Council expands tax‑abatement pilot to public housing authorities to support development

The Montgomery County Council unanimously approved Bill 25‑25 on Sept. 16, 2025, expanding the county’s existing tax‑abatement pilot to allow public housing agencies and affiliated nonprofit entities in additional jurisdictions to access payments in lieu of taxes. Councilmembers said the change aims to provide earlier financing certainty for affordable housing projects.

Councilmember Friesen, chairing the joint Planning, Housing and Parks Committee and the Government Operations and Fiscal Policy Committee discussion, said the bill would expand the county’s pilot program — originally enacted to support Housing Opportunities Commission projects and nonprofit partners — to include the Rockville public housing agency and its nonprofit affiliates by right. Councilmember Katz and others credited county staff (Ms. McCartney Green) for drafting complex technical changes to implement the expansion.

The council discussed the bill’s alignment with recent state action: the General Assembly passed House Bill 1085 (effective June 1), which broadened local housing authority and nonprofit access to tax‑exempt status; council members said Bill 25‑25 dovetails with that state law. The joint committee adopted an amendment to modify the local definition of “authority” so it matches the state law’s definition.

Supporters framed the change as a tool to reduce financing gaps at the end of projects by giving developers and housing authorities certainty up front; no appropriation was discussed on the floor. The bill passed on a unanimous roll call vote and the county will implement the expanded pilot consistent with the amended definition of authority.