TOWSON, Md. — A new bill introduced in the Baltimore County Council would eliminate development fees for construction projects that include affordable housing and receive government financial aid.
Bill 93-25, sponsored by Councilman Mike Ertel, focuses on “development impact fees” and “surcharges.” These are fees that developers typically pay to the county to help cover the cost of new public services, such as schools and roads, that are needed when new homes are built.
From Partial Credit to Full Exemption
Under current county law, developments containing affordable housing are allowed to receive a credit that reduces their impact fees by 35 percent1. The new bill proposes removing this rule and replacing it with a total exemption.
If passed, the legislation states that “no development impact fee shall be imposed” on qualifying projects2. This means developers of these specific projects would pay zero dollars in impact fees or surcharges to the county3.
Who Qualifies?
Not every project would qualify for this tax break. To be eligible for the full exemption, a development must meet two main conditions:
- Include Affordable Housing: The project must provide housing designated as affordable44.
- Receive Government Support: The project must also be receiving financial help from the county, such as loans, grants, or tax credits5555. Alternatively, the project can qualify if it has been awarded federal “Low Income Housing Tax Credits” from the state6.
The County’s Reasoning
The text of the bill explains why the change is being proposed. It states that when the county charges impact fees on affordable housing projects that it is also subsidizing with grants or loans, the fees “offset” the value of those incentives7. The bill describes this practice as “economically inefficient”8.
The County Council is expected to review the bill in upcoming sessions. If approved by a vote of at least five members, the changes would take effect 14 days later9.
