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Budget Year / Version:  
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Description

Typical improvements include, but are not limited to, replacement of roofs, windows and doors; improvements to unit interiors such as kitchen and bathroom modernization; replacement of major mechanical, electrical, plumbing systems and equipment; appliance replacement; life-safety improvements; site improvements such as fencing, site lighting, landscaping, and sidewalk and parking lot replacement. In the FY15-20 Capital Improvements Program this project was expanded to allow these funds to be used for deeply subsidized HOC owned unit improvements on public housing units with both pre- and post- conversion.
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Phase

Ongoing

Status

Active
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Budget Snapshot
$15M Total
Expenditures/Funding
$7.5M 6 Year Total
Expenditures/Funding
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Cost Change

The increase is due to the addition of FY25 and FY26 funding.
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Justification

These properties are original MPDUs that are owned by HOC and are subject to Commission imposed or financing restrictions, or are subject to extended use restrictive covenants in accordance with the Low Income Housing Tax Credit (LIHTC) program which requires continued affordability. Given the age of the properties, they now need comprehensive renovation but lack the net operating income to generate sufficient proceeds to both retire the existing debt and fund the vital renovations. Montgomery County has a higher property standard than the Federal government. In addition, neighbors in the communities with the units expect the properties to be well maintained. Many of these units are scattered throughout the County in communities governed by Home Owner Associations (HOAs), and some have higher standards than the County code. Additional funding is necessary if HOC units are to be maintained at levels consistent with community norms and standards. In an effort to stay true to its mandate to provide decent, safe, and sanitary housing to low- and moderate-income residents in Montgomery County and to ensure that its properties and communities are maintained at a level consistent with community norms, HOC will use a combination of its own funds and County funds to make capital improvements to this housing stock.
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Fiscal Note

The Commission's portfolio includes hundreds of income-restricted scattered site units throughout the County, most approximately 30 years of age. Many of these units were acquired into a Low Income Housing Tax Credit limited partnership more than 15 years ago and are subject to continued affordability restrictions under the LIHTC program. All units in the limited partnerships have now been contributed to HOC making HOC the sole owner of these units. Finally, other units are simply older Moderately Priced Dwelling Units (MPDUs) that continue to be restricted to households of low- and moderate-income. With significant debt remaining on those units, the net operating income from these affordably priced units cannot support both the repayment of that debt and the additional proceeds needed to complete a comprehensive scope of renovation, which includes new windows, roof replacement, installation of energy-efficient heating and air conditioning systems, electrical and plumbing repairs, new flooring, new lighting, new cabinetry, installation of energy-efficient appliances, and new bathrooms.
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Disclosures

Expenditures will continue indefinitely.
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Coordination

Maryland Department of Housing and Community Development, Department of Housing and Community Affairs.
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Budget Snapshot
$15M Total
Expenditures/Funding
$7.5M 6 Year Total
Expenditures/Funding
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Project Details
Project NumberP091501
Date Last Modified12/31/19
Administering AgencyHousing Opportunities Commission
CategoryHousing Opportunities Commission
SubCategoryHousing (HOC)
Planning AreaCountywide
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Total Expenditures by Cost Element (000s)
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Total Funding by Source (000s)
EXPENDITURES (000s)
Cost ElementsTotalThru FY19Est FY20Total 6 YearsFY 21FY 22FY 23FY 24FY 25FY 26Beyond 6 Years
Planning, Design and Supervision00000000000
Land00000000000
Site Improvements and Utilities00000000000
Construction00000000000
Other150004536296475001250125012501250125012500
Total Expenditures150004536296475001250125012501250125012500
FUNDING (000s)
Funding SourceTotalThru FY19Est FY20Total 6 YearsFY 21FY 22FY 23FY 24FY 25FY 26Beyond 6 Years
Current Revenue: General150004536296475001250125012501250125012500
Total Funding Sources150004536296475001250125012501250125012500
APPROPRIATION AND EXPENDITURE DATA ($000s)
Appropriation FY 21 Request1250
Year First AppropriationFY15
Appropriation FY 22 Request1250
Last FY's Cost Estimate12500
Cumulative Appropriation7500
Expenditure / Encumbrances0
Unencumbered Balance7500