County committee recommends tax credit for Habitat for Humanity properties

The Government Operations and Fiscal Policy Committee recommended that the full Montgomery County Council consider Bill 15-26, which would create a property tax credit for properties owned by Habitat for Humanity Metro Maryland while those properties are being rehabilitated and until they are transferred to a new owner.

The committee’s legal adviser, Mister Gorzlek, told members the bill implements Maryland Code tax property section 9 2 5 2 and "it creates a 100 tax credit for that period." He said implementation will begin July 1, 2027, will require coordination with the Department of Finance, and includes an annual reporting requirement from Habitat for Humanity to verify conveyance dates and credit eligibility.

Why it matters: the measure is designed to lower holding and carrying costs during rehabilitation, which sponsors say can make projects more financially feasible and accelerate homeownership opportunities for households in the 30–80% area median income range. Lead sponsor Council Member Andrew Friedson said the credit would reduce construction and carrying costs and "allow them to have better financing tools in the private market," calling the bill "one step" toward expanding pathways to homeownership.

The committee packet cites impact statements that the bill would have a small positive racial equity effect, little to no climate impact and a positive economic effect, while the Office of Management and Budget estimated a decline in County property tax revenues of about $458,000 over the first five-year horizon. Gorzlek also cited the sole public testimony from Habitat’s president and CEO, who estimated the organization would be able to recoup about $70,000 to $80,000 per year under the proposal.

The bill includes an annual reporting requirement from Habitat for Humanity to help the County confirm that credits are applied only for the period the nonprofit holds the property prior to conveyance. Committee members pressed staff on implementation mechanics; Gorzlek said staff and the Department of Finance have been working through the statutory processes and the packet includes proposed procedures.

The committee did not record a formal roll-call vote at the meeting; the chair stated that members present favored moving the bill forward with a recommendation to the full council for passage. The next step is consideration by the full Montgomery County Council.

The committee meeting adjourned after final comments.