FY2021 Adopted Budget

FY2021 Adopted Budget Fund Budgets

Housing Initiatives

Housing Initiatives The Housing Initiatives Fund was approved to establish a locally funded affordable housing tool to provide flexible loans to help create and preserve affordable housing for Frederick County through leveraging of other funding sources, such as local, state, federal, public and private sources. The primary objectives of the Fund are to: foster the development of public/private partnerships for the production of affordable housing; to enhance and create housing for very low, low, and moderate income residents; to promote, where possible, mixed income communities through the creation and equitable distribution of affordable housing units; to preserve housing that could be lost from the affordable housing stock; to renovate affordable distressed properties and to fulfill a critical housing need in Frederick County. The FY2019 budget provided the first ever committed stream of revenue to add stability and predictability to the fund by setting aside the equivalent of 1.5% of recordation tax revenue as a pass-thru from the General Fund. In FY2020 this revenue source was VKRZQ DV D ³GHGLFDWHG´ UHYHQXH VRXUFH D nd legislation to codify this was approved by the County Council on September 3, 2019. The additional revenue will be a start to making meaningful progress to address affordable housing issues in the County.

Budget Highlights

Effective October 1, 2020, the recordation tax will increase from $6/$500 of consideration to $7/$500 of consideration. The $1 increase is dedicated to other programs. This will effectively decrease the percentage dedicated to this fund from 1.5% to 1.29% but does not affect the overall budgeted revenue to the fund. Payments in lieu (property taxes) are projected to increase in FY21. Since this revenue source is budgeted conservatively, fund balance has built up over several years. The FY21 budget reflects the use of this fund balance to fund various programs.

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