Gaithersburg City Zoning Code

It is the purpose and intent of this article to ensure that affordable housing opportunities are created for both homeownership and rental units within the City of Gaithersburg for households earning fifty (50) percent to one hundred twenty (120) percent of area median income.

(Ord. No. O-5-24, 7-15-24)

(A)

The requirements of this chapter shall apply to any new residential development, redevelopment or conversion to residential use that includes twenty (20) or more dwelling units or meets the definition of housing for the elderly, unless otherwise stated in this section.

(B)

This article shall not apply to any residential development that has received schematic development plan approval or preliminary site plan approval prior to November 6, 2006.

(C)

This article shall not apply to any property that is subject to an annexation agreement that provides for an affordable housing component.

(D)

The affordability requirements of section 24-13.3 shall not apply to residential construction in any enterprise zone established pursuant to state law as of July 21, 2008; however, developers shall be required to pay a per unit fee for each dwelling unit into the city affordable housing fund. This fee shall be determined by regulations pursuant to section 24-13.5, Waiver of requirements, in this article.

(Ord. No. O-5-24, 7-15-24)

(A)

For sale developments. The following provisions shall be required to construct or sell an affordable housing unit in a for sale development. The city manager shall determine the approved sale price of affordable housing units based on the pricing formula set forth in the section 24-13.6 of this article.

(1)

Seven and one-half (7½) percent of the total dwelling units shall be developed and initially sold as moderately priced dwelling units at a price affordable to households earning sixty-five (65) percent of area median income adjusted for household size. This calculation shall be rounded up to the nearest whole number, even if the result is greater than seven and one-half (7½) percent.

(2)

Seven and one-half (7½) percent of the total dwelling units shall be developed and initially sold as work force housing units at a price affordable to households earning ninety (90) percent of area median income adjusted for household size. This calculation shall be rounded up to the nearest whole number, even if the result is greater than seven and one-half (7½) percent.

(3)

Upon a finding that moderately priced dwelling units and work force housing units would not be affordable in a development due to high common ownership community fees, the mayor and city council may, by resolution, permit an applicant to contribute a fee to the city affordable housing or housing initiative fund rather than constructing the affordable units pursuant to section 24-13.5 of this article. This fee shall be calculated as the difference between the actual sales price of the market rate unit and the actual cost of construction.

(B)

Rental developments. The following provisions shall be required to construct or lease an affordable housing unit in a rental development. The city manager shall determine, and revise annually, the approved rental price of affordable housing units based on the pricing formula set forth in the section 24-13.6 of this article.

(1)

Fifteen (15) percent of the total dwelling units shall be developed and maintained as moderately priced dwelling units for the life of the property as rental housing from the date of initial occupancy until the property is no longer used for rental housing at a rent affordable to households earning sixty (60) percent of area median income adjusted for household size for low-rise properties and at sixty-five (65) percent in high-rise properties.

(2)

This calculation shall be rounded up to the nearest whole number, even if the result is greater than fifteen (15) percent.

(3)

In the event the owner of any affordable rental housing units required by this section should convert the affordable units to condominiums, work force housing units and moderately priced dwelling units shall be initially offered for sale at a price consistent with the requirements of section 24-13.3(A).

(Ord. No. O-5-24, 7-15-24)

Moderately priced dwelling units and work force housing units shall comply with the following regulations, unless otherwise approved by the city manager:

(1)

All affordable units shall be of the same appearance, use comparable exterior materials to the market rate units and be proportionate to the overall unit types and sizes of the market rate units.

(2)

Units shall be evenly dispersed throughout the development, and no affordable units shall be side-by-side.

(Ord. No. O-5-24, 7-15-24)

(A)

An applicant may make a formal written request that the requirements of this article be waived, reduced, or adjusted, partially or in their entirety.

(B)

The city council may grant such a waiver or adjustment only upon a documented showing of:

(1)

Undue economic hardship on the part of the applicant in fulfilling the requirements of the law; or

(2)

The absence of a reasonable relationship or nexus between a proposed project and the provisions of this article.

(Ord. No. O-5-24, 7-15-24)

The city council shall adopt regulations pursuant to section 2-10 of this Code to implement this article with respect to, but not limited to, administration, enforcement, pricing, eligibility requirements for purchasers and renters, control period for ownership units, procedures governing waiver requests, and resale restrictions.

(Ord. No. O-5-24, 7-15-24)