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Gaithersburg Multifamily Investment Loan Program

Industry Observer with Retired

Gaithersburg Multifamily Investment Loan Program

The City’s Housing and Community Development Division has launched the new Multifamily Investment Loan (MIL) program that aims to preserve affordable housing throughout the City while enhancing energy efficiency and sustainability. The program is open to multifamily properties within the City’s corporate limits. Loans are available up to $250,000 and may be combined with other state, local, and/or utility-based programs.
Types of renovations allowed include roofing, windows, appliances, masonry, HVAC, LED lighting and Energy Star fixtures, insulation, energy and water efficiency upgrades, exterior hardscaping, structural repairs, and more. 

Learn more and apply here.

This is a City of Gaithersburg, Maryland announcement.

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 will become 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).


Dahlia + Imagination, Color Edited for our Imagination Series,

Brookside Gardens, Wheaton, Maryland USA IMG 7191 A
Canon PowerShot G11 Camera
Photograph by Roy Kelley
Roy and Dolores Kelley Photographs

Posted by

Roy Kelley, Retired, Former Associate Broker, RE/MAX Realty Group

Gaithersburg, Maryland  

Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

Good morning Roy. Once again Montgomery County is taking the lead in being proactive for its citizens. This is a "hand-up" program not a "hand-out". Enjoy your day.

Apr 15, 2024 03:52 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Mongomery stepping up and offering help. Thanks for sharing and enjoy your week!

Bill Salvatore, Realtor- Arizona Elite Properties

Apr 15, 2024 05:39 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I hope that these loans will allow landlords to do the renovations they need to do with their buildings.

Apr 15, 2024 05:46 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much for your comments. Your feedback is always welcome.

Apr 15, 2024 08:12 AM