Montgomery County Department of Housing and Community Affairs (DHCA) participated in the financing of "Sandy Spring Village" to create affordable housing for seniors. The innovative conversion of a three-building office complex into 56 one- and two-bedroom apartment homes for residents ages 62-and-over will begin soon.The office complex is located at 17810 Meetinghouse Road in Sandy Spring. The 2.67-acre property includes three buildings that were built around 1977. In addition to the 56 affordable units, the converted community will include a clubhouse, a courtyard, an exercise facility and a picnic and recreation area. It is expected that the project will be completed in early 2023.
“Adaptive reuse of commercial buildings is part of our strategy to expand affordable housing and it is exciting to have another housing option for our senior population,” said Montgomery County Executive Marc Elrich. “The County loan package will support rents for people with incomes from 40 percent to 60 percent of the area median. Increasingly, we are focusing on creating deeply affordable housing because we have almost 50,000 households in Montgomery County with incomes up to about $50,000 per year who pay more than half their income for rent.”
To support the acquisition and adaptive reuse of the commercial property as affordable housing, the County provided a $3.8 million Housing Initiative Fund loan and a Payment in Lieu of Taxes agreement. The County loan package supports four apartment units priced for tenants with incomes of 40 percent of the area median income (AMI), five units priced at 50 percent of the AMI and 47 units priced at 60 percent of the AMI.
Other project financing includes four percent Low Income Housing Tax Credit equity, State of Maryland Rental Housing Works funding of $2.5 million, senior financing, a deferred developer fee and equity.
The adaptive reuse conversion is being developed by KCG Development, a mixed-use and multifamily housing developer headquartered in Indianapolis, IN. Project Partners include Moseley Architects, Commercial Construction, christopher consultants, Avens + Heath, Lerch, Early & Brewer, Pando Alliance and Winthrop and Weinstine. KCG Development intends for construction on the property to begin in the coming weeks.
“As a Montgomery County resident, I am proud to see the County thinking differently about housing options for seniors,” said KCG Vice President of Development Stacy Kaplowitz. “It is an honor to be welcomed into the historic Sandy Spring community and we look forward to transforming this property into a vibrant, affordable community for older adults.”
Montgomery County is applying every available policy tool and financial resource to help reduce housing cost burdens by increasing the number of affordable, rent-regulated housing units; providing rent supports; and, preserving current affordable housing while protecting tenants from displacement.
For more information, see the DHCA Annual Report.