Agenda Item 4B
November 14, 2017
Introduction
MEMORANDUM
November 9, 2017
TO:
FROM:
County Council
Josh Hamlin, Legislative
Attom~
1
.,
)/
SUBJECT:
Introduction:
Bill 38-17, Housing-Moderately Priced Dwelling Units (MPDUs)
- Requirement to Build
Bill 38-17, Housing - Moderately Priced Dwelling Units (MPDUs) - Amendments,
sponsored by Lead Sponsor Council Vice-President Riemer, is scheduled to be introduced on
November 14. A public hearing is tentatively scheduled for December 5 at 7:30 p.m.
Bill 38-17 would expressly provide in the Code that the minimum MPDU requirement
Countywide is 12.5 percent, with 15 percent required in any development in an MCPS High School
Service Area with an eligibility rate for free and reduced meals of 15 percent or less at the time
the applicant submits a preliminary plan of subdivision.
Background
The Council enacted the County's Moderately Priced Dwelling Unit (MPDU) law in 1973
with several objectives. The law was aimed at furthering the objective of providing a full range of
housing choices for all incomes, ages and household sizes. In particular, the law imposed
requirements on the construction of affordable housing to meet the existing and anticipated needs
for low and moderate-income housing, and ensure that moderately priced housing was dispersed
throughout the County. It provided incentives to encourage the construction of moderately priced
housing by allowing optional increases in density including the MPDU density bonus to offset the
cost of construction.
The most recent substantial amendments to the MPDU law were made in 2004.
1
The 2004
amendments extended the control period for for-sale MPDUs from 10 to 30 years, and for rental
MPDUs from 20 years to 99 years. The amendments also allowed different income eligibility
standards in recognition of the higher cost of construction of certain types of housing, and
increased the number of developments required to provide MPDUs by lowering the base
requirement from any development with 35 or more units to 20 or more units. Additional
1
http://www.montgomerycountymd.gov/CO UN CIL/Resources/Files/bill/2003 /24-04-2 5-04-27-03 .pdf
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requirements and structure on the approval alternative payments made to the Housing Initiative
Fund in lieu of constructing MPDUs were also added. In 2007, the Office of Legislative Oversight
issued Report No. 2007-9, A Study of Moderately Priced Dwelling Unit Program Implementation.
2
Bill 34-17, Housing - Moderately Priced Dwelling Units (MPDU)-Amendments,
3
which
would make several significant changes to the MPD U law, was introduced on Octaher 31, 201 7.
Among the key provisions of Bill 34-17 are: clarification of certain existing provisions of the law;
requiring developments of less than 20 homes to make a payment to the Housing Initiative Fund;
broadening the authority of the Director of the Department of Housing and Community Affairs to
accept payments into the Housing Initiative Fund in lieu of including MPDUs in a development,
when it serves the goal of increasing the availability of affordable housing; and increasing the
flexibility of the Director in determining MPDU obligations to better serve the demands for
affordable units. Because there is substantial overlap in the subject matter of the two bills, the
public hearing on Bill 38-17 is tentatively scheduled for the same time as the public hearing for
Bill 34-17.
This packet contains:
Bill 38-17
Legislative Request Report
F:\LAW\BILLS\1738 MPDU - Requirement To Build\Intro Memo.Docx
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https ://www.montgomerycountymd.gov
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https://apps.montgomerycountymd.gov/ccllims/bill details.aspx?doc=l460&hl=3282
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Bill No.
38-17
Moderately
Concerning: Housing
Priced Dwelling Units (MPDUs) -
Requirement to Build
Revised: 11/01/2017
DraftNo. 3
Introduced:
November 14. 2017
Expires:
May 14. 2019
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _N'-'-o=n=e_ _ _ _ __
Ch. _ _ , Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Vice-President Riemer
AN ACT
to:
(1) require a minimum rate of MPDUs to be constructed for certain new residential
development; and
(2) generally amend the laws governing moderately priced housing
By amending
Montgomery County Code
Chapter 25A, Housing-Moderately Priced
Section 25A-5
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. 38-17
1
Sec. 1. Section 25A-5 is amended as follows:
25A-5. Requirement to build MPDUs; agreements:
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(a)
The requirements of this Chapter to provide MPDUs apply to any
applicant who:
(1)
submits for approval or extension of approval a preliminary plan
of subdivision under Chapter 50 which proposes the development
of a total of 20 or more dwelling units at one location in one or
more subdivisions, parts of subdivisions, resubdivisions, or stages
of development, regardless of whether any part of the land has
been transferred to another party;
(2)
submits to the Planning Board or to the Director of Permitting
Services a plan of housing development for any type of site
review or development approval required by law, which proposes
construction or development of 20 or more dwelling units at one
location; or
(3)
with respect to land in a zone not subject to subdivision approval
or site plan review, applies for a building permit to construct a
total of 20 or more dwelling units at one location.
In calculating whether a development contains a total of 20 or more
dwelling units for the purposes of this Chapter, the development
includes all land at one location in the County available for building
development under common ownership or control by an applicant,
including land owned or controlled by separate corporations in which
any stockholder or family of the stockholder owns 10 percent or more
of the stock. An applicant must not avoid this Chapter by submitting
piecemeal applications or approval requests for subdivision plats, site or
development plans, floating zone plans, or building permits.
Any
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BILL
No. 38-17
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applicant may apply for a preliminary plan of subdivision, site or
development plan, floating zone plan, record plat, or building permit for
fewer than 20 dwelling units at any time; but the applicant must agree in
writing that the applicant will comply with this Chapter when the total
number of dwelling units at one location reaches 20 or more.
(b)
The minimum number of MPDUs required under this Chapter, as
~
I
[,
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percentage of the total number of dwelling units at that location, not
counting any workforce housing units built under Chapter 25B, is:
ill
for development in an MCPS High School Service Area with an
eligibility rate for free and reduced meals of
.li
percent or less at
the time the applicant submits
~
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preliminary plan of subdivision,
.li
percent; or
ill
{£}
for any other development subject to this Chapter, 12.5 percent.
Any applicant, in order to obtain a building permit, must submit to the
Department of Permitting Services, with the application for a permit, a
written MPDU agreement approved by the Director and the County
Attorney. Each agreement must require that:
(1)
a specific number of MPDUs must be constructed on an
approved time schedule;
(2)
in single-family dwelling unit subdivisions, each MPDU must
have three or more bedrooms; and
(3)
in multi-family dwelling unit subdivisions, the number of
efficiency and one-bedroom MPDUs each must not exceed the
ratio that market-rate efficiency and one-bedroom units
respectively bear to the total number of market-rate units in the
subdivision.
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(~
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BILL
No. 38-17
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The Director must not approve an MPDU agreement that reduces the
number of bedrooms required by this subsection in any MPDU.
[(
c
)]@
When the development at one location is in a zone where a
density bonus is allowed; and
(1)
(2)
is covered by a plan of subdivision;
is covered by a plan of development, site plan, or floating zone
plan; or
(3)
reqmres a building permit to be issued for construction, the
required number of [moderately priced dwelling units] MPDUs is
a variable percentage that is not less than [12.5%] 12.5 percent of
the total number of dwelling units at that location, not counting
any workforce housing units built under Chapter 25B.
The
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required number of MPDUs must vary according to the amount
by which the approved development exceeds the normal or
standard density for the zone in which it is located. Chapter 59
may permit bonus densities over the presumed base density
where MPDUs are provided. If the use of the <;>ptional MPDU
development standards does not result in an increase over the
base density, the Director must conclude that the base density
could not be achieved under conventional development standards,
in which case the required number of MPDUs must not be less
than [12.5%] 12.5 percent, or the higher base requirement under
subsection .(h1 of the total number of units in the subdivision.
The amount of density bonus achieved in the approved
development determines the percentage of total units that must be
MPDUs, as follows:
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S
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BILL
No. 38-17
Achieved
Density Bonus
Zero
Up to 1%
Upto2%
Up to 3%
Upto4%
Up to 5%
Upto6%
Up to 7%
Up to 8%
Upto9%
Up to 10%
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MPDUs
Required
12.5%
12.6%
12.7%
12.8%
12.9%
13.0%
13.1%
13.2%
13.3%
13.4%
13.5%
Achieved
Density Bonus
Up to 11%
Up to 12%
Up to 13%
Up to 14%
Up to 15%
Up to 16%
Up to 17%
Up to 18%
Up to 19%
Upto20%
Upto22%
MPDUs
Required
13.6%
13.7%
13.8%
13.9%
14.0%
14.1%
14.2%
14.3%
14.4%
14.5%
15.0%
[(d)]Ui)(l)
Notwithstanding subsection [(c)]@, the Director may allow
fewer or no MPDUs to be built in a development with more than
20 but fewer than 50 units at one location if the Planning Board,
in reviewing a subdivision or site plan submitted by the
applicant and based on the lot size, product type, and other
elements of the plan as submitted, finds that achieving a bonus
density of 20 percent or more at that location:
(A)
would not allow compliance with applicable
environmental
requirements, or
(B)
would
significantly
reduce
neighborhood
standards
and
other regulatory
compatibility.
©
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BILL
No. 38-17
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(2)
If
the Planning Board approves a density bonus of at least 20
percent for a development which consists of 20 or more but fewer
than 50 units at one location, the number of [MPDU's] MPDUs
required must be governed by subsection [(c)]@ unless the
formula in subsection [(c)]@ would not allow the development
to have one bonus market rate unit. In that case, the Board must
reduce the required number of [MPDU's] MPDUs by one unit
and approve an additional market rate unit.
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[(
e
)Jill
The Director may approve an MPDU agreement that:
allows an applicant to reduce the number of MPDUs m a
subdivision only if the agreement meets all requirements of
Section 25A-5A; or
(1)
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(2)
allows an applicant to build the MPDUs at another location only
ifthe agreement meets all requirements of Section 25A-5B.
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[(f)].{g}(l)
An applicant may satisfy this Section by obtaining approval from
the Director to transfer land to the County before applying for a
building permit. The applicant must sign a written land transfer
agreement approved by the Director and by the County Attorney.
For the Director to consider the request and take timely action, a
written notice of the applicant's intent to submit an agreement
should be served upon the Director at least 90 days before the
application for a building permit is filed. The land transfer
agreement must covenant that so much of the land, designated in
the approved preliminary plan or site plan as land to which the
optional zoning provisions for MPDUs apply, as is necessary in
order to construct the number of MPDUs required by subsection
(a) will be transferred, as finished lots, to Montgomery County or
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No. 38-17
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to the County's designee before the building permit is issued, so
that the County might cause MPDUs to be constructed on the
transferred
land.
After
the
submission
of
supporting
documentation and review and approval by the County for the
transfer of finished lots, the County must reimburse the applicant
for the costs the applicant actually incurred, which are directly
attributable to the finishing of the MPDU lots so transferred.
Reimbursable costs include but are not limited to engineering
costs; clearing, grading, and paving streets, including any
required bonds and permits; installation of curbs, gutters and
sidewalks; sodding of public right-of-way; erection of barricades
and signs; installation of storm sewers and street lighting; and
park and other open space and recreational development directly
benefiting the MPDU lots transferred. The County must not
reimburse an applicant for the cost or value of the transferred lots.
(2)
If
an applicant transfers land to the County under this subsection
and no funds have been appropriated to reimburse the applicant
for his finishing costs, the County may accept from the applicant
undeveloped land rather than finished lots, or the applicant may
transfer the finished lots to the County without requiring payment
for finishing the lots.
(3)
Notwithstanding any other prov1s1ons of the subsection, the
County may reject an election by an applicant to transfer land to
the County in whole or in part whenever the public interest would
best be served thereby. Any rejection and the reasons for the
rejection may be considered by the Planning Board or the
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BILL
No.
38-17
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Director of Permitting Services in deciding whether to grant the
applicant a waiver of this Chapter under Section 25A-7(b ).
(4)
Any transfer of land to the County hereunder is not subject to
Section llB-33, and any land so transferred is not property
subject to Section 11B-31A regulating the disposal of surplus
land. The Director may dispose of the lots in a manner that
furthers the objectives of this Chapter.
[(g)]ili}
The MPDU agreements must be signed by the applicant and all
other parties whose signatures are required by law for the effective and
binding execution of contracts conveying real property. The agreements
must be executed in a manner that will enable them to be recorded in the
land records of the County.
If
the applicant is a corporation, the
agreements must be signed by the principal officers of the corporation
individually and on behalf of the corporation. Partnerships, associations
or corporations must not evade this Chapter through voluntary
dissolution. The agreements may be assigned if the County approves,
and ifthe assignees agree to fulfill the requirements of this Chapter.
[(h)]ill
The Department of Permitting Services must not issue a building
permit in any subdivision or housing development in which MPDU s are
required until the applicant submits a valid MPDU agreement which
applies to the entire subdivision or development. The applicant must
also file with the first application for a building permit a statement of all
land the applicant owns
in
the County that is available for building
development.
In
later applications, the applicant need only show
additions and deletions to the original landholdings available for
building development.
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BILL NO. 38-17
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[(i)](j)The MPDU agreement must include the number, type, location, and
plan for staging construction of all dwelling units and such other
information as the Department requires to determine the applicant's
compliance with this Chapter. The MPDU staging plan must be
consistent with any applicable land use plan, subdivision plan, or site
plan. The staging plan included in the MPDU agreement for all
dwelling units must be sequenced so that:
(1)
(2)
MPDUs are built along with or before other dwelling units;
no or few market rate dwelling units are built before any MPDUs
are built;
(3)
the pace ofMPDU production must reasonably coincide with the
construction of market rate units; and
(4)
the last building built must not contain only MPDUs.
This subsection applies to all developments, including any development
covered by multiple preliminary plans of subdivision.
[G)]{k}
If
an applicant does not build the MPDUs contained in the
staging plan along with or before other dwelling units, the Director of
Permitting Services must withhold any later building permit to that
applicant until the MPDUs contained in the staging plan are built.
[(k)]ill
(1)
The applicant must execute and record covenants assuring that:
The restrictions of this Chapter run with the land for the entire
period of control;
(2)
The County may create a lien to collect:
(A)
that portion of the sale price of an MPDU which exceeds
the approved resale price; and
(B)
that portion of the foreclosure sale price of an MPDU
which exceeds the approved resale price; and
0
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BILL
No. 38-17
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(3)
The covenants will bind the applicant, any assignee, mortgagee,
or buyer, and all other parties that receive title to the property.
These covenants must be senior to all instruments securing
permanent financing.
[(l)].(m}
(1)
In any purchase and sale agreement and any deed or
instrument
conveymg title to an MPDU, the grantor must clearly and
conspicuously state,
and the
grantee must clearly and
conspicuously acknowledge, that:
(A)
the conveyed property is [a] an MPDU and is subject to the
restrictions contained in the covenants required under this
Chapter during the control period until the restrictions are
released; and
(B)
any MPDU owner, other than an applicant, must not sell
the MPDU until:
(i)
the owner has notified the Department under
Section 25A-8 or 25A-9, as applicable, that the unit
is for sale;
(ii)
the
Department
and,
where
applicable,
the
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Commission, have notified the owner that they do
not intend to buy the unit; and
(iii)
[T]!he Department has notified the owner of the
unit's maximum resale price.
(2)
Any deed or other instrument conveying title to an MPDU during
the control period must be signed by both the grantor and grantee.
(3)
When a deed or other instrument conveying title to an MPDU is
recorded in the land records, the grantor must cause to be filed in
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No. 38-17
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the land records a notice of sale for the benefit of the County in
the form provided by state law.
[(m)].{n}
Nothing in this Chapter prohibits an applicant from voluntarily
building MPDUs, as calculated under subsection [(c)](d), in a
development with fewer than 20 dwelling units at one location, and in
so doing from qualifying for an optional method of development under
Chapter 59. A development with fewer than 20 dwelling units where an
applicant voluntarily builds MPDUs must comply with any procedures
and development standards that apply to a larger development under
this Chapter and Chapter 59. Sections 25A-5A, 25A-5B, and 25A-6(b)
do not apply to an applicant who voluntarily builds [MPDU's] MPDUs
under this subsection and in so doing qualifies for an optional method of
development.
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- __ I
LEGISLATIVE REQUEST REPORT
Bill 38-17
Housing- Moderately Priced Dwelling Units (MP DUs)
-
Requirement to Build
DESCRIPTION:
The Bill would require a minimum MPDU requirement of 15 percent
in any development in an MCPS High School Service Area with an
eligibility rate for free and reduced meals of 15 percent or less at the
time the applicant submits a preliminary plan of subdivision. The build
would also establish, in the Code, a Countywide minimum MPDU
requirement of 12.5 percent.
Despite the County having a longstanding law requiring the
construction of affordable housing with new residential development,
the County's supply of affordable housing in certain areas is lacking.
Increase socio-economic integration in residential communities.
Department of Housing and Community Development
To be requested.
To be requested.
To be requested.
To be researched.
Josh Hamlin, Legislative Attorney, 240-777-7892
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Class A violation
F:\LAW\BILLS\1738 MPDU - Requirement To Build\LRR.Docx
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Agenda Item 4B
November 14, 2017
Introduction
MEMORANDUM
November 9, 2017
TO:
FROM:
County Council
Josh Hamlin, Legislative
Attom~
1
.,
)/
SUBJECT:
Introduction:
Bill 38-17, Housing-Moderately Priced Dwelling Units (MPDUs)
- Requirement to Build
Bill 38-17, Housing - Moderately Priced Dwelling Units (MPDUs) - Amendments,
sponsored by Lead Sponsor Council Vice-President Riemer, is scheduled to be introduced on
November 14. A public hearing is tentatively scheduled for December 5 at 7:30 p.m.
Bill 38-17 would expressly provide in the Code that the minimum MPDU requirement
Countywide is 12.5 percent, with 15 percent required in any development in an MCPS High School
Service Area with an eligibility rate for free and reduced meals of 15 percent or less at the time
the applicant submits a preliminary plan of subdivision.
Background
The Council enacted the County's Moderately Priced Dwelling Unit (MPDU) law in 1973
with several objectives. The law was aimed at furthering the objective of providing a full range of
housing choices for all incomes, ages and household sizes. In particular, the law imposed
requirements on the construction of affordable housing to meet the existing and anticipated needs
for low and moderate-income housing, and ensure that moderately priced housing was dispersed
throughout the County. It provided incentives to encourage the construction of moderately priced
housing by allowing optional increases in density including the MPDU density bonus to offset the
cost of construction.
The most recent substantial amendments to the MPDU law were made in 2004.
1
The 2004
amendments extended the control period for for-sale MPDUs from 10 to 30 years, and for rental
MPDUs from 20 years to 99 years. The amendments also allowed different income eligibility
standards in recognition of the higher cost of construction of certain types of housing, and
increased the number of developments required to provide MPDUs by lowering the base
requirement from any development with 35 or more units to 20 or more units. Additional
1
http://www.montgomerycountymd.gov/CO UN CIL/Resources/Files/bill/2003 /24-04-2 5-04-27-03 .pdf
 PDF to HTML - Convert PDF files to HTML files
requirements and structure on the approval alternative payments made to the Housing Initiative
Fund in lieu of constructing MPDUs were also added. In 2007, the Office of Legislative Oversight
issued Report No. 2007-9, A Study of Moderately Priced Dwelling Unit Program Implementation.
2
Bill 34-17, Housing - Moderately Priced Dwelling Units (MPDU)-Amendments,
3
which
would make several significant changes to the MPD U law, was introduced on Octaher 31, 201 7.
Among the key provisions of Bill 34-17 are: clarification of certain existing provisions of the law;
requiring developments of less than 20 homes to make a payment to the Housing Initiative Fund;
broadening the authority of the Director of the Department of Housing and Community Affairs to
accept payments into the Housing Initiative Fund in lieu of including MPDUs in a development,
when it serves the goal of increasing the availability of affordable housing; and increasing the
flexibility of the Director in determining MPDU obligations to better serve the demands for
affordable units. Because there is substantial overlap in the subject matter of the two bills, the
public hearing on Bill 38-17 is tentatively scheduled for the same time as the public hearing for
Bill 34-17.
This packet contains:
Bill 38-17
Legislative Request Report
F:\LAW\BILLS\1738 MPDU - Requirement To Build\Intro Memo.Docx
Circle#
1
12
2
3
https ://www.montgomerycountymd.gov
I
olo/resources/files/2007-9-mpdu.pdf
https://apps.montgomerycountymd.gov/ccllims/bill details.aspx?doc=l460&hl=3282
2
 PDF to HTML - Convert PDF files to HTML files
Bill No.
38-17
Moderately
Concerning: Housing
Priced Dwelling Units (MPDUs) -
Requirement to Build
Revised: 11/01/2017
DraftNo. 3
Introduced:
November 14. 2017
Expires:
May 14. 2019
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _N'-'-o=n=e_ _ _ _ __
Ch. _ _ , Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Vice-President Riemer
AN ACT
to:
(1) require a minimum rate of MPDUs to be constructed for certain new residential
development; and
(2) generally amend the laws governing moderately priced housing
By amending
Montgomery County Code
Chapter 25A, Housing-Moderately Priced
Section 25A-5
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. 38-17
1
Sec. 1. Section 25A-5 is amended as follows:
25A-5. Requirement to build MPDUs; agreements:
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(a)
The requirements of this Chapter to provide MPDUs apply to any
applicant who:
(1)
submits for approval or extension of approval a preliminary plan
of subdivision under Chapter 50 which proposes the development
of a total of 20 or more dwelling units at one location in one or
more subdivisions, parts of subdivisions, resubdivisions, or stages
of development, regardless of whether any part of the land has
been transferred to another party;
(2)
submits to the Planning Board or to the Director of Permitting
Services a plan of housing development for any type of site
review or development approval required by law, which proposes
construction or development of 20 or more dwelling units at one
location; or
(3)
with respect to land in a zone not subject to subdivision approval
or site plan review, applies for a building permit to construct a
total of 20 or more dwelling units at one location.
In calculating whether a development contains a total of 20 or more
dwelling units for the purposes of this Chapter, the development
includes all land at one location in the County available for building
development under common ownership or control by an applicant,
including land owned or controlled by separate corporations in which
any stockholder or family of the stockholder owns 10 percent or more
of the stock. An applicant must not avoid this Chapter by submitting
piecemeal applications or approval requests for subdivision plats, site or
development plans, floating zone plans, or building permits.
Any
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BILL
No. 38-17
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applicant may apply for a preliminary plan of subdivision, site or
development plan, floating zone plan, record plat, or building permit for
fewer than 20 dwelling units at any time; but the applicant must agree in
writing that the applicant will comply with this Chapter when the total
number of dwelling units at one location reaches 20 or more.
(b)
The minimum number of MPDUs required under this Chapter, as
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[,
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percentage of the total number of dwelling units at that location, not
counting any workforce housing units built under Chapter 25B, is:
ill
for development in an MCPS High School Service Area with an
eligibility rate for free and reduced meals of
.li
percent or less at
the time the applicant submits
~
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preliminary plan of subdivision,
.li
percent; or
ill
{£}
for any other development subject to this Chapter, 12.5 percent.
Any applicant, in order to obtain a building permit, must submit to the
Department of Permitting Services, with the application for a permit, a
written MPDU agreement approved by the Director and the County
Attorney. Each agreement must require that:
(1)
a specific number of MPDUs must be constructed on an
approved time schedule;
(2)
in single-family dwelling unit subdivisions, each MPDU must
have three or more bedrooms; and
(3)
in multi-family dwelling unit subdivisions, the number of
efficiency and one-bedroom MPDUs each must not exceed the
ratio that market-rate efficiency and one-bedroom units
respectively bear to the total number of market-rate units in the
subdivision.
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BILL
No. 38-17
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The Director must not approve an MPDU agreement that reduces the
number of bedrooms required by this subsection in any MPDU.
[(
c
)]@
When the development at one location is in a zone where a
density bonus is allowed; and
(1)
(2)
is covered by a plan of subdivision;
is covered by a plan of development, site plan, or floating zone
plan; or
(3)
reqmres a building permit to be issued for construction, the
required number of [moderately priced dwelling units] MPDUs is
a variable percentage that is not less than [12.5%] 12.5 percent of
the total number of dwelling units at that location, not counting
any workforce housing units built under Chapter 25B.
The
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required number of MPDUs must vary according to the amount
by which the approved development exceeds the normal or
standard density for the zone in which it is located. Chapter 59
may permit bonus densities over the presumed base density
where MPDUs are provided. If the use of the <;>ptional MPDU
development standards does not result in an increase over the
base density, the Director must conclude that the base density
could not be achieved under conventional development standards,
in which case the required number of MPDUs must not be less
than [12.5%] 12.5 percent, or the higher base requirement under
subsection .(h1 of the total number of units in the subdivision.
The amount of density bonus achieved in the approved
development determines the percentage of total units that must be
MPDUs, as follows:
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S
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BILL
No. 38-17
Achieved
Density Bonus
Zero
Up to 1%
Upto2%
Up to 3%
Upto4%
Up to 5%
Upto6%
Up to 7%
Up to 8%
Upto9%
Up to 10%
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MPDUs
Required
12.5%
12.6%
12.7%
12.8%
12.9%
13.0%
13.1%
13.2%
13.3%
13.4%
13.5%
Achieved
Density Bonus
Up to 11%
Up to 12%
Up to 13%
Up to 14%
Up to 15%
Up to 16%
Up to 17%
Up to 18%
Up to 19%
Upto20%
Upto22%
MPDUs
Required
13.6%
13.7%
13.8%
13.9%
14.0%
14.1%
14.2%
14.3%
14.4%
14.5%
15.0%
[(d)]Ui)(l)
Notwithstanding subsection [(c)]@, the Director may allow
fewer or no MPDUs to be built in a development with more than
20 but fewer than 50 units at one location if the Planning Board,
in reviewing a subdivision or site plan submitted by the
applicant and based on the lot size, product type, and other
elements of the plan as submitted, finds that achieving a bonus
density of 20 percent or more at that location:
(A)
would not allow compliance with applicable
environmental
requirements, or
(B)
would
significantly
reduce
neighborhood
standards
and
other regulatory
compatibility.
©
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BILL
No. 38-17
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(2)
If
the Planning Board approves a density bonus of at least 20
percent for a development which consists of 20 or more but fewer
than 50 units at one location, the number of [MPDU's] MPDUs
required must be governed by subsection [(c)]@ unless the
formula in subsection [(c)]@ would not allow the development
to have one bonus market rate unit. In that case, the Board must
reduce the required number of [MPDU's] MPDUs by one unit
and approve an additional market rate unit.
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[(
e
)Jill
The Director may approve an MPDU agreement that:
allows an applicant to reduce the number of MPDUs m a
subdivision only if the agreement meets all requirements of
Section 25A-5A; or
(1)
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(2)
allows an applicant to build the MPDUs at another location only
ifthe agreement meets all requirements of Section 25A-5B.
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[(f)].{g}(l)
An applicant may satisfy this Section by obtaining approval from
the Director to transfer land to the County before applying for a
building permit. The applicant must sign a written land transfer
agreement approved by the Director and by the County Attorney.
For the Director to consider the request and take timely action, a
written notice of the applicant's intent to submit an agreement
should be served upon the Director at least 90 days before the
application for a building permit is filed. The land transfer
agreement must covenant that so much of the land, designated in
the approved preliminary plan or site plan as land to which the
optional zoning provisions for MPDUs apply, as is necessary in
order to construct the number of MPDUs required by subsection
(a) will be transferred, as finished lots, to Montgomery County or
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No. 38-17
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to the County's designee before the building permit is issued, so
that the County might cause MPDUs to be constructed on the
transferred
land.
After
the
submission
of
supporting
documentation and review and approval by the County for the
transfer of finished lots, the County must reimburse the applicant
for the costs the applicant actually incurred, which are directly
attributable to the finishing of the MPDU lots so transferred.
Reimbursable costs include but are not limited to engineering
costs; clearing, grading, and paving streets, including any
required bonds and permits; installation of curbs, gutters and
sidewalks; sodding of public right-of-way; erection of barricades
and signs; installation of storm sewers and street lighting; and
park and other open space and recreational development directly
benefiting the MPDU lots transferred. The County must not
reimburse an applicant for the cost or value of the transferred lots.
(2)
If
an applicant transfers land to the County under this subsection
and no funds have been appropriated to reimburse the applicant
for his finishing costs, the County may accept from the applicant
undeveloped land rather than finished lots, or the applicant may
transfer the finished lots to the County without requiring payment
for finishing the lots.
(3)
Notwithstanding any other prov1s1ons of the subsection, the
County may reject an election by an applicant to transfer land to
the County in whole or in part whenever the public interest would
best be served thereby. Any rejection and the reasons for the
rejection may be considered by the Planning Board or the
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BILL
No.
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Director of Permitting Services in deciding whether to grant the
applicant a waiver of this Chapter under Section 25A-7(b ).
(4)
Any transfer of land to the County hereunder is not subject to
Section llB-33, and any land so transferred is not property
subject to Section 11B-31A regulating the disposal of surplus
land. The Director may dispose of the lots in a manner that
furthers the objectives of this Chapter.
[(g)]ili}
The MPDU agreements must be signed by the applicant and all
other parties whose signatures are required by law for the effective and
binding execution of contracts conveying real property. The agreements
must be executed in a manner that will enable them to be recorded in the
land records of the County.
If
the applicant is a corporation, the
agreements must be signed by the principal officers of the corporation
individually and on behalf of the corporation. Partnerships, associations
or corporations must not evade this Chapter through voluntary
dissolution. The agreements may be assigned if the County approves,
and ifthe assignees agree to fulfill the requirements of this Chapter.
[(h)]ill
The Department of Permitting Services must not issue a building
permit in any subdivision or housing development in which MPDU s are
required until the applicant submits a valid MPDU agreement which
applies to the entire subdivision or development. The applicant must
also file with the first application for a building permit a statement of all
land the applicant owns
in
the County that is available for building
development.
In
later applications, the applicant need only show
additions and deletions to the original landholdings available for
building development.
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BILL NO. 38-17
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[(i)](j)The MPDU agreement must include the number, type, location, and
plan for staging construction of all dwelling units and such other
information as the Department requires to determine the applicant's
compliance with this Chapter. The MPDU staging plan must be
consistent with any applicable land use plan, subdivision plan, or site
plan. The staging plan included in the MPDU agreement for all
dwelling units must be sequenced so that:
(1)
(2)
MPDUs are built along with or before other dwelling units;
no or few market rate dwelling units are built before any MPDUs
are built;
(3)
the pace ofMPDU production must reasonably coincide with the
construction of market rate units; and
(4)
the last building built must not contain only MPDUs.
This subsection applies to all developments, including any development
covered by multiple preliminary plans of subdivision.
[G)]{k}
If
an applicant does not build the MPDUs contained in the
staging plan along with or before other dwelling units, the Director of
Permitting Services must withhold any later building permit to that
applicant until the MPDUs contained in the staging plan are built.
[(k)]ill
(1)
The applicant must execute and record covenants assuring that:
The restrictions of this Chapter run with the land for the entire
period of control;
(2)
The County may create a lien to collect:
(A)
that portion of the sale price of an MPDU which exceeds
the approved resale price; and
(B)
that portion of the foreclosure sale price of an MPDU
which exceeds the approved resale price; and
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BILL
No. 38-17
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(3)
The covenants will bind the applicant, any assignee, mortgagee,
or buyer, and all other parties that receive title to the property.
These covenants must be senior to all instruments securing
permanent financing.
[(l)].(m}
(1)
In any purchase and sale agreement and any deed or
instrument
conveymg title to an MPDU, the grantor must clearly and
conspicuously state,
and the
grantee must clearly and
conspicuously acknowledge, that:
(A)
the conveyed property is [a] an MPDU and is subject to the
restrictions contained in the covenants required under this
Chapter during the control period until the restrictions are
released; and
(B)
any MPDU owner, other than an applicant, must not sell
the MPDU until:
(i)
the owner has notified the Department under
Section 25A-8 or 25A-9, as applicable, that the unit
is for sale;
(ii)
the
Department
and,
where
applicable,
the
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Commission, have notified the owner that they do
not intend to buy the unit; and
(iii)
[T]!he Department has notified the owner of the
unit's maximum resale price.
(2)
Any deed or other instrument conveying title to an MPDU during
the control period must be signed by both the grantor and grantee.
(3)
When a deed or other instrument conveying title to an MPDU is
recorded in the land records, the grantor must cause to be filed in
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No. 38-17
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the land records a notice of sale for the benefit of the County in
the form provided by state law.
[(m)].{n}
Nothing in this Chapter prohibits an applicant from voluntarily
building MPDUs, as calculated under subsection [(c)](d), in a
development with fewer than 20 dwelling units at one location, and in
so doing from qualifying for an optional method of development under
Chapter 59. A development with fewer than 20 dwelling units where an
applicant voluntarily builds MPDUs must comply with any procedures
and development standards that apply to a larger development under
this Chapter and Chapter 59. Sections 25A-5A, 25A-5B, and 25A-6(b)
do not apply to an applicant who voluntarily builds [MPDU's] MPDUs
under this subsection and in so doing qualifies for an optional method of
development.
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LEGISLATIVE REQUEST REPORT
Bill 38-17
Housing- Moderately Priced Dwelling Units (MP DUs)
-
Requirement to Build
DESCRIPTION:
The Bill would require a minimum MPDU requirement of 15 percent
in any development in an MCPS High School Service Area with an
eligibility rate for free and reduced meals of 15 percent or less at the
time the applicant submits a preliminary plan of subdivision. The build
would also establish, in the Code, a Countywide minimum MPDU
requirement of 12.5 percent.
Despite the County having a longstanding law requiring the
construction of affordable housing with new residential development,
the County's supply of affordable housing in certain areas is lacking.
Increase socio-economic integration in residential communities.
Department of Housing and Community Development
To be requested.
To be requested.
To be requested.
To be researched.
Josh Hamlin, Legislative Attorney, 240-777-7892
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Class A violation
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