up
Budget Year / Version:  
anchor
anchor
anchor

Description

This is a revolving loan fund which authorizes the Housing Opportunities Commission (HOC) to use up to $12.5 million at any one time for: (a) interim financing, including cost of acquisition and finishing by HOC, of Moderately Priced Dwelling Units (MPDUs) as permitted in Chapter 25A of the Montgomery County Code, provided that the unit is used in tandem with a Federal, State, or local subsidy program and is developed to provide housing to low- and-moderate-income households; and (b) planning, acquisition, and improvement of sites and/or existing properties for low and-moderate-income, single, or multifamily housing facilities, which are to be owned and operated by HOC or its designees. Sites may be land-banked in anticipation of future development when adequate public facilities become available. Upon receipt of permanent financing, monies are returned to the fund for reuse. No MPDU may be held by the fund for more than 24 months. The 24-month maximum holding period may be extended in unusual situations for a limited time upon determination by the Director of the Department of Housing and Community Affairs that such an extension would best support purposes of this program. HOC may determine that a County lump sum subsidy is required to secure independent financing or meet Federal, State, or local program guidelines for itself or its designees. Such write-downs from County funds shall be made only for projects serving households whose incomes do not exceed the following limits: 1/3 units - 80 percent of Washington Metropolitan Area Median income; 1/3 units - 80 percent of County Median income; and 1/3 units uncontrolled. In the event that a subsidy is undertaken, then in its next CIP submission, HOC shall include a PDF describing the subsidized program and shall request an appropriation sufficient to fully repay this fund.
anchor

Phase

Ongoing

Status

Active
anchor
Budget Snapshot
$12.51M Total
Expenditures/Funding
$0M 6 Year Total
Expenditures/Funding
anchor

Justification

HOC is continually evaluating transactions that will require interim funding from the revolving fund. These transactions include redevelopment activities of older HOC properties that require significant capital infusion to improve their physical conditions or to redevelop and/or reposition them in their respective market areas. In addition, HOC continues to seek new development opportunities, as well as, the acquisition of existing multifamily developments through the conventional real estate sales market that may require interim financing to facilitate the transaction. The County's right of first refusal law was changed to include all multifamily properties of more than five units. The change in law provides HOC with greater acquisition opportunities to preserve affordability and greater need for gap and bridge financing. HOC sets aside revolving funds to capitalize on opportunities to acquire and preserve rental units as they are offered under the current law.
anchor

Other

The County General Plan Refinement stands in compliance with the General Plan requirement of the Maryland Economic Growth, Resource Protection, and Planning Act. County Master Plans must be in compliance with the General Plan. Beginning in FY01, as a contribution to affordable housing, HOC was given relief on past due interest payments and is no longer required to pay interest on funding for this project.
anchor

Fiscal Note

Outstanding draws as of June 30, 2019, totaled $7,520,566. Repayments of $2,510,572 were made in FY19 for Housing Opportunities Commission Home Ownership Program (HOC/HOP). Repayments of $1,294,348 are expected in FY20 for Holiday Park ($101,563), 880 Bonifant ($238,860) and the HOC/HOP program ($953,925). HOC anticipates continued utilization of the revolving fund for MPDU acquisition as well as for the acquisition, development and improvement of real property that expands or stabilizes affordable housing in the County.
anchor

Coordination

Department of Finance and Department of Housing and Community Affairs.
Download & Explore
Budget Snapshot
$12.51M Total
Expenditures/Funding
$0M 6 Year Total
Expenditures/Funding
anchor
Project Details
Project NumberP768047
Date Last Modified01/02/20
Administering AgencyHousing Opportunities Commission
CategoryHousing Opportunities Commission
SubCategoryHousing (HOC)
Planning AreaCountywide
anchor
Total Expenditures by Cost Element (000s)
anchor
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
Land661165674400000000
Site Improvements and Utilities00000000000
Construction00000000000
Other5896954494200000000
Total Expenditures125077521498600000000
FUNDING (000s)
Funding SourceTotalThru FY19Est FY20Total 6 YearsFY 21FY 22FY 23FY 24FY 25FY 26Beyond 6 Years
Revolving Fund: Current Revenue107107000000000
Revolving Fund: G.O. Bonds124007414498600000000
Total Funding Sources125077521498600000000
APPROPRIATION AND EXPENDITURE DATA ($000s)
Appropriation FY 21 Request0
Year First AppropriationFY14
Appropriation FY 22 Request0
Last FY's Cost Estimate12507
Cumulative Appropriation12507
Expenditure / Encumbrances0
Unencumbered Balance12507