Residents of the Calverton area of eastern Montgomery County, who have been complaining for two years about odors from a nearby sludge plant, may finally get some relief, the Washington Suburban Sanitary Commission (WSSC) announced this week.

Officials of the bi-county commission, which owns the facility known as Site II, said they plan to spend up to $2 million to rid the plant of a stench that is produced when raw sewage sludge is converted to compost. Planned are a new exhaust system and heavy fabric walls to enclose the plant, according to the WSSC.

A group called Neighborhoods Organized to Support the Eradication of Stench has been trying to force the WSSC to close the plant since it opened in 1983. Gilchrist Proposes County Mental Health Department

County Executive Charles W. Gilchrist, citing the "urgency of needs of the mentally ill," proposed legislation this week before the County Council that will create a new Department of Mental Health and Habilitation Services.

The reorganization, Gilchrist said, will help the county government better address the problems of homeless persons and of chronically mentally ill persons released from state institutions.

A Dallas health consultant company studied the county's mental health services last spring and recommended the creation of a separate department for mental health services. The council must schedule a public hearing before it can act on the measure. Agency Seeks Consumer's Gripes Against Cannondale's

Still waiting for the brass bed you ordered from Cannondale's Heirlooms Inc. of Rockville?

If so, investigators at the Montgomery County Office of Consumer Affairs suggests that you contact their office. The firm has filed for reorganization under the federal Bankruptcy Code, leaving many consumers in the breach, investigators said.

Maryland Attorney General Stephen Sachs has intervened in the bankruptcy proceeding on behalf of all customers who might have complaints against the company. Sachs has also obtained a court order preventing Cannondale's from taking any new orders until an escrow account is established to protect payments made by new customers. First Women's Bank Opens Third Branch

Six years after it opened and made new inroads for women in the traditionally male-dominated world of banking, the First Women's Bank of Maryland opened its third full-service branch office last week, company officials said.

The new branch is located at 13541 Clopper Rd. in the Seneca Park Shopping Center in Germantown. The First Women's bank opened in 1979 with $1.8 million in assets which have grown since then to $40 million.