HOC was established in 1939 as the Housing Authority of Montgomery County. The agency derived its power from state legislation after the County government found a public need for affordable housing. HOC’s current structure dates back to 1974, when state and local laws were amended to expand the housing mission for the County and to provide HOC with the authority to issue tax-exempt mortgage revenue bonds. Additionally, the County adopted its own Opportunity Housing Act, giving itself broad housing powers. This mechanism allows HOC to create its own housing programs without the assistance of federal subsidy by purchasing units, predominantly through the Moderately Priced Dwelling Unit (“MPDU”) program.

 

Through the 1970s, HOC primarily developed federally funded public and assisted housing. In accordance with federal regulations, public housing development is 10% low income. However, to accommodate moderate-income households, HOC managed Section 236 projects owned by separate non-profit boards. HOC also administered Section 8 rental subsidy certificates for the County. This program is now called the Housing Choice Voucher program.

In the early 1980s, HOC began issuing tax-exempt mortgage revenue bonds to refinance privately owned developments in order to meet the need for affordable housing amid substantial cuts in federal funding for public housing. Each of these privately owned developments included a number of units for low- and moderate-income households that usually exceeded the minimum "public purpose" definitions established by the federal government as a condition for tax-exempt financing.

During the mid-to-late 1980s, HOC shifted to owning and developing new mixed income housing developments. In these developments, 20-50 percent of occupants are low or moderate-income households. Construction is financed through a combination of essential purpose bonds, HOC funds, and State and County subsidies.

From the 1980s to today, HOC’s portfolio has grown to include nearly 7,000 owned properties and 7,400 leased or administered properties. HOC has financed more than 3,400 privately-owned multi-family buildings and helped over 2,000 households purchase a home through the homeownership and mortgage program.