Montgomery Council Passes Incentive for Housing Development Over Metro Stations

Yesterday, the Montgomery County Council approved a bill to incentivize high-rise developments over metro stations.

The bill allows developers to make a payment in lieu of taxes (PILOT) to build residential and commercial buildings at least eight stories tall over metro stations. At least half of the development must be rental housing. Developments would then be exempt for 100 percent of the real property tax for a 15 year period. 25 percent of moderately priced dwelling units (MPDUs) must be reserved for people with income at 50 percent or less of the area median. Housing advocates believe there have not been enough affordable housing units constructed to serve the growing demand, and that this move could encourage developers to utilize unused areas on metro property.

From coverage in Bethesda Magazine:

About 8,000 people have been added to the county’s population annually since 2010, but only around 2,700 new housing units have been added each year, according to a press release from the county on Tuesday.

The county estimated that at least 8,600 units of housing could be developed at Metro station properties, which currently have no high-rise developments. Up to 1,300 of those units could be affordable housing.

The Council approved the bill by a 7-2 vote, with Council Vice President Tom Hucker and Council Member Will Jawando opposed.

For more information on various amendments to the bill and a wealth of quotes from voting members, view coverage in Bethesda Magazine.