Montgomery County Council Passes Legislation to Address Affordable Housing Crisis in Montgomery County
MARYLAND, December 15 – For immediate release: Tuesday December 14, 2021
ROCKVILLE, Maryland, December 14, 2021 – Today, Montgomery County Council voted to pass Bill 26-21, Taxation – Payments in lieu of Taxes – Affordable Housing – Amendments, to help to address the affordable housing crisis in Montgomery County. The legislation was introduced in June 2021 by the chairman of the Planning, Housing and Economic Development (PHED) committee, Hans Riemer, board member, and Andrew Friedson, board member.
The goal of the county’s Payment in Lieu of Taxes (PILOT) exemption, essentially a tax abatement, is to support affordable housing. Local governments, when permitted by state law, enter into negotiated agreements with rental property owners to reduce the cost of county real estate and special zone taxes. In return, a rental property owner commits to providing affordable housing to low-income residents.
The legislation establishes a 100 percent payment in lieu of taxes for a subdivision owned or controlled by the Housing Opportunities Commission (HOC) or a nonprofit real estate developer with at least 50 percent of affordable housing for households earning 60 percent or less of the median income acreage. Bill 26-21 also repeals the maximum annual total amount of all payments in lieu of taxes approved under this law, which historically was not allowed to exceed an amount set annually by resolution of the Council for the following 10-year period.
“This legislation is designed to bring more certainty to the county’s support for affordable housing providers as well as to help affordable housing providers compete successfully in a rapidly changing market,” said Hans Riemer, board member. âWith the legislation, mission-driven housing providers looking to purchase a building will know that some of their financing will be secured. The Purple Line Corridor is a prime example of a place where this could be particularly useful. . “
“We must act aggressively to resolve the housing affordability crisis in our county and in our region,” said council member Andrew Friedson. âGovernment alone cannot provide enough affordable housing to meet the needs of our residents. This builds on our partnerships with non-profit affordable housing providers to add certainty and lower the costs of building new, quality affordable housing so more people can live and be a part of our community. “
This legislation continues the Council’s focused efforts to increase housing choices for all residents of Montgomery County, including the enactment of the More Housing at Subway Stations Act, which will facilitate new housing opportunities on the WMATA property. , the creation of a new housing production fund of 50 million dollars. for the County Housing Opportunities Commission and record funding for the County Housing Initiative Fund.
See the Council staff report for Bill 26-21.
Version Number: 21-509
Media Contact: Ken Silverman, 240-777-7830, Mary Gies 240-777-7898
Categories: Andrew Friedson, Hans Riemer