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Rockville Housing Enterprises outlines voucher strategy, Scarborough refinance and YouthBuild funding gap
Summary
Interim RHE director James Hedrick reported on voucher expansions, plans to convert public housing to project-based vouchers (RAD/Rental Assistance Demonstration), a planned Scarborough Square refinance/rehab and a funding gap for YouthBuild that could be bridged with about $60,000 in local funds.
Interim Executive Director James Hedrick presented Rockville Housing Enterprises(RHE) annual report during the Oct. 20 council meeting, outlining program shifts, capital needs, staffing gaps and near-term finance plans.
Hedrick said RHE, established in 1955 and the city's housing authority, operates about 80 public housing units (David Skoll) and a suite of voucher programs including Housing Choice Vouchers, VASH (veterans), mainstream vouchers and foster-youth vouchers. He described a move toward project-based vouchers/RAD conversions to stabilize revenue and enable recapitalization of aging public-housing stock.
Hedrick reported $325,000 in state rental-assistance funding in the current year (up from roughly $97,000 in FY25) that will allow RHE to house about 8-12 families depending on household size. He also summarized Scarborough Square financing: a $24 million senior loan and an expected roughly $36 million rehabilitation loan, with a target to complete refinancing and begin construction in 2026 if financing permits.
On David Skoll (76 units) Hedrick said the property needs a full gut rehab; staff intends to pursue rental-assistance demonstration (RAD)/project-based voucher conversion to secure financing and protect residents (right of return guaranteed). Hedrick said project timelines would require temporary relocations during construction.
Hedrick highlighted YouthBuild successes (three cohorts graduated; 12 students in the most recent class) and said program funding has a six-month gap between federal NOFAs; he asked the council to consider roughly $60,000 in gap funding to avoid staff layoffs while awaiting the next funding round. Hedrick also flagged organizational understaffing (need for deputy director, HR manager, compliance and voucher staff) and said Parkside Landing currently has many vacant units due to property-management challenges that the agency is addressing.
Council members praised YouthBuild and asked about the resident impact of converting public housing to project-based vouchers. Hedrick said residents would have a right to return and would receive project-based vouchers outside the regular wait list; he also noted some administrative differences but said PBV administration could reduce certain recurring administrative burdens tied to legacy public-housing rules.
Hedrick closed by asking for continued partnership and noting the RHE Foundation's early fundraising (roughly $8-9k) and plans to offer scholarships and unrestricted funding to support programs like YouthBuild.
The council did not take a vote on funding at the Oct. 20 meeting; Hedrick said he would follow up in writing about outstanding questions and requests.
