News

Four Decades to Build 70,000 Affordable Homes? Count That as a Success.

In 1975, New Jersey’s Supreme Court ordered every town in the state to make way for multifamily housing. It’s been a long journey. Read the full article here.

Silver Spring’s Once-Vibrant Downtown Is Stuck In The Past

In late October, Denizens Brewing in Silver Spring poured its last beer of the night for the final time. The suburban Maryland staple had served craft brews for a decade, but when its lease came due, founder Julie Verratti decided she wasn’t willing to commit to another 10 years.
She says her decision to close was fueled by uncertainty — about the neighborhood, about the economy and about consumer behavior. Her uncertainty is a symptom of a larger plague spreading across Silver Spring, where a once-vibrant downtown commercial district is now lined with vacant storefronts and half-empty office buildings. (Full Article).

Gen Z Is Staying In Apartments Longer. Young Developers Might Have A Leg Up In Catering To Their Peers

Jamauri Bogan, a 28-year-old developer in Kalamazoo, Michigan, has a pretty simple strategy for finding out what young apartment tenants want. He calls his friends.
Although the college running back-turned-multifamily developer hopes to avoid calls from his friends about broken sinks and other snafus at his properties, Bogan welcomes feedback about the next steps for his business. Read here.

Lowe’s Foundation Makes Another Big Investment in Skilled Trades Training

The Lowe’s Foundation recently announced nearly $8 million in Gable Grants to a second cohort of community and technical colleges. Since awarding its first grants one year ago, the foundation has assisted in expanding skilled trades career pathways through its growing network of 35 community colleges and nonprofits in rural and urban communities across 27 states. Read Full Article.

Developers break ground on affordable housing project on East Patrick Street

A developer has broken ground on a new affordable-housing development on East Patrick Street. The development, called Overlook East, will include 85 units across three buildings and have capacity for more than 300 people. Scheduled to open in late 2025, it is meant to serve people and families making up to 60% of the area median income. Read more.

The Next Real Estate Trend: ‘Silver Squatters’?

Middle-aged Americans, part of Generation X, say they will need to rely on family for housing help in retirement (but they haven’t told them yet!). Young adult children have spent years relying on funding from the Bank of Mom and Dad, and now their parents say they may soon need to mooch off of them. Read the full article here.

Election-Year Uncertainty Slowing Affordable Housing’s Progress, Advocates Say

Although affordable housing has gained a previously unheard-of amount of visibility at the federal level over the last few years, the realities of Washington, D.C., are tossing cold water on activists’ hopes for quicker change.
The increased attention has not yet translated into action on the bold changes to the funding, creation and preservation of affordable housing nationwide that the sector needs. And with a looming election taking up all the air in most rooms, the wait is likely to stretch even longer. Read more.

Billions In New Investment Could Put Baltimore Back On The Map

Baltimore is undergoing a significant transformation with billions in investments aimed at revitalizing the city. Key projects include a $500 million redevelopment of the Inner Harbor, major stadium renovations, and the $5.5 billion Baltimore Peninsula project. These developments are expected to attract investors, residents, and tourists, but also bring challenges such as housing affordability and congestion. City leaders emphasize the need for new housing and improved public transit to sustain growth and maintain Baltimore’s unique identity (Bisnow).

Housing starts fall to a four-year low

U.S. housing starts have plummeted to a four-year low, signaling potential trouble ahead for the real estate market. The sharp decline in new construction is attributed to rising interest rates, economic uncertainty, and higher material costs. This downturn could impact home affordability and availability, making it a critical moment for prospective buyers and investors to stay informed. (Bisnow).

Input wanted from Carroll residents on affordable and safe housing

Carroll County officials are seeking resident input to improve affordable and safe housing in the area. They are conducting a survey to gather community feedback on housing needs and challenges, aiming to develop better policies. Residents are encouraged to share their experiences and suggestions to help shape future housing strategies.
For more details and to participate in the survey, read the full article on the Baltimore Sun’s website here.

BoA Has Grim News for Homebuyers

Bank of America warns that the U.S. housing market faces prolonged challenges, predicting high prices, limited inventory, and persistently high mortgage rates until at least 2026. Despite slight recent declines in mortgage rates, economists see no immediate solutions, emphasizing that these issues will take years to resolve. Prospective homebuyers should brace for continued market difficulties and limited affordability. Read more about the implications for the housing market and potential strategies for buyers in the full article (Globest).

Four Key Findings From the 2024 State of the Nation’s Housing Report

The 2024 State of the Nation’s Housing report reveals persistent and widespread cost burdens, with 50% of renters spending over 30% of their income on housing. The U.S. faces a significant housing shortage, with rising costs and limited inventory hindering both rentals and homeownership. Federal rental assistance is lagging, covering only 25% of eligible households. Additionally, the nation’s housing stock is increasingly vulnerable to climate risks. Addressing these issues requires substantial public and private sector investment and innovative solutions. Read the full article here.

Dear Friends of Warfield:

On March 26, 2024, the five entities owning the various properties comprising Warfield at Historic Sykesville filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court. Under Chapter 11 protection, Warfield Companies will continue normal operations, which consists mainly of pursuing the development of Warfield’s vacant parcels and, most importantly, the rehabilitation of the project’s vacant buildings. Vendors and contractors will continue to be paid for work performed post-petition in connection with the project.  
 
The Chapter 11 filing was a direct response to the Town of Sykesville’s actions to take back ownership of the property after selling it to the developer in 2018. These actions most recently included an attempt to foreclose on the property and began in earnest last spring when the town filed lawsuits against Warfield entities in state court to wrest control of the project’s historic buildings from the owner. The town left the developer no other option but to file for Chapter 11 to protect its substantial investment in the Warfield project.
 
The developer currently has over $6 million invested in the project and has cumulatively invested over $14 million, and, subject to court approval, it will continue to fund the project while in Chapter 11 and beyond. In addition to making major capital investments, the developer has worked tirelessly to pursue the state’s original vision for the Warfield property when it was transferred to the town in 2002. This includes taking steps to make the project financially viable and attractive for both private and public investment, which is essential to preserving and putting back into service Warfield’s historic buildings, not to mention achieving the “smart growth” goals set forth in the Town of Sykesville’s original agreement with the state. 
 
It is important to distinguish between Chapter 7 and Chapter 11 bankruptcy. Chapter 7 is a liquidation, which is different from what the developer is pursuing here. Chapter 11 bankruptcy protection will allow Warfield to defend itself from the town’s continued attacks and reorganize while continuing to operate. We expect to file a timely reorganization plan with the court that will enable us to continue pursuing our vision for the project and pay all creditors in full.
 
Please contact Steve McCleaf at 571-215-0000 or send an email to smccleaf@langleyrealtypartners.com should you have any questions or concerns. 
 
Regards, 

WARFIELD COMPANIES

Steven D. McCleaf
Senior Vice President

Gov. Wes Moore and housing secretary Jake Day: Maryland is facing a crisis; now is the time to take action | COMMENTARY

By WES MOORE and JAKE DAY – PUBLISHED: January 9, 2024 at 12:00 p.m. | UPDATED: January 9, 2024 at 12:02 p.m.

Originally published in by Sherry Greenfield Carroll County Times • Last Updated: Sep 04, 2023 at 12:27 pm

The Town of Sykesville and Warfield Historic Properties LLC continue to be embroiled in legal disputes, the first of which was filed in December 2021, and the most recent on Aug. 18.

Warfield, developer of Warfield at Historic Sykesville, a mixed-use housing and commercial development on Route 32, filed a counterclaim in the Circuit Court of Carroll County on Aug. 18, in response to the town’s June lawsuit, alleging that Warfield has made little or no progress in preserving and reusing nine historic buildings at the site for affordable housing, which it agreed to do when the property was purchased in 2018.

The town is asking the court to enter a judgment in its favor and against Warfield Historic Properties LLC and Warfield Historic Quad LLC for breach of contract, according to court documents. The town is also asking to be awarded $3 million in damages.

Warfield’s counterclaim states that the town violated its duty of good faith and fair dealing to cooperate with the developers, according to court papers.

“We have not abandoned a workforce housing project for the historic buildings at Warfield, but the town’s lawsuit and its subversion of our efforts in the past have put this part of the project — admittedly the most important part — on hold,” Steven McCleaf, president of Langley Realty Partners, LLC, which oversees the day-to-day operations of Warfield at Historic Sykesville, said in an email on Friday.

McCleaf said the company spent $8.2 million to purchase the property, helping to resolve more than $5 million in town debt related to Sykesville’s “failed effort” at Warfield, and has invested “millions” since closing on the property in 2018.

“Town leadership has actively disrupted millions in additional investment by disparaging the developer both publicly and in private with capital partners, contractors, and consultants,” he said. “In addition, town leadership has consistently refused to meet with the developer to discuss commercially reasonable proposals for the future of Warfield and has rejected mediation.”

McCleaf said the town’s denial of due process, and the lawsuits, indicated Mayor Stacy Link’s sole intent is to seize control of the property, and put at risk more than $30 million in state and federal incentives needed to make Warfield viable.

“The town owned the property for 16 years and failed in its efforts to rescue Warfield’s historic buildings or to create an economically viable project — going millions into debt in the process,” he said. “The town’s lawsuit is misguided. It is a recipe for disaster.”

Link issued her own statement Friday in response to Warfield’s countersuit.

“A party may assert as a counterclaim any claim that party has against any opposing party, whether or not arising out of the transaction or occurrence that is the subject matter of the opposing party’s claim,” Link said. “That’s exactly what they’ve done here. Besides its contents having nothing to do with the town’s original filing, which is merely an exercise in accountability to the preservation agreement, the counter claim lacks merit.”

Link is out of the country and issued her statement through email.

Click here to read the article.