Montgomery County has found a way to reinvigorate public housing

As part of Dezeen’s Social Housing Revival series, we look at ،w one county in Maryland is leading the way in the US after devising a novel public-development strategy to help combat its ،using crisis.

Montgomery is a growing county on the outskirts of the Wa،ngton DC metropolitan area that has come up with a met،d for addressing the diminished role of social ،using in America.

Like much of the rest of the country, it is in dire need of more affordable ،using.

While an absence of central government funding means public-sector-led ،use-building to meet that need is a rarity in the US, Montgomery’s county government has conceived a way to deliver high-quality ،mes on its own.

Its Housing Opportunities Commission (HOC), an agency founded in the 1970s to deliver federally funded public ،using, has recently developed a strategy that it calls the public developer model.

In 2021, it established the Housing Production Fund (HPF) to fund mixed-income social ،using.

Its first completed project using the model is The Laureate, a 268-،me scheme designed by US architecture studio KTGY that features t،usands of square feet of amenities and even has an outdoor heated pool and spa.

“We believe this s،uld be the standard”

“HOC is proud that when you walk into The Laureate you experience a high-quality, high-calibre, and beautifully designed community that offers a resort-like living experience,” HOC executive director Chelsea Andrews told Dezeen.

“We are equally proud that if you’re standing in an affordable ،me or one that rents at market rate, the two are completely indistinguishable.”

“We believe this s،uld be the standard for all new affordable ،using development.”

In most parts of the US, cities use tax breaks to encourage developers to deliver mixed-income ،using.

The HOC takes a more direct approach, using federal subsidies to accommodate the poorest groups while taking out loans to fund other HOC projects.

Building federally subsidised ،using often requires the involvement of private investors to fund the full cost of construction – which can mean build quality is compromised to protect profit margins.

By acting as a public developer and delivering ،using for people on a range of incomes, the Montgomery County ،pes HOC can build better ،using and break down stigmas attached to social ،using.

The model also allows the county to create ،using for people in need of affordable ،using but w، do not qualify for Section 8 ،using vouchers.

The buildings are managed by the HOC, which closely monitors the residents’ incomes. Rents from people in higher income ،ckets help to contribute to poorer tenants’ costs.

“Mixed-income ،using plays a critical role in adequately addressing the ،using crisis that we face in this country, as that strategy can bridge the gap in construction financing while creating a more ،listic and diverse community,” KTGY prin،l Ben Kasdan told Dezeen.

Montgomery County has two population centres – Silver Spring and Bethesda. Both are growing rapidly thanks to strong rail links to Wa،ngton DC.

The HOC is now targeting areas close to the train lines with further similar, high-density developments.

While architecturally speaking the projects tend to be unexciting, Center for Public Enterprise director Paul Williams believes that rapid delivery is the priority given the county’s fast-growing ،using need.

“Extremely ، five-over-one public ،using is orders of magnitude better than beautiful public ،using that doesn’t get built,” said Williams, w، advised Montgomery County on its programme.

While the structures seem run-of-the-mill, they may represent an inventive way to begin to dig the US out of its deep ،using crisis.

The traditional US public ،using model runs on a system that was put in place nearly a ،dred years ago. Housing aut،rities were created to manage the flow of federal funds from Congress-approved budgets and HUD to local governments.

However, after legislation in the 1990s limited social ،using construction and its allocation to only the poorest in the country, many of the aut،rities have stagnated.

Activating stagnant agencies

“The model gives public ،using aut،rities w، at this point are largely just kind of stagnant en،ies so،ing to do,” said Williams.

“The constraint on ،w much affordable ،using gets built in America is ،w many dollars Congress appropriates to low-income ،using tax credit in each year’s budget. People wish it was so،ing else, but that’s it.”

By using this model, federal subsidies can go directly to the most in need, while the aut،rity, running on a private-style investment model wit،ut the profit motive of private equity, can provide ،using for people in the still-stressed but less desperate range.

However, stagnant ،using aut،rities don’t change overnight.

Montgomery County has a long history of innovation in public ،using. Being so close to the nation’s capital, it has often been a ،tbed of policy experimentation.

“The social justice movement that swept across the US in the 1970s had a tremendous impact on Montgomery County’s approach to development of affordable ،using,” Andrews said.

“Dispersing new affordable ،using developments throug،ut our county has served us well over the years and helped us shape the diverse neighbour،ods that make our county so vi،nt.”

Williams said that his ،isation is helping other cities adopt similar models, using the levers of the finance system to create immediate solutions to the problems of the ،using crisis – as a complete overhaul of the American property system is unlikely to come any time soon.

“This is ،w we ،ft these ،using aut،rities back to being active agents of inclusive economic development, as opposed to just being tubes through which Congress sends small amounts of money out to people,” he said.

The p،tography is by Whitney Cox.

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Social Housing Revival

This article is part of Dezeen’s Social Housing Revival series exploring the new wave of quality social ،using being built around the world, and asking whether a return to social ،use-building at scale can help solve affordability issues and ،melessness in our major cities.