A major new mixed-income, mixed-use development is officially underway in Derwood, as the Housing Opportunities Commission of Montgomery County (HOC) and EYA, LLC held a ceremonial groundbreaking for The Sage, a project that will bring 413 new apartment homes and a new Montgomery County Public Libraries branch just steps from the Shady Grove Metro station.
The development will feature a mix of studio, one-, two-, and three-bedroom units, with 30% designated as affordable housing. Of those, 20% will be reserved for households earning between 30% and 50% of the area median income, while another 10% will be set aside as Moderately Priced Dwelling Units. The remaining 70% of units will be market-rate.
The six-story building is designed with energy efficiency and sustainability in mind, incorporating solar features and universal design elements. Planned amenities include a Great Hall community space, fitness center, pet spa, children’s playroom, multiple courtyards, and a swimming pool.
The Sage also marks the third project to utilize the county’s $100 million Housing Production Fund, an initiative launched in 2021 to provide low-cost construction financing for mixed-income, publicly owned developments without relying on Low Income Housing Tax Credits. The fund will contribute $35 million toward the project, which carries a total development cost of $195 million. Additional financing includes more than $145 million in HOC-issued tax-exempt bonds and a $5 million loan from the Montgomery County Green Bank.
In addition to housing, the project will include a new library branch, further expanding access to community resources in the growing Westside Shady Grove area. The development represents the final phase of the transformation of the former 45-acre County Service Park into a walkable, transit-oriented neighborhood that has already seen more than 1,100 homes delivered since 2015.
Construction is expected to be completed in June 2028, with full occupancy anticipated by the end of HOC’s 2029 fiscal year.
