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County committee presses reforms to Design for Life tax credits, lauds HARP grant model

Montgomery County Council Planning, Housing and Parks Committee · July 15, 2024
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Summary

County staff and stakeholders told the committee the Design for Life property-tax credit program is underused and concentrated in wealthier ZIP codes; the more successful HARP grant program (run with Habitat and Rebuilding Together) serves low-income seniors but is oversubscribed, prompting staff to return with options in September.

Montgomery County officials and community commissioners urged changes to the county's Design for Life accessibility incentives after staff presented utilization data showing the tax-credit program has rarely been used by the households it was meant to help.

DPS data reviewed by staff show the Design for Life property-tax credits have distributed roughly $727,451 since 2013 and rarely approach the program's $500,000 annual allotment. Analyst Mr. Ali told the committee the top five ZIP codes account for more than two-thirds of awards and that those ZIPs skew wealthier, raising equity concerns. "The smaller the award the less far it goes," he said, noting the tax-credit structure requires homeowners to front construction costs and receive credits over years rather than up-front grant funding.

By contrast, Summer Cross, chief of housing at the Department of Housing and Community Affairs, described the Home Accessibility Rehabilitation Program (HARP) as a grant program that covers 100% of eligible costs for low-income households (targeting 80% AMI and commonly serving households under 50% and 30% AMI). Cross said HARP has received $2.4 million (including ARPA funds), served 134 households in just over a year, and averaged under $8,000 per household. "HARP covers the costs up front and uses vendor partners so households don't need to front money," Cross said.

Council members and commissioners told staff they often see the same barriers: the Design for Life tax credits require homeowners to front costs, the DPS permitting and online application process can be cumbersome for older adults, and the tax-credit payout structure reduces incentive for those without capital. Commission on Aging member David Engel described helping family members navigate permits and said many older homeowners lack the bandwidth to use the tax-credit program even for modest accessibility projects.

Committee direction: Members asked DPS, DHCA, the Commission on Aging and the Commission on People with Disabilities to develop a cohesive plan and return by mid-September with options such as: (1) a preferred-vendor/preapproved-plans approach to reduce permitting burdens for small accessibility projects; (2) a clear checklist of improvements that do not require permits; (3) greater outreach and a county contact point for HARP; (4) translation of standard materials into multiple languages; and (5) consideration of reallocating some Design for Life funds to HARP to deliver upfront grants where needed.

What's next: Departments agreed to convene stakeholders and bring back written recommendations to the committee in mid-September.