MoCo leaders break ground on 413-unit mixed-income community near Shady Grove Metro
The Sage is third project to benefit from county’s $100M Housing Production Fund
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Ceoli JacobyMay 1, 2026 7:35 p.m. | Updated: May 1, 2026 7:36 p.m.
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In June 2023, The Laureate near the Shady Grove Metro station in Derwood made history as the first housing project to be completed with support from Montgomery County’s $100 million Housing Production Fund.
On Friday afternoon, county leaders gathered in the complex’s courtyard to celebrate the start of the third such project — The Sage, a 413-unit mixed-income community in the same Derwood neighborhood as The Laureate that will also include a new Montgomery County Public Libraries branch.
Bethesda-based real estate developer EYA is partnering with the county’s Housing Opportunities Commission (HOC) on the project, which is expected to be completed in June 2028. EYA also partnered with the HOC in developing The Laureate.
“One of the things that got me excited about today was that often when we do groundbreakings, we ask you to imagine things,” EYA CEO McLean Quinn told the crowd at Friday’s event.
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“Today, we don’t really have to do that because we’re sitting here at the Laureate,” Quinn continued. “It was really nice being able to do this here, knowing that something like this — maybe a little bit better, maybe a little bit bigger and including a library — is coming across the street in just two years’ time.”
Created in 2021, the Housing Production Fund is a $100 million revolving loan fund HOC utilizes to finance construction of new mixed-income, publicly-owned developments in the county.
All projects financed through the Housing Production Fund must meet certain affordability requirements. HOC maintains majority ownership and control once projects are complete.
In September 2024, construction began on another project supported by the Housing Production Fund. That project, The Lumina and The Radia at Hillandale Gateway, is expected to be completed next year.
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Of the 413 units at The Sage, 125 — approximately 30% — will be designated for residents who meet specific income requirements, Quinn said during Friday’s event.
According to a Friday press release about the project, 20% of units at The Sage will be affordable to those making between 30% to 50% of the area median income. Another 10% will be considered moderately priced dwelling units (MPDUs). The remaining units will be market rate.
According to the county Department of Housing and Community Affairs, MPDUs are available for “renters and first-time home buyers with incomes up to 70 percent of the Washington Metro Area Median Income, which is approximately $79,500 for a family of two or $99,500 for a family of four.”
The six-story complex will offer one-, two- and three-bedroom units, all of which will incorporate energy-efficient features.
The Sage will also include a gathering and community room, fitness center, pet spa, children’s playroom and outdoor relaxation spaces, including three courtyards and a swimming pool, according to Friday’s release.
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The total project financing of $195 million will come from a mix of sources, including public and private debt, according to the release.
Public financing for the project includes $35 million in construction financing from the Housing Production Fund, more than $145 million in HOC-issued tax-exempt bonds, and a $5 million Montgomery County Green Bank loan to support energy efficiency.
County Executive Marc Elrich (D) said at Friday’s event that partnerships like the one between EYA and the HOC help the county accomplish more with less.
“That’s the real value of county money. It makes this stuff possible,” Elrich said. “Creative partnerships are part of how we continue our momentum and stretch our resources further, especially when budgets are tight.”
The County Council is reviewing Elrich’s $8 billion proposed operating budget for fiscal year 2027, which begins July 1. Elrich said Friday his recommended budget includes $100 million to support the production and preservation of affordable housing units in the county.
The council has until June 1 to act on the proposed operating and capital budgets for fiscal year 2027.
The Sage is expected to be open to residents by the end of fiscal year 2029, which begins July 1, 2028.
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Originally published at Bethesdamagazine