Overview

Location

Bethesda, MD

Property Type

Existing mixed-income development

Units

401

On December 21, 2020, HOC entered into a purchase agreement for 401 units at multiple addresses in South Bethesda owned by various ownership entities, but generally controlled by Aldon Management Corp. All of the 401 units composing the Properties were naturally occurring affordable housing with no legal or regulatory restrictions on rents or household incomes. As naturally occurring affordable housing located in the Bethesda CBD, the Properties were at risk for significant future rent increases and potential displacement upon redevelopment.

Altogether, the properties represent more than eight aggregate acres of property within the Bethesda CBD. HOC estimates that approximately 1,300 units in a future redevelopment could replace the existing 558 units (inclusive of HOC’s Barclay Apartments with 158 units). Control of the properties is essential to preserving the existing housing stock and managing redevelopment in the future such that no permanent displacement occurs.

This acquisition presented a unique opportunity for HOC to preserve currently naturally affordable residential units as well as significantly increase the number of affordable units in the area with a very high redevelopment future rent increase potential. Upon acquisition, all unit rents were at or below 80% of the Washington, DC-MD-VA Metropolitan Statistical Area Median Income (AMI) levels. HOC successfully implemented two levels of affordability across the properties: 30% of the units (121 units) were restricted to households earning 80% or less of the area AMI. Additionally, 20% of the units (81 units) were restricted to households earning 50% or less of the area AMI, Implementation of the restrictions was phased in over the first 2-3 years following acquisition and did not displace any existing residents.

 

Contact Details

Address

Bethesda, MD

Property Manager

Not Mentioned

Contact Number

Not Mentioned

Fax Number

Not Mentioned

Email Address

Not Mentioned

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