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Council narrows cottage‑home rules, sets bill for Feb. 17 hearing

Anne Arundel County Council · February 3, 2026
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Summary

Councilmembers adopted multiple amendments to Bill 92‑25, changing loft calculations, minimum site area, income rules, and density caps for cottage home developments. The bill was set for further hearing on Feb. 17, 2026, after the council added administration and affordability guardrails.

On Feb. 2, the Anne Arundel County Council advanced major amendments to Bill 92‑25, which would permit cottage‑home developments as a new housing option and establish rules for their size, density and affordability.

Key votes adopted several sponsor and administration amendments. Amendment 5 removed an exclusion for loft square footage from the floor‑area calculation to prevent cottage units from being built as effectively two‑story market homes; the council adopted that amendment 6‑1. Amendment 6 set the minimum required site area in R1 and R2 zones at 2 acres, which the sponsor said would preserve a small‑community scale while allowing 10–20 units per site under existing density rules. Amendment 7 assigned Arundel Community Development Services (ACDS) to administer income‑qualification and program oversight for cottage units and was approved unanimously.

The council also adopted amendments limiting cottage developments as a permitted special use in some industrial districts, capping density in commercial districts at 20 units per acre, and expanding eligible buyer income from 80% to up to 100% of area median income (AMI) with ACDS setting final sale prices to preserve affordability. Sponsor Smith framed the changes as necessary to keep cottage homes ‘‘small intentionally’’ and affordable. Administration officials said they supported the package and would help with implementation guidance.

After the votes, the council set Bill 92‑25 (as amended) for another hearing on Feb. 17, 2026, giving the county and stakeholders time to review implementation details. The amendments leave several design and affordability guardrails in place but expand the pool of eligible buyers and the geographic scope where cottage home developments could be used.

What changed (selected): - Loft space now counts toward maximum floor area (Amendment 5, adopted 6‑1). - Minimum site area in R1/R2 set at 2 acres (Amendment 6, adopted 6‑1). - ACDS named the administering agency; income eligibility and pricing guidance set to up to 100% AMI with ACDS authority (Amendments 7 and 10, adopted). - C1/C2 commercial districts capped at 20 units per acre for cottage developments.

Next steps: The bill will return to the council on Feb. 17, 2026, as amended for continued deliberation.