Montgomery County, Maryland Updates Inclusionary Housing Requirements

Montgomery County has made the first major changes in years to its Moderately Priced Dwelling Unit (MPDU) program, which requires large developments to include affordable and workforce units. Since 1974, the program has created more than 5,400 MPDUs, according to Bethesda Magazine. But the affordability crisis has grown rapidly nationwide, and the program hasn't been revised or updated in more than a decade.

Now, county councilmembers have unanimously approved two bills that could substantially alter the MPDU program's impacts. The first, aiming to promote economic integration, raises the inclusionary requirement in certain affluent parts of the county from 12.5 to 15 percent.

At the same time, another bill makes it easier for developers to avoid the requirement altogether by paying an in-lieu fee, locating affordable units nearby instead of onsite, or coming to another arrangement with the county housing department. The same bill also requires developers of small-to-medium projects to pay into the county's Housing Initiative Fund. See Bethany Rodgers' coverage in Bethesda Magazine for more analysis.