County committee backs DHCA budget increases, approves three licensing and enforcement hires pending revenue scenarios

Montgomery County’s Planning, Housing and Economic Development committee on April 22 reviewed the Department of Housing and Community Affairs’ proposed FY26 operating and CIP changes, endorsed the County Executive’s recommended stage two fee increases for multifamily rental and short‑term rental licensing, and approved three of five requested DHCA positions with staff directed to provide detailed revenue scenarios and alternatives.

The committee heard that DHCA’s overall operating request would increase $5.2 million (6.7%) over FY25, driven largely by general‑fund staffing and program enhancements. The County Executive’s budget proposes raising the multifamily rental‑licensing fee from $76 to $100 per unit, the short‑term rental registration fee from $325 to $500, and the common‑ownership communities (COC) per‑unit fee from $6.50 to $10. DHCA staff said the three fee changes together are projected to generate about $2.3 million in additional revenue for FY26.

Why it matters: committee members said the fee changes are intended to move DHCA programs toward self‑supporting operations while paying for wage adjustments, indirect costs and newly requested staff. But members also raised concerns that the fee increases could impose disproportionate burdens on tenants and homeowners and asked for more transparent calculations…