County Home |
About Your County |
County Government |
Services |
Guest Book |
Questions for the Executive
News | Phone Book | Business Development | Council | Related Resources
db:ksi.pr 97- 133 Contact: David Weaver, (301) 217-6530
Stephanie Killian, (301) 217-3693
DUNCAN ANNOUNCES EFFORT
TO PRESERVE BLANDFORD APARTMENTS
AND NEARLY 400 BETHESDA UNITS
FOR LOW- AND MODERATE-COST HOUSING FOR RELEASE: April 29, 1997
County Executive Douglas M. Duncan today announced an agreement with KSI
Properties, which will preserve for the next 30 years more than 550 apartment units in
Rockville and Bethesda -- providing safe, affordable housing for low- to moderate-income
families in two areas of the County where such housing is scarce. As part of the agreement,
the County will provide a loan from the County’s Housing Initiative Fund, along with a
commitment from the state for tax exempt bond financing, FHA mortgage insurance, and
federal low-income housing tax credits.
Also contributing to the effort is the Housing Opportunities Commission’s agreement
to provide housing assistance vouchers to prevent the displacement of individuals with
extremely low incomes. In addition, the City of Rockville has been asked to ensure that the
Rockville units remain affordable.
The combined efforts of the private and public sectors have preserved an important
housing resource in the downcounty area, said Duncan. Although these units have not been
in good repair, this deal will enable the purchaser to fully renovate the apartments and bring
them up to code -- offering decent and safe housing for our citizens who can least afford it.
DUNCAN ANNOUNCES EFFORTS TO PRESERVE AFFORDABLE HOUSING 2-2-2-2
KSI Properties is scheduled to purchase the Blandford Apartments in Rockville and
the Exfair Gardens, Bradley Manor, Clarendon, and Elm Street Apartments in Bethesda by
June 30 of this year. Renovations will begin in September, and all but 24 Blandford units
(which were recently renovated by the current owner) will be rented at below-market rates in
order to provide affordable housing for individuals who earn 40 to 60 percent of the area
median income.
The 190 Blandford units are empty, having been closed by the current owner on
New Year’s Eve -- displacing nearly 120 families. The Bethesda properties include a total of
372 apartments, and 272 are expected to remain occupied at the time of the sale.
Construction will be phased in to keep as many eligible residents on the property as possible
with a minimum of disruption. KSI will work to relocate tenants who will not be able to
stay or who choose not to stay, and the company will provide a relocation payment to those
individuals.
All of the apartment units being purchased by KSI are located within a few blocks of
either the Rockville Town Center or the Bethesda business district. Rents for the renovated
units will range from $465 to $555 in Bethesda for a one-bedroom, one-bath unit, to between
$775 and $795 in Rockville for a two-bedroom, one-bath unit. Eligible household incomes
range from $15,500 to $22,480 to qualify for the lowest rate on a one-bedroom unit to as
much as $48,900 to qualify for a below-market rate on a three-bedroom unit.
DUNCAN ANNOUNCES EFFORTS TO PRESERVE AFFORDABLE HOUSING 3-3-3-3
A large and complex real estate deal such as this requires attention and a
commitment to move forward with regulatory reviews and financing in a timely manner, said
Duncan. As part of moving this deal to closing by the end of June, I am transmitting to the
County Council a request for a $1.3 million supplemental appropriation to the County’s
Housing Initiative Fund to help provide gap financing for these properties. I will be
reviewing the development financing and other details of this plan with the Council, but urge
them to act quickly on this proposal in order to bring this deal to a close. I am also hopeful
that the City of Rockville will be able to participate further in this effort.
Following his announcement, Duncan acknowledged the efforts of those who worked
to preserve affordable housing at the Rockville and Bethesda properties, including
Councilmembers Betty Ann Krahnke and William Hanna; Tad Baldwin of Montgomery
Housing Partnership; Lon Dring of Community Ministries; and Rick Ferrara, Executive
Director of the Housing Opportunities Commission.
For more information about the agreement, or for information about tenant income
eligibility, call the County’s Department of Housing and Community Affairs at
(301) 217-3600.
# # #
County Home |
About Your County |
County Government |
Services |
Guest Book |
Questions for the Executive