Neighbors:
Today, my colleague Councilmember Andrew Friedson and I joined forces in announcing an ambitious workforce housing package which takes five steps to increase the supply of housing, drive down costs, and increase pathways to homeownership for the hard-working residents of Montgomery County. At heart, the More Housing N.O.W. (New Options for Workers) package helps build more homes that are affordable to teachers, firefighters, police officers, biotech and healthcare workers, and everyone in, or striving to be in, the middle class.
I’d like to take a few minutes of your time today to detail the proposal. Before we get to the what, let’s talk about the why.
Homes are too expensive in District 6 and throughout Montgomery County. Consider the following figures:
- Between 2023 and 2024, the average sold price across all unit types increased by 6.5%, while wages have only increased by 1.5%.
- In 2024, the average sale price for a single family detached home was $1.02 million. To afford this house, a couple would need a combined income of approximately $340,000, far exceeding Montgomery County’s area median income for a couple at $123,800. Townhomes, which are on average smaller than detached units, sold for an average of $583,000. A couple would need a combined income of $197,000 to afford this house.
- Working families and young professionals are feeling the squeeze. According to the Comptroller of Maryland’s 2023 State of the Economy Report, housing affordability and availability is hurting efforts to attract new residents who could fill job vacancies, noting “prospective businesses turning down potential location plans to Maryland due to insufficient workforce housing.”
- Similarly, a recent supply/demand analysis by the Montgomery Planning Department, we are facing a deficit of over 12,000 rental units that are affordable to incomes at 70-120% of area median income (AMI).
This forces these workers to swallow exorbitant housing costs or compete with residents at lower income bands for less expensive options. Both are bad outcomes.
The status quo is unsustainable and makes our County less attractive to families, workers, entrepreneurs, and businesses. To address this crisis, we must act boldly. Now.
The five components of the package are:
Building More Workforce Housing
- Workforce Housing ZTA: Allow more residential building types along corridors with a workforce housing requirement
- Workforce Housing Opportunity Fund: New countywide fund to incentivize the construction of workforce units
Converting Highly Vacant Office to Housing
- Office to Housing ZTA: Create an expedited approval process for projects that convert high-vacancy commercial properties to residential use
- Office to Housing PILOT Bill: Establish a payment in lieu of taxes (PILOT) for conversion of high-vacancy commercial properties to residential use
Pathways to Homeownership
- Budget: Double the County’s investment in the Homeowner Assistance Program from $4 million to $8 million in the FY26 Housing Initiative Fund (HIF)
Focusing on strategies that provide the greatest opportunities to increase housing supply while ensuring access for the county workforce, the More Housing N.O.W. approach increases housing options on county corridors and does not propose any zoning changes within residential neighborhoods. We are formally introducing the legislative package on Tuesday, February 4 with public hearings and committee worksessions to follow. If you are interested in even more details, the legislative text will be posted to this website on Thursday, January 30. There will be many opportunities for public feedback on the proposal. Stay tuned for those!
I want to thank Councilmember Andrew Friedson for joining me in leading this initiative as well Council President Kate Stewart, Councilmembers Dawn Luedtke, Marilyn Balcombe, and Laurie-Anne Sayles who have signed on as co-sponsors. The package also has strong support from the education, public safety, healthcare, business, affordable housing, realtor, labor, faith, and community advocacy communities.
If you have any questions or comments on the proposal, please contact me directly at Councilmember.Fani-Gonzalez@montgomerycountymd.gov.
Sincerely,
Natali Fani-González
Councilmember, District 6
Chair, Economic Development Committee
P.S. The Washington Business Journal has a good piece on the package here as does Bethesda Today here.