Questions for the meeting of June 14, 2017
Topic: Affordable Housing in Montgomery County: Vouchers or New Construction? ”
Speaker: Clarence Snuggs, Director, Department of Housing and Community Affairs, Montgomery County
June 14, 2017 — Free and open to the public — 7-9 pm. — Council Office Building
The following questions have been sent to Mr. Snuggs in advance of the meeting:
1. Could you provide us with definitions of the various categories within which you operate?
- MPDU versus affordable housing versus low-income versus median income housing
- – what are the income cut-offs and are they pegged to inflation?
- – what are the other qualification requirements for each category?
2. The Department of Housing and Community Affairs (HCA) has 96 employees and a budget of $52M with an infusion of funds from HUD. One strategy deployed is affordable housing through payments in lieu of taxes (PILOT). Another strategy is requiring 12.5-15% of multifamily housing to be moderately priced also known as “mandatory inclusionary zoning”. How are these strategies working? What was HCA’s primary performance goal for FY 2017. Did you accomplish the goal? Have you revised your plans for FY 2018 and is this reflected in the FY 2018 budget?
3. County Executive Leggett announced a new program to help qualified applicants purchase a home with the support of the Montgomery Homeownership Program. The down payment assistance program is available for buyers with qualified incomes to purchase a Montgomery County home as their primary residence, up to a $429,000 sale price (up to $525,000, in certain neighborhoods.) Applicants who qualify and are approved may access Down Payment Assistance loans in amounts up to $40,000 – or up to 40 percent of the household income of the prospective homeowner – whichever is less. Approved buyers also will receive a below-market rate. Montgomery County has committed $1 million to this program. What are your measures of success for this program and how will you handle defaults on the loans?
4. The Housing Opportunities Commission, is a different organization within the county which also deals with affordable housing, but with a much smaller budget ($6M). Is there overlap or do each of the two organizations have separate and distinct missions?
5. How does HCA handle reports of unlicensed rental homes? Does HCA check to ensure that rental homes and condos using vouchers are licensed? How does HCA determine that rental income is being declared on state and federal tax forms? How much tax revenue do you estimate we lose from unlicensed rental units?
6. Given that most mid- and low-income homeowners/renters use the strategy “drive until you qualify”, has the county considered underutilized commercial land or vacant office parks as an avenue to increasing affordable housing? And as transportation is a major cost concern for low- and some middle-income buyers/renters, would this mitigate the problem?
7. We understand that there are about a thousand homeless people in Montgomery County. Several studies have shown that providing permanent housing is the solution to improving health and well being for people without homes. What is the county doing to enable homeless individuals and families to find permanent housing?
Next Meeting: TBA