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County Executive Elrich Announces Record Year of Finance through Montgomery County’s Housing Initiative Fund

For Immediate Release: Wednesday, July 24, 2019

County Invested $103.7 million in Fiscal Year 2019 to Expand Affordable Housing

Wednesday, County Executive Marc Elrich announced that Montgomery County’s Housing Initiative Fund (HIF) provided the highest level of financing in its 30-year history to preserve or create 22 multifamily properties generating a total of 3,254 apartment units, including 1,982 affordable housing units.

This year’s HIF funding was invested into 22 multifamily properties that were a combination of existing apartment buildings and new rental developments (12 existing and 10 new).  The County’s Department of Housing and Community Affairs (DHCA) attributes this year’s record level of financing to the following:

  • The agency’s focusing on preserving market rate affordable housing, especially properties that come through the Right of First Refusal
  • Several new construction projects closed – interest rates are good now
  • Preservation of existing affordable housing – several Low-Income Housing Tax Credit properties became available through the Right of First Refusal

“I am proud of the investment that HIF was able to make this year that has led to nearly 2,000 units of affordable housing,” said County Executive Marc Elrich. “Our focus on preserving existing housing while adding new units produced 3,254 apartments and 61 percent of them are affordable.  I believe that the County should continue leveraging its assets to maximize our impact on affordable housing.  We must be creative and find solutions that generate more affordable housing and find the best opportunities to work with developers to address this very challenging problem.  Today is an example of how government can play a role in addressing the issue.”

The HIF receives revenue from a variety of sources including loan repayments and 2.5 percent of the County’s property tax revenue. The Department of Housing and Community Affairs (DHCA) amplifies the impact of HIF funds by combining them with other local, state, and federal resources to renovate distressed properties, preserve affordability of units, fund new construction and create housing for residents with special needs as well as mixed-income communities.

Overall, the County invested $103,712,761 to preserve or produce these housing units, 61% of which are affordable. Affordable units offer rents to people with incomes between 30 and 60 percent of Montgomery County’s Area Median Income (AMI) (e.g., for a family of four, 30 percent AMI amounts to $36,390 annually and 60 percent of AMI is $72,780 annually.)

DHCA collaborated with for-profit (Stratford Capital, The Orlo Fund, RST Development, and the Conifer Group) and nonprofit (Housing Opportunities Commission, Montgomery Housing Partnership, and Victory Housing) developers to produce this significant affordable housing expansion milestone.  Below is a chart with details.

Project Name

Preservation/ Production

Transaction Type

Funding Source(s)

Total Units

Affordable Units

County Cost

NCCF - 7906 Flower

Preservation

Acquisition/Rehab

HIF

8

8

               2,425,000

Victory Haven - Damascus

Production

New Construction

Housing CIP

72

72

               6,475,000

HOC Cider Mill

Preservation

 ROFR

Housing CIP

864

260

            15,000,000

Seabury Resources Springvale Terrace

Preservation

Refi/Rehab

Housing CIP

146

146

               6,375,000

Woodvale

Production

 ROFR

HIF

375

100

            10,000,000

Waterford Towers

Production

 ROFR

HIF

143

107

               4,000,000

PLAN OF MD 10120 Little Bond #4

Production

Acquisition

HIF

1

1

                  117,000

Town Center Apt - HOC

Preservation

Rehab

HIF

112

112

                  288,000

MHP - Glenville Rd

Preservation

Refi/Rehab

HIF

31

16

               4,250,000

Willow Manor - Cloppers

Preservation

 ROFR

Housing CIP

102

81

               7,345,532

Willow Manor at Colesville

Preservation

 ROFR

Housing CIP

83

83

               5,879,550

Willow Manor at Fair Hill Farm

Preservation

 ROFR

Housing CIP

100

100

               6,576,505

Hermitage Woods

Preservation

Rehab

Housing CIP

37

10

               1,148,186

Stratford Capital - Momentum Shady Grove

Production

New Construction

Housing CIP

110

110

               7,400,000

Willow Manor at Fairland (ECRSC Site)

Preservation

New Construction

Rent Asst

121

60

                  595,000

Artspace - 801 Sligo Avenue

Production

New Construction

HIF/HOME

79

72

               4,237,988

HOC - Upton II

Production

New Construction

Housing CIP

150

112

               5,000,000

Hampshire Towers

Preservation

Rehab

Rent Asst

216

204

               3,000,000

Friends House (Sandy Spring)

Production

New Construction

HOME

80

72

               1,350,000

Main Street

Production

New Construction

HIF

70

49

               2,500,000

HOC Elizabeth House

Production

New Construction

HIF

267

120

               7,000,000

Snowden Ridge

Preservation

Sec 8/Preservation

Housing CIP

87

87

               2,750,000

FY 2019 Total

     

3,254

1,982

103,712,761

 

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Release ID: 19-257
Media Contact: Lorraine Driscoll  240-777-6507