2021 | Development

Housing Opportunities Commission announces $94M affordable-housing deal

Commission will acquire apartments in Bethesda

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This story was updated at 6:30 p.m. June 2, 2021, to correct a reference to the Housing Opportunities Commission of Montgomery County, which is not part of the county government. It was updated at 9:25 a.m. June 5, 2021, to correct and clarify details of the acquisition and the redevelopment project.

The Housing Opportunities Commission of Montgomery County has completed a $94 million acquisition of 401 apartment units in Bethesda, an effort to preserve affordable housing.

HOC documents show that another $3 million is going to financing and transaction costs and $3 million is coming from reserves, for a total of $100 million for the project.

The commission worked with EagleBank to purchase the units at 4730 & 4740 Bradley Blvd. and 4757 Chevy Chase Drive, according to the HOC.

EagleBank provided $81.2 million in financing to help complete the deal. Other funding sources included equity from the commission and its real estate line of credit.

The HOC is purchasing the 401 units at five apartment complexes in Bethesda — The Drake, The Carleton, The Dorset, The Gardens, and The Kentwood.

The commission plans to redevelop up to 370 units, which includes some from the newly acquired complexes and 157 from The Barclay Apartments, which the HOC already owns.

The HOC says the redevelopment will be phased over three to four years.

The 401 units are “naturally occurring affordable housing,” according to the HOC. That means they are considered to be affordable without any government assistance or restrictions.

HOC will eventually place property rent and income restrictions on 50 percent of the 401 units, to maintain affordability, according to the news release Wednesday. 

EagleBank provided two three-year interest-only loans, which will pay for 81% of the overall $100 million. The $81.2 million, along with other funding sources, will pay for the first three to four years of operations at the new apartments.

The HOC says it provides affordable housing resources to 15,000 county residents and owns more than 8,000 rental units, while assisting more than 7,000 low-income households through the federal Housing Choice Voucher program.

Steve Bohnel can be reached at steve.bohnel@bethesdamagazine.com