In Frederick, Maryland, a new vision for affordable housing is taking shape -- one where data drives design, sustainability meets scale, and every decision is rooted in long-term value. At the center of this vision cove, the full-service, AI-powered architecture firm, is transforming how developers approach multifamily projects with the mindset of residential architects but with advanced technology and broad experience.

Phase 1 of the 585 Himes Avenue development exemplifies what’s possible when AI and deep architectural expertise come together: 150 income-restricted units, all-electric features, and community-first planning, delivered on a fast-track timeline.

In today’s market, where affordability, performance, and speed are non-negotiable, cove’s AI-driven approach is helping real estate leaders and building developers deliver smarter housing solutions that create lasting impact.

Project Highlights

• 150 Units | 3–4 story wood-frame construction on 7 acres

• 100% Affordable | All units below 60% AMI; 10% at 30% AMI

• Total Development Cost | $51M ($340K/unit, ~$240/SF)

• Rapid Lease-Up | Full occupancy projected in 5–6 months

• Healthy Pro Forma | NOI ~$650K/year, DSCR > 1.20×

• Green Design | ASHRAE 189.1, all-electric, 1MW rooftop solar

• Resilient Infrastructure | Battery storage + county microgrid

• Community Hub | 5,000 SF for childcare, health, or training

Residential Architect Opportunity: Achieving Affordable Multifamily Housing Faster and More Efficiently with AI

Frederick County is growing fast…and so are rents. With an average of two-bedroom units, Frederick County is one of Maryland’s fastest-growing regions, and housing demand is rising just as fast. Average rents for a two-bedroom apartment hover around $1,900/month, far out of reach for many working families. At the same time, the county faces a documented shortfall of over 5,700 affordable units, especially for households earning under $50,000 annually. The need is urgent, particularly for family-sized, income-restricted homes that integrate seamlessly into established neighborhoods.

To meet this challenge, the county issued a bold RFP: transform a 7-acre public site into a high-impact affordable housing community that balances deep affordability, environmental performance, and neighborhood compatibility.

That’s where cove came in. Leveraging AI-powered, full-service architecture, feasibility modeling, rapid generative design, and data-backed planning, our architecture team imagined a solution that hit every metric, maximizing site potential while keeping costs and timelines in check – also at a fraction of the time. It’s the kind of opportunity AI in architecture is built for, and exactly where developers can unlock long-term value.

An AI and Architecture Financial Model That Works

At 585 Himes Avenue, cove combined smart design with smart capital strategy, building a financially sound project from the inside out. Using real-time pro forma modeling and cost forecasting, every decision, from unit mix to materials, was stress tested before the budget.

The result: a capital stack that works, and a building that pencils out.

• $35M in equity from 9% Low-Income Housing Tax Credits (LIHTCs) (priced at ~$0.90 per credit)

• $8M first mortgage to round out the core financing

• Local contributions including a nominal-cost ground lease and PILOT property tax abatement

Total development costs (~$340K/unit, $240/SF) stay within Maryland DHCD guidelines. Even with capped affordable rents, the project maintains a healthy debt service coverage ratio (>1.20x), a key metric for investor confidence and long-term viability. This is a funding strategy that aligns public mission with private capital.

Residential Architects Beware: High-Demand, Low-Risk

In Frederick County’s red-hot rental market, affordable housing isn’t just needed, it’s guaranteed to fill. With local occupancy rates at 95–97% and a documented shortage of 5,700+ affordable units, Phase 1 at Himes hits a sweet spot for absorption and stability.

• Expected lease-up: 25–30 units/month

• Full occupancy projected in just 5–6 months

• Target demographic: working families, veterans, and essential service workers priced out of market-rate options

With 80% of units as two- and three-bedrooms, this development goes beyond affordability; it delivers what the market is missing: family-friendly, income-restricted rentals near jobs, transit, and services.

For developers, it’s a low-risk, high-impact play in a proven market.

AI, Architecture, and Residential Architects: Sustainability Without Sacrifice

Residential architects working on affordable housing projects are often forced to compromise…between cost and performance, or speed and sustainability. But at 585 Himes Avenue, cove proved that developers don’t have to choose.

From day one, the design prioritized high-performance building systems without pushing the project over budget. The result? A fully electric, ASHRAE 189.1- compliant building with zero on-site fossil fuels, a rooftop solar array targeting 30–40% energy offset, and advanced materials that cut embodied carbon by up to 40%.

cove’s AI-powered architecture workflows allowed residential architecture to easily integrate:

• ASHRAE 189.1 green building compliance

• All-electric HVAC + hot water systems

• 1MW solar PV covering 30–40% of building energy

• Battery storage + microgrid tie-in for resilience

• Low-carbon materials with 40% less embodied carbon

What sets this project apart is its resilience. On-site battery storage and integration with a new 2 MW county microgrid mean essential building functions -- like lighting, refrigeration, and device charging -- will stay online even during outages. That makes 585 Himes not only energy-efficient but disaster-ready, one of the most resilient affordable communities in the state.

For developers, this is sustainability that pays off: lower utility bills improve Net Operating Income (NOI), smarter systems reduce long-term maintenance, and performance modeling built into the design phase ensures targets are met without late-stage redesigns. With cove’s AI-powered, full-service architecture, sustainability becomes an asset, not a liability.

Affordable Housing Designed for Residential Architectural Impact

At 585 Himes, residential architecture isn’t just about units, it’s about shaping community. From the earliest planning phases, cove prioritized elements that deliver social value and long-term return on investment.

By layering in accessibility, connectivity, and public-serving amenities, the project is built to uplift the neighborhood, not just fill a housing gap.

• 5,000 SF community hub designed for services like affordable childcare, job training, or a satellite health clinic—driving foot traffic and cross-agency collaboration

• ADA-adaptable and fully accessible units to ensure seniors, veterans, and residents with disabilities aren’t left behind

• Shared outdoor spaces and amenities that support family living and invite connections, from playgrounds to community kitchens

• Transit-oriented location with walkable access to jobs, retail, and local services—reducing car dependency and increasing mobility

This is affordable housing as a neighborhood anchor. Thoughtful, inclusive, and intentionally designed to catalyze community impact far beyond its footprint.

The cove Advantage: AI for Architecture

From the earliest concepts to the final feasibility study, cove’s proprietary AI-powered solutions accelerated timelines and reduced risk. Generative design algorithms optimized unit count, daylight access, and site layout in minutes, not weeks. Real-time feasibility modeling tied design decisions directly to cost and rent projections, ensuring financial targets stayed on track. Integrated energy and carbon analysis verified building performance and ASHRAE 189.1 compliance from day one. And because every assumption was stress-tested with verified AI models before submission, the project exemplifies when AI is effectively implemented into architecture.

Faster delivery, fewer redesigns, and stronger, more predictable returns for developers.

AI in Architecture and Affordable Multifamily Housing: What’s Next

585 Himes Avenue Phase 1 is poised to deliver 150 deeply affordable, income-restricted units, showcase scalable green innovation, and set the stage for future development across the surrounding county-owned land. But this project is more than a single success story—it’s a proof point for what’s possible when smart design meets smart technology.

In a moment when the demand for affordable housing continues to climb and multifamily development faces unprecedented cost, regulatory, and timeline pressures, developers need new tools to unlock progress. cove’s full-service, AI-powered architecture firm equips building development teams to move faster, reduce risk, and bring clarity to complexity; whether navigating site constraints, balancing sustainability with ROI, or optimizing unit mix to meet market need.

By integrating real-time analytics, generative design, and automated performance modeling into every phase of the process, cove empowers developers to meet ambitious housing goals with confidence and precision. Projects like 585 Himes demonstrate that AI for architecture isn’t a novelty; it’s a necessity for building resilient, high-impact communities that work for both residents and investors.

As the industry, residential architecture, and beyond, seek scalable, replicable solutions, cove is leading the way toward a smarter, more equitable built environment.