Montgomery County Council keeps HOC and homebuyer counseling funding, moves safety and capital tranches to reconciliation

Montgomery County Council members on Thursday preserved core funding for resident services and homebuyer counseling while placing larger capital requests on a reconciliation list to be finalized later in the FY26 budget process.

Council members heard from Chelsea Andrews, president of the Housing Opportunities Commission, who said the county’s HOC asked for support across resident services and capital needs and that safety upgrades were especially urgent at properties such as Cider Mill. “With one tranche, we would be able to address 10 balconies,” Andrews said, noting the agency’s prioritization of third‑floor balconies because of height and increased safety risk.

The PHP committee reported that HOC requested $360,000 to add three full‑time resident counselors at senior sites; the committee recommended placing two positions (two tranches of $120,000) on the reconciliation list and adding one counselor at Cider Mill for $120,000. Cider Mill is a large HOC property—HOC described it as about 864 units with 345 balcony‑equipped units and roughly 40 balconies in severe need of repair—and staff told council members that the planned tranches would allow the agency to repair the worst third‑floor balconies first and then proceed downward as funds remain.

Council members repeatedly framed the conversation as a trade‑off between immediate safety needs and broader fiscal limits. Councilmember Lukey emphasized safety and the importance of resident counselors and balcony repairs for families living at Cider Mill, while other members pressed for clear prioritization and for the county to explore alternative funding sources for tasks such as the Elizabeth House demolition, a $1.5 million request the committee recommended putting on the reconciliation list.

On a separate but related proposal, councilors debated a $509,000 request tied to homebuyer counseling services that help prospective buyers become mortgage‑ready and help at‑risk homeowners avert foreclosure. After discussion the council reversed a committee recommendation and voted to keep $509,000 in the homebuyer assistance program; the amendment passed 8–3. Supporters said the counseling is directly tied to the county’s down‑payment programs and that losing the counseling would undercut the effectiveness of the assistance. Councilmember Mink said the counseling increases the likelihood that applicants complete the home‑purchase pipeline, while Councilmember Fanny Gonzales argued that the county needed to ensure funds were available to meet existing demand.

Several capital items remain on the reconciliation list, including HOC’s request to break a proposed $2.3 million Cider Mill capital improvement into multiple tranches and a $1.5 million current‑revenue request for the Elizabeth House demolition project. The council also discussed the potential use of the Housing Initiative Fund and state assistance to reduce borrowing costs tied to those projects.

What’s next: the council will hold reconciliation sessions in the coming days to resolve the tranches and staffing decisions. Council staff and HOC said they will continue work with the executive branch and state partners to identify alternative funding mechanisms before final decisions are made.

Provenance: The article draws from the council’s HOC and DHCA budget discussion and committee recommendations presented during the FY26 operating budget work session (topic introduced SEG 227; discussion continued through SEG 449).