Montgomery County Funds Development of 76-Unit Apartment Building to Bolster Affordable Housing Opportunities Along the Burgeoning Purple Line Corridor in Silver Spring
For Immediate Release: Friday, October 6, 2023
Montgomery County made another bold move to expand its number of affordable housing units by providing funding for the construction of Park Montgomery West, a new 76-unit rental apartment building to be built at 8856 Piney Branch Road in Silver Spring. Conveniently located along the developing Purple Line Corridor, Park Montgomery West will help preserve and meet the increasing demand for transit-oriented affordable housing in one of Maryland’s most populated counties.
Montgomery County’s Department of Housing and Community Affairs (DHCA) facilitated $10.6 million in financing, along with a Payment in lieu of Taxes (PILOT) agreement with Enterprise Community Development, Inc. (ECD) to support the construction of the 76 new apartments and the renovation of 141 existing units. The PILOT agreement waves County real estate taxes for ECD on its affordable units.
“Too often, when a neighborhood increases its amenities, the existing residents are forced out because of unaffordable rents,” said Montgomery County Executive Marc Elrich. “As the Purple Line station comes to the neighborhood, this project preserves, improves and expands affordable housing options. I appreciate the partnership with Enterprise and the State and look forward to continuing our efforts to build a more equitable and prosperous community for all.”
DHCA Director Scott Bruton highlighted the importance of collaborations and innovative funding strategies.
“Through strategic partnerships and valuable financing models like the twinning of Federal Low-Income Housing Tax Credits (LIHTC), we can accelerate the growth of affordable housing options in our County,” said Director Bruton. “The Park Montgomery project exemplifies our commitment to addressing housing challenges and making substantial progress toward meeting the needs of our diverse population.”
The ability to “twin” or simultaneously utilize two LIHTC programs is another key part of EDC’s financing for Park Montgomery. Typically, the LIHTC program is utilized for either new construction projects or for renovating existing buildings, but not both. Securing a 9 percent tax credit for the construction of Park Montgomery West, and a 4 percent tax credit for financing renovations at Park Montgomery, the twinning of LIHTC creatively combines two separate tax credits to maximize the impact of affordable housing initiatives.
The Park Montgomery development aligns with the County’s vision to create a vibrant and inclusive community where every resident has access to safe, decent and affordable housing. DHCA is dedicated to fostering such growth. The Park Montgomery project stands as a beacon of hope for families, offering a total of 217 units as an affordable home to households earning between 30 percent and 60 percent of the area median income.
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Built in 1971, the existing 15-story Park Montgomery building will undergo an extensive renovation. ECD also will demolish an existing parking structure and replace it with the new five-level Park Montgomery West building located on top of a new parking facility. The development is comprised of one-, two- and three-bedroom apartments, with more than 30 percent of the units designed as three-bedroom units.
The total Park Montgomery project is estimated to cost $98.8 million, with $34.7 million going toward construction of the new building and $64.1 million for renovations of the existing building.
Creating affordable housing opportunities and protecting tenant’s rights are part of County Executive Elrich’s key initiatives. Financing of affordable housing at the Park Montgomery West complex also comes in the wake of County Executive Elrich signing the County’s historic Rent Stabilization Bill 15-23, which protects renters by limiting yearly rent increases to inflation plus 3 percent, with a total cap up to 6 percent.
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Release ID: 23-439
Media Contact: 240-962-1743
Categories: Housing
For updates and link to press release, see here: http://www2.montgomerycountymd.gov/mcgportalapps/Press_Detail.aspx?Item_ID=44114