I have to assume you are a pundit, now, aiming to distract instead of engage responsibly. It's been explained, somewhat painstakingly, including in the just-responded-to post. But the response always ignores the explanation, trying to cast doubt without substance. Again: Sections 7-502, 7-503 and 7-504 create new situations for development. Those situations largely come with the kind of development to which section 7-105 would apply. If the bill didn't have 7-105, the development from those other sections would not be likely to be exempt from adequate public facility conditions. If the bill didn't have the other three, 7-105, though coming with its own school crowding burden, would apply over a smaller scope of development. Together, there is a larger negative impact on public facilities such as schools. |
The summary you are referencing is not comprehensive and confuses a few very different issues that have nothing at all to do with school crowding. I do agree that people should read the bill that is linked there. Alternatively, there are a variety of summaries out there: https://www.marylandmatters.org/2024/02/20/gov-moore-says-housing-proposal-will-work-hand-in-hand-with-local-jurisdictions/ https://www.marylandmatters.org/2024/01/17/moore-administration-previews-housing-legislation-as-marylanders-face-housing-crisis/ |
You're the one who says you won't support the bill unless it includes school funding. |
A comprehensive summary is something of an oxymoron, but I'm open to critique if there's a relevant bit that would really change the basis of the conversation, here. What issues did you find to be confused in the post? (That haven't been hashed to death, above, that is.) The two Maryland Matters posts you've given are pretty much mouthpiece articles for Governor Moore. I'd also encourage folks to read through the bill to see if they concur with the thoughts presented, here. https://mgaleg.maryland.gov/2024RS/bills/sb/sb0484f.pdf |
PP, not a pundit, just the rare genuinely curious poster....maybe slower than most. This response was the first that helped me understand the point. You are saying that as a result of "loosening" permit requirements in other ways not associated with school issues at all there will likely be more overall development that falls into that bucket. Seems plausible, though I don't have a sense of how much of an impact. My instinct is that developers will gravitate much more toward the "luxury condo" development near transit and stay away from anything that limits the amount of revenue they can generate associated with state funding. There is no real incentive. But could happen. |
My point was that if people are interested in knowing what the entire housing package says they should read that. We are in agreement on reading the bill text. And the two summaries were the first I found in searching. Open to other sources. The post, while I agree well intended, hit a strange middle ground of expanding beyond the APFO section, but not being inclusive of all of the aspects. |
To your second point, look at the current impact fees and the average per seat cost of school construction. The impact fees are less than the average per seat cost of school construction. The county just lowered the impact fees again last year because school construction costs spiked and they didn’t want to burden developers with the cost increase. That impact fee cut last year was on top of the impact fee cut that they did three years ago. |
There is a big difference between saying the impact fees don't meet per pupil cost and saying that the county loses money on housing units. Two erroneous assumptions off the top of my head: 1) not every unit results in a student; 2) It does not take into account ongoing tax revenue |
Assuming you have done this calculation, would you mind pointing me toward those sources? |
I didn’t say pupil costs. I said average per seat construction costs. If impact fees are below cost recovery levels (which they are), then the county loses money every time it adds a housing unit. It is simple math. If fees are below cost recovery, the difference must be financed through debt issuance or taken from somewhere else. If it’s financed, then debt service costs eat away at the rest of the budget. (There’s also the choice of not building schools at all but that’s a bad outcome) Ongoing tax revenue is going to support other services for new residents. For very expensive housing, ongoing tax revenue exceeds what services residents consume fairly quickly. For less expensive housing, it may take a long time. Either way, if impact fees are below recovery costs, something else gets hit or we don’t build schools. And remember none of these fee cuts caused developers to lower prices or push the housing market into surplus. The fee cuts just made the developers’ profits bigger. It’s good for the county to spend money to achieve a public policy goal (lower housing prices in this case) but it’s not good for the county to spend scarce funds subsidizing developers to build high-end housing. |
You don’t need to do any calculations. Look at the rates that were published May 1 last year and then look at the revised rates. Or look at the law and see that the calculation sets them below recovery cost. |
Got it. Thanks for the explanation -- the repetition of critique, perhaps from others, was getting to me. I agree that developers would more likely go for luxury condos if they could. I think the thing is that they go for whatever is in their wheelhouse that has the best profit potential. It's a business, after all, and that is the way of things. The bill really isn't about luxury condos, though I suppose some might get built in a development that has a certain percentage of affordable housing. The bill does make other development more attractive by reducing costs/barriers (in the microeconomic sense), making that more likely, which is in line with its just intent of providing more affordable housing. I also agree that we won't really know the full impact until and unless we see it in action. However, experience has shown that we underfund schools in the first place and the logical result of the bill, as written, would be to allow avoidance of one of the main mechanisms we have designed to ensure at least a modicum of adherence to school capacity needs. The incentive is money and the votes that go along with that -- profit for the developers, low-cost housing for those in greatest need and avoidance of taxes for those not willing to support schools independently. That last bit is why there's been the useless back-and-forth with presumably another poster, more clearly a pro-housing pundit. This would be a good one to see where Shebra Evans and Laura Stewart sit, philosophically, in their contest for the BOE District 4 seat. (One presumes Mandel is opposed.) Do they support the legislation, as is? Would they claim that Blueprint money or the like will cover any shortfall? Or would they accede to the idea that there shouldn't be such public-facility-burden-producing mandates without a means of ensuring funding to bear that burden? Would they differ? |
Thanks. In this polarized society, I doubt I'd find a truly balanced piece on the legislation, and I wouldn't want simply to pin something that comes from the opposite viewpoint. Reading through it to the level of comprehension is more than many legislators might permit themselves, much less folks here (though I hope some do; it isn't that long). Understand about the perception of a strange middle ground. I was trying both to note the various scopes considered in the legislation and to keep it relevant to this school-oriented discussion, where the AFPO section (adequate public facilities like schools, for the benefit of other readers) would have indirect but highly likely application to development envisioned in the other sections by way of some amount of Federal or state funding for such projects. Many of the other specifics (e.g., the varying low income percentage accommodations for housing development depending on the section under which the land might fall) seemed not as applicable, here. |
Can you please point me to the per seat construction cost of schools? I have searched and cannot find that. |
I was looking for help finding those rates and estimates. Here is what I found on my own: The impact fees for schools are a calculation of average students per unit x school construction cost per student = school impact fees That calculation was 57% for turnover multifamily (though I'm not sure what that is a percentage of) That is significantly higher due to construction cost *at that time* when there were serious supply chain issues The county then capped that at 20% (though anything not collected COULD be collected at a later date) The rate will be readjusted again this year. https://montgomeryplanning.org/planning/countywide/growth-and-infrastructure-policy/schools/school-impact-taxes/ And there is an additional fee that developers pay for school impacts apparently: https://montgomeryplanning.org/planning/countywide/growth-and-infrastructure-policy/schools/school-impact-taxes/ Conclusion: Developers are required by law to pay a fee specifically to offset construction of a new school, should that becomes necessary. As of this moment, that amount is not enough to completely pay for a new school, new to abnormality in the supply chain at the time of calculation. Historically it was sufficient and in the future it should be sufficient. "waived" fees can be recouped. Tax revenue generated from new development is an ongoing source of funding for the county. |