The Housing Opportunities Commission of Montgomery County (HOC) is excited to announce that it has closed on more than $303 million in financing for Hillandale Gateway, fully funding a new mixed-income, mixed-use, intergenerational community at the interchange between New Hampshire Avenue and the Capital Beltway in Silver Spring.
Hillandale Gateway represents the largest investment in residential housing in the East County in more than half a century and is being developed in partnership with The Duffie Companies and PS Ventures. It is being constructed to what is generally considered the world’s most rigorous above code minimum building standard – Passive House. Passive House construction methodologies will enhance the buildings’ comfort, durability, and resiliency while significantly reducing energy consumption. Upon completion, Hillandale Gateway will be among Maryland’s only and the state’s largest passive house multifamily community. Additionally, the Radia at Hillandale Gateway is planned to be Maryland’s first Zero-Net Energy multifamily residential building.
The financing of Hillandale Gateway caps off a nearly 10-year effort to redevelop the former Holly Hall Apartments, a Public Housing site comprising 96 units, which was converted under HUD’s Rental Assistance Demonstration program. The new development will deliver 463 residential units in two high-rise buildings. The project will consist of the Radia at Hillandale Gateway, which will provide 155 homes for seniors aged 62 and greater, while the adjacent Lumina at Hillandale Gateway will include 308 multi-generational homes for individuals, couples and families. Fifty-four percent (54%) of the overall development will be affordable at a range of income levels from 30% – 80% of the Area Median Income (AMI).
The Housing Production Fund (HPF) will provide $35 million in construction financing for the Hillandale development. The HPF is a $100 million revolving loan fund that provides low-cost construction financing for mixed-income, publicly-owned new developments like Hillandale Gateway. Created in partnership with Montgomery County in 2021, HOC currently projects that the HPF will contribute to the creation of over 3,000 new housing units by 2030. The innovative local financing model that has been featured in publications such as the New York Times and was awarded the 2024 Ivory Prize for Housing Affordability.
“Hillandale Gateway, HOC’s largest new construction project to date, will provide hundreds of much-needed affordable and market-rate homes in Montgomery County,” said HOC President and Executive Director Chelsea Andrews. “It will foster economic growth in line with the White Oak Science Gateway Master Plan and be a catalyst for revitalization in eastern Montgomery County. Hillandale Gateway also will set new benchmarks in sustainability and high-performance development in the County.”
“We are honored to be developing such forward-thinking projects in partnership with HOC,” said Shane Pollin, principal, PS Ventures, LLC. “These all-electric buildings are targeting Passive House certification and incorporate best practices in building science. Hillandale Gateway evidences true leadership in the built environment. We are pleased to be able to share our expertise in sustainable building development on such great projects with such outstanding partners.”
The site will include a significant renewable energy system in the form of rooftop solar on both multifamily buildings and the parking garage, as well as on the prominent southern façade of the parking garage. This system is anticipated to be sufficient to allow The Radia to become Zero-Net Energy – producing as much energy as it consumes annually. The Radia will also contain a space designated to serve as a resiliency hub during emergencies, providing essential services like emergency power for device charging, refrigeration/freezer space for items like medication and mother’s milk, and heating to both residents and the surrounding community.
Central to its design is the promotion of community engagement and public accessibility. The development features expansive public and private green space, including an amphitheater, and enhancements such as a new bus transit center, extensive electric vehicle charging infrastructure and commercial, retail and restaurant space.
The project’s total financing of $303 million in the form of private and public debt as well as other sources including over $52 million in Low Income Housing Tax Credit (LIHTC) Equity, $16 million in Montgomery County Housing Initiative Funding (HIF), $10 million in Montgomery County Green Bank financing and more than $2.5 million in State grants.
Other financial partners include Wells Fargo, Citi Community Capital, Montgomery County Department of Housing and Community Affairs, State of Maryland DHCD: Multifamily Energy Efficiency & Housing Affordability Program (MEEHA), Maryland Energy Administration, FHA, PNC Bank, N.A., and HOC.
“This is a significant achievement for Montgomery County, and the Montgomery County Green Bank is proud to collaborate with the Housing Opportunities Commission of Montgomery County and other financial partners on this momentous project,” said Stephen Morel, CEO of Montgomery County Green Bank. “With Hillandale Gateway, we are one step closer to achieving the County’s climate goals by leveraging innovative partnerships to make clean energy and climate-resilient solutions more accessible and affordable for all.”
As part of the financing structure, HOC closed on the issuance of $17,475,000 of 2024 Series A Multifamily Housing Development Bonds (MHDB) and $176,000,000 of tax-exempt indebtedness with three private lenders utilizing $76.2 million of private activity volume cap.
Construction is projected to be completed in early 2027, with occupancy and stabilization expected in the agency’s 2028 fiscal year.
About HOC
HOC serves more than 20,000 Montgomery County households through a variety of innovative housing programs. HOC owns more than 9,400 apartment, townhome and single-family home rental properties, provides rental assistance to more than 7,700 low-income households through the Housing Choice Voucher (HCV) program and an additional 1,600 households through other types of subsidized housing programs. HOC has also financed more than 4,000 affordable units for other developers and currently has a pipeline of 13 projects in various stages of the development process from design to construction. It has helped more than 2,000 households purchase a home through homeownership and mortgage finance programs. Visit HOC.
