In 2001, the US Army selected Corvias for a pilot program at Fort Meade that set the standard for all future military housing partnerships. Corvias’ focus on putting residents first guideed the partnership’s approach to the delivery of exceptional operations and maintenance services and the development of community amenities tailored to its residents. Corvias is responsible for the design, build, finance, operation, and maintenance of 2,873 homes and five community centers across six residential communities at Fort Meade, and a first-of-its-kind, on-post apartment community, Reece Crossings. Corvias’ partnership approach ensures a long term plan for the modernization and sustainable growth for the post’s housing assets. Corvias is committed to improving the quality of life and the environment for the communities we serve The stormwater pollution prevention and solar programs Corvias has implemented at Fort Meade are prime examples of that commitment.
Corvias implemented a Stormwater Pollution Prevention Plan that effectively protects the nearby Chesapeake Bay from stormwater runoff pollution, and solar energy projects have been completed to deploy 10MW of solar power that will save the partnership at Fort Meade $13 million, all of which will be reinvested back into the partnership to further support our partner and Fort Meade residents.
Initially, Corvias created a rare surety bond and monoline insurance policy structure that achieved an Investment Grade credit rating. Corvias, the Army, and the lender also worked to find and educate potential investors, ensuring the partnership would get the most competitive interest rates available. In 2006, four years after the pilot program closed, financial conditions were changing and the program was down-scoped, causing the initial debt raise of over $325 million to be over-leveraged by an estimated $40 million. Corvias successfully proposed a solution to the lender, bondholders, and our Army partner that restricted the over-leveraged funds and protected all parties from default risk, while also allowing the funds to remain in the program and allowed the partnership to continue uninterrupted.
In an effort to help our partner meet aggressive renewable or alternative energy consumption targets, Corvias accepted the Department of Defense’s (DOD) Privatized Housing Solar Challenge and installed solar panels on select homes, community centers, and support facilities. Corvias deployed approximately 10MW of solar power on Fort Meade for which the Army can earn Renewable Energy Credits. All development, maintenance, and legal costs associated with the solar are funded entirely by private-sector financing, with no risk to the government.
Innovative Housing Solution
In a first-of-its-kind public-private partnership, Corvias expanded the scope of the Fort Meade partnership to develop new apartment style housing on post. The development, Reece Crossings, addresses the housing shortage for single service members and allows over 800 additional service members to live on post and enjoy the services and collaborative environment that they would otherwise miss.
Focus on Quality of Life
Corvias takes its responsibility to improve the quality of life and environment for the communities it serves very seriously. When Corvias first assumed responsibility for the Fort Meade partnership, occupancy was in the low 70% range and there was a maintenance backlog of 36,798 work orders. Corvias cleared the backlog within 60 days reaffirming its commitment to put the needs of the Fort Meade residents first.
O&M of Stormwater Infrastructure
Corvias oversees the design, construction, and long-term operations and maintenance of infrastructure that minimizes impervious acreage and downstream impact. In alignment with permit requirements and Chesapeake Bay Program goals, Corvias implements best management practices (BMPs) such as sand filters, grass pavers, bio-swales, and rain gardens across Fort Meade. All BMPs meet stringent requirements and are closely coordinated with Fort Meade Department of Public Works and Maryland Department of the Environment.
- Duration: 50 years, 2002-2052
- Capital Raise: $325 million
- Financing Structure: Taxable Bonds and Partnership Equity
- Placement Agent: Jeffries & Company, Inc
- Program size: 2,873 homes /9,079 beds, 4,254,159 GSF, 1,038 acres
- Initial Development Scope: $345 million in capital improvements
- Long-term Development Scope: $1.3 billion in planned replacement/renovation of all housing
- Total Local Economic Impact: $5.7 billion
- Total Projected to be Returned to Partnership: $2.1 billion
- Acquired a leasehold interest in existing housing and developed new housing
- Day-to-day maintenance and operations and long-term repair and replacement for on-installation housing
- Incorporates LEED/ sustainability standards
- Incorporates LEED/sustainability standards
- Dedicated reserve accounts for deferred maintenance