Montgomery County Council overrides executive veto on office-to-housing tax-abatement pilot, 9–2

The Montgomery County Council voted 9–2 on April 29 to override County Executive Marc Elrich's veto of Expedited Bill 2-25, a pilot program that creates a property-tax abatement intended to encourage office-to-residential conversions and require a minimum of 17.5% moderately priced dwelling units (MPDUs) in participating projects.

The motion to override was moved by Councilmember Natalie Fanny Gonzales and seconded by Councilmember Lukey; the clerk's roll call in the transcript recorded nine votes in favor and two against. Council President Kate Stewart presided.

Opponents raised fiscal and scope concerns. Councilmember Gerwondo said the bill lacked adequate guardrails and warned of large revenue losses, arguing that "the math of this proposition simply isn't mathing." He noted staff's list of 17 currently eligible properties and warned the pilot could apply far more broadly if buildings become vacant within the eligibility window.

Supporters framed the measure as a pragmatic response to persistent office vacancies and the county's housing shortage. Councilmember Fanning Gonzales said, "Numbers don't lie. People do," and argued the policy would spur housing production and related revenue streams beyond property tax. Councilmember Lori Ann Sales, a cosponsor, said, "I believe the urgency of our housing crisis demands action now," defending the expedited process and noting prior hearings and committee work on the package.

Councilmembers who voiced support cited similar, working pilots elsewhere and the panel's amendments to increase affordability and include a sunset. Councilmember Glass said converting office space into housing is one of several policy tools needed to address lengthening affordability challenges for middle-income residents and county employees.

The legislation, as debated, includes a temporary pilot structure and layered requirements designed to produce MPDUs; critics focused on how broadly the pilot may apply (including retroactivity and newly vacant buildings), the projected long-term fiscal impact, and whether the incentive might shift development that would otherwise produce taxable housing. Proponents said the council added safeguards during committee deliberations, including a limited review period designed to allow the county to reassess results.

The Council proceeded immediately to other planning and budget items after the vote. The override means the pilot will move forward for implementation and subsequent regulatory or administrative steps as spelled out in the bill text and committee guidance.

What comes next: the Council introduced a related zoning text amendment and signaled additional committee work and public hearings for implementation details; supporters said the legislative package will be revisited if it does not produce the expected outcomes.

(Reporting from the April 29, 2025 Montgomery County Council meeting.)