Ramos introduces Inclusionary Housing Tax Credit legislation

Today I am introducing legislation that creates Baltimore’s very first affordable housing tax credit, it is the High Performance Inclusionary tax credit to help further our work for the Inclusionary Housing bill we introduced last year.

Our Inclusionary Housing legislation from last year reached a stalemate recently. It was designed to revamp the program which was completely unsuccessful in the past 15 years - only producing 34 inclusionary units. 

Currently as amended, the Inclusionary Bill 22-0195 says that developments with 20 housing units or more and who get a major subsidy from Baltimore City have to provide 10% of their units for families earning 60% of Area Median Income.  If the City has extra subsidy to house residents of lower income, then the developer has to provide an additional 5% for families below 50% area median income.

The report commissioned by the Department of Housing and Community Development from the Enterprise Community Partners recommends a 15% tax credit to cover the gap between the market rent and the rent that can be collected from the tenants with 60% Area Median Income.  That is what this tax credit before you today does.

The report further recommends that the policy and tax credit be narrowed to certain areas of the city (they call them Core Markets) which are basically around the water.  This tax credit as drafted is Citywide, allowing for developments across the City to take advantage of this credit and provide inclusionary housing.

Normally, the City Council cannot create tax credits without authorization from the General Assembly.  In this case, we are using the broad authority given to Baltimore City to incentivize development of High Performance buildings - which are basically LEAD certified green buildings. Currently we have three High Performance tax credits - High Performance Market Rate Rental - Citywide, High Performance Targeted, and High Performance New Construction.  Under the High Performance category, we now have the High Performance Inclusionary Tax Credit which can be coupled with any other subsidy or tax credit.

I look forward to the discussions about this credit and about our Inclusionary Law.  I tend to think that our major developments can afford to provide 10% of their units as Inclusionary units because they are already getting substantial subsidy. I introduce this tax credit today to further the discussion and ensure we are successful in providing units for families in areas they would otherwise not be able to reach.