Agenda Item 5
February 2,2010
Introduction
MEMORANDUM
TO:
FROM:
County Council
Jeffrey
L.
Zyontz, Legislative Attorney
~ichael
Faden, Senior Legislative Attorney
SUBJECT:
Introduction:
Bill 4-10, Workforce Housing - Voluntary
Bill 4-10, Workforce Housing - Voluntary, sponsored by the Planning, Housing and
Economic Development (PHED) Committee, is scheduled to be introduced on February
2, 20 10.
A public hearing is tentatively scheduled for March
2
at
1:30
p.m.
Bill 4-10 would repeal the requirement to build workforce housing under certain
circumstances and make the program voluntary for the developer in the zones where it is
allowed.
It
would also repeal the program's December
2014
sunset date.
This packet contains
Bill 4-10
Legislative Request Report
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Bill No.
4-10
Concerning: Workforce
Housing
Voluntary
Revised: 1-29-10
Draft No.
~
Introduced:
February 2, 2010
Expires:
August 2, 2011
Enacted: _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ __
Sunset Date: --'-"No=n;.=.e_--:-_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Planning, Housing, and Economic Development Committee
AN
ACT to:
(1) modifY the requirement for workforce housing to make the provision of
workforce housing voluntary; and
(2) generally amend the law governing the workforce housing program.
By amending
Montgomery County Code
Chapter 25A, Housing, Moderately Priced
Section 25A-5
Chapter 25B, Housing Policy
Sections
25B-23
through
25B-28
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No.
4-10
1
2
Sec.
1.
Section 2SA-S is amended as follows:
2SA-S.
Requirement to build [MPDU's] MPDUs; agreements.
3
4
*
(c)
bonus is allowed; and
(1)
(2)
(3)
*
*
When the development at one location is in a zone where a density
5
6
7
is covered by a plan of subdivision,
is covered by a plan of development or a site plan, or
requires a building permit to be issued for construction,
8
9
10
11
12
13
the required number of moderately priced dwelling units is a variable
percentage that is not less than 12.5 percent of the total number of
dwelling units at that location, not counting any workforce housing
units [required] built under Chapter 25B.*
*
*
Sec. 2. Sections 2SB-23 through 2SB-28 are amended as follows:
2SB-23.
Definitions.
14
15
In this Article, the following words have the following meanings:
16
17
18
*
(j)
*
*
Worliforce housing project
means a housing or mixed:use project where
[at least 10 percent of the] dwelling units[, as computed under Section
25B-24(e),] are sold or rented to households with incomes at or below
120% of the area-wide median income.
19
20
21
22
*
2SB-24.
Workforce housing program.
*
*
*
*
23
24
25
*
(d)
[Requirement] Option.
A developer of any subdivision with 35 or more
market-rate dwelling units 'at one location, as defined in Section 25A­
3(b), [must build the number of] may build workforce housing units [, if
any,] that are expressly [required] allowed in the applicable zone under
26
27
(j)
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BILL No. 4-10
28
Chapter 59.
(e)
Exclusions.
29
30
In calculating the number of dwelling units in any
subdivision to determine the number of workforce housing units
[required] built under this Article, the Department must not count:
(1)
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32
any moderately priced dwelling units (MPDUs) and any resulting
bonus density market-rate units;
33
34
35
36
37
38
(2)
any Personal Living Quarters unit built under Section 59-A-6.15,
which meets the price or rent eligibility standards for a
moderately priced dwelling unit under Chapter 25A;
(3)
any dwelling unit in an Opportunity Housing Project built under
Sections 56-28 through 56-32, which meets the price or rent
eligibility standards for a moderately priced dwelling unit under
Chapter 25A; and
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45
(4)
any other dwelling unit built under a government regulation or
binding agreement that limits for at least 15 years the price or rent
charged for the unit in order to make the unit affordable to
households earning less than 60% of the area median income,
adjusted for family size.
46
47
[(t)
Exemption.
If the total number of units in a subdivision that are not
counted under subsection (e)(4) is sufficient to qualify the entire
subdivision to receive federal low-income housing tax credits, then no
workforce housing units are required in that subdivision.]
[(g)]
ill
Regulations.
48
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53
54
The County Executive must adopt regulations
under method (1) to administer this program. These regulations:
(1)
must set maximum sale prices and annual rent limits, sale price
and rent ranges' (which must promote a variety of different prices
or rents at each workforce housing location), minimum unit type
@
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BILL
No.
4-10
55
56
57
58
59
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72
and bedroom requirements, and income eligibility standards;
(2)
must govern notice to the Department of sales and rentals,
foreclosures, and other relevant procedural matters; and
(3)
should, wherever possible, be similar to or at least consistent with
the regulations that govern the MPDU program.
The regulations governing eligibility must include some preference for
applicants who either reside in the County or work or have received a
job offer in the County.
*
25B-25.
*
*
Execution of agreement; building permit issuance.
Agreement.
(a)
(1)
After the developer of a housing project has obtained approval
from the Planning Board of a site plan that includes the number
of workforce housing units [required] approved under any
applicable provision of Chapter 59 and all other necessary
regulatory approvals, the Director and the developer must execute
an agreement assuring compliance with this Article by the
developer and any successor in interest. The Director must attach
a copy ofthe approved site plan to this agreement.
73
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(2)
The agreement must incorporate a staging plan for the
construction of workforce housing units, the mix of dwelling unit
sizes and types, and the maximum selling price or annual rent for
each unit. The staging plan must require all workforce housing
units to be built before or at the same time as the other dwelling
units. Where appropriate, the agreement must reflect conditions
required as part of other regulatory approvals.
(3)
The agreement must require that the number of efficiency and
o
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BILL
No. 4-10
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83
one- bedroom workforce housing units each must not exceed the
ratio that market-rate efficiency and
one-bedroom
units
84
85
respectively bear to the total number of market-rate units in the
subdivision. The Director must not approve an agreement that
reduces the number of bedrooms required by this subsection in
any workforce housing unit.
(b)
86
87
88
89
Issuance of building permit.
The Director of Permitting Services must
not issue a building permit for any development where workforce
housing units are [required] approved under Chapter 59 until the
agreement required by subsection (a) is executed. After an agreement is
executed under subsection (a), the Director must certify to the Director
of Permitting Services before a building permit is issued that all
applicable requirements of this Article have been met. If all workforce
housing units are not built before or at the same time as other dwelling
units as required in the staging plan, the Director of Permitting Services
may:
( 1)
withhold any later building permit for any part of the same
development until all workforce housing units designated in the
staging plan are built;
(2)
issue a stop work order, effective until all workforce housing
units designated in the staging plan are built; or
(3)
withhold any use and occupancy permit for other units in the
development until all workforce housing units designated in the
staging plan are built.
90
91
92
93
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95
96
97
98
99
100
101
102
103
104
105
106
107
[25B-26.
Alternative location agreement.]
[(a)
The Director may approve a workforce housing agreement, in addition
to the agreement required by Section 25B-25, that allows an applicant,
108
(§)
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BILL No. 4-10
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instead of building some or all of the required number of workforce
housing units on-site, to provide at least the same number of units at
another location in the same planning policy area (as defined in the
County Growth Policy), only if the Director finds that:
(1)
either:
(A)
the public benefit of locating at the proposed alternative
location is equivalent to the value of locating workforce
housing units in each applicable development; or
(B)
building a sufficient number of workforce housing units at
the original site would require the applicant to change the
type of building construction used; and
(2)
building the workforce housing units at the proposed alternative
location will further the objective of providing a broad range of
housing opportunities throughout the County.
(b)
To satisfy the requirements ofthis Section, an applicant may:
(1)
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build, or convert from non-residential use, the required number of
new workforce housing units at a site approved by the Director;
or
(2)
return to workforce housing unit use, and rehabilitate as
necessary, existing workforce housing units for which price
controls have expired.
(c)
Each agreement under this Section must include a schedule, binding on
the applicant, for timely completion or acquisition of the required
number of workforce housing units. Each agreement under this Section
must also require that each workforce housing unit provided at an
alternative location under this Section must be identical in type of unit
and number of bedrooms to' the workforce housing units that the
o
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BILL No. 4-10
136
137
applicant would have built on site.]
[25B-27] 25B-26. Control of sale prices; rent limits; income eligibility;
foreclosures.
138
139
*
[25B-28] 25B-27. Compliance.
*
*
*
140
141
142
143
144
145
146
147
148
149
150
151
*
Sec. 3. Expiration.
*
Subsection (c) of Section 3 of Chapter 23, Laws of Montgomery County, 2006
is hereby repealed:
Sec. 3. Effective date; Applicability; Expiration.
*
[(c)
*
*
Article V of Chapter 25B, as inserted by Section 1 of this Act, does not
apply to any development for which an application for a local map
amendment, development plan, project plan, site plan, or preliminary
plan of subdivision is filed after December 1, 2014.]
Approved:
152
153
Nancy Floreen, President, County Council
154
Date
Approved:
155
156
Isiah Leggett, County Executive
157
Date
This is a correct copy ofCouncil action.
158
Linda M. Lauer, Clerk of the Council
Date
(j)
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LEGISLATIVE REQUEST REPORT
Bill 4-10
Worliforce Housing
-
Voluntary
DESCRJPTION:
Repeals the requirement to build workforce housing under certain
circumstances and make the program voluntary for the developer in
the zones where it is allowed. Also repeals the program's December
2014 sunset date.
Under current economic circumstances, workforce housing is
difficult and expensive to provide.
To allow developers to decide whether to provide workforce housing
in each development where the zone would allow it and provide a
density bonus. To make the program permanent.
Department of Housing and Community Mfairs, Planning Board
To be requested.
To be requested.
To be requested.
To be researched.
Jeffrey
L.
Zyontz, Legislative Attorney, 240-777 -7896
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERJENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable
t\law\bills\1004 workforce housing - voluntary\legislative request report.doc