HOC Closes on $99.25k Bond Transaction to Finance Shady Grove Redevelopment

KENSINGTON, MD (March 11, 2021). On January 28, 2021, the Housing Opportunities Commission of Montgomery County (HOC) announced the financial closing for the acquisition, development, and construction of a new multifamily residential development; Building D at Westside Shady Grove, located at 8005 Gramercy Boulevard, Rockville, MD 20855.

Named “The Hurston” for former Marylander, Harlem Renaissance artist, and Howard University alumna, Zora Neale Hurston, for her incredible literary and artistic contributions to the greater community, the development will be owned by HOC and managed by Bozzuto Management Company.

The Hurston, while a small part of a 45-acre mixed-use, mixed-income development by our partners, Bozzuto Development Company and EYA, LLC, its impact will be significant. As a residential community offering luxury amenities, including a pool, firepits, areas for remote working, and other recreational spaces for children and families, the property is also transit-oriented, near the Washington Metropolitan Area Transit Authority (WMATA) Shady Grove metro station, highway accessible, and equipped with on-site parking. By opening day, the property will also be certified as compliant with the National Green Building Standard for environmental sustainability.

“We are extremely proud to help break down barriers for our customers and help to provide access to the same quality of life and amenities as their more well-to-do neighbors,” said Stacy L. Spann, Executive Director of HOC. “Through mixed-income development, each unit of the Hurston will be constructed with the same standards, materials, and access to amenities, regardless of income-level. We believe this is the most equitable approach to developing communities, and have found that over the years, our customers really benefit from it.”

The Hurston will provide for 268-units, 30% of which will be reserved as affordable to households earning less than 50% and 65% of the area median income for the Washington, DC metropolitan area.

The multi-use property will also deliver 21,000 square feet of retail and 7,400 square feet of office space to which HOC will relocate its UpCounty Service Center. The Service Center will occupy two floors, provide new workspace for HOC employees, and be positioned in a geographically central location for UpCounty customers. Construction will begin in Spring 2021.

To finance the acquisition and development of the Hurston and the remainder of the property, HOC sold its 2021 Series A Multifamily Housing Development Bonds. This innovative transaction financed a $99,250,000 Housing Finance Agency (FHA) Risk Share credit-enhanced mortgage, which provided the majority of the financing proceeds for this development.

“Finalizing this transaction is an incredible accomplishment in itself,” said Kayrine Brown, Deputy Executive Director of HOC. “Our Mortgage Finance and Real Estate Development teams worked extremely hard to access components of the tax code to complete a unique transaction and create what will be an important asset for the community.”

The structure of the tax-exempt bonds, FHA Risk Share pass-through bonds, made this transaction the nation’s largest and first-ever FHA Risk Share pass-through transaction sold with a Green Bonds Designation.

Through the partnership of HOC, Bozzuto, and EYA, 268 Montgomery County households will have the opportunity to live in an amenity-rich, transit-oriented, environmentally sustainable, mixed-income, mixed-use community. The development is expected to reach completion by January 2023.


About the Housing Opportunities Commission of Montgomery County

The Housing Opportunities Commission of Montgomery County was established in 1974 to better respond to the County’s need for affordable housing. HOC is authorized to acquire, own, lease, finance, and operate housing; to provide for the construction or renovation of housing; obtain financial assistance from any public or private source to assist its housing activities; and arrange for social services, resident services and day care.

Since its inception, HOC has creatively responded to the changes that affect the production of affordable housing and is considered a national leader in affordable housing development.

The mission of the Housing Opportunities Commission is to provide affordable housing and supportive housing services that enhance the lives of low- and moderate-income families and individuals throughout Montgomery County, Maryland so that no one in Montgomery County lives in substandard housing; we strengthen families and communities as good neighbors; we establish an efficient and productive environment that fosters trust, open communication and mutual respect; and we work with advocates, providers and community members to maintain support for all the work of the Commission.

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