A Montgomery County bill would require housing developed on public land obtained through the government to have a certain number of income-restricted housing units. The goal is to create more affordable housing in the county.
Council Member Will Jawando, the lead sponsor, said he hopes the legislation would ease the housing burden caused by wealth and income inequality. The bill was introduced on March 10.
“It’s not a surprise that many people are struggling with trying to find and secure affordable housing,” he said, adding that a recent county report estimated a need of 23,000 more affordable units over the next 10 years.
Jawando said most developments are at market rate.
Thirty percent of the housing developments built on land obtained through the government would need to be income restricted. Developers can either build units at the moderately priced unit rate of 65% or units for residents with an income of 50% or less of the area median income, which is about $50,000 a year.
A split mix of the two types of housing — 15% of each — would provide an incentive of removing the requirement for developers to apply through the normal disposition process, which is how the county sells or gives away public land, with the council. The process can be months long and requires a council hearing, discussion and vote of the disposition.
The incentive would move the projects along faster.
“Time is money and the ability to move things quicker is a significant advantage in this type of market,” Jawando said.
Jawando cited a recent American Community Survey that found that about half of renters and almost 24% of homeowners in Montgomery County are housing-burdened, which means they pay more than 30% of their income on either rent or their mortgage.
“That puts a crunch on the rest of the budget — food and education expenses, the list goes on,” he said. “There’s this squeeze going on.”
A 2016 county study found that 74% of renters earn less than median income and only 33% of the housing in the county are rental units. An updated study of affordable housing in the county is expected this spring.
Developers who built residential communities in the county are already required to include 12.5% of moderately priced units — 15% if the development is in a higher-income area. This law extends to private land development.
Jawando said he is looking into the possibility of raising that requirement, but said a rate of 30% “might be a little high” for private land development.
Allowing more of a variety of types of housing for zoning areas and increasing housing funds are also being evaluated, he said.
“There are many different things we’re doing to attack [affordable housing] from many different sides,” he said.
A public hearing on the bill was originally scheduled for March 31, but was postponed.
Briana Adhikusuma can be reached at briana.adhikusuma@moco360.media