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This story was clarified on Feb. 5, 2010. An explanation of the clarification follows the story.

Developers of an affordable senior housing project slated for construction in Rockville asked the City Council on Monday to back its bid for State Tax Credit funding, but the city chose to wait until next week to make a decision.

Victory Housing Inc., the development branch of the Catholic Archdiocese of Washington, asked the council to send a letter to the state saying it supports Victory Court, a proposed four-level apartment building bounded by Maryland Avenue and Monroe and Fleet streets.

After several council members and city residents raised questions about the application process and how the public was notified of the funding mechanism, the council chose to wait until its Feb. 8 meeting to consider sending the letter.

Councilman John Britton said he wanted the state to confirm details about application deadlines and what, if any, additional local contribution would be required.

A right-of-way abandonment approved by the city in 2009 granted half of the right-of-way between the site and Courthouse Walk apartments to the developers, and the developers are counting that as the required contribution.

James Brown, president of Victory Housing, said he was disappointed the letter did not get approval at Monday's meeting.

"I was optimistic we'd get an affirmative," he said. "We're sorry to slow down the process, and we do feel there's an urgent need, but we understand. The process isn't perfect."

The process Brown referred to was the relatively short notice the public had that the council would be considering the letter.

The letter was first made public on Jan. 28 when it was posted online as part of the City Council's agenda.

Noreen Bryan and Brian Shipley, residents of the 200 block of South Washington Street near the Victory Court site, spoke in opposition to the letter.

"Last Thursday, Jan. 28, Noreen Bryan received a message from the assistant city manager that this item was on the agenda for today," Shipley said Monday night. "That left us two working days and a weekend to come up to speed. Is that fair to you or us when the developer has had months to put forward this request?"

Bryan said residents have had issues getting their concerns heard for months.

"The process for reviewing this project has been flawed and unfair to citizens from the beginning," she said. "It is happening again with the request for the letter of support."

Councilman Piotr Gajewski said the letter is only the first step in a two-step process for the developer to get the tax credit funding, and the council will have a measure of control later on because of the funding source.

After Victory Housing applies to the state, the council must pass a resolution of support in order for the developer to receive the funds.

"There will come a time later when the mayor and council will be asked to endorse this project," Gajewski said. "In a sense, by going for this funding they're letting us hold a hammer over their head because they have to come back to us."

He added that if Victory Housing had decided to use private funding instead of public funding, the developer would not be in front of the council asking for the letter of support.

Mayor Phyllis R. Marcuccio said there may be a problem with the planning process if so many residents feel they have been shortchanged.

Britton and Councilwoman Bridget D. Newton called for a public hearing to allow residents with concerns about the Victory Housing project and the funding mechanism to speak out.

That hearing is expected be scheduled at the Feb. 8 meeting.

Two residents, Jacques Gelin and Jim Vitol, blamed the city manager for the short public notice and Vitol called for his ouster.

The same funding mechanism was used by Montgomery Housing Partnership when it began developing plans for Beall's Grant II, an affordable housing project on North Washington Street in downtown Rockville.

The council sent a letter of support to the state, but then rescinded it after residents of the West End neighborhood voiced strong concerns about the project.

Negotiations over the design of Beall's Grant II slowed the process and knocked it off schedule for the tax credit funding rounds.

No more rounds are scheduled at this time, making it necessary for Victory Housing to get the city's letter of approval in order to keep its application for the funding on schedule.

Clarification: A previous version of this story was unclear on who called for the city manager's ouster.