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Budget Year / Version:  
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Description

This project provides funding for acquisition and/or renovation of properties for the purpose of preserving or increasing the County's affordable housing inventory. The County may purchase properties or assist not-for-profit, tenant, or for-profit entities, or Housing Opportunities Commission with bridge financing to purchase and renovate properties. The monies may be used to purchase properties that are offered to the County under the Right of First Refusal Law or otherwise available for purchase. A portion of the units in these properties must serve households with incomes that are at or below incomes eligible for the Moderately Priced Dwelling Unit (MPDU) program. A priority should be given to rental housing.
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Phase

Ongoing

Status

Active
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Budget Snapshot
$556.65M Total
Expenditures/Funding
$197M 6 Year Total
Expenditures/Funding
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Cost Change

Cost increase reflects loan repayment proceeds received in FY24, additional funds in FY25 to leverage resources from impact investors to produce and preserve additional affordable units and additional funding in FY29 and FY30 for this ongoing project net of transfers and shifts of loan repayments to the Nonprofit Preservation Fund.
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Justification

To implement Section 25B, Housing Policy, and Section 53A, Tenant Displacement (Right of First Refusal), of the Montgomery County Code. Opportunities to purchase property utilizing the County's Right of First Refusal arise without advance notice and cannot be planned in advance. Properties may be acquired by the County, non-profit developers, HOC or other entities that agree to develop or redevelop property for affordable housing.
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Other

Resale or control period restrictions to ensure long-term affordability should be a part of projects funded with these monies.
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Fiscal Note

Debt service will be financed by the Montgomery Housing Initiative (MHI) Fund. In addition to the appropriation shown above, future loan repayments are expected and will be used to finance future housing activities in this project. FY22 supplemental appropriation in Loan Repayment Proceeds for the amount of $14,749,992.

In FY24, $7.980 million in Loan Repayment Proceeds were transferred to the Nonprofit Preservation Fund. In FY25, $5 million in Loan Repayment Proceeds will be shifted to the Nonprofit Preservation Fund.

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Disclosures

Expenditures will continue indefinitely.
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Coordination

Housing Opportunities Commission, non-profit housing providers, and private sector developers.
Budget Snapshot
$556.65M Total
Expenditures/Funding
$197M 6 Year Total
Expenditures/Funding
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Project Details
Project NumberP760100
Date Last Modified01/11/24
Administering AgencyHousing & Community Affairs
CategoryCommunity Development and Housing
SubCategoryHousing (MCG)
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 FY23Est FY24Total 6 YearsFY 25FY 26FY 27FY 28FY 29FY 30Beyond 6 Years
Planning, Design and Supervision00000000000
Land556654296231634231970008200027000220002200022000220000
Site Improvements and Utilities00000000000
Construction00000000000
Other00000000000
Total Expenditures556654296231634231970008200027000220002200022000220000
FUNDING (000s)
Funding SourceTotalThru FY23Est FY24Total 6 YearsFY 25FY 26FY 27FY 28FY 29FY 30Beyond 6 Years
Current Revenue: General50000005000050000000000
Current Revenue: Montgomery Housing Initiative47754775000000000
G.O. Bonds00000000000
HIF Revolving Program320216187675300321025091735516331157401695617370187570
Loan Repayment Proceeds1521239924123391294914645566962605044463032430
Recordation Tax Premium (MCG)295404540100001500010000500000000
Total Funding Sources556654296231634231970008200027000220002200022000220000
APPROPRIATION AND EXPENDITURE DATA ($000s)
Appropriation FY 25 Request82000
Year First AppropriationFY01
Appropriation FY 26 Request27000
Last FY's Cost Estimate441986
Cumulative Appropriation359654
Expenditure / Encumbrances306545
Unencumbered Balance53109