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County staff briefs commission on moderately priced dwelling unit (MPDU) programs as a possible housing tool
Summary
Staff presented an overview of MPDU programs used in Montgomery, Frederick and Howard counties, outlined program mechanics, advantages and drawbacks, and said the approach would need tailoring to Carroll County and its current development patterns.
Planning staff briefed the commission on Moderately Priced Dwelling Unit (MPDU) programs and how such programs have been used in Montgomery, Frederick and Howard counties.
Staff described MPDUs as locally authorized programs that require or incentivize a percentage of units in new residential developments be sold or rented at prices affordable to moderate‑income households (often called workforce housing). Key components covered included income eligibility thresholds tied to area median income, resale and occupancy controls (a control period typically spanning decades), integration of MPDUs throughout developments rather than clustering them, and options for alternative compliance such as fees in lieu.
Presenters explained regional variations: Montgomery County’s long‑established program (since the 1970s) requires about 12.5% MPDUs for larger developments and retains production and resale controls; Frederick County’s ordinance has a fee‑in‑lieu option that developers have used instead of producing MPDUs; Howard County’s MIHU program includes similar integration and control provisions but also allows alternatives in some cases. Staff cautioned that fees in lieu often lead to few or no physically provided MPDUs because developers typically prefer to pay the fee.
Advantages cited: MPDUs can produce housing affordable to teachers, first responders and other moderate‑income workers and distribute affordable units within market developments. Drawbacks include administrative costs to the county to manage eligibility, sales and resales; potential developer resistance; and limited applicability in jurisdictions with little large‑scale residential development.
Staff noted Carroll County has had relatively few developments above the typical MPDU thresholds in recent years (fewer than five developments with 20+ units since 2015, three for senior housing), limiting near‑term applicability. Staff recommended that, if the commission wants to pursue MPDUs as a policy tool, a tailored, simple program design and further study — including potential municipal approaches and administrative staffing/cost estimates — would be needed.
No action was taken; the briefing was informational to inform the master‑plan housing work group and future policy discussions.
