For Immediate Release: Tuesday, October 9, 2018
From the Office of Councilmember Nancy Floreen
Zoning change expands incentives to increase
moderately priced dwelling units for County residents
ROCKVILLE, Md., Oct. 9, 2018—Today the Montgomery County Council unanimously approved Zoning Text Amendment (ZTA) 18-06, MPDU - Bonus Density, which encourages the creation of additional moderately priced dwelling units (MPDU). ZTA 18-06 incentivizes the production of more affordable housing in the County by allowing the construction of additional market-rate units in exchange for the construction of more MPDUs.
“I am delighted that the Council has embraced this approach so that we can create more homes for residents of modest means,” said Councilmember Floreen, who serves as chair of the Council’s Planning, Housing and Economic Development Committee. “The demand for affordable places to live is breathtaking. I am confident that this change to our zoning law will help.”
Under the new zoning measure, if more than 12.5 percent of a project includes MPDUs, which is the minimum percentage required in most areas of the County, the construction of more market-rate units is allowed. In residential zones, current law caps density bonuses once a project includes 15 percent affordable housing as part of a development plan. In mixed-use zones, projects with more than 12.5 percent MPDUs but less than 15 percent do not receive bonus density for the additional MPDUs. This factor increases the costs and reduces the incentives to construct additional affordable housing units. ZTA 18-06 allows bonus density in all zones for the construction of more than 12.5 percent MPDUs and removes the caps on bonus density for MPDUs in all zones.
ZTA 18-06 extends bonus density opportunities for developments that provide more than 15 percent MPDUs, which is the current cap for density benefits everywhere, except for projects located in the commercial/residential (C/R) zones. In addition, the zoning measure permits bonus density in residential zones and removes the density cap to allow MPDU creation in both multi-family and single-family zones. ZTA 18-06 also specifies the ratio of bonus density to market-rate units for all developments.
Mixed-use zones require public benefits for dense projects. Public benefits include features such as more than the minimum required affordable housing, enhancing the natural environment, proximity to transit, quality design and achieving master plan recommended public facilities. Each project needs a certain number of public benefit points to be approved. With this zoning change, developments can earn public benefit points for providing more than 12.5 percent of MPDUs in a project, even if 15 percent is required by law.
The zoning measure also is part of a broader Council effort to modernize and streamline the County’s landmark MPDU program. ZTA 18-06 is the companion zoning measure to Bill 34-17, Housing - Moderately Priced Dwelling Units - Amendments, which the Council adopted in July. Bill 34-17 broadened affordable housing options in many ways. For example, it required developments of between 11 and 19 homes to make a payment to the Housing Initiative Fund (HIF), which is used to preserve and create affordable housing.
The County’s MPDU program, which is believed to be the first in the nation, was created in the early 1970s. This inclusionary zoning law specifies a density bonus allowance for builders who provide affordable housing. The density bonus was included to help offset some of the construction costs for MPDUs and to promote the construction of these affordable units along with market-rate units in communities throughout the County. Housing affordability is calculated based on the U.S. Department of Housing and Urban Development’s Area Median Household Income (AMI), which is updated annually.
Additional information about ZTA 18-06 can be viewed here.