Health and Human Services committee recommends $7.22 million federal appropriation to convert Rockville building into 18 supportive housing units

The Montgomery County Health and Human Services Committee recommended approval of a $7,221,940 supplemental appropriation to fund the Affordable Living Quarters project, which will convert an existing county-owned building at 600 E. Scuti Drive in Rockville into 18 permanent supportive units for people experiencing homelessness.

Chair Lori Ann Sales opened discussion by praising the proposal’s potential impact: "It's transformative and it is important," she said, noting the units will provide keys, a bed and stability to residents. County staff told the committee the award originates from HUD's Home Investment Partnerships Program (Home ARP) allocated through the American Rescue Plan and that the county received an approximately $7.3 million grant. County staff said the federal grant must be expended by September 2030 and the appropriation will fund planning, design and construction.

Department of General Services staff described the site and building: the packet shows an aerial and conceptual fit plan and staff said the structure can be retrofitted for 18 private, furnished studio units (a subset ADA-accessible), community space, lockers and other resident amenities. DGS said it has a solicitation out for a design firm and expects design and construction to proceed faster than a ground-up project because this is an adaptive reuse of an existing building.

The county and HHS said rents will be set at HUD's fair-market-studio rate for the ZIP code ($2,380), but tenants would be required to pay only 30% of their income; HHS will procure a nonprofit property-management partner to deliver 24/7 on-site staffing, building maintenance and case management services and tenants will be referred through the county’s coordinated-entry system.

Committee members pressed staff on timeline and site safety. DGS said construction is expected to begin in fiscal year 2027 with completion by fiscal year 2029 and reiterated the September 2030 federal deadline for spending the grant. Council members asked about previously reported vibration and methane issues at the adjacent landfill; DGS responded that the methane-flare equipment had been decommissioned, that building mitigations had been made at the time, and that DGS and HHS will provide DEP noise, vibration and methane documentation as a follow-up.

After discussion, Chair Sales asked for a motion to recommend approval. The motion was seconded and the committee "carried" the recommendation; the committee will forward the appropriation for final action by the full Council. Nicole Rodriguez Hernandez and DGS staff said they would return to the committee with a services plan for the facility, including remediation/air-quality documentation, a staffing model, referral processes and operating-cost estimates.

What happens next: the committee’s recommendation advances to the full Council for final action; county staff said they will provide the committee with follow-up documentation on site safety and a written services plan once designs are ready.