Press Releases
Montgomery County Executive Marc Elrich Celebrates Groundbreaking for New Housing Development With 268 Affordable Units Near North Bethesda Metro
For Immediate Release: Friday, March 27, 2026
Montgomery County Executive Marc Elrich joined County Councilmember Kate Stewart, other state and local officials, and SCG Development Partners, LLC, for the groundbreaking today for NoBE II, located near the North Bethesda Metro. NoBe II will provide 268 affordable rental apartments and is supported by financing from the County and the State of Maryland. The County’s $38 million loan for NoBE II is its largest permanent financing agreement to date, and the project is the largest 100 percent affordable new-construction housing development supported by the County, by number of units.
NoBE II is a component of North Bethesda Market II, a transit-oriented mixed-use development, and part of the County’s significant investments in economic development, transportation, and housing that are transforming North Bethesda into a community hub and center for life sciences research.
“The County’s investments around the North Bethesda Metro station are creating a vibrant community and a life sciences hub where people can both live and work," said County Executive Elrich. "When you build next to transit, you’re creating access to jobs, education, and services. The question is who gets that access. Developments like NoBE II help ensure that this isn’t just growth for the highest earners, but a place where people across a range of incomes can live and take advantage of what’s being built here.”
Rendering of 268-unit NoBe II development in North Bethesda
NoBE II is a 268-unit development comprising a single seven-story building wrapped around an above-ground parking garage. It will consist of 268 units affordable to households earning up to 70% of Area Median Income (AMI). This includes 18 units affordable at 30% of AMI, 18 units at 40% of AMI, 32 units at 50% of AMI, 161 units at 60% of AMI, and 39 units at 70% of AMI. The current AMI for a family of four in Montgomery County is $163,900.
“This amazing project in North Bethesda shows the power of the private and government sectors when they team up to address our housing affordability crisis,” said County Council President Natali Fani-González. “I look forward to welcoming scores of new families to North Bethesda in this new, amenity-rich, transit-proximate community that will uplift our working families.”
The development will deliver long-term affordability, with income-restricted housing for at least 40 years, including 41 Moderately Priced Dwelling Units (MPDUs) that will remain affordable for up to 99 years under the County’s MPDU program.
"I am grateful to SCG Development for their work to increase affordable housing stock and opportunities in the county and across the country," said County Councilmember Stewart. "NoBE II is a prime example of the realization of so many of our goals for housing here in Montgomery County – affordable and mixed-income, near public transit, parks and other amenities, built with families in mind, and in partnership with the county and state. I’m looking forward to continuing to push for additional tools to facilitate more of these types of housing projects."
Rendering of 268-unit NoBe II development in North Bethesda
The property will have a mix of layouts, including 48 studio apartments, 135 one-bedroom units, 71 two-bedroom units, seven three-bedroom units, and seven four-bedroom units. The building is located next to Rockville Pike at Nicholson Lane and is approximately one quarter mile south of the North Bethesda Metro station. The properties immediately surrounding NoBE II include a mix of residential, retail, and commercial uses.
“We’re proud to bring NoBE II to the North Bethesda community and deliver high-quality, transit-oriented housing that expands access to opportunity,” said Steve Wilson, president of SCG Development. “This development reflects our commitment to long-term affordability and thoughtful design in one of Montgomery County’s most important growth corridors.”
NoBE II has a total development cost of $130 million. It is supported by $38 million in direct County investment through a loan from the County’s Housing Initiative Fund, which the Montgomery County Department of Housing and Community Affairs administers. In addition to County financing and private lending, the NoBE II development received federal four percent Low Income Housing Tax Credits (LIHTC), administered by the Maryland State Department of Housing and Community Development (DHCD), as well as tax-exempt bonds from DHCD. The project also received Maryland Energy Efficiency Housing Affordability funds of $187,600 issued by DHCD.
The State financing and the County’s direct investment in NoBE II are supplemented by a standard Payment in Lieu of Taxes (PILOT) agreement, which provides a County tax abatement in return for the property owner’s commitment to provide affordable housing. The estimated annual value of the PILOT is $402,000.
“So far in Fiscal Year 2026, Montgomery County has invested more than $71.5 million to produce or preserve 1,233 affordable homes, and we have more than 4,500 affordable units in the pipeline,” said Scott Bruton, director of DHCA. “We are committed to using our resources both to preserve and produce affordable housing through new construction like the NoBE II. This transit-oriented project will give hundreds of households an affordable place to call home just blocks from the Metro and Rockville Pike.”
The NoBE II groundbreaking follows a series of announcements related to the development of the area around the North Bethesda Metro station, including efforts supported by the County and State to transform the Metro station into a multimodal transportation hub and to develop a 13.9-acre mixed-use site adjacent to the rail station. This development, which will be anchored by the University of Maryland’s Institute for Health Computing, will serve as a life sciences and community hub, generating innovative research and spurring economic development for the County and region.
The County’s investments in affordable housing have created or preserved 9,200 affordable units since Fiscal Year 2019. Through the third quarter of Fiscal Year 2026, the County has invested more than $71.5 million to create or preserve 1,233 affordable units. In his Fiscal Year 2027 budget recommendation, the County Executive has proposed $102 million to support the continued production and preservation of affordable housing units.
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Media Contact: Matthew Cournoyer 2403385078
Categories: Housing