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Montgomery County Council President Floreen to introduce plan to stimulate funding for school construction, affordable housing

For Immediate Release: Monday, April 18, 2016

Montgomery County Council President Nancy Floreen on Tuesday, April 19, will introduce legislation to stimulate funding for additional school construction and affordable housing. The plan, which would raise an additional $185 million over the next six years, addresses two of the County’s most urgent capital needs at a time when no other reliable options have been suggested.

 

Over the next six years, the plan would generate $155 million for capital projects, mostly for school capacity and building improvements, and $30 million for rent assistance for low and moderate income households, through a rate change in the County recordation tax. The plan would help achieve 70 percent of the Board of Education’s request for new funding.

 

The recordation tax is paid only when properties are sold or refinanced.  Expedited Bill 15-16 would increase the rates for the School Increment of the Recordation Tax and the Recordation Tax Premium by $0.75 per $500 in the sale. The Tax Premium only applies to sales and refinancing above $500,000.

 

The funds raised by the rate change in the School Increment would be dedicated to Montgomery County Public Schools capital projects. These new funds will allow the Council to add nearly $120 million to accommodate school capacity and building improvement needs.

 

“As I talk with residents across the County, it becomes increasingly clear to me that our capital needs, particularly in the area of school construction, far outweigh our available resources,” said Council President Floreen. “While nobody likes the idea of raising taxes of any kind, our needs are great, and this tax is less likely to affect those Montgomery County residents who are struggling most. On the up side, it will generate millions of dollars to support our desperate need for new schools and educational facility improvements. I believe this proposal is the most progressive approach to meeting the needs that our residents have clearly identified as their top priorities.”

 

The Recordation Tax Premium is earmarked for rental assistance and the County Government’s capital improvements program.

 

More information about Expedited Bill 15-16 is available at http://tinyurl.com/hnrcbs7 .

 

A public hearing on the bill is tentatively scheduled for 1:30 p.m. on Tuesday, May 10.

 

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Release ID: 16-120
Media Contact: Neil Greenberger 240-777-7939 , Delphine Harriston 240-777-7931