(A) In lieu of the option specified under § 1-6A-5, an applicant may elect to pay a "per dwelling unit payment in lieu" calculated as described below and included in a written MPDU agreement.
(B) Each MPDU agreement entered into pursuant to a payment in lieu election must include the following:
(1) The per square foot payment in lieu for each dwelling unit in the development, which shall be determined as described in subsection (C) below; and
(2) The agreement shall specify that the per square foot payment in lieu will be paid at the time of building permit application, based on the then-current per square foot payment in lien.
(C) Determination of per square foot payment in lieu: The per square foot payment in lieu for each dwelling unit in the development, which shall be determined as follows:
(1) Multiply the "Affordability Gap" determined in subsection (D) below by 12.5%, which results in the base fee per unit.
(2) The base fee per unit is then divided by the average square footage of new dwelling units sold in the county in the preceding three (3) calendar years.
(3) This results in the per square foot payment in lieu to be applied to all dwelling unit types in the development. The per square foot payment in lieu is $2.00 per square foot as of October 18, 2022. See subsection (I) below - Triennial adjustment.
(D) The Affordability Gap is determined based on the following factors: (1) the Frederick County Median Home Price for attached homes (townhouses, multifamily) for the preceding calendar year; (2) the purchasing capacity of the moderate income buyer earning 70% of Frederick County Median Income (FCMI), based on prevailing FHA mortgage loan financing including down-payment requirements; for the preceding three (3) calendar years; and (3) maintaining a monthly housing cost burden at or below 30% of net monthly income for a household earning 70% of AMI. The Affordability Gap will be adjusted on a triennial basis. See subsection (I) below.
(E) The MPDU agreement must be signed by the applicant, any other parties having an interest in the property and all other parties whose signatures are required by law for the effective and binding execution of deeds conveying real property. The MPDU agreement must be executed in a manner that will enable the agreement to be recorded in the land records of the county. Partnerships, associations or corporations shall not evade this chapter through voluntary dissolution. The MPDU agreement shall run with and bind the land and all subsequent owners of the land.
(F) An MPDU agreement that complies with this section must be approved by the Director and the County Attorney and recorded in the land records prior to signature and final approval of the site plan, preliminary plan or Phase II plan for the proposed development.
(G) All MPDU payments in lieu shall be deposited into the County Housing Initiative Fund.
(H) If the applicant chooses the payment in lieu option provided under this section, the County Department of Permits and Inspections shall not accept a building permit application for the development unless the applicant also submits the per dwelling unit payment in lieu required under the MPDU agreement.
(I) Triennial adjustment. On or before April 15, 2026, and on or before April 15 every 3 years thereafter (2029, 2032, etc.), the per square foot payment in lieu and the Affordability Gap shall be recalculated as of December 31 of the previous year, in accordance with the factors discussed in subsections (C) and (D) above. The report may propose an adjustment be made by the County Council. (Ord. 11-20-586, 9-6-2011; Ord. 14-23-678, 11-13-2014; Bill No. 16-08, 8-15-2016; Bill No. 17-10, 6-13-2017; Bill No. 22-27, 10-18-2022)