Recently approved County legislation has a direct and dramatic impact on neighborhood building that is only now beginning to be seen. Every County resident considering a home improvement, sale, or purchase of property should know their rights and responsibilities, and the full implications of regulations before beginning the design process. Not knowing about regulatory changes can cost thousands of dollars in re-design fees, permit fees or taxes; in some cases, it can result in a “stop work order” on their improvements or new construction. 
 
In meetings with citizen associations, Renewing Montgomery frequently finds residents are unaware new legislation has been enacted that places new restrictions on their property rights. New regulations also typically have unintended consequences as they continue to be interpreted by County agencies and integrated into the construction process.

 

Recently enacted legislation having a significant impact on neighborhood building includes:

County Council Approves 2010 Energy Star Mandate. On April 22 the County Council approved seven bills (Bills 29-07 to 35-07) that include 25 mandates to reduce the County’s overall greenhouse gas (GHG) emissions by 80% by 2050.  While the mandates focus on all significant sources of emissions (offices buildings, retail stores, private vehicles, residential units), the Council has assigned the “how” to the Department of Environmental Protection (DEP) and the soon-to-be-created Sustainability Working Group, with no real requirement imposed on the County.

The Working Group, which will include regulators and the regulated, is directed to develop a Climate Protection Plan that will implement GHG reduction regardless of cost. The Council and the County Executive will then decide if the results justify the cost, and how the plan would be funded.  Bill 30-07 would require new homes (by design more energy efficient than older homes), to have even higher standards of energy efficiency and be certified, potentially adding $15,000 to $25,000 to the cost of new construction. Cost and results were not concerns as the Council approved an amendment to Bill 32-07 that mandates EPA’s Energy Star standards and certification in all new residential units in buildings of four stories or less, for building permits applied for on or after January 1, 2010.

The legislation does allow DEP to evaluate alternative programs that achieve the same result, i.e. 15-30% increased energy efficiency, at lower cost, and to recommend its adoption over Energy Star; the recommendation would need to be made by January 15, 2009. In addition, DEP is tasked with affirming that there are enough qualified “raters” to certify Energy Star compliance by January 2010.

The final versions of the legislation are not yet available from the Council. For more information, email county.council@montgomerycountymd.gov
or visit www.montgomerycountymd.gov

Bill ZTA 03-27 Building Height Reduction: Approved in 2005 with an effective date of October 12, 2005, this bill changed the methodology for measuring building height for homes in the R-60 and R-90 zones.  Building permits applied for prior to the effective date were exempted from the height reduction. Since it takes up to 18 months to design and build a new home, the results of this height reduction on homes currently under construction is only now being seen.  To read the Zoning Text Amendment, click here.

Bill 45-06 Protection of Champion Trees: Individual trees rated as a “champion” specimen by the Montgomery County Forestry Board now may not be removed or trimmed, regardless of their location on an owner’s property. Homeowners having a tree that is registered as a “champion” tree must comply with this bill. To view the full legislation, click here.

Bill 11-07 Recordation Tax Increase: Effective March 1, 2008, the Recordation Tax paid at settlement by a new owner is significantly increased for property ownership transfers in excess of $500,000. For every $1,000 over $500,000, the recordation tax is now $10.00, instead of $6.10. For example, the tax on a $1,400,000 home, previously $8,235, is now $11,745, an increase of $3,510 or 43%.  This increased tax increases tax revenue at the expense of home purchasers. To read the bill, click here.

Bill 10-07 Big House Tax:  Effective November 13, 2007, to obtain a building permit for houses with more than 3,500 square feet of floor space, the new owner must now pay a new $1-per-square-foot tax.  Unfinished areas and/or garages are included in the calculation of square footage.  To read the bill, click here.

Bill 24-07 Seller Tax Assessment Disclosure:  Effective April 1, 2008, a seller of residential property is now required to disclose the estimated property tax a buyer will pay after the purchase. The Department of Finance is to provide property tax information on a dedicated website, which is yet to be provided. Where a current assessment has not been done by the State, the County will direct the property owner to use the listing price (considerably higher than the State tax assessment value) to calculate the tax.  If the estimated tax is higher than what the buyer will actually be paying the buyer may not qualify for a loan. To read the bill, click here.

Bill 26-05 Stormwater Drainage and Runoff:  Additions greater than 400 square feet and all new homes not requiring a storm water management plan must submit a plan showing the existing drainage pattern and the proposed new drainage pattern to minimize the effects of water runoff on neighboring properties. This regulation applies to all building permit applications submitted, to the Department of Permitting Services (DPS) after 3/1/07.  The Engineer typically shows this information on the site plan submitted to DPS when applying for a building permit.  To view the full legislation, click here.

Buildable Lots - ZTA 07-02:  Clarifies which Zoning standards apply to which lots, based on when a lot was recorded.  To view the full legislation, click here.