NEW RESIDENTIAL DEVELOPMENT PROPOSALS (MPDU PROGRAM)
Summary of Proposed Changes to MPDU Laws
The County Council is concerned about housing affordability in Montgomery County. While there are many factors that affect housing demand and prices (regional job growth, low interest rates, increasing square footage and upgrades in newly constructed units, willingness of families with school-age children to pay higher prices to live in jurisdictions with good school systems, to name a few) some current council members have aimed to meet the challenge of maintaining housing affordability by encouraging more overall residential development to meet increased demand; and thereby, potentially, lower housing costs.
To this end, over the past year, the County Council and planning staff have been formulating policies to achieve their stated goal of creating more residential development--particularly high-density development--and its auxiliary affordable housing throughout Montgomery County.
The current focus is on creation of affordable housing as Moderately Priced Dwelling Units (MPDUs) and accessory apartments. This article discusses the proposed MPDU legislation. Next week we will discuss accessory apartments. The third week we will outline proposed changes to the Rural Neighborhood Cluster zone category.
The Montgomery County Civic Federation (MCCF) agrees that some changes are needed concerning the county codes that govern MPDUs. However, we are concerned that several of the proposed changes do not do as much as possible to provide more MPDUs than what would be provided under the current law. MCCF is also concerned that some of the proposed changes do not adequately provide for the needs of existing housing occupants and neighborhoods. MCCF will consider what position to take on the legislation during August and early September. A vote by the members will take place at our September 13 delegates meeting. Interested individuals can attend and testify at the County Council hearing on the evening of September 23*.
Currently, developers are required to build MPDUs in developments of 35 or more units. In exchange for building required MPDUs, the county gives developers an increase in the number of housing units they can build in a subdivision. The county also gives developers flexibility in what unit types they are able to build, as well as additional market-rate units. The number of MPDUs are on a sliding scale with the peak density bonus set at 22% and peak number of MPDUs set at 15%. Developers who choose to provide MPDUs in buildings and subdivisions of fewer than 35 units can also obtain the above listed benefits. Developers can also access the PILOT (Payment in Lieu of Taxes) program to receive tax abatement for their projects that contain MPDUs.
The Department of Housing and Community Affairs (DCHA) administers the program,
which includes setting the income limits for households to quality for to
purchase or rent an MPDU. The recent staff report on MPDUs states “The
$52,000 maximum annual income for a four-person household is about 65% of
area median income. The MPDU law does not define ‘moderate income’
in relation to median income, and DCHA traditionally has used 65% as the standard
for the MPDU program.” The MPDU prices are now controlled under the
program for a period of 10 years for sale units and 20 years for rental units.
Full text of the legislation and zoning changes is available on the council
website at:
http://www.montgomerycountymd.gov/apps/council/agpackets/040720/2004072003.pdf.
The Council staff report can also be found on the council web site under the
council agenda for Feb 5. A summary of the various zoning text amendments
(ZTAs), Subdivision Regulation Amendment (SRA), bills, and council staff report
follow.
ZTA 04-11 sponsored by Councilmembers Floreen, Knapp, Leventhal, Silverman, and Subin would modify the multi-family 'garden apartment' zones (R-30, R-20, R-10 and R-H). It would reduce the amount of required green space to 20% from 45% -53% depending upon the zone. It also eliminates the limitation on the maximum portion of the lot that a building can occupy. A building can currently occupy a maximum of 20% to 24% of the entire lot.
ZTA 04-12 sponsored by Councilmembers Floreen, Knapp, Leventhal,
Silverman, and Subin would reduce the amount of public use space required
and increase the dwelling unit density as necessary to build the
number of required MPDUs. The proposal could reduce or completely
eliminate the current 20% public use space requirement. Public use
space includes playgrounds, walking trails, and other places for public recreation
and gatherings. The ZTA would also allow greater dwelling unit densities
and floor area ratios (bigger buildings) for any residential development project
that includes MPDUs. The change in amenities applies in the central
business district zones (CBD-0.5, CDB-1, CDB-2, CDB-3, CDB-R1 and CDB-R2),
while the density increase applies to these zones as well as the metro station
zones (TS-R and TS-M zones). Metro station zones are typically areas within
1500 feet (1/4 mile+) of a metro station.
ZTA 04-13 sponsored by Councilmembers Floreen, Knapp, Leventhal, Silverman, and Subin would allow a residential building including MPDUs to exceed the building height limit and/or maximum density established in a master plan or sector plan. This ZTA applies to the Central Business District zones, RMX, and planned development (PD) zones.
ZTA 04-14. sponsored by Councilmembers Floreen, Knapp, Leventhal, Silverman, and Subin would remove all restrictions on the unit type developers could build so that 100% of the dwelling units in 5 single-family residential zone categories could be attached, semi-detached, or townhouse (side-by-side or piggyback) units. Currently the number of such units is limited to 50% in R-200, R-150, and R-90 zones (half acre to quarter acre) and 60% in the R-60 zone (6000 sq ft), and they would be allowed for the first time in the R-40 zone, where they are currently not allowed.
ZTA 03-09 (introduced 5-13-03) sponsored by Council at request of the Planning Board would require builders to include MPDUs in the large rural zones (RE-1, RE-2, RE-2C, RNC). Today the MPDU law does not apply to these zones. The MPDUs units would typically be attached or duplex units, up to 100% of the density allowed.. The proposal limits the new requirement to development that would have public sewer; it does not require public water.
SRA 04-01 sponsored by Councilmembers Floreen, Knapp, Leventhal, Silverman, and Subin would eliminate the current requirement that a preliminary plan for a residential development project must conform to the area master plan, and would allow builders to disregard master plans and exceed building height and residential densities limits up to the limit of the applicable zone. It would also allow the width of tertiary roads to be reduced.
Bill 24-04 sponsored by Councilmembers Floreen, Knapp, Leventhal, Silverman, and Subin would modify the current MPDU law to:
(1) Increase sale and rent control periods for MPDUs in new residential developments
to 30 years and require better notice of controls to future buyers (This applies
for units originally offered for sale after March 1, 2002).
(2) Require eligibility standards for MPDU buyers and renters to be updated
annually
(3) Further restrict when MPDUs can be built at an alternative location and
when DHCA can accept a payment in lieu of building all required MPDUs.
(4) Requires MPDUs in single family developments to have the same number bedrooms
as the market rate units.
Bill 25-04 sponsored by Councilmembers Praisner, Perez, Leventhal,
and Andrews includes recommendation from the legislative staff report (see
below) and would:
(1) Increase the sale and rent control period of all MPDUs to 99 years,
(2) Lower minimum size of subdivisions that require MPDUs to 20 units or larger,
(3) Allow high rise building to have as little as 10% of the units being MPDUs
(4) Require separation and limitation of maintenance and amenity fees
(5) Require that MPDUs not built on site must be built within ½ mile
of market rate subdivision
(6) Still allow developers to 'buy out' of their requirement to provide MPDUs
in special needs and senior housing projects where additional monthly amenity
fee would be cost-prohibitive for MPDU households, and in projects where the
protection of an environmentally sensitive portion of a site reduces the achievable
density. (MPDU buyout monies go to the Housing Initiative Fund.)
(7) Require MPDUs in single family developments to have the same number bedrooms
as the market rate units, and prohibit any waiver of these standards,
(8) Establishes an MPDU Preservation Fund and MPDU Rehabilitation Fund.
Bill 27-03, introduced 7-29-03, sponsored by Councilmembers Andrews, Leventhal, and Perez. The proposed bill would eliminate entirely the option for builders to pay a 'buyout' fee and thereby avoid building MPDUs.
Report. (Feb 5, 2004) Entitled: “Strengthening the Moderately Priced Dwelling Unit Program: A 30-Year Review” This council staff report provides information about the MPDU program, identifies many ways to increase the amount of affordable housing in the MPDU program.
* ALWAYS confirm hearing day, time, and room location on the day of the hearing by calling 240-777-7900 or going to www.montgomerycountymd.gov/councilnews. Hearings take place at the County Council Office Building at 100 Maryland Avenue(on the corner of Maryland Avenue and Md. Rt. 28) in Rockville. Hearings are located either in the 3rd or 4th floor hearing rooms. Parking is free for evening hearings in the Council Building Garage. Garage can be entered from Md. Rt. 28. During weekdays, parking is free for the first hour.
This Page Last Edited: November 20, 2004 .