The Montgomery County Department of Housing and Community Affairs (DHCA) released an updated version of its final Fiscal Year 2025 (FY25) Affordable Housing Pipeline Report, along with its first quarterly update for Fiscal Year 2026 (FY26), showing that the County has significantly increased the number of affordable homes it is supporting through its financial investments. DHCA’s quarterly reports detail recently completed financing agreements, the number of affordable units to be produced or preserved in each project, and pending projects with affordable units that are in the pipeline for future development.  

The FY25 report shows that the County invested approximately $108.3 million in 25 projects that supported the creation or preservation of 1,827 affordable units. This is a more than 61% increase in the number of affordable units created or preserved compared to 2024, and an over 87% increase compared to 2023. This increase in production is the result both of sustained higher levels of County appropriations into the affordable housing budget for several years, plus efforts by DHCA to efficiently use all available resources to address the County’s housing needs. The County also entered into or maintained existing Payment in Lieu of Taxes (PILOT) agreements to support seven of these projects, with an estimated annual PILOT value totaling $1,466,161 for FY25.  

DHCA also released data today for the first quarter of FY26, indicating the County has invested a total of $24.2 million across three projects to produce or preserve an additional 462 affordable housing units. The County has entered into or maintained existing PILOT agreements for two of these projects with an estimated total annual value of $499,987.   

Overall, the County has produced or preserved a total of 2,289 affordable units during the past 15 months since the start of FY25. Since the start of Fiscal Year 2023 (FY23), the County has provided critical funding to support 58 projects that created or preserved 4,397 affordable units. Rental properties supported by County financing are affordable for households earning between 30% and 70% of Area Median Income (AMI), and sale properties are affordable for households earning up to 80% of AMI. The developments include units to accommodate a variety of family sizes, with units ranging from studios and efficiencies to apartments or townhomes with three or more bedrooms.  

“The “market” in Montgomery County is not creating more affordable housing, and we continue to lose more naturally occurring affordable housing,” said County Executive Marc Elrich. “Affordability almost always only happens when it is required or when the County contributes. This is why we’ve committed more than $316 million since Fiscal Year 2023 to create or protect nearly 4,400 affordable homes across the County, including 462 units during the last three months alone. These projects support seniors, people in mental health recovery, working families, and first-time homebuyers. These are the investments we need to make if we want to be a community where people aren’t displaced because of rising costs. I want to thank DHCA and all of our nonprofit and development partners for their continued work and collaboration."  

The Affordable Housing Pipeline Report for FY25 details the County’s $108,289,744 development finance budget allocation from three main direct funding sources: the Capital Improvements Program (CIP); the Montgomery Housing Initiative Fund (HIF); and Federal grants, including the Community Development Block Grant (CDBG) program and the HOME Investment Partnerships program. It also provides estimates of the annual value provided to each project through Payment in Lieu of Taxes (PILOT) agreements, which offer tax breaks in exchange for the development or preservation of affordable housing. The estimated FY25 annual value of the County’s affordable housing PILOT agreements is $1,466,161. This estimated PILOT value reflects the total of each property’s estimated tax savings for one year, based on each property’s most recent tax assessment. The durations of the PILOT agreements range from three to 40 years.  

In FY25, DHCA financial investments supported 25 projects to create or preserve 1,827 affordable homes, and an additional $1.5 million was provided as interim financing for one project. The FY25 projects included: 

• Housing Unlimited, Inc. (HUI) Scattered Sites, multiple locations: $271,592 for the acquisition of two units for people undergoing mental health recovery. 

• Montgomery Housing Partnership (MHP), Parkview Towers, Takoma Park: $3,000,000 and $119,413 in estimated annual standard PILOT value for the repair of the building exterior, supporting 105 affordable units. 

• Selborne House at St. Mark’s, Arbor Crest, Silver Spring: $119,854 in estimated annual standard PILOT agreement value for the preservation of 80 affordable units for seniors. 

• Mission First, 1910 University Boulevard, Silver Spring: $4,000,000 for the construction of 90 affordable units for seniors. 

• True-Ground, Falkland Chase North Phase 1, Silver Spring: $29,700,000 and $263,029 in estimated by-right annual PILOT value for the construction of 479 affordable units  

• PDC Country Place LLC, Country Place, Burtonsville: $593,700 in estimated annual by-right PILOT agreement value for the acquisition of 172 affordable units.  

• Mission First, 1910 University Blvd, Silver Spring: $3,950,000 and an estimated $6,584 annual by-right PILOT agreement value for the acquisition of the approved site until construction financing is closing.  

• Habitat for Humanity, multiple sites in Gaithersburg: $950,000 for the acquisition of 10 townhouses to be renovated and made ready for homeowners.   

• Deauville Property LLC, Deauville Apartments, Takoma Park: $12,981,811 for the preservation of 83 affordable and 18 rent stabilized housing units in Takoma Park 

• Sligo Housing Partnership, LLC, Sligo House and Corona Apartments, Silver Spring: $6,000,000, for the preservation of 33 affordable and 74 rent stabilized housing units. 

• MRK Partners, Amber Commons, Gaithersburg: $6,000,000 and an estimated $363,581 annual by-right PILOT agreement value for the acquisition and renovation of 188 affordable units. 

• MHP, Montouri Site aka The Chimes, North Bethesda: $19,450,000 and a by-right value with annual value TBD for the acquisition and development of 146 affordable units. 

• HUI Scattered Sites, multiple locations: $299,341 for the acquisition of two units for people undergoing mental health recovery. 

• HOC 4857, 4858, 4998 Battery Lane - Part 1, Bethesda: $5,287,000 for the preservation of 107 affordable units. 

• HOC 4890, 4900, and 4949 Battery Lane - Part 2, Bethesda: $6,400,000 for the preservation of 128 affordable units. 

• HOC Bradley Crossing, Chevy Chase: $10,000,000 for the acquisition and rehabilitation of 202 affordable units. 

• Rockville Housing Enterprises, Scarborough Square, Rockville: $1,500,000 and $274,987 in estimated annual by-right PILOT agreement value for interim financing to assist in extending current financing (the number of units preserved is reported in FY26 totals alongside the permanent financing). 

For the first quarter of FY26, the County has supported the production and preservation of affordable housing in the following three projects: 

• MHP, Bethany House, Rockville: $8,247,464, for the acquisition of a building with 227 affordable units for seniors. 

• 8727 Colesville Owner LP, 8727 Colesville Road, Silver Spring: $225,000 in estimated FY25 annual estimated By-Right PILOT agreement value, for the production/conversion of a commercial building into a 227-unit multifamily residential building with 114 affordable units. 

• Rockville Housing Enterprises, RHE Scarborough, Rockville: $16,000,000 and $274,987 in annual estimated By-Right PILOT agreement value, for permanent financing of the 121-unit affordable property. 

Currently, DHCA has 18 additional project proposals in the pipeline for FY26, plus an additional 26 projects in discussion for support in future years. Status updates will be provided in forthcoming quarterly pipeline reports.  

Read DHCA’s FY25 Affordable Housing Pipeline Report and the FY26 Q1 Affordable Housing Pipeline Report for more details. 

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Media Contact: Matthew Cournoyer, [email protected], 240-338-5078