Housing

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Montgomery Planning is committed to supporting the development of various housing types to meet the needs of our growing and increasingly diverse population. Through the master planning process, we look at housing needs in small areas and develop strategies to encourage strategic development and redevelopment opportunities supported by infrastructure.

Affordable housing components of developments are evaluated during the review process for compliance with regulatory requirements and as a public benefit. The Planning Department also conducts large scale research studies to inform countywide public policies related to housing and land use. Recent studies undertaken by our staff analyze data and recommend policies about the rental housing market, including moderately priced dwelling units (MDPUs); senior housing; and multi-unit, clustered “missing middle” housing.

Frequently Asked Questions

How does Montgomery County define affordable housing?

In Montgomery County, affordable housing generally falls into four categories:

Income-Restricted Affordable Housing: A moderately priced dwelling unit (MPDU) is built under a government regulation or a binding agreement requires the unit to be affordable to households at or below the income eligibility for the MPDU program. Under this program, income requirements are usually 65 percent of area median income (AMI) for garden apartments, and 70 percent (AMI) for high-rise apartments.

Income-Restricted Workforce Housing: Chapter 25B of the Montgomery County Code defines housing that is affordable to households earning up to 120 percent of AMI or less as workforce housing. Income-restricted workforce housing is bound by government regulation and workforce housing is negotiated on a project-by-project basis. When a master plan refers to workforce housing as a part of its affordable housing goals or requirements, household incomes are limited to 100 percent of area median income. Workforce housing rents must be 20 percent lower than market rents.

Market-rate Affordable Housing: Market-rate affordable dwelling units rent at prices affordable to households earning no more than 80 percent of area median income, based on unit and household sizes. These units are typically found in older buildings and their rents are lower than the median rent for the planning area. Market-rate affordable dwelling units are not income-restricted by government regulation and not defined in the Montgomery County Code.

Rent-Restricted Affordable Housing: This term is not currently defined in the Montgomery County Code or commonly used, but describes housing where rent increases are limited and no income tests are required for the tenants. The preservation of market-rate affordable housing may require an agreement that both establishes the baseline rent (priced to be affordable at 80 percent of AMI) and rent restrictions (such as requiring a rent increase only according to the voluntary rent guideline).
What is a moderately priced dwelling unit (MPDU)?

Montgomery County's moderately priced dwelling unit (MPDU) program is one of the nation's first mandatory, inclusionary zoning laws. It was implemented 1973 to help meet the goal of providing a full range of housing choices in the county for all incomes, ages and household sizes. An MPDU is a local government-regulated unit that is required to be affordable to households earning 65 percent of area median income (AMI) for garden-style apartments and 70 percent for high-rise apartments.

The program's implementation involves both the public and private sectors, with the local government performing regulatory and administrative functions, and the building industry producing the housing. Some highlights of the MPDU program are as follows:

Between 12.5 and 15 percent of the total number of units in every subdivision or high-rise building of 20 or more units must be moderately priced, according to the MPDU regulation:
• 15 percent is mandatory in the Bethesda Downtown Sector Plan area through the Bethesda Overlay Zone.
• 15 percent is the top priority for all public benefits required under the Commercial Residential Town (CRT) zone for any projects under the optional method of development in Westbard.
• 15 percent is the highest priority public benefit for new residential development in the planning areas of Grosvenor-Strathmore, White Flint 2 and Rock Spring, unless the property is required to dedicate land for a school or athletic fields that can be used by Montgomery County Public Schools and approximate the size of a local park.

Three agencies within Montgomery County are key to the implementation of the MPDU program:
• Maryland-National Capital Park and Planning Commission (M-NCPPC)
• Department of Housing and Community Affairs (DHCA)
• Housing Opportunities Commission (HOC).
What is the income eligibility for an MPDU and workforce housing?

• The Montgomery County Department of Housing and Community Affairs lists the income eligibility for the MPDU programs on its website. The agency categorizes eligibility by for-sale dwellings and rentals (generally 65 percent of area median income for garden-style, 70 percent of area median income for high-rise apartments) and for workforce housing (80 to 120 percent of area median income).
• Income limits are based on the area median income set by the United States Department of Housing and Urban Development (HUD) for a particular fiscal year.

What are the benefits for providing MPDUs?

The benefits and bonus density vary by zone; please refer to Chapter 59 of the Montgomery County Code for detailed breakout. See below for a general summary by zone.

Zone Family	Benefits for providing >12.5% MPDUs
Residential Detached (R-60, R-90, etc.)	Additional building types and smaller lot sizes allowed, flexibility in some development standards, a modest density bonus in some zones.
Townhouse (TLD, TMD, THD)	Density bonus, smaller lot sizes, flexibility in some development standards.
Multi-Unit (R-10, R-20, R-30)	Density bonus, flexibility in some development standards.
Commercial Residential and Employment Zones (CR, CRT, CRN, EOF, LSC) without a “T” designation	Public benefit points, height and density bonus in zoning code.
Commercial Residential and Employment Zones (CR, CRT, CRN, EOF, LSC) with a “T” designation	Public benefit points, density bonus under Chapter 25A of the Montgomery County Code.

How many MPDUs have been built since the beginning of the program?

The Department of Housing and Community Affairs tracks the number of MPDUs produced.
How long must a unit stay an MPDU?

In 2004, the Montgomery County Council amended the MPDU control period governing for-sale MPDUs from 10 years to 30 years and for rental MPDUs from 20 years to 99 years.
Are there any benefits to providing higher numbers of MPDUs?

If you provide 20 percent MPDUs, you are not required to provide any other category of public benefit points for optional method projects in the C/R and employment zones.

If you provide 25 percent MPDUs, you are exempt from paying transportation and school impact taxes under §52-49 and §52-89.

Housing

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