Details

Title	Montgomery County, Maryland's Inclusionary Zoning Ordinance
Highlights	It is implied that some developers are unable to meet the requirements of the inclusionary zoning ordinance.   The inclusionary zoning ordinance lets a developer, under specified circumstances, comply by contributing to a County Housing Initiative Fund.                       It is implied that inclusionary zoning ordinances add to the cost of providing affordable housing.   Montgomery County provides a density bonus - builder is granted the ability to build 22 percent more units in the subdivision than otherwise would be allowed.
Description	According to this web site, the Montgomery County, Maryland inclusionary zoning ordinance is the most successful inclusionary zoning program in the country, having produced nearly 10,000 units since being enacted in1974. The local Moderately Priced Dwelling Unit (MPDU) ordinance requires developments of more than 50 units to include 15 percent MPDUs. Of that 15 percent, moderate-income first-time homebuyers can purchase two-thirds of the units and the local housing commission or local non-profits can purchase the remainder for use in their affordable rental programs. Montgomery County provides a "density bonus" to developers; that is, within local planning constraints, the County grants a builder the ability to build 22 percent more units in the subdivision than otherwise would be allowed. Thus, the land for the MPDU's is "free." The Ordinance makes certain that private developers are not penalized for constructing moderately priced dwelling units, and that they have reasonable prospects of realizing a profit on such units by virtue of the MPDU density bonus. Also, developers of residential units in qualified projects are given extra flexibility to meet the broad objective of building housing that low and moderate income households can afford by letting them contribute to a County Housing Initiative Fund. This site was accessed in April 2004.
Publication Date	2004
Organization	Innovative Housing Institute
Web Location	http://www.montgomerycountymd.gov/dhctmpl.asp?url=/content/dhca/housing/housing_P/mpdu/summary.asp

Notice: The contents of this record reflect the views of the author and/or promulgating municipality, and should not be construed as representing the views or policies of the U.S. Department of Housing and Urban Development or U.S. HUD's Office of Policy Development and Research. No attempt has been made by U.S. HUD or its contractors to verify the accuracy, currency, or validity of the record contents presented herein.