FY2023 Adopted Operating and Capital Budget

FY2023 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, legislation was introduced and approved by the County Council to codify this revenue stream. The legislation also included a gradual increase through FY2023. However, Bill 20 03 increased the tax rate resulting in a revised allocation to the fund. The additional revenue will be a start to making meaningful progress to address affordable housing issues in the County.

Budget Highlights

The following budget adjustments are reflected in FY23: The FY23 budget includes an increase in the dedicated recordation tax from 1.71% to 2.14% for a projected recordation tax revenue of $1,294,031. The budget also reflects a small increase to payment in lieu taxes.

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