Frederick Public Works Committee Meeting: Housing Programs Review - March 10, 2026
Frederick Public Works Committee Meeting: Housing Programs Review - March 10, 2026
The Public Works Committee of Frederick, Maryland, met on March 10, 2026, at 4:00 PM to review the housing work plan and receive updates on three key housing programs: Moderately Priced Dwelling Units (MPDU), Rental Licensing, and Payment in Lieu of Taxes (PILOT). The committee also heard presentations from Habitat for Humanity of Frederick County and Beyond Shelter on their use of rental licensing funds for housing preservation and rental assistance. No formal votes were taken, but the committee provided direction for future policy discussions and process improvements.
Discussion Items
- Housing Work Plan: Councilmember Brown introduced a draft housing work plan, calling it a "work in progress" divided into phases. Councilmember Hempel Rani emphasized the need to consider long-term feasibility and the growing gap between wages and housing costs. Councilmember Shackleford noted the importance of partnerships with nonprofit organizations and strategic use of government resources. The plan includes policy discussions, rental licensing, and identifying barriers to building housing at different AMI levels.
- MPDU Program Overview: Jody Ostage, Housing Policy Advisor, presented on the MPDU ordinance, which requires 12.5% of units in developments over 25 units to be moderately priced (70-90% AMI). Developers may pay a fee in lieu of $2 per square foot (increased from $1.65 in 2023). The city housing fund has accumulated $9.7 million over the program's lifespan (since 2014), with $4.9 million spent. The fund currently holds $4.5 million, including roughly $3 million collected since 2023. Eligible activities include grants for accessibility modifications, health/safety repairs, and gap financing for affordable developments. Staff noted overlapping federal/state programs and offered to recommend streamlining. Councilmember Shackleford questioned the logic of the fee level and the 12.5% requirement; staff explained it was set through stakeholder consensus and to encourage building rather than paying out. Director Campbell noted the small sample size since the 2023 change and the need for future evaluation.
- Rental Licensing Program: The rental licensing fee, adopted in 2022 and effective 2023, has generated $1.3 million. After covering Public Works operating costs, 50% goes to a rental assistance fund and 50% to an affordable housing conservation fund. The city allocated $263,000 to Beyond Shelter for rental assistance and $150,000 to Habitat for Humanity for housing preservation. Staff acknowledged delays in disbursement due to lack of formal application process and are working to establish a standardized request-for-proposals (RFP) process. Jody Ostage extended the expenditure deadline to December 31, 2026, to allow partners sufficient time.
- PILOT Program: The Payment in Lieu of Taxes program provides tax abatement for affordable developments, with a maximum waiver of $468.59 per unit. The program was amended in 2024 to decouple from county rates. There is no formal application process; developers typically negotiate with the county first, then the city. Staff noted the program is critical for project viability, especially for lower AMI targets. Councilmembers discussed potential adjustments to incentivize deeper affordability (e.g., 30% AMI) through higher abatements or additional tools.
- Habitat for Humanity Presentation: Executive Director Eric Anderson and Family Services Coordinator Coralin Wells reported on their use of the $150,000 affordable housing conservation grant. They completed 10 projects (spent $61,000) serving 16 city residents, with average project cost of $6,163. Seven households had a person with a disability, six included seniors, and three were veteran households. Average household income served was $36,314 (well below 80% AMI of $85,450 for a two-person household). Projects included weatherization, roof leak repairs, accessibility modifications, and an emergency HVAC replacement. Habitat recommended maintaining/expanding rental licensing allocation for housing preservation, multi-year funding structures, and streamlined reporting.
- Beyond Shelter Presentation: Nick Brown reported on the $263,000 rental assistance grant. They have spent approximately $60,000 serving 34 households, averaging $1,669 per household. Funds are distributed directly to landlords. They observed that most clients arrive three months in arrears, and they are exploring longer coverage periods. Brown also highlighted a critical need for senior homelessness solutions, noting that the Linton shelter effectively serves as a nursing home for homeless seniors. He suggested that MPDU funds could be used for special populations (e.g., severely impoverished or disabled). He supported standardized processes and inclusion of administrative costs in grants.
- Process Improvement Discussion: Councilmembers and staff agreed on the need for formal application processes, clear funding amounts, earlier notice of allocations, and consistent reporting for both MPDU and rental licensing funds. Councilmember Shackleford emphasized getting funds out quickly to meet community needs. Director Campbell suggested tying annual expenditures to revenue projections to maintain balance.
Key Outcomes
- The committee directed staff to bring recommendations on streamlining MPDU eligible activities and addressing overlapping federal/state programs.
- Future deep-dive sessions were scheduled: mid-April on rental licensing and fees, followed by later sessions on PILOT and MPDU.
- Staff will develop a formal RFP process for rental licensing funds to ensure fair, efficient allocation.
- The committee encouraged continued partnership with Habitat for Humanity and Beyond Shelter, with potential for multi-year funding structures.
- No binding votes were taken; all decisions were advisory and directed toward future policy revisions.
Meeting Transcript
All right, well, let's call to order the public works committee of March 10th at 4 p.m. We'll start with the pledge. And to the Republic for Nation. Liberty and Justice. And feel free to take your coat off because we've got the sauna on inside this room today. So our first agenda item is to start with a review of the housing work plan. And Claire, can we pull that up? It has taken me, us a while to get our first draft together because, as you know, there's a lot of layers to this onion. So we're working our way through it, and I would ask that you view the document as a work in progress. This is what we think we're doing as of today, and we may have to amend it as we delve into the topic. And so our plan from a macro standpoint, and it's divided into phases, and I encourage you to read those phases, but we'll start with a policy discussion, and the policy discussion will involve by the way, which will start today with thanks to my colleagues. So I all that is on the table for discussion as we as it relates to that. And there'll be similar uh spirited conversations about rental licensing and other aspects of these programs. But we're going to start with that, and then we'll move in and talk about specific types of housing and the barriers that we're experiencing as it relates to having that housing built. And so it's a heavier lift, again, as everybody here is aware, uh, as the uh AMI percents go down. So um so just to let you know that the task ahead from a from a uh a work plan. And again, as we get into it, I we can expect to have amendments and and changes to that. So but that's that's my tee up, and I'll ask for my colleagues to offer comments. So Councilmember Hempel Randy. Well, one of the things that has been on my mind is to keep in our minds the long-term feasibility of whatever it is that we come up with. So one of the challenges in housing, as you all know, is housing for homeowners is one of their biggest assets. And so, in order that for that to be an asset, it has to outpace inflation, whereas wages are not necessarily keeping up with inflation. And so we're gonna have a larger and larger gap between incomes and housing over time, unless we have uh spectacular crash, which I don't know. So as we're thinking through housing plans, um I would like to think about the immediate need because it's it's urgent for a lot of families, but also be thinking about the long-term need, how this gap is going to get bigger and bigger unless there's some dramatic, like I said, some dramatic market corrections. Um there are people who know a lot more about that than I do. Uh so I don't I don't know where else to begin with. Um that's with our plan here. Thank you. Councilmember Shockerford. Thank you, uh Chairman Brown, um, Councilmember Ronnie uh Hemple Rani, my apologies. Um of course, no, you know, Councilmember Brown, we've had some extensive conversations around these, so um I'm um glad that we have some uh preliminary timelines. Of course, they're fluid because of um our conversations also in terms of our policy initiatives also uh in terms of um what happens with the with the market as well and also crises are in it, but I think this is this is a good plan for us, and it also makes the um public and also our advocates um aware of where we are in these respective um categories, and so they can participate and of course not only participate but be a big part of what we're trying to do. It's it's interesting because uh I don't know if government does a great job of building houses, one, two of also maintaining them. So it's important that we have our advocates in those um organizations and entities who who do this for for a living or do this in terms of this is what they do. I think it's so important. One of the things I always say, particularly from a government perspective, is government should not try to do everything. Um but what it can do, it can lead. So what we can do is we can provide the leadership support. Also we have access to resources that some of our uh partners may not have, and so I think it's important for us as we talk about particularly from a financial aspect and also the resource we have through other means and other channels that is important that we use this in partnerships and also use these uh wisely because we know particularly in this time frame that resources um may be scarce, unfortunately. So it's important that we get the most bang for particularly for our buck a term would be in terms particularly from our financial resources. I think it's so important in this time frame that we really engage with our partners and really be supportive of the work that they're trying to do. Great, thank you. Uh and I would invite again anybody who is watching this after the fact uh if you have a question, a comment, or a concern about the work plan to please let council know because we can certainly incorporate those ideas and suggestions and feedback in the document as we go forward. With that being said, is there anybody from the public today who would like to comment on the work plan? All right. Well, thank you very much. Let's move on to our second agenda item. Uh and that is an overview of moderately priced dwelling units, rental licensing, and payment in lieu of taxes programs. And I appreciate the health and excuse me, the health and housing team being with us today. Yes, good afternoon.
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