A bill that would eliminate property taxes on homes owned by Habitat for Humanity in Montgomery County cleared its first legislative hurdle Thursday, when the Council's Government Operations and Fiscal Policy Committee approved it unanimously.

Bill 15-26 would grant a 100 percent property tax credit starting in the tax year beginning July 1, 2027, for properties owned by Habitat for Humanity Metro Maryland or another Habitat affiliate operating in the county. The credit applies while a property is being developed, rehabilitated or held for transfer to a private owner.

The bill now heads to the full 11-member Council for a final vote. No date for that vote has been announced.

Who's behind it

Councilmember Andrew Friedson, who represents District 1 including Bethesda, is the lead sponsor. All 11 councilmembers co-sponsored the legislation, according to the county's meeting record. Friedson said the credit would free Habitat from carrying costs on homes in the pipeline, allowing the nonprofit to direct more resources toward building and renovating affordable units for low-income families.

"Proud to see Bill 15-26 unanimously pass the GO committee today, taking a meaningful step toward expanding affordable homeownership in MoCo," Friedson wrote on X after the vote.

The GO Committee is chaired by Councilmember Kate Stewart and includes Councilmembers Shebra Evans and Sidney Katz.

How the bill works

The tax credit covers properties owned by a subsidiary called Humanity Metro Maryland, Inc., which is wholly owned by Habitat for Humanity Metro Maryland, Inc. To qualify, a property must be held for sale or transfer to a private buyer and used for development or rehabilitation. The bill does not define a specific timeframe for that transfer.

Habitat must apply for the credit and file an annual report on properties receiving it.

The legislation implements a state authorization from 2010, when the Maryland General Assembly first allowed counties to offer property tax credits for Habitat properties slated for rehabilitation. The state expanded that authorization in 2011 to include properties under development. Montgomery County had not previously enacted the local credit.

Habitat's local footprint

Habitat for Humanity Metro Maryland completed the $96 million Allium Place development in Silver Spring in July 2025, creating 195 affordable rental and ownership units on six acres of county-owned land the county transferred for $2. The project included 27 Habitat homeownership units with zero-interest mortgages, where buyers pay no more than 30 percent of their income on housing costs.

Jeffrey Dee, president and CEO of Habitat for Humanity Metro Maryland, said at the Allium Place opening that the project shows families "that homeownership is possible."

A public hearing on Bill 15-26 was held Tuesday, June 16.

How to weigh in

Residents can track the bill's progress and find the full Council schedule at montgomerycountymd.gov/COUNCIL. Council meetings are streamed on the Council's YouTube channel and broadcast on County Cable Montgomery.