Silver Spring, Md. – The Housing Opportunities Commission of Montgomery County (HOC) and EYA, LLC (EYA) today conducted the ceremonial groundbreaking for The Sage, a mixed-income, mixed-use community that will deliver 413 new energy- efficient apartment homes and a new branch of the Montgomery County Public Libraries system within one block of the Shady Grove Metro station in Derwood.

The Sage represents HOC’s third utilization of the innovative $100 million Housing Production Fund (HPF), which was created in partnership with Montgomery County in 2021 and provides revolving low-cost construction financing for new mixed-income, publicly-owned developments, without using Low Income Housing Tax Credits.

“The Sage is another demonstration of HOC fulfilling our Five-Year Strategic Plan commitment to expand affordable housing in Montgomery County,” said HOC President Chelsea Andrews. “HOC is thrilled to move forward with development of The Sage and almost double the number of new affordable and market-rate homes in our construction pipeline.”

Of the 413 units at The Sage, 30% are designated as affordable housing, including 20% restricted to households earning 30 to 50% of the area median income (AMI) range and 10% restricted to MPDU levels, while the remaining 70% will operate as market-rate units. The six-story structure of studio, one-, two- and three-bedroom apartment homes will incorporate energy efficient, solar and universal design features. It will also offer a Great Hall gathering and community room, fitness center, pet spa, children’s play room and outdoor relaxation spaces, including three courtyards and a swimming pool.

“The Sage and the new Derwood Library mark the completion of Westside’s transformation from a former 45-acre County Service Park into the walkable, mixed-use, mixed-income neighborhood that EYA, the County and the community envisioned nearly two decades ago. With 413 new homes, The Sage will join the more than 1,100 homes EYA has developed at Westside since 2015. We are proud to once again partner with HOC, whose leadership has been essential to delivering this important transit-accessible, mixed-income community,” said McLean Quinn, president and chief executive officer of EYA, LLC.

The HPF will provide $35 million in construction financing for The Sage. The project’s total financing of $195 million is in the form of private and public debt, as well as other sources including over $145 million in HOC issued tax-exempt bonds, which funded a mortgage insured under the FHA risk-share program and a $5 million in Montgomery County Green Bank loan.

“Through the combination of affordability and sustainability in a transit-oriented development, The Sage creates meaningful benefits of reducing energy and transportation costs, improving indoor air quality and supporting long-term climate and social equity targets,” said Stephen Morel, CEO of the Montgomery County Green Bank. “This project demonstrates that equitable, low-carbon development is achievable at scale, providing a replicable model for future County priorities.”

Construction of The Sage will complete development of the Westside Shady Grove master-planned community and expand the residential, retail and community amenity options in that important transit-accessible neighborhood.

“The Sage is a great example of how the Housing Production Fund can create new opportunities for households of all income levels to live near transit, jobs, and other amenities like the Montgomery County Public Library,” said County Executive Marc Elrich. “The County is committed to building on our record investments in producing and preserving affordable housing. Partnership with HOC is part of how we build on our momentum and leverage our resources. I’m glad the HPF is supporting mixed-income developments like The Sage, which will generate more than 120 new affordable units near Shady Grove Metro.”

“When the Council worked with HOC to create the groundbreaking Housing Production Fund, the Sage and projects just like it are what we had in mind,” said Council President Natali Fani-González. “The innovative and cost-effective financing model leads directly to new deeply affordable homes for residents. I look forward to building on our remarkable progress with the Housing Production Fund in the years to come.”

Construction of The Sage is projected to be completed in June 2028, with occupancy and stabilization expected by the end of HOC’s 2029 fiscal year.

Spotlight on Innovative Financing

The Housing Production Fund is an innovative local financing model that was awarded the 2024 Ivory Prize for Housing Affordability and has been featured in numerous national and international publications. The first deployment of the HPF was for The Laureate, HOC’s mixed-use development adjacent to The Sage in Derwood that opened in 2023 and includes 268 affordable and market-rate apartment homes. The second HPF-funded development is The Lumina and The Radia at Hillandale Gateway, a visionary all-electric, mixed-use, mixed-income, intergenerational development currently under construction in Silver Spring’s White Oak neighborhood. Together, Hillandale Gateway (463 units) and The Sage (413 units) comprise an HOC active development pipeline of 876 new homes under construction in Montgomery County. HOC currently projects that the HPF will contribute to the creation of over 3,000 new housing units by 2030.

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About the Housing Opportunities Commission of Montgomery County (HOC)

As Montgomery County’s designated Public Housing Authority and Housing Finance Agency, HOC serves approximately 17,500 renter households, owns more than 9,400 rental units and has provided mortgages to nearly 1,200 first-time homebuyers. HOC has also financed more than 4,000 affordable units for other developers and currently is working on 15 projects with 5,500 homes (more than 2,000 affordable) in various stages of development, including new construction and renovations. HOC also provides life-enhancing supportive services that help customers reach their fullest potential. For more information, visit https://www.hocmc.org/.

About EYA, LLC

For over 30 years, EYA has been a market leader in the development of large-scale, urban infill residential projects. With expertise in the entitlement, development, and construction of for-sale, multi-family, and mixed-income housing, EYA has created over 50 exceptional neighborhoods that are home to more than 10,000 residents across Washington, DC, Maryland and Northern Virginia. EYA is a privately held company that has completed over $2 billion of projects that have introduced “life within walking distance” throughout the greater DC region. For additional information about EYA, visit www.eyadevelopment.com.

Media Contact:

Tia Blount, VP, Public Affairs & Communications tia.blount@hocmc.org