A Montgomery County Council committee reviewed a bill on Thursday that would eliminate property taxes on Habitat for Humanity homes while they are being built or renovated for new owners.

The Government Operations and Fiscal Policy Committee, chaired by Councilmember Kate Stewart and including Councilmembers Shebra Evans and Sidney Katz, took up Bill 15-26 alongside a separate measure updating the county's employee retirement system.

Full tax exemption for Habitat properties

Bill 15-26, led by Councilmember Andrew Friedson, would grant a 100 percent property tax credit to homes owned by Habitat for Humanity Metro Maryland or its affiliates while those properties are being developed, rehabilitated, and prepared for transfer to private owners. The credit would take effect in the tax year beginning July 1, 2027.

All 11 councilmembers have cosponsored the legislation.

To qualify, a property must be intended for transfer to a new owner in the near future and must be actively used for development or rehabilitation. The credit applies only during the period a property meets those conditions. Entities receiving the credit must file an annual report with the county.

The bill implements authority the Maryland General Assembly first granted in 2010, allowing counties to offer property tax credits to Habitat for Humanity entities working on rehabilitation and conveyance of homes. A public hearing on Bill 15-26 was held June 16.

Retirement system updates for county workers

Bill 21-26 would codify negotiated changes to the county's retirement system affecting correctional health nurses, emergency communications and correctional personnel, and members of Local 1994 bargaining units. The changes update eligibility rules, plan provisions, and contribution rates consistent with the collective bargaining agreement running from July 1, 2026, through June 30, 2029.

What's next

Both bills must advance to the full 11-member County Council for a final vote before becoming law. The date of the next full Council session was not listed in the committee's materials; residents can check the schedule at montgomerycountymd.gov/COUNCIL/ondemand/index.html.