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Gaithersburg proposes 0% multifamily loan option and stepped-up landlord outreach to spur repairs
Summary
City housing staff proposed lowering interest on the Multifamily Investment Loan Program (MILL) to 0% and increasing outreach to landlords and tenant associations after the program generated interest but no applications since its spring 2024 launch.
Brittney Marinello, housing division manager, told the mayor and council that Gaithersburg's Multifamily Investment Loan Program (MILL) launched in spring 2024 to fund property repairs and energy upgrades with loans up to $250,000 but has produced calls of interest and no formal applications.
To increase participation, staff proposed reducing the program’s interest rate from its current “prime minus 2%” structure to 0% interest, citing similar county offerings that have generated applications. Marinello said the higher local interest burden may be preventing owners from applying: “we think that maybe it could be the minus 2 interest rate that could be driving people to not apply.” The MILL covers renovations such as roofing, appliances, HVAC, lighting, energy and water-efficiency upgrades, hardscaping and structural repairs.
Staff described eligibility as focused on multifamily buildings — including older “naturally occurring affordable” apartments or condominiums that need upgrades — and said they prefer projects that avoid passing costs to tenants. Maureen Walker, the city’s grant coordinator, said staff will evaluate applications against city affordability and rent guidelines but that “it's not a hard set guideline” as the program aims to attract a range of property owners who have renovation needs.
Outreach and next steps. Staff said they will expand outreach through landlord “lunch-and-learn” events, neighborhood services monitoring visits, and direct contact with community organizations and condominium associations. The council and a public commenter suggested adding tenant associations, churches and schools to outreach channels. David Mullins, speaking from the Zoom public comment period, recommended reminding landlords that tenant associations can be partners in promoting the program.
No formal council vote on program changes was recorded. Staff said they will proceed with revised outreach efforts and consider lowering the interest rate to 0% to spur applications, while continuing to monitor uptake and evaluate adjustments.
Ending: The proposed changes seek to preserve affordable rental housing stock and improve energy efficiency by removing a potential financial barrier for property owners and by increasing targeted outreach; staff will report back on program interest and application activity.
