The housing affordability crisis just got a new opponent in Montgomery County as the County Council unanimously passes a critical piece of legislation aimed at reducing housing construction costs. In a move that could provide some relief to the region's housing shortage, Councilmember Evan Glass has spearheaded a bill that restructures the payment of impact taxes. These taxes are critical to funding community essentials such as roads and education, yet the previous payment structure is said to have added significant upfront costs to housing projects, as per Montgomery County press release.

Traditionally, building permits required the payment of impact taxes within a six to 12-month window, leading to increased initial financing costs for developers and, consequently, higher prices for consumers. This legislation strives to smoothly bridge the gap, amending the policy so that these taxes will not be due until the final inspection is complete. “By changing the time at which impact taxes are collected, we will be able to reduce the overall cost of new housing by millions of dollars. Those cost savings will be shared with renters and buyers. If we want to build more housing that is affordable, we need to make it more affordable to build housing. This legislation does exactly that,” stated Councilmember Glass in the measure's introduction, as reported by the same press release.

The unanimously approved Expedited Bill 22-24, Taxation – Collection of Development Impact Taxes, is set on providing a much-needed financial break to quickly pass on to buyers and renters in the community. Councilmembers Dawn Luedtke, Natali Fani-González, Sidney Katz, Gabe Albornoz, and Andrew Friedson showed their support as co-sponsors of the legislation. It's a strategic move that not only targets potential economic growth but also plays into the hands of social equity, aiming to make housing more accessible to a broader range of county residents.