Common Area Assistance Loan Fund

How it works

The Common Area Assistance Loan Fund (CAALF) is a gap-financing program for Common Ownership Communities (COCs) in Montgomery County that are experiencing severe financial hardship and cannot complete critical common-area health and safety repairs on their own. DHCA says the program is strictly limited to immediate repairs that threaten habitability and must be supported by certified professional assessments and/or government citations.

What the money covers

Eligible projects are rehabilitation projects addressing serious common-area health, safety, and occupancy-loss risks. Examples listed on the page include:

• failing water supply lines
• elevators
• fire suppression systems
• underground and surface stormwater drainage
• facades
• balconies

Amenity repairs are strictly ineligible.

Amounts and terms

• Maximum individual loan amount: $500,000
• Funding is provided only as loans
• DHCA loans are subordinate to other loans
• Repayment term: up to 15 years
• Security: a formal pledge of current and future COC assets
• Interest: none
• Fee: 1% loan commitment fee on the total approved amount
• Borrower contribution: at least 20% of total project hard costs from the COC’s own funds

The contribution requirement is based on the full project cost, not just the CAALF loan amount. The page gives an example: for a $1,000,000 project with a $500,000 loan, the required COC contribution is $200,000.

How to apply

DHCA began accepting applications on a rolling basis beginning 2024-11-20. Applicants may submit the application online. DHCA says COCs should contact the Office of Common Ownership Communities (OCOC) to discuss needs, eligibility, and procedures, and route related inquiries through MC311.

Timing and decisions

DHCA reviews applications and makes lending decisions based on eligibility, priority of need, and available funds at its sole discretion. The page says DHCA will confirm receipt of the application package and potential loan eligibility within 60 days of submission. Future funding is subject to appropriation.