Preserve and Increase the County's Affordable Housing Inventory
The Council works closely with the County’s public housing agency, the Housing Opportunities Commission (HOC). The HOC’s mission is to acquire and renovate properties to preserve and increase the County's affordable housing inventory. To accelerate the completion of mixed-income housing developments being completed by the HOC, the Council enacted Resolution 19-774, which authorizes the $50 million HOC Housing Production Fund.
With the assistance of the Fund, HOC expects to be able to create nearly 8,800 new housing units. At least 20 percent of housing units created with the fund will be affordable to households with incomes at or below 50 percent of area median income and another 10 percent of the units affordable for those at or below the income for a Moderately Priced Dwelling Unit (MPDU).
The Council enacted Bill 26-21 to create a tax abatement to support affordable housing. The legislation establishes a 100 percent payment in lieu of taxes (PILOT) exemption for a housing development owned or controlled by the HOC or a nonprofit housing developer with at least 50 percent of the dwelling units affordable to households that are earning 60 percent or less of area median income. In practice, a PILOT means that local governments, when authorized by state law, enter into negotiated agreements with rental property owners to lower the cost of County real property and special area taxes. In return, a rental property owner commits to provide affordable housing to low-income residents.
Montgomery County has a significant shortage of affordable housing available for low and moderate-income households. The Metropolitan Washington Council of Governments estimates that Montgomery County needs to add 41,000 housing units in the next ten years to meet housing demand and at least 75 percent of this housing will need to be affordable to low- and middle-income households.