State awards demolition money for Newtowne 20 redevelopment

The state on Monday approved $350,000 toward the Newtowne 20 redevelopment project, to get underway next year.

Maryland Department of Housing and Community Development Secretary Kenneth C. Holt announced the award as a part of the Strategic Demolition Fund, established to help promote economic growth and job production.

“We’re really excited,” said Eileen Neely, chief financial officer of the Housing Authority of the City of Annapolis. “I think this is the first step toward moving forward on our plans to fully redevelop Newtowne. Clearly the state sees this as a priority.”

The award doesn’t cover all the costs of demolition, said HACA development director Francisco Castellanos. But it will cover a sizable chunk — about 50 percent.

Earlier this month, HACA CEO Beverly Wilbourn convened a meeting of politicians and community members at Newtowne 20 to discuss support for the project. She also discussed the need for additional financing at a meeting of the Caucus of African American leaders.

The project will cost about $25 million. Officials said the project — which will raze the 78 blighted units and rebuild under the Section 8 voucher model — should be complete in late 2020.

HACA and building partner Pennrose applied for low income housing tax credits to finance the project. The tax credits are highly competitive — about a third to a half of applicants receive the funding. HACA should hear back about its application this month.