Three nonprofit developers are now receiving a boost to their affordable homeownership work with the support of New Markets Tax Credits (NMTCs) provided by Harbor Bankshares Corporation. The $12,000,000 NMTC transaction that closed on April 3, 2025, will result in the development of 54 for-sale homes by Habitat for Humanity of the Chesapeake in Maryland, Habitat for Humanity of Wake County in North Carolina, and Neighborhood Housing Services of Baltimore in Maryland. Each nonprofit housing developer is receiving a $4 million NMTC-funded loan, supported also by U.S. Bancorp Community Development Corporation as the NMTC investor. Smith NMTC Associates, LLC facilitated the closing to maximize the project’s community benefits, provides the recapture guaranty, and will work closely with each project on compliance and impact reporting over the 7-year compliance period.

Homeownership is Economic Development

In addition to providing quality, affordable homeownership opportunities that support household stability and intergenerational wealth creation, the communities in which these projects are located benefit economically:

• Building and rehabbing homes for sale creates construction jobs and training opportunities, and bolsters businesses that support the construction industry.
• Quality affordable housing is necessary for workforce development – businesses and companies need housing for their employees.
• The construction and sale of homes improves the local economy through job creation, construction fees, property and sales taxes, and consumer spending because homeowners generally have more discretionary income than renters.
• Home equity is the largest asset households can leverage to start businesses, invest in training or higher education, and prepare for financial emergencies.
• Homeownership contributes toward better health and education outcomes, especially for children; and homeownership also promotes civic and social engagement.

Historic Infill Across Baltimore

Habitat for Humanity of the Chesapeake, Inc. will develop 17 single-family homes through new construction and acquisition/rehab across five areas of Baltimore, Maryland: Orchard Ridge, Church Street, Milton Montford, Sandtown, and Pen Lucy. Being developed in partnership with local groups like Historic East Baltimore Community Action Coalition, these two- and three-bedroom homes will provide affordable homeownership opportunities for low-income households, remove blight by rehabbing vacant properties, and strengthen communities by providing high-quality affordable housing near important amenities like schools, parks and hospitals.

New Homes Provide Families with Lots of Space & Value

Habitat for Humanity of Wake County, Inc. will develop 24 new homes in two communities: Flowers Place in Johnston County and Stone Creek in Wake County. The 3-bedroom Flowers Place homes will provide affordable homeownership options in an area that is experiencing rapid growth, and plenty of space for homebuyer families. This community will also have a playground for the children in the neighborhood. Stone Creek is a rural neighborhood where the homes sit on larger lots for homeowners to enjoy. In Johnston and Wake Counties, 1 in 4 families are burdened by housing costs, meaning they spend over 30% of their income on housing. This strains their ability to afford necessities like food, transportation, education, and healthcare. Worker wages, including those of elementary school teachers, childcare workers and firefighters, are insufficient to cover housing expenses. To help address the critical need for affordable housing in these communities, all of the 24 homes will be sold affordably to buyers who earn 80% AMI or below.

Revitalizing a Neighborhood Block by Block

Neighborhood Housing Services of Baltimore (MD) will acquire and rehab 13 historic single-family rowhomes in a community that has been identified as a pivotal location for redevelopment (with poverty rates as high as 39.80% and unemployment rates as high as 4.02x the national average). Over the past 18 months, NHS Baltimore has worked with Baltimore City on a whole block acquisition strategy for the target block of this project in the Robert W. Coleman neighborhood. This for-sale housing development is a continuation of prior NMTC-supported work by NHS Baltimore to stabilize and revitalize a historically disinvested area of Baltimore that continues to attract new residents due to its desirable location near Coppin State University and Baltimore City Community College, parks and green space, and public transportation.

About HBC

The Harbor Bankshares Corporation (HBC) is a diversified bank holding company which provides access to capital, financial services, and community development resources. HBC has deployed over $250 million of NMTC allocation to diverse projects that include schools, health centers, food access, and affordable homeownership.