Nonprofit Preservation Fund (NPF)
What is NPF?
The NPF is a newly-established funding program that 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 will be funded with $50 million by Fiscal Year 2025.
Montgomery County's Department of Housing & Community Affairs (DHCA) will administer and manage the NPF program in partnership with the Housing Opportunities Commission of Montgomery County (HOC).
The County has over 25,900 unrestricted NOAH units and affordable households with income under 65% of the Area Median Income (AMI). However, a 2020 Preservation Study by the Maryland-National Capital Parks and Planning Commission identified between 7,000 and 11,000 affordable housing units at risk of losing affordability due to escalating rents.
Eligibility and Qualification
Apply on HOC's WebsiteNPF is open to experienced nonprofit affordable housing developers and local housing authorities.
Projects must
- Be at least 20 years old
- Have secured or identified other necessary capital for the acquisition unless this requirement is conditionally waived for 90 days
- Restrict rental rate increases on the affordable units to no more than the County’s Voluntary Rent Guidelines (VRG) with a minimum of 30-year affordability restriction period
- Meet a set-aside requirement of at least 20% of total units designated at 50% of Area Median Income or below and 10% at or below Moderately Priced Dwelling Unit (MPDU) rental rate level within three years of acquisition.
Applications will be considered on a rolling basis and are subject to the availability of funds.
HOC will conduct an underwriting review of each loan application and connect applicants to potential investors for individual projects.
DHCA will review those NPF applications recommended for approval by HOC, including applications from HOC, for funding determination. Link to Montgomery County Press Release.
