Local Funding Availability for Affordable Housing
Montgomery County Housing Inntiative Fund (HIF)
The HIF is a Montgomery County-funded initiative to promote a broad range of housing opportunities for residents.Funds allocated to this initiative may be spent to construct or acquire affordable housing units, to buy and rehabilitate existing rental units that would otherwise be removed from the supply of affordable housing, and to assist in the development of housing or mixed-use developments that will include affordable housing units.
Nonprofit Preservation Fund (NPF)
The NPF provides low-interest interim loans to experienced nonprofit developers and local public housing authorities to acquire and preserve affordable housing throughout the County. The NPF has been funded with $50 million for Fiscal Year 2025.
Montgomery County's Department of Housing & Community Affairs (DHCA) administers and manages the NPF program in partnership with the Housing Opportunities Commission of Montgomery County (HOC).Applicants for NPF funding are reviewed and underwritten by HOC.Loans using NPF funding are issued and administered by DHCA.
Borrowers assisted with NPF funding must be a registered 501(c)(3) nonprofit organization and have demonstrated housing development experience.
- Projects must have been constructed at least 20 years ago.
- Developments must commit to include 20% of units to serve households at or below 50% of the Area Median Income (AMI) and 10% of units at or below 70% of AMI for 30 years.
- NFP loans are provided for 7 years at up to $100,000 per unit. There is a per project minimum of $1,500,000.
- NPF program funds will be given as a loan, not a grant.
Affordable Housing Opportunities Fund (AHOF)
Montgomery County has established the Affordable Housing Opportunity Fund (AHOF) to provide short-term financing to developers to acquire properties at risk of loss of affordability. The fund supports applications for short-term loans to acquire and preserve affordable housing.
The AHOF provides the necessary capital for developers to bid competitively to maintain affordability and allow current renters to remain in their community at affordable rents. The AHOF has a dedicated pool of $14 million of revolving County funds, matched at least 3:1 with private lending for short-term loans.
The AHOF is managed by the National Housing Trust for Community Development Fund. NHTCDF will coordinate applications from developers and arrange private capital to combine with Montgomery County funds to respond rapidly to opportunities.
The initial funding for AHOF has been distributed. Applications will be reviewed on a rolling basis as initial loans are repaid and the fund is replenished.
More information about AHOF can be found at this link.