Maryland Department of Housing and Community Development Issues First Sustainability Bonds in Agency’s History
Maryland Department of Housing and Community Development Issues First Sustainability Bonds in
Will support energy efficient affordable housing in Frederick County
NEW CARROLLTON, Md. (June 24, 2021) – Maryland Department of Housing and Community Development Secretary Kenneth C. Holt announced the issuance of the first ever ‘Sustainability Bonds’ to be sold by the department. The department’s bond-issuing entity, the Community Development Administration, issued approximately $13.6 million in Sustainability Bonds; proceeds of the bond sale will support energy efficient affordable housing in Frederick County.
“Under Governor Hogan’s leadership, the Community Development Administration’s innovative financing tools have supported the creation and preservation of more than 22,000 affordable units statewide over the course of this administration,” said Secretary Holt. “These Sustainability Bonds are a new tool in the toolbox that will benefit the environment as well as residents who can expect lower energy bills and high-quality, affordable housing.”
The Sustainability Bonds designation combines green and energy efficiency elements alongside social factors including the low and moderate income population served by the department. The inaugural project financed with the proceeds of the Sustainability Bonds is Hamilton Station in Frederick, Md. Hamilton Station will feature the new construction of 80 affordable units in five three-story buildings. All units are expected to be reserved for households at or below 60% of area median income. Expected green building standards and features include Energy Star Certification; National Green Building Standards: Bronze Certification; Energy Star windows, appliances, and light fixtures; EPA WaterSense faucets and fixtures; and high efficiency 15-SEER mechanical systems. In addition to the Sustainability Bonds financing, the department is supporting the project with an allocation of federal Low Income Housing Tax Credits and a Rental Housing Works loan.
Both institutional and individual investors are increasingly interested in using their investable dollars to purchase bonds that finance projects that are better for the environment and help to build strong communities. Through the issuance of Sustainability Bonds, the department is providing investors with an opportunity to make an impactful investment decision.
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Sara Luell, Director of Public Information
Emily Allen Lucht, Director of Communications