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Gaithersburg staff propose state partnership to expand down-payment assistance, warn of HUD drawdown deadline
Summary
City housing staff proposed sending $375,000 in CDBG funds to the Maryland Mortgage Program to broaden and streamline the Gaithersburg down-payment assistance program, change eligibility rules and increase maximum assistance for lower-income buyers; staff warned funds must be drawn down by May 2 to avoid HUD penalties.
Maureen Walker, the Gaithersburg Division of Housing coordinator, told the mayor and city council on Feb. 10 that staff are proposing a partnership with the Maryland Mortgage Program (MMP) to administer the city’s down-payment assistance program and increase outreach to potential first-time buyers.
The change would direct $375,000 in Community Development Block Grant (CDBG) funds — drawn from fiscal years 2022, 2023 and 2024 allocations — to MMP, alter how assistance is calculated (by income rather than by zone), raise the maximum award for households at or below 80% of area median income (AMI) to $40,000, and reduce the local “first-time buyer” lookback period from five years to three years to match state guidelines. Brittney Marinello, Housing and Community Development Division manager, told the council the partnership would eliminate local administrative fees on the CDBG portion so “the whole 100% of the funding goes directly to the recipient.”
Why it matters: staff said the changes aim to increase program…
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