A 463-unit mixed-income project in Silver Spring designed to reach the highest level of sustainable development has closed on a major financing package and broken ground.
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Hillandale Gateway, which is being developed via a partnership between the Housing Opportunities Commission of Montgomery County, The Duffie Cos. and PS Ventures, broke ground last week after it secured $303M in financing, HOC announced in a press release.
The project at 10110 and 10140 New Hampshire Ave. is planned as two buildings, with a combination of multigenerational, senior and mixed-income units. The 155-unit Radia at Hillandale Gateway is reserved for residents 62 and older, while the 308-unit Lumina at Hillandale Gateway is the multigenerational component. The development is reserving 54% of its units for those making between 30% and 80% of the area median income.
The project is being designed for the Passive House sustainability standard and is set to be Maryland's first zero-net energy building, according to the release.
HOC, a quasi-government organization that builds and operates affordable housing in the county, owns more than 9,400 rental properties and has a pipeline of 13 projects in planning or development.
“Hillandale Gateway, HOC’s largest new construction project to date, will provide hundreds of much-needed affordable and market-rate homes in Montgomery County,” HOC President and Executive Director Chelsea Andrews said in the release. “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.”
Wednesday’s groundbreaking came after a decade-long effort to redevelop Holly Hall, a three-building, 96-unit public housing site that was built in the 1960s. It sits about 5 miles from Downtown Silver Spring and 1.5 miles from the Food and Drug Administration's White Oak campus, which has a 12M SF mixed-use development moving forward next door.
The project secured public and private debt, including $52M in Low-Income Housing Tax Credit equity, $16M in Montgomery County Housing Initiative Funding, $10M in Montgomery County Green Bank funds and more than $2.5M in Maryland grants.
The project also received $35M from the Housing Production Fund, $17M of 2024 Series A Multifamily Housing Development Bonds, and $176M of tax-exempt loans from three private lenders.
Construction is expected to be completed in early 2027.
