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County closed a record $143.9 million in loans during FY26 to produce and preserve 1,983 units
The Montgomery County Department of Housing and Community Affairs (DHCA) published its Affordable Housing Pipeline Report for the fourth quarter of Fiscal Year 2026 (FY26), showing that the County closed loans totaling $143,925,793 during FY26 to support the creation or preservation of 1,983 affordable housing units. These new construction and preservation projects add to DHCA’s cumulative investment in affordable housing development, totaling $704,126,983 in loan agreements from FY19 through FY26 to produce or preserve 10,031 affordable units across 126 projects.
“During my time as County Executive, I’ve pushed to substantially increase the County’s investment in affordable housing. This effort has helped create and maintain over 10,000 affordable rental homes over the past eight years,” said County Executive Marc Elrich. “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.”
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Creating and preserving affordable housing remains an urgent need for the County. In 2019, the Metropolitan Washington Council of Governments (COG) set regional housing targets. Montgomery County’s share of the region’s goal is 31,000 new units over the 2020-2030 period. Critically, the COG targets focus on both new supply and affordability, emphasizing that at least 75% of the new units should be affordable to low- and moderate-income households.
“Affordable housing is about making sure people who work, raise families, and build their lives here can continue to afford to call Montgomery County home. The FY26 results show what we can accomplish,” said Council President Natali Fani-González. “I am particularly proud of the work that the Council has done to center affordability into its housing decisions, from enhanced MPDU requirements in office conversions to incentives and fast-track approvals for affordable housing. There is still more work to do, and we must continue making smart investments, working with our nonprofit, public, and private partners to expand affordable housing for working families across our County.”
From FY19 through FY26, the County has increased its financial investments in affordable housing, including loans, grants, and tax abatements. This investment has produced 3,958 new affordable housing units and preserved 6,073 existing affordable units. At the same time, the Moderately Priced Dwelling Unit (MPDU) inclusionary zoning program generated 2,205 new units built from 2019 to 2025, including 1,604 rental units and 601 for-sale units.
“Montgomery County is using all the tools available to build new affordable housing and to preserve existing affordable homes,” said DHCA Director Dr. Scott Bruton. “By committing $143.9 million in the last fiscal year, DHCA has expanded affordable options for individuals and families across all income levels and in communities throughout the County. Thanks to the County Executive and County Council’s ongoing, strong investment in affordable housing, DHCA will continue to support much-needed affordable projects that are in our pipeline for FY27.”
The Affordable Housing Pipeline Report details the County’s development finance budget allocation from three main funding sources: the Montgomery Housing Initiative Fund (HIF), which includes both Operating and Capital Improvements Program (CIP) funds, and Federal grants, including the Community Development Block Grant (CDBG), and the HOME Investment Partnerships (HOME) programs. 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.
Throughout FY26, the County closed financing agreements and/or executed Payment in Lieu of Taxes (PILOT) agreements to support 18 affordable housing projects. The County also, for the first time, used the process authorized by Expedited Bill 38-23 to assign its Right of First Refusal (ROFR) to a ROFR Qualified Entity, thereby facilitating the preservation of Tilbury Gardens Apartments in Bethesda and the Argyle Apartments in Rockville. The County’s FY26 affordable housing development projects included:
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- Seabury Resources for Aging, Seabury at Springvale Terrace, Silver Spring: $30,900,000 HIF-CIP loan for the redevelopment of a senior housing facility, including 186 affordable units.
- Orlo Grand II, LLC, The Grand, Rockville (ROFR): $27,213,900 total County investment consisting of $213,900 in estimated annual value Standard PILOT agreement, and $27,000,000 HIF-Operating and HIF-CIP for the preservation and production of 138 affordable units.
- Yoke Management, LLC, The Argyle Apartments, Rockville (ROFR Qualified Entity): $5,888,551 HIF-Operating for the preservation of 12 affordable units.
- Yoke Management, LLC, Tilbury Gardens Apartments, Bethesda (ROFR Qualified Entity): $3,921,743 HIF-Operating loan for the preservation of 16 affordable units.
- Wisconsin Park Associates Limited Partnership, Yorkshire Apartment, Silver Spring: $165,326 in estimated annual By-Right PILOT agreement value to produce 163 affordable units.
- Victory Hampshire Preservation LLC, Hampshire Village, Silver Spring: $5,000,000 HIF-Operating loan for the preservation of 110 senior affordable units.
- Burnt Mills Crossing LLC, Burnt Mills, Silver Spring: $519,618 total County investment consisting of $160,912 in estimated annual value Standard PILOT agreement, and $358,706 HIF-Rental Assistance Program for the preservation and production of 104 affordable units.
- Deauville Property, LLC, Deauville Apartments, Takoma Park: partial repayment of $10,100,100 to the CIP for a 2025 bridge loan, using funds from the Nonprofit Preservation Fund (NPF).
- Housing Unlimited Inc.: permanent financing of $464,329 HOME loan to preserve three affordable units for people in mental health recovery.
- Housing Unlimited Inc.: $1,020,000 HIF-Rental Assistance Program for 264 affordable units for people in mental health recovery.
- NOBE II, SCG Development Partners, LLC, North Bethesda: $38,402,000 total County investment consisting of $402,000 in estimated annual value Standard PILOT agreement, and $38,000,000 HIF-CIP for the production of 268 affordable unit multifamily residential building.
- 8711 Investors LLC, The Premier, Silver Spring: $398,627 in estimated annual By-Right PILOT agreement value for the production of 80 affordable units and 20 units at 80% of AMI.
- Rockville Housing Enterprise, RHE David Scull, Rockville: $875,000 CDBG for the rehabilitation of the 76 units of public housing.
- Housing Opportunities Commission, The Lindley, Chevy Chase: $6,100,000 NPF for the preservation of 60 affordable units.
- MHP, Bethany House, Rockville: $8,247,464 NPF for the acquisition and preservation of a building with 227 affordable units for seniors.
- 8727 Colesville Owner LP, 8727 Colesville Road, Silver Spring: $225,000 in estimated FY25 annual By-Right PILOT agreement, 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 NPF and HOME plus $274,987 in estimated FY25 annual By-Right PILOT agreement value, for permanent financing of a 121 affordable unit property.
- Reserve at Strathmore MD Owner LLC, 10515 Strathmore Hall Street, North Bethesda: $375,947 in estimated FY25 annual WMATA PILOT agreement value, for the production of 21 affordable units.
Projects closed throughout FY26 will support the development and preservation of affordable rental housing by private developers, nonprofit organizations, the Housing Opportunities Commission of Montgomery County, and Rockville Housing Enterprises. They also include housing developments that will serve seniors and people undergoing mental health recovery.
Read the new Affordable Housing Pipeline Report: FY26 Fourth Quarter Update.
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Read the original article at mcgov
