Gaithersburg council introduces rewritten affordable-housing regulations, schedules final action July 6

City staff presented a substantial rewrite of Gaithersburgs Affordable Housing Regulations (Reg. 0319) at the June 1, 2026 mayor and city council meeting and the council voted to introduce the amendments with anticipated policy discussion and final action on July 6. Housing division staff and city attorneys office representatives described the changes as an effort to reduce redundancy, improve clarity, and update substantive program rules.

Moren Walker and YM Kamaza told the council the rewrite reorganizes the regulations by subject, cross-references the city code to avoid repetition, and clarifies which city parties have decision authority. The rewrite keeps the citys base requirement that new developments of 20 or more units set aside 15% of units as affordable but modifies many program details.

Key substantive changes staff highlighted include: expanding eligibility so any household that is income-eligible may apply regardless of where they live or work while maintaining priority for residents and certain priority classifications (city staff, public safety, school employees, veterans); eliminating the citizenship requirement for for-sale applicants; aligning first-time home-buyer status with HUD and Maryland by changing the lookback from five years to three; and using area median income (AMI) adjusted for household size and a standard 1.5 persons-per-bedroom assumption to set initial sales and rental prices.

The proposal also revises control-period rules for for-sale MPDUs so that the control period for new developments would restart upon each sale for properties without an approved site plan at adoption; mandates lotteries for unit selection (separate priority and general lotteries) for new developments; sets a $150,000 prequalification requirement for for-sale applicants to match county practice; prohibits non-refundable amenity fees for MPDU tenants; permits limited waivers to occupy larger units in documented urgent circumstances and allows a one-year lease renewal for approved waivers; and clarifies that appeals of regulation-based decisions may be taken to the Board of Appeals under section 24-12.9 of the city code.

Council members probed administrative details, including how tenant/landlord disputes or eligibility questions will be routed. Staff said city departments coordinate referrals and that the regulations and city website will be updated to make the appeal and assistance pathways clearer.

On procedure, council members debated whether to hold a public hearing before final action. After discussion, Council moved to introduce the regulation amendments with anticipated policy discussion and final action on July 6; the motion carried 5-0.

The councils vote at introduction does not yet adopt the rules. The public will have at least until the July 6 meeting to review the proposed text and comment when the item returns for final action.