Agenda Item 15B
December 5,20 17
Public Hearing
ME MO RA ND UM
December 1, 2017
TO:
FROM:
County Council
Josh Hamlin, Legislative AttorneYJ ,
ft
SUBJECT:
Public Hearing:
Bill 38-17, Ho sing - Moderately Priced
Dwelling Units
(MP DUs )-Re quir eme nt to Build
Bill 38-17, Housing - Moderately Priced Dwelling Units (MP
DUs) - Amendments,
sponsored by Lead Sponsor Council Vice-President Riemer and
Co-Sponsor Councilmember Katz,
was introduced on November 14. A Planning, Housing and Econ
omic Development Committee
worksession will be scheduled at a later date.
Bill 38-17 would expressly provide in the Code that the minimu
m MPDU requirement
Countywide is 12.5 percent, with 15 percent required in any deve
lopment 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 obje
ctive 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 moderate
ly 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 allow
ed 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
1
http://www.montgomerycountvmd.goviCOUNCIUResources
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requirement from any development with 35 or more units to 20 or more units. Additional
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 MPDU law, was introduced on October 31, 2017.
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
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Bill No.
----=3-=-8-_,_1..:....7_ _ _ __
Concerning: Housing
Moderately
Priced Dwelling Units (MPDUs) -
Requirement to Build
Revised:
11/01/2017
Draft No.
4
Introduced:
November
14 2017
Expires:
May
14, 2019
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _N'-'-o= n=e'---- ----
Ch. _ _, Laws of Mont. Co. _ __
COUNT Y COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Vice-President Riemer
Co-Sponsor: Councilmember Katz
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:
2
3
(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 prelim inary plan of subdi visio n, site or
devel opme nt plan, floating zone plan, recor d plat, or build ing perm it for
fewer than 20 dwelling units at any time; but the applicant must agree in
writing that the appli cant will comp ly with this Chap ter when the total
numb er of dwell ing units at one locat ion reach es 20 or more .
(b)
The minim um numb er of MPD Us requi red under this Chap ter, as
~
percentage of the total numb er of dwel ling units at that locat ion, not
counting any work force housi ng units built unde r Chap ter 25B, is:
33
34
35
36
ill
for devel opme nt in an MCP S High School Service Area with an
eligibility rate for free and reduc ed meal s of~ perce nt or less at
the time the applicant submits
ft
preliminary plan of subdivision,
15 percent; or
37
38
39
40
41
42
ill
.{£)
for any other devel opme nt subje ct to this Chapter, 12.5 percent.
Any applicant, in order to obtain a build ing permit, must subm it to the
Depa rtmen t of Perm itting Services, with the application for a perm it, a
written MPD U agree ment appro ved by the Director and the Coun ty
Attorney. Each agree ment must requi re that:
(1)
a specific numb er of MPD Us must be const ructe d on an
appro ved time schedule;
(2)
in single-family dwelling unit subdivisions, each MPD U must
have three or more bedrooms; and
(3)
in multi-family dwelling unit subdivisions, the numb er of
efficiency and one-b edroo m MPD Us each must not excee d the
ratio that
market-rate
effici ency
and one-b edroo m
units
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respectively bear to the total numb er of market-rate units in the
subdivision.
0
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BILL
No. 38-17
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59
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
is covered by a plan of subdivision;
is covered by a plan of development, site plan, or floating zone
plan; or
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
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 optional 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
density bonus is allowed; and
(1)
(2)
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(3)
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.ili1
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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BILL
No. 38-17
Achiev ed
Density Bonus
MPDU s
Requir ed
Achiev ed
Density Bonus
MPDU s
Requir ed
Zero
Upto 1%
Upto2 %
Upto3 %
Upto4 %
Upto 5%
Upto 6%
Upto 7%
Upto 8%
Upto 9%
Upto 10%
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12.5%
12.6%
12.7%
12.8%
12.9%
13.0%
13.1%
13.2%
13.3%
13.4%
13.5%
,
:;,
---
Upto 11%
Upto 12%
Upto 13%
Upto 14%
13.6%
13.7%
13.8%
13.9%
14.0%
14.1%
14.2%
14.3%
14.4%
14.5%
15.0%
-,
Upto 15%
Upto 16%
~· i
i
Upto 17%
Upto 18%
Upto 19%
I
Upto2 0%
Upto2 2%
[(d)JW(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.
0
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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 numbe r 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)]ill
(1)
The Director may approve an MPDU agreement that:
allows an applicant to reduce the number of MPDU s m a
subdivision only if the agreement meets all requirements of
Section 25A-5A; or
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(2)
allows an applicant to build the MPDU s at another location only
if the 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 MPDU s apply, as is necessary in
order to construct the number of MPDU s required by subsection
(a) will be transferred, as fmished lots, to Montgomery County or
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BILL 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
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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 prov1s10ns 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-3 3, and any land so transferred is not property
subject to Section 1 IB-3 IA regulating the disposal of surplus
land. The Director may dispose of the lots in a manner that
furthers the objectives of this Chapter.
[(g)].(h)
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 if the 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 MPDUs 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)].{i.)The MPDU agreement must include the number, type, loca
tion, and
plan for staging construction of all dwelling units and such othe
r
information as the Department requires to determine the applican
t's
compliance with this Chapter. The MPD U staging plan mus t
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:
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(I)
(2)
MPDUs are built along with or before other dwelling units;
no or few market rate dwelling units are built before any MPD Us
are built;
the pace ofM PDU production mus t reasonably coincide with the
construction of market rate units; and
the last building built must not contain only MPDUs.
(3)
(4)
This subsection applies to all developments, including any development
covered by multiple preliminary plans of subdivision.
[G)].(k}
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If
an applicant does not build the MPDUs contained in the
staging plan along with or before other dwelling units, the Director
of
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Permitting Services mus t 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;
The County may create a lien to collect:
(A)
that portion of the sale price of an MPDU whi ch exceeds
the approved resale price; and
that portion of the foreclosure sale price of an MPD U
which exceeds the approved resale price; and
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(2)
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(B)
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G
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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 MPD U 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 MPD U 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 MPD U during
the control period must be signed by both the grantor and grantee.
(3)
Whe n a deed or other instrument conveying title to an MPD U is
recorded
in
the land records, the grantor must cause to be filed in
e
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BILL
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)]fu)
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 unde
r
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.
8
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LEGISLATIVE REQUEST REPORT
Bill 38-17
Hou sing
-
Moderately Pric ed Dwe lling Units (MPDUs)
-
Requ irem
ent to Buil d
DESCRIPTION:
The Bill would require a minimum MPD U 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 mini mum MPD U
requirement of 12.5 percent.
Despite the County having a longstanding law requiring the
construction of affordable housing with new residential development,
the Coun ty'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:
ECO NOM IC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WIT IDN
MUNICIPALITIES:
PENALTIES:
Class A violation
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Agenda Item 15B
December 5,20 17
Public Hearing
ME MO RA ND UM
December 1, 2017
TO:
FROM:
County Council
Josh Hamlin, Legislative AttorneYJ ,
ft
SUBJECT:
Public Hearing:
Bill 38-17, Ho sing - Moderately Priced
Dwelling Units
(MP DUs )-Re quir eme nt to Build
Bill 38-17, Housing - Moderately Priced Dwelling Units (MP
DUs) - Amendments,
sponsored by Lead Sponsor Council Vice-President Riemer and
Co-Sponsor Councilmember Katz,
was introduced on November 14. A Planning, Housing and Econ
omic Development Committee
worksession will be scheduled at a later date.
Bill 38-17 would expressly provide in the Code that the minimu
m MPDU requirement
Countywide is 12.5 percent, with 15 percent required in any deve
lopment 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 obje
ctive 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 moderate
ly 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 allow
ed 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
1
http://www.montgomerycountvmd.goviCOUNCIUResources
1
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requirement from any development with 35 or more units to 20 or more units. Additional
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 MPDU law, was introduced on October 31, 2017.
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\PH Memo.Docx
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Bill No.
----=3-=-8-_,_1..:....7_ _ _ __
Concerning: Housing
Moderately
Priced Dwelling Units (MPDUs) -
Requirement to Build
Revised:
11/01/2017
Draft No.
4
Introduced:
November
14 2017
Expires:
May
14, 2019
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _N'-'-o= n=e'---- ----
Ch. _ _, Laws of Mont. Co. _ __
COUNT Y COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Vice-President Riemer
Co-Sponsor: Councilmember Katz
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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3
(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 prelim inary plan of subdi visio n, site or
devel opme nt plan, floating zone plan, recor d plat, or build ing perm it for
fewer than 20 dwelling units at any time; but the applicant must agree in
writing that the appli cant will comp ly with this Chap ter when the total
numb er of dwell ing units at one locat ion reach es 20 or more .
(b)
The minim um numb er of MPD Us requi red under this Chap ter, as
~
percentage of the total numb er of dwel ling units at that locat ion, not
counting any work force housi ng units built unde r Chap ter 25B, is:
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ill
for devel opme nt in an MCP S High School Service Area with an
eligibility rate for free and reduc ed meal s of~ perce nt or less at
the time the applicant submits
ft
preliminary plan of subdivision,
15 percent; or
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ill
.{£)
for any other devel opme nt subje ct to this Chapter, 12.5 percent.
Any applicant, in order to obtain a build ing permit, must subm it to the
Depa rtmen t of Perm itting Services, with the application for a perm it, a
written MPD U agree ment appro ved by the Director and the Coun ty
Attorney. Each agree ment must requi re that:
(1)
a specific numb er of MPD Us must be const ructe d on an
appro ved time schedule;
(2)
in single-family dwelling unit subdivisions, each MPD U must
have three or more bedrooms; and
(3)
in multi-family dwelling unit subdivisions, the numb er of
efficiency and one-b edroo m MPD Us each must not excee d the
ratio that
market-rate
effici ency
and one-b edroo m
units
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respectively bear to the total numb er of market-rate units in the
subdivision.
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BILL
No. 38-17
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59
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
is covered by a plan of subdivision;
is covered by a plan of development, site plan, or floating zone
plan; or
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
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 optional 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
density bonus is allowed; and
(1)
(2)
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(3)
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.ili1
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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BILL
No. 38-17
Achiev ed
Density Bonus
MPDU s
Requir ed
Achiev ed
Density Bonus
MPDU s
Requir ed
Zero
Upto 1%
Upto2 %
Upto3 %
Upto4 %
Upto 5%
Upto 6%
Upto 7%
Upto 8%
Upto 9%
Upto 10%
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12.5%
12.6%
12.7%
12.8%
12.9%
13.0%
13.1%
13.2%
13.3%
13.4%
13.5%
,
:;,
---
Upto 11%
Upto 12%
Upto 13%
Upto 14%
13.6%
13.7%
13.8%
13.9%
14.0%
14.1%
14.2%
14.3%
14.4%
14.5%
15.0%
-,
Upto 15%
Upto 16%
~· i
i
Upto 17%
Upto 18%
Upto 19%
I
Upto2 0%
Upto2 2%
[(d)JW(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.
0
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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 numbe r 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)]ill
(1)
The Director may approve an MPDU agreement that:
allows an applicant to reduce the number of MPDU s m a
subdivision only if the agreement meets all requirements of
Section 25A-5A; or
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(2)
allows an applicant to build the MPDU s at another location only
if the 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 MPDU s apply, as is necessary in
order to construct the number of MPDU s required by subsection
(a) will be transferred, as fmished lots, to Montgomery County or
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BILL 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
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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 prov1s10ns 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-3 3, and any land so transferred is not property
subject to Section 1 IB-3 IA regulating the disposal of surplus
land. The Director may dispose of the lots in a manner that
furthers the objectives of this Chapter.
[(g)].(h)
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 if the 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 MPDUs 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)].{i.)The MPDU agreement must include the number, type, loca
tion, and
plan for staging construction of all dwelling units and such othe
r
information as the Department requires to determine the applican
t's
compliance with this Chapter. The MPD U staging plan mus t
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:
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(I)
(2)
MPDUs are built along with or before other dwelling units;
no or few market rate dwelling units are built before any MPD Us
are built;
the pace ofM PDU production mus t reasonably coincide with the
construction of market rate units; and
the last building built must not contain only MPDUs.
(3)
(4)
This subsection applies to all developments, including any development
covered by multiple preliminary plans of subdivision.
[G)].(k}
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If
an applicant does not build the MPDUs contained in the
staging plan along with or before other dwelling units, the Director
of
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Permitting Services mus t 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;
The County may create a lien to collect:
(A)
that portion of the sale price of an MPDU whi ch exceeds
the approved resale price; and
that portion of the foreclosure sale price of an MPD U
which exceeds the approved resale price; and
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(2)
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(B)
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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 MPD U 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 MPD U 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 MPD U during
the control period must be signed by both the grantor and grantee.
(3)
Whe n a deed or other instrument conveying title to an MPD U is
recorded
in
the land records, the grantor must cause to be filed in
e
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BILL
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)]fu)
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 unde
r
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
Hou sing
-
Moderately Pric ed Dwe lling Units (MPDUs)
-
Requ irem
ent to Buil d
DESCRIPTION:
The Bill would require a minimum MPD U 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 mini mum MPD U
requirement of 12.5 percent.
Despite the County having a longstanding law requiring the
construction of affordable housing with new residential development,
the Coun ty'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:
ECO NOM IC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WIT IDN
MUNICIPALITIES:
PENALTIES:
Class A violation
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