Baltimore City Council Approves Inclusionary Housing Bill; Tax Credit Decision Awaits Thursday Vote.

In a groundbreaking decision on Monday, the Baltimore City Council passed a housing bill that mandates developers to allocate a portion of units in new market-rate housing as affordable. This pivotal legislation, half of a two-bill package, represents a significant step toward addressing housing inequities in the city.

All You Need to Know About Baltimore’s New Inclusionary Housing Bill

Legislative Background

The approved bill, which passed unanimously with two members absent, is part of a comprehensive effort to replace the city’s previous attempt at mandating inclusionary housing—a law that expired last year and was widely regarded as a failure.

The former law passed in 2007, led to the creation of only 34 units of affordable housing, with developers exploiting numerous waivers to circumvent the requirements.

Mayor Brandon Scott’s Role

The success of these bills hinges on Mayor Brandon Scott’s signature, and while he has previously expressed reservations, recent signals indicate his support. If signed, this legislation will mark the end of the city’s previous ineffective inclusionary housing policy.

Key Provisions of the Legislation

The new inclusionary housing package requires developers to set aside 10% of units as affordable, with certain exceptions for penthouse units.

Half of this allocation is designated for individuals making 60% of the area median income (approximately $67,000 annually for a family of four), while the remaining half is reserved for those at 50% of the area median income (about $60,850 for a family of four).

Evolution of the Bills

Introduced in December 2022, these bills have undergone extensive discussions and amendments over the past year. The Scott administration initially had reservations about making the requirement citywide, advocating for a limitation to neighborhoods deemed most desirable to real estate developers.

The debate also intersected with the city’s financial challenges, as officials pointed to a $100 million structural deficit in 2024.

Compromise through Tax Credit

A crucial element of the legislative package is a tax credit, still pending final approval on Thursday. This 30-year credit aims to bridge the financial gap for property owners, offsetting the difference between the rent paid for an inclusionary housing unit and the market-rate rent.

Mayor Scott’s Perspective

Mayor Scott, while acknowledging the fiscal challenges, expressed optimism about the bills. He emphasized the importance of inclusionary housing in overcoming decades of intentional disinvestment and disenfranchisement in many neighborhoods.

Study Requirement and Future Implications

The legislation includes a provision for a study to assess the program’s effectiveness, to be conducted after the construction of 200 affordable units or after three years, whichever comes first. This proactive approach aligns with the city’s commitment to monitoring and improving the impact of these initiatives.

Community Support and Historic Moment

Housing advocates, rallying in front of Baltimore City Hall on Monday evening, welcomed the legislative progress. After the vote, Council President Nick Mosby hailed the moment as historic, stating that mixed-income communities are the path forward to a more equitable city.

Conclusion

The Baltimore City Council’s approval of inclusionary housing marks a turning point in the city’s approach to affordable housing. The comprehensive package, with its innovative provisions and tax credit, reflects a commitment to creating more equitable living conditions for Baltimore residents. As these bills move toward implementation, they serve as a beacon of hope for fostering inclusive communities and addressing longstanding disparities.