Purchase marks NHPF's first deal in Montgomery County using innovative 501 (c) (3) bond financing

WASHINGTON, May 12, 2026 /PRNewswire/ -- Mission-based affordable housing developer NHPF today announced its closing on the acquisition of Hadley Germantown (previously known as Elme Germantown), a 218-unit apartment community located in Germantown, Maryland. The transaction underscores NHPF's continued commitment to preserving and enhancing affordable housing in high-opportunity markets through innovative financing strategies.

Originally built in 1990 and last renovated in 2011, Hadley Germantown provides naturally occurring affordable housing (NOAH).  NHPF is placing covenants on the property that will restrict future rents to 60% of the Area Median Income for 50% of the units and 80% AMI for an additional 25% of the units.

"Hadley Germantown represents a strong opportunity to preserve affordability in a high-demand corridor while executing a thoughtful renovation strategy that improves quality of life for residents," said Nish Desai, Acquisition Manager, NHPF. "This acquisition is also an excellent example of how creative financing can be used by non-profits for the preservation of affordable and workforce housing — ensuring affordability can be satisfied on Day 1, without any resident displacement."

The acquisition was financed entirely with tax-exempt 501(c)(3) bonds, with KeyBanc Capital Markets serving as bond underwriter, the Wisconsin Public Finance Authority as issuer, and U.S. Bank as trustee. Urban Atlantic and Rawson Square supported the acquisition and will serve as development consultants, overseeing initial property improvements.  Winn Residential will serve as the new Property Manager.

The financing structure will leverage Montgomery County's by-right Payment in Lieu of Taxes (PILOT) program, which provides a 100% abatement of county property taxes for qualifying nonprofit-owned communities. The project also utilizes the 501(c)(3) bond safe harbor provision to meet federal affordability requirements without the need for additional public subsidy, enabling a streamlined and efficient execution. 

"This project was made possible by using NHPF's AA- S&P rating to leverage debt at below 4.5%," noted NHPF Senior Vice President of Acquisitions Neal Drobenare.

"Adding this exceptional property to our portfolio marks a meaningful milestone for the foundation— our first acquisition in Montgomery County. Maryland has long been an important market for us, and Germantown holds a special place in the greater Washington, DC region," said Joseph Weatherly, Chief Investment Officer, who grew up in Germantown adding, "We look forward to being a trusted part of this community and serving its residents for years to come"

NHPF will implement an extensive capital improvement program focusing on both interior and exterior upgrades including renovated units, upgraded community spaces, alongside select exterior improvements. Improvements will begin immediately following closing, with Urban Atlantic and Rawson Square overseeing the initial phases in Years 1 and 2.

"Urban Atlantic and Rawson Square are excited to work with NHPF to preserve affordable and workforce housing in Montgomery County.  The acquisition of Hadley Germantown leverages innovative public and private financing tools, including 501(c)3 bonds and Montgomery County's by-right PILOT program, allowing mission-driven organizations like NHPF to step in and preserve affordability at scale," said Brant Snyder, Chief Executive Officer of Urban Atlantic.  "The property's strong fundamentals and proximity to major employers along the I-270 Biotech Corridor such as NIH, FDA, AstraZeneca, and GSK further support its long-term stability and impact."

Hadley Germantown adds to NHPF's growing national portfolio of sustainable housing communities, reinforcing the organization's belief that housing is more than four walls—it is the foundation for opportunity, stability, and resident success.

About The NHP Foundation (NHPF)
The NHP Foundation (NHPF) is a 501(c)(3) not-for-profit real estate corporation founded in 1989. With over three decades of experience in affordable housing acquisition, investment, development and construction, NHPF's team brings together deep knowledge of real estate fundamentals, attention to changing resident and community needs, and the expertise required to make sound investment decisions. We are also committed to providing equitable, tailored resident services programs, powered by our subsidiary, Operation Pathways, which offers Family-Centered Coaching to families facing poverty and hardship. Through strategic partnerships with financial institutions, the public sector, faith-based organizations, and other nonprofits, NHPF currently owns and operates 63 properties across 15 states and the District of Columbia serving over 25,000 residents. For more information, please visit www.nhpfoundation.org.

About Urban Atlantic Development (UA)
Urban Atlantic is a community-minded real estate development and investment company. Working with public and private sector partners, they have developed and invested in inclusive, large-scale, mixed-income communities exceeding 14,000 residential units and 3 million square feet of commercial space. Urban Atlantic and its affiliates have developed and raised over $7 billion in investment across real estate developments and operating businesses in emerging markets.

About Rawson Square CRE (RS)
Rawson Square CRE (Rawson Square) is a real estate investment and strategy firm founded by Roberta "Bobby" Bosfield, PhD, and headquartered in Washington, DC. The firm is focused on improving workforce housing in the Mid-Atlantic region. Rawson Square has acquired and oversees an expanding investment portfolio of assets within supply-constrained markets across the region, including Washington, DC, Northern Virginia, Maryland, and Hampton Roads, VA. As demand for affordable housing continues to rise, Rawson Square remains steadfast in its mission to provide innovative solutions that benefit both communities and the broader real estate landscape.

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SOURCE NHP Foundation