So we are going to reduce property taxes on new residents by 75% to make sure they don’t pay enough taxes to cover the services they are using. That makes a lot of sense. |
No, the net reduction is not 75% in almost any case. And again, property taxes are not the only revenue taken in by the county. |
Surely you aren’t denying or are ignorant of the fact that MoCo has a revenue problem? |
I am not. What I am saying is that addressing that problem, looking long term, and balancing several policy goals is complicated. |
I will submit a written response asking MoCo to Manhattanize the Rockville Pike Corridor, Bethesda, and Rockville.
I will also advise them to abolish any residential-specific zoning. We only need to keep industrial zoning separate from residential. |
Of course there’s a subsidy for market rate housing. Planning loves giving out subsidies to builders who don’t actually need them. If you’re really for affordable housing, you’ll be against this proposed subsidy because it reduces the amount of money available for deeply affordable housing (that actually needs subsidies). |
Just so we're clear here, the potential property tax reduction in question here ONLY applies to OWNER-OCCUPIED developments. No subsidy to builders. |
The property tax abatement reduces PITI, which lets the builders charge more. Part of the benefit might accrue to the owner-occupants, but market behavior being what it is, prices for units eligible for tax abatement will fetch higher prices than units not eligible for tax abatement. Just so we’re clear here. |
What you describe is not a subsidy. I think you know that. |
A tax abatement is a subsidy. It either benefits a developer or someone who can afford to pay for market rate housing. Both already receive a number of other housing subsidies. Is another subsidy for market rate housing an effective use of limited resources? |
There is no subsidy to developers under this proposal. The proposal, as the report states, is only for owner-occupied development as a means to " incentivize and assist existing homeowners who wish to convert their homes to a duplex or multiplex." A temporary reduction in property taxes on both units is relatively small and creates housing and long term increased revenue. Sometimes it is a moving target what people oppose. Is it developer-construction of massive condo buildings or is it an existing homeowner adding a a unit in addition to where they live? Or both? |
Already covered. There's more to the proposal than what you selectively covered. There's a five-year tax abatement for people who buy a unit in a conversion. All of those units will sell for a higher price than comparable units that don't have a tax abatement. That gives a benefit to the developer. But let's assume it works the way you say. Then it's another subsidy for an existing homeowner and another subsidy for people who can afford market rate housing. Is that an effective use of limited funds? I just oppose the subsidy. The rest of it is OK, but I also recognize that for a duplex to pencil over a McMansion in Bethesda, each half of the duplex is going to need to sell for around $1.2 million in Bethesda. Less other places, but probably at least $750k in any neighborhood close to metro. That's more affordable than a McMansion but not targeting households that should be getting subsidized housing in light of other more pressing housing needs that don't have sufficient funding. Definitely allow the housing to be built. But don't subsidize it. |
Back during WWII many homeowners converted their large homes and rowhouses into multiple apartments during the housing shortage at that time. We are once again facing an acute housing shortage as we all know, so I expect most single family homes and lots in or near urban areas and rapid transit to be subdivided into smaller units over the next 10-20 years. Some may be rented out and some might be owner occupied.
I just hope someone maintains the lawns/gardens and that architectural monstrosities aren’t constructed. The pop-ups on the old Victorian and Edwardian rowhouses in DC look horrifying. |
The county report suggests that one house could actually be converted into 8 units. They are potentially allowing a subdivision of a previously single family lot and then a quadplex for each new lot. IMO, this does not make sense. It needs to allow for more gradual infill denisty that will encourage efficient utilization of existing infrastructure. Allowing 4x to 8x density in large swaths of the county risks creating situation where population growth rapidly outpaces our ability to create capacity for government services. If we are going to do MM zoning, limit the proposal to duplex and triplex units and scrap the lot splitting provision. |
They don’t care how awful the outcomes will be, they only care about pushing the ideology. |