained already why I cannot use my real name, on this Reply. It would compromise my career, and, more import importantly, put agencies and people in them, or who have worked for them, in jeopardy. Ms. Blalock suggested, in Reply #2, that I provide case numbers to authenticate what I wrote. This would reveal the identity of renters and violate their confidentiality privileges, which the renters have given to me and to the agencies for which I have worked, and this would be even worse and against the law and ethics of my profession. I also said that the cases did not go to court, because of third party interventions by agencies, which help people who are about to become homeless or who are homeless.
While Ms. Cotte Griffin is correct that services are not provided by landlords, the cases to which I am referring were joint ventures with Montgomery Housing Partnership (MHP) and professional homeless-helping agencie(s). Because the cases were joint ventures with these rental clients, yes, we did expect MHP to use some collaborative help about these renter’s situation; however, it was not there. While I realize it takes several months to evict someone, a phone call or a meeting with MHP to help resolve these situations would have been very helpful. It, too, was not there when asked for and when needed.
No, Ms. Delfino, I am not celebrating some sort of “community victory,” believe me. I don’t know what you mean by “community victory,” in this context, for one thing. I do know that many times I have been n despair at the plight of low-income and people who were about to become homeless or homeless, without it being their “fault.” People love to establish blame. “It’s their fault for losing thier job,” is often said when people don’t know the full story and don’t want to feel any of the pain the other people are going through. This is not what I am writing about. I am writing, from my personal experience, and some of it is wrenching emotionally, if you put yourself in another hurting person’s shoes rather than try to judge the person.
Rockville probably is the most fortunate City/jurisdiction/district in the County, as far as helping low-income and people who are homeless, although I have not worked here, in that capacity. Rockville has Rockville Community Ministries, Montgomery County Coalition for the Homeless, and Community Ministries of Montgomery County. My hope is that MHP will be part of the low-income and homeless solution for the Rockville area. They are huge; and they have the means by which to be helpful While I realize MHP needs to have enough money coming in to stay afloat, I hope they have the commitment to be helpful and place that above bringing in more money, since they are a “non profit.”
I still don’t see any legitimate beef you have with MHP or what you hope to accomplish by repeating your feelings here.
Any actions you feel MHP has taken wrongly should be directed to MHP…
I’m not sure where you live or what you know about Rockville, but if you think the Lexus-BMW-er Landrover types who tried to beat down BGII would EVER allow homeless people to live near them…I’ve got a bridge to sell you.
Sounds like a good plan. I mean, they seem like they do things well.
What’s the deal again….earn $40k or less per year and you’re eligible - earn $40,001 per year and you get to go look for market rate housing. Yeah, I’d give up a few bucks a year to get half-price rent if given the option.
I’ve helped run some rental houses in my family in the past. Between the maintenance and the rent-collecting, its a real pain in the rear. So I can’t fault them for taking action when the rent is missed. These things take months to get resolved, and once most people get a month free out it, they’re gone anyway. No, not everyone of course is a crook. But I was amazed though at the stories I’d hear about why the rent wasn’t available on time. They were always fantastic stories, and I even believed them myself sometimes.
My concern is that MHP’s business model seems to rely on tax handouts to be profitable. At a time when those sorts of tax handouts might not be around so much when the State is looking to tighten its belt without raising our already-high taxation.
The situation being what it is, I would sell the BG2 property and use that cash to buy more of these existing complexes for renovation…no more fighting over heights or setbacks, and no more need for a letter of support. Maybe the market isn’t right for that, or anything else, right now though.
“My concern is that MHP’s business model seems to rely on tax handouts to be profitable. At a time when those sorts of tax handouts might not be around so much when the State is looking to tighten its belt without raising our already-high taxation.
The situation being what it is, I would sell the BG2 property and use that cash to buy more of these existing complexes for renovation…no more fighting over heights or setbacks, and no more need for a letter of support. Maybe the market isn’t right for that, or anything else, right now though.”
tax “handouts?” did you read cindy’s description of the funding? where is the “handout?” they are seeking tax CREDITS for BGII and the new purchase is with loans.
as far as selling, have you ever seen the land BGII would be on? who would buy that?
it’s a very odd shape with no street access, next to BGI and sandwiched between an aging funeral home and a street of mostly small, ill-kept homes. and i don’t think they even can sell it because of covenants on the land, and they are committed to building there. why else would they have put up with the battering they have received?
the farce is that the people who have fought BGII have pretended that they were doing this to “preserve” the lifestyle of the people on n. adams.
they have done nothing to improve the lot of those residents or that street. they should have launched a committee to revitalize north adams. they should have gotten resources to clean that area up.
why not ask the candidates-bridget newton in particular-why she hasn’t done that.
so for a year now the neighbors have looked into a decrepit, moldy building and an empty lot, where there could have been a new building with wonderful amenities that maybe they might even have wanted to live in.
a building that might have inspired them to take care of their properties or had their landlords do it.
it’s time for the smears to stop. for the disinformation misinformation to end.
want to see what’s being planned for BGII? have a conversation based on facts?
i doubt it…but if so, go to the meeting on wednesday in the cafeteria of of the old executive buiilding. 7 pm.
To Ms. Delfino in her Replies #7 and #4:
In #7: We did take our complaints directly to Montgomery Housing Partnership (MHP); it did not change their stance.
I don’t drive a Lexus or a BMW — far from them, thank you.
Also, I am not talking about BGII, here. That is a totally different issue. I support low-income housing. What I am writing about is MHP not being a “knight in shining armor” whose motives are as pure as some people seem to think. I have had experience with them, and I think their status as a “non-profit” housing agency that cares about the well-being of its residents has been exaggerated and is questionable, based on what I and others, with whom I have worked, have personally observed.
In your Reply #4, you wrote that you did not trust anyone who did not leave her/his name. I have written why I did not leave mine. To trust me or not is your choice. However, on this website, every day there are a number of people who leave only their first name or only their initials, without any explanation as to why they do not leave their name. Also, people still leave their name as “Anonymous,” even though it’s the policy of this website for them not to do so. I would prefer to leave my name, but I have given several valid reasons, in my Replies, to this News, as to why I cannot. But to attack me for not giving my name, when I have written several reasons why I cannot and others do the same thing and do not give any reason seems unfair — but that too is your choice, of course and I am not troubled by it. I just want to explain that you seem to have a double standard with me on this.
MJ-i am not attacking you about not using your name; you repeated your response to #4 and i never said anything further about you not using your name.
there is no L in my last name.
My initial reaction when someone claims to be so fearful that they must hide in anonymity is skepticism, especially when one claims possible vicious retribution. However, when one is making provocative and inflammatory charges against an organization and challenges their ethics and integrity, then possibly there may be a valid reason to stay anonymous. “mj”, you claim to have a tremendous amount of information about MHP: intricate details about their business deals and their interactions with tenant negotiations, about their relationships with city and county agencies, and a full breakdown of the demographics of their tenants and the incomes of those tenants. As someone who’s publicly identified myself as an MHP tenant, I’m a bit concerned as to how much access you may or may not have to my own personal economic information, and what you’re willing to do with that data to further your agenda.
The fact is unequivocal that MHP is a non-profit organization: their charter is such, their finances are publicly available, and they have been certified as such. Their stated purpose is to provide “affordable” housing, and they have a record of many, many years of doing so. No one can dispute that, and if you have information that they are surreptitiously funneling billions of dollars to Swiss bank accounts, then please do us all a favor and disclose that fact to the appropriate authorities ASAP.
All of the candidates for Mayor and City Council have publicly stated that they “support affordable housing”. Whether or not they do genuinely feel that way, or are just shamelessly pandering to that sentiment, is up to the judgment of the voters. Unfortunately, there are very, very few organizations that are making any effort at all to actually try to PROVIDE that affordable housing, and MHP is practically the only one that I know of. I’m very grateful that they exist, that they turned Bealls Grant from a sleazy motel into a liveable place, and that they continue to prevail despite the relentless attacks to which they are subjected.
To Ms. Blalock in your Reply #12:
I am sorry that I have not written clearly enough, in my previous Replies, for you to understand what I am writing, and it is getting distorted and exaggerated as a result. I do not have any information AT ALL about you or ANY of your personal financial information, or, as you wrote “a full breakout of Montgomery Housing Partnership’s tenants, their intricate details about their business deals and their interactions with tenant negotiations, about their relationships with city and county agencies, and a full breakdown of the demographics of their tenants and the incomes of those tenants.” I seriously doubt if any one individual has that much information and that kind of information, including Montgomery Housing Partnership’s President or their Chair of their Board. I certainly do not have that kind of information; there would be no reason for Montgomery Housing Partnership to give me that kind of information and I would have no need of it, anyway.
I simply have the information and experience, which I tried to write about clearly in my Replies #1, #2, #6, and #10; it appears that my Replies were not clear, though. Let me try, again, in this Reply, with the above and what follows.
I am not accusing Montgomery Housing Partnership (MHP) of any criminal activity whatsoever. In the Replies #1, #2, #6 and #10, I have wrote to explain some of the information I have about MHP, some of the experience I have had with MHP, what my opinion is regarding some of MHP’s actions, and what those actions have led me to believe are some of MHP’s motives, which I personally find objectionable. Again, I am sorry what I have written, in my previous Replies, was not understood clearly.
As the comments have run their course and become repetitive, I’m closing down the comments on this post.