About the Project:
Lockwood Apartment Homes in Silver Spring, Maryland, is a 100% affordable, garden-style multifamily property consisting of ten residential buildings with 133 units. The property is undertaking a major building systems upgrade to improve energy efficiency, resident comfort, and long-term asset performance.
The project involves electrifying the property’s existing central boiler and chiller system by converting eight of the ten residential buildings to high-efficiency, in-unit Variable Refrigerant Flow (VRF) HVAC systems. Two buildings were excluded due to recent infrastructure upgrades that made conversion less cost-effective.
This electrification upgrade modernizes aging infrastructure, improves resident comfort, enhances system resilience, and substantially reduces on-site greenhouse gas emissions, while aligning the property with Montgomery County’s Building Energy Performance Standards (BEPS).
As a result, the project is projected to:
• Save 843,930 kWh of energy annually.
• Reduce approximately 567 metric tons of carbon dioxide emissions per year.
• Generate $152,751 in annual utility cost savings.
Financing Details
The Montgomery County Green Bank provided approximately $2 million in construction-to-permanent financing to support the electrification project.
To strengthen the capital stack and share risk, the Green Bank also secured a $500,000 co-lending participation from Locus Bank, leveraging additional private capital to support the project while reducing the Green Bank’s exposure.
Montgomery County Green Bank’s Role
The Montgomery County Green Bank served as lead originator, underwriter, and lender, structuring a flexible construction-to-permanent loan that enabled the project to proceed despite existing agency debt restrictions at the property level.
In addition to providing financing, the Green Bank:
• Coordinated energy and greenhouse gas impact analysis.
• Structured monitoring and reporting requirements.
• Secured a co-lending partner to mobilize private capital.
• Ensured long-term affordability protections remained in place throughout the loan term.
This transaction demonstrates how mission-aligned capital and innovative structuring can unlock deep energy retrofits and electrification in affordable multifamily housing that would otherwise face significant financing barriers.
Project Snapshot
Property Type:
Ten garden-style multifamily apartment buildings in Silver Spring, MD, with 133 units, all affordable housing.
Property Upgrade Summary:
Electrification of HVAC systems through in-unit VRF across eight buildings.
Loan Amount:
Approximately $2 million (Construction-to-Permanent)
Co-Lending Partner:
Locus Bank ($500,000 participation)
