In June 1994, the Montclair Redevelopment Agency Board of Directors approved the formation of the Montclair Housing Corporation. The Montclair Housing Corporation was formed as a nonprofit, public-benefit corporation organized for the purpose of increasing, improving, and preserving affordable housing in the City of Montclair. The nonprofit corporation is organized for charitable purposes under Section 501(c)(3) of the Internal Revenue Code.

The Montclair Housing Corporation functions as a resource for the Agency to meet some of the State mandates imposed through use of Housing Set-Aside Funds. A housing corporation can acquire, own, manage, and dispose of properties in a more expeditious manner than a redevelopment agency. The housing corporation concept has been useful when considering projects such as mobile home park conversions, mobile home park development, apartment acquisition, or rehabilitation projects. State law prohibits a redevelopment agency from owning rental property beyond a reasonable time to complete rehabilitation efforts. Formation of the Montclair Housing Corporation ensures that the Agency's units remain affordable to persons whose incomes do not exceed the low- to moderate-income levels as defined by state law. This has been accomplished through the 30-year Lease and Regulatory Agreement between the Montclair Housing Corporation and the Agency, and recordation of deed restrictions against all Agency acquired properties.

Records show that the Patio Apartments have provided many families a safe, clean and affordable residence while saving money to purchase their first home. The housing corporation will continue management of Agency-owned rental units.