Report: Olde Towne Apartment Project Could Stall Without State Financing

An apartment project that would have brought more than 100 income-restricted residences to Olde Towne could stall now that state financing is no longer an option, a developer tells The Gazette.

RST Development wanted to build a garden-style apartment community with 199 residences at 200 Olde Towne Ave.; 105 of the units would income restricted. The builders submitted an application to the Maryland Department of Housing and Community Development, hoping to gain financing through federal tax credit programs.

Gaithrsburg City Council members initially supported the project because they were told the units would be offered at market rate. But on Dec. 16, the city council voted 3-2 to oppose state financing. They said there was an over-saturation of low-income housing in Olde Towne and that what was being presented now detracted from the city’s vision.

Not getting state financing doesn’t block the project from moving forward. But Principal developer Scott Copleland told The Gazette that he didn’t see the project “moving forward” without the tax credits.

Copleland said that while the initial idea was to build “all market rate” residences, the market changed and there are now there now too many market-rate offerings in Gaithersburg and not enough affordable housing, The Gazette reports.

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