Montgomery County discusses new affordable housing goals and MPDU guidelines

Affordable housing took center stage at the Montgomery County Council session on February 25, 2025, as officials discussed new guidelines aimed at increasing the availability of moderately priced dwelling units (MPDUs). The council is actively engaging with developers to explore income averaging strategies, particularly in high-income areas like Bethesda, where the demand for affordable housing is significant.

Council members highlighted the need for a more robust approach to affordable housing, with discussions focusing on the current requirement of 15% MPDUs in new developments. Some members expressed a desire to raise this threshold to 20% to better meet the growing demand. The planning board has recommended a 17.5% threshold specifically for height incentive areas, but concerns were raised about whether this is sufficient given the limited number of affordable housing projects—only 400 units have been developed since 2017.

Economic studies presented during the meeting indicated that even the existing 15% requirement poses challenges for developers, suggesting that a higher percentage might deter new projects. However, council members emphasized the importance of maximizing affordable housing opportunities, especially in light of the current housing market uncertainties.

The council plans to continue discussions with developers and expects to release new MPDU guidelines within the year. As the county grapples with the need for more affordable housing, the outcome of these discussions could significantly impact future development and community accessibility in Montgomery County.