Council approves amended letter of intent to support PILOT for 120‑unit Penrose/Sanctuary affordable housing project

Councilors voted to send an amended letter of intent supporting a proposed Penrose/Sanctuary affordable housing project on 1st United Methodist Church land near Hyattsville Crossing Metro. Developers said phase 1 would deliver 77 affordable units with 12 supportive‑housing units and a market‑reasonable mix of 1–3 bedrooms, and that aligning a city PILOT with a county pilot improves competitive low‑income housing tax credit underwriting.

The council amended the draft to change references from "letter of support" to "letter of intent" and to set a minimum term threshold (the body discussed 25–40 years in debate). Staff and legal review noted that final PILOT terms, including duration and abatement amount, would be subject to later underwriting, city ordinance and council approval if financing is secured.

The developer said it has secured additional soft funding (a $2.0 million HUD appropriation and a $750,000 state revitalization award) that improves the project's chances in the next competitive funding round.

Why it matters: The project would create new deeply affordable units near transit in Hyattsville and would require council action on a formal PILOT ordinance later if financing is awarded. Councilors sought clarity that the city's letter is nonbinding and that final terms will return for review before commitment.