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Council backs bill to clarify system‑development‑charge exemptions for nonprofits, including childcare
Summary
The council unanimously supported a delegation bill to clarify exemptions from Washington Suburban Sanitary Commission system development charges for eligible nonprofits, including removing an ownership requirement that prevented leased childcare centers from qualifying; staff said a roughly $9 million surplus exists in the SDC exemption fund.
The Montgomery County Council voted unanimously to support a delegation bill clarifying system‑development‑charge (SDC) exemptions for nonprofits, including childcare providers that lease property.
Staff explained the bill (sponsored by Delegate Moon) would do three things: require annual reporting by WSSC and county departments on exemptions granted; remove an ownership requirement that had prevented leased nonprofits from qualifying for exemptions; and clarify that exemptions are granted on a first‑come, first‑served basis subject to annual allocations. Staff also told the council the county’s current SDC exemption fund carries about a $9 million surplus that can be used for exemptions and that annual council resolutions set caps and rules for the program (the current cap mentioned in the packet is $500,000 per year).
Delegation members are discussing technical changes including whether to retain “first‑come, first‑served” language and whether to remove any deadline for applying for a refund if an entity discovers eligibility after paying an SDC. After discussion, the council moved to support the bill as presented and asked staff to monitor delegation amendments.
Council Member Sales moved support; Council Member Jawando seconded. The vote in favor was unanimous.
Staff said the bill’s intent is to make the SDC exemption program more accessible to organizations — for example, childcare centers that lease space and therefore could not meet an ownership test — and to clarify reporting and application timing.
