Big Tax Cut for Transit Oriented Housing Clears Executive Veto in Maryland
"The County Council has overridden County Executive Marc Elrich’s veto of a bill that would exempt 100% of the property tax for a project built on property leased from WMATA at a Metro station in the county," reports Source of the Spring from Montgomery County, Maryland.
"Bill 29-20, the 'More Housing at Metrorail Stations Act,' which will take effect in January 2021, would apply to the construction of new high-rise development that includes at least 50% rental housing and be in effect for 15 years," according to the article.
The County Council approved Bill 29-20 earlier in October, but County Executive Marc Elrich vetoed that decision. On October 27, the Montgomery County Council voted, 7-2, to override that veto.
An article by Mike English provides detailed analysis of the new tax break for transit-oriented high rises, noting that the debate surrounding the bill has highlighted the county's dire housing affordability crisis.
The new tax break is expected to offer a major incentive for developers to participate in what English describes as an onerous development process, defined by the high costs of parking requirements and engineering challenges. "According to the release accompanying the bill it could provide 8,600 housing units, including around 1,300 below-market rate units, through the county’s affordability set-aside requirement," writes English.