Councilman Grasso Bill Defeated

Councilman John Grasso introduced three bills that MBIA vehemently opposed. Bills 27-17, 32-17 and 54-17. Bill 27-17, which stated that no modifications for forest conversation, recreational space or open space may be made for any cluster development, was defeated by a vote of 5-2 due to MBIA opposition. Read MBIA opposition testimony >>>

 

Bill 32-17 which prohibited administrative rezonings of property for residential up-zoning purposes for the next 3 years failed by a vote of 5-2 and Bill 54-17 which would have lowered the capacity threshold for the Anne Arundel County schools APF to from 100 percent to 95 percent failed by a vote of 4-3. The MBIA testified against Bill 32-17 on May 15th and against Bill 54-17 June 6th. Read opposition testimony on Bill 32-17 >>> and opposition testimony on Bill 54-17 >>>

City Tax Credit

Bill 17-30 to re-authorize the 10 year citywide high performance market rate apartment tax credit, introduced by Council President Young, which is vital to preserving the progress in Baltimore City passed the City Council and was signed into law by the Mayor. Nearly every recent project in the City has received this credit and without it, most, if not all, of these projects would be not be feasible. The MBIA testified in support of this important tax credit.

Tax Credit

Howard County Executive Allan Kittleman's Bill 34 to extend the High Performance Homes tax credit an additional 5 years passed the Howard County Council and was signed into law by the County Executive. The MBIA testified in support of this bill that helps home buyers afford energy saving and renewable features in their homes creating a win-win for the County and the home buyer. Read MBIA testimony in support of Bill 34 >>>

ZTA 16-17: Townhouse Height Encroachments was reported UNFAVORABLE by PHED Committee

On June 13th, the PHED committee of Montgomery County Council unanimously voted to report ZTA 16-17 as unfavorable. The bill would have ultimately limited builders' ability to provide rooftop amenities on townhouses in the County.

Bill 10-17 Recordation Tax Rate

For the second time in as many years, the Montgomery County Council is considering modifications to the County recordation tax. In 2016, the Council approved Expedited Bill 15-16 which increased the recordation tax rates by 22 - 48 percent. The 2017 measure, Bill 10-17, will reduce the premium for transactions that are more than $500,000 but less than $1,000,000 from 2.30 to $1.55/$500. The Bill would increase the Premium for transactions that are more than $1,000,000 but less than $2,000,000 from $2.30 to $2.55/$500. The Bill would also increase the Premium for transactions that are more than $2,000,000 from $2.30 to $3.55/$500. If passed, these new rates will apply to any transaction which occurs on or after September 1, 2017.

At the June 22nd work session, the committee heard from the Finance department that the bill is not revenue neutral, though the bill sponsor intended it to be such. Finance also provided information that modelled how lower premium rates would ensure the bill remained "revenue neutral".

MBIA submitted written testimony to the GO committee in opposition to the bill on June 21st. MBIA expressed concern over the impact higher taxes will have on the sale of properties in Montgomery County. The testimony addresses the effective date, as it may have a direct impact on transactions currently under negotiation. The testimony also requests that Councilmembers consider changing the effective date to January 31, 2018.

The next work session is scheduled for 9:30 a.m. on July 13th.

 

Montgomery County Council makes I-270 a Priority

On Tuesday, June 27th, the Montgomery County Council voted to update their official "priorities" letter, which guides Maryland Department of Transportation's funding decisions on all local projects. The updated letter will now list upgrading the I-270 corridor, from Frederick to the American Legion Bridge, as the County's number-one priority in the interstate highway category. Though the Council vote was 8-1 in favor of updating the letter, there was unanimous support for some form of widening I-270. 

Results from FY18 Annual School Test

Under the 2016 Subdivision Staging Policy, the school test used to monitor school capacity compares projected enrollment for each of the 25 high school clusters, as well as each individual elementary and middle school. If projected cluster-wide enrollment at any level (elementary, middle or high school) exceeds 120 percent of projected program capacity, new residential subdivisions in the affected cluster service area will be under moratorium. If projected enrollment at an individual elementary school exceeds 120 percent of capacity and results in a projected seat deficit of at least 110 students-or projected seat deficit of at least 180 students for middle school, that school's service area will be under moratorium and no new residential subdivisions of more than 3 units can be approved.

For FY18, no school cluster exceeds the 120 percent program capacity utilization ceiling. Therefore, residential subdivisions will not be under moratorium in any school cluster service area as a result of the cluster level test. Also, the Clarksburg cluster remains conditionally open for development despite having a capacity utilization of 133.3 percent due to a future reassignment of students to the adjacent Seneca Valley High School.

Of note, the Council approved placeholder capital projects in four clusters to avoid potential moratoria. The four placeholder projects added to the CIP are:

For FY18, there are seven elementary schools that exceed both the 120 percent program capacity utilization ceiling and the 110-seat deficit threshold. Therefore, residential subdivisions will be under moratorium in these seven elementary school service areas: Burnt Mills Elementary; Highland View Elementary; Kemp Mill Elementary; Lake Seneca Elementary; Rosemont Elementary; Strawberry Knoll Elementary and Summit Hall Elementary.

There are no middle schools that exceed both the 120 percent program capacity utilization ceiling and the 180-seat deficit threshold. Therefore, residential subdivisions will not be under moratorium in any middle school service area as a result of the school level test. The Council approved four placeholder capital projects covering four elementary schools and two middle schools to avoid other potential moratoria. The four placeholder projects are:

 

Takeaways from City of Rockville Department of Community Planning & Development Services Bi-Annual Stakeholders Meeting

On Wednesday, June 28th, Rockville's Department of Community Planning and Development's Inspection Services Division hosted a stakeholders forum to provide information on navigating the permitting process here in Rockville. Of note, ISD is finalizing their Strategic Plan and looking at ways to bolster their communications efforts. To that end, the Division will implement administrative bulletins to update stakeholders on new processes or to clarify ambiguity. The Chief of Inspection Services stated his desire to proactively work with stakeholders and the Department's intent to develop committee and workgroups-with industry representatives-when considering code amendments and developing provisions.  Additionally, the Division is evaluating possible changes to permit fees.