DONALDSON IMPACT INVESTMENTS AND AFFORDABLE HOMES & COMMUNITIES (AHC) MAKE MILESTONE $63M ACQUISITION FEATURING THE FIRST EVER USE OF THE BY-RIGHT PILOT PROGRAM WITH MARKET RATE EQUITY IN MONTGOMERY COUNTY, MD

ROCKVILLE, Md., Jan. 14, 2025 /PRNewswire/ — Donaldson Impact Investments partnered with Affordable Homes & Communities (AHC), a leading regional non-profit affordable housing developer, to acquire Country Place Apartments in Burtonsville, MD. According to the Montgomery County Department of Housing and Community Affairs (DHCA), this is the only deal ever executed with the By-Right Payment in Lieu of Taxes (PILOT) program and market rate equity which was provided by New York Life and Declaration Partners, a private investment firm anchored by David M. Rubenstein.

This 312-unit, Class B apartment community marks the newly formed Donaldson Impact Investments’ first acquisition and the innovative partnership with AHC secures the community’s long-term affordability and introduces new resident services.

“This acquisition is a strategic long-term investment for our company and aligns perfectly with our mission to acquire and preserve mature, naturally occurring affordable housing,” said Kevin H. Smith, co-founder and managing partner of Donaldson Impact Investments. “Our focus is to lower operating costs, enhance the living experience for residents, and deliver value for our investors.”

Donaldson Impact Investments and AHC will commit 172 homes as dedicated affordable, of which 164 will be affordable to households earning up to 60% of the area median income (AMI) and eight will be affordable to households earning up to 50% of the AMI. AHC will implement and manage community and resident programs such as financial literacy, social services and health education and wellness programs with a full-time onsite staff member.

Montgomery County is one of Maryland’s leading jurisdictions in terms of supporting affordable housing development. The county has a history of using tax incentives, including PILOTs, as a tool to incentivize affordable housing development, both by non-profits and in some instances in partnership with private developers. PILOT payment is structured to compensate the local government for municipal services provided to the property, while still ensuring the ownership can fulfill its mission by providing affordable housing or social services.

Founded by real estate industry veterans Kevin H. Smith and Carlton Einsel, Donaldson Impact Investments is dedicated to acquiring and revitalizing multifamily properties with a focus on achieving positive financial, environmental, and social returns. The company’s approach emphasizes sustainable property management, resident engagement, and community-based improvements.

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SOURCE Donaldson Impact Investments