Gaithersburg Launches Multifamily Investment Loans Up To $250K to Preserve Affordable Housing

The Multifamily Investment Loan (MIL) is intended to preserve affordable housing throughout the City of Gaithersburg. The MIL offers multifamily properties within the corporate limits of the City of Gaithersburg loans to preserve affordable housing, while enhancing energy efficiency and sustainability.

Loans are available up to $250,000.00. The City’s loans may be combined with other state, local, and/or utility-based programs. Funds became available on April 5, 2024. The program will close when all funds have been expended. The program will reopen at the beginning of the next fiscal year, which starts every year in July. The total amount of the loan is restricted to the amount of money in the program.

Types of renovations allowed with the MIL:

• Roofing
• Windows
• Appliances
• Masonry
• HVAC
• LED Lighting and Energy Star Fixtures
• High Efficiency Furnaces/Boilers/Temperature Controls
• Insulation
• Energy and Water Efficiency Upgrades
• Exterior Hardscaping
• Structural Repairs
• Common Areas/Stairwells

The MIL comes in the form of a lien against the property at prime minus 2% interest, with regular payments amortized over 7-10 years, depending on the project scope. During the loan repayment period, properties are not able to raise the rent for existing leaseholders more than the annual Montgomery County’s voluntary rental rate guideline, which is provided in the springtime of any given year.

Properties are required to apply for the Multifamily Investment Loan through the City application. Along with the completed application, applicants must also submit:

1. A copy of your most recent Profit and Loss (Income) Statement and Balance Sheet.
2. Prior two years of business tax returns.
3. If you have not established a separate tax entity for ownership, prior two years of personal tax returns are required.
4. A completed IRS W‐9 form.
5. Proof of matching funding/financing.
6. If your match is financed, please provide a copy of your loan application package with approval letter.
7. If your match comes from your own reserves, please provide prior three years’ tax returns.

Prior to executing an agreement with a contractor, the applicant must first contact the  Division of Housing and Community Development.

All required documents and completed application should be submitted to the secure Housing File, which can be found here. Hard copies can also be dropped off to Division of Housing and Community Development staff at City Hall (31 S. Summit Ave. Gaithersburg, MD 20877).

Courtesy City of Gaithersburg