On July 8, 2025, the Charles County Commissioners convened at the Charles County Government Building in La Plata for a briefing on the Affordable Housing PILOT Workgroup’s progress. Led by Acting Deputy County Administrator Jenifer Ellin, Jacob Dyer, Dina Barclay, and Cathy Thompson, the workgroup outlined a proposed Payments in Lieu of Taxes (PILOT) program to incentivize affordable housing in Charles County. This initiative addresses the county’s pressing need for accessible housing options, aligning with broader community development goals.
Streamlining Affordable Housing Development
The Affordable Housing PILOT Workgroup has developed criteria to ensure that projects qualifying for PILOTs contribute significantly to affordable housing in Charles County. Jenifer Ellin explained that, previously, the county received scattered requests for PILOT agreements from various departments, leading to inefficiencies. “We would get multiple requests in and they would come from everywhere,” Ellin said, noting contacts ranged from economic development to individual commissioners. The new standardized operating procedure will centralize and streamline the process, enhancing transparency and consistency.
Details of the PILOT Program
The proposed PILOT program allows developers to apply annually through a competitive process, incentivizing the construction of affordable housing units in Charles County. To qualify, 90% of a project’s units must be affordable to households earning 60% or less of the area median income, which in 2025 is $163,900, equating to approximately $98,000 for eligible families. This criterion ensures that affordable housing in Charles County targets those most in need. The program does not involve direct payments to developers but reduces their property tax obligations, with savings redirected to lower housing costs.
Jacob Dyer emphasized the importance of the selection process, noting that a single project could tie up funding for multiple years due to the length of PILOT agreements. “It’s a reduction of taxes—they won’t pay tax. So indirectly, it does go to them,” Dyer clarified. This approach makes projects financially viable while prioritizing long-term community benefits.
Addressing the Housing Crisis
Charles County faces significant housing affordability challenges, with approximately 45% of renters and 24% of homeowners considered cost-burdened, spending 30% or more of their income on housing. The PILOT program is a key component of a broader strategy to increase the availability of affordable housing in Charles County. The workgroup, comprising representatives from county departments and housing stakeholders, is tasked with creating a comprehensive plan to address these challenges, ensuring new housing meets high standards of livability.
Background and Context
The Affordable Housing PILOT Workgroup builds on earlier efforts by the Charles County Planning Commission, which established a specialized subgroup in 2024 to evaluate housing policies. Previous reports highlighted the need for 18,000 affordable housing units by 2025, a goal unmet due to limited construction of affordable or workforce housing. The PILOT program addresses this gap by offering financial incentives to developers, complementing other initiatives like the Housing Choice Voucher Program and USDA Housing Preservation Grants.
The following table summarizes key aspects of the PILOT program:
Aspect Details Program Name Payments in Lieu of Taxes (PILOT) Program Eligibility Criteria 90% of units affordable to households earning ?60% of area median income ($98,000) Application Process Annual, competitive process for developers Funding Mechanism Tax reduction, not direct payments, to subsidize affordable housing costs Purpose Increase affordable housing in Charles County, address housing crisis Next Steps Refine criteria, provide updates in future meetings, potential public hearing
Potential Benefits and Concerns
The PILOT program could significantly boost affordable housing in Charles County, making homeownership and rentals more accessible for low- and moderate-income families. By reducing developers’ tax burdens, the county encourages projects that might otherwise be unfeasible. However, some may argue that long-term tax reductions could strain county resources, particularly if multiple projects are approved. The competitive selection process aims to mitigate this by prioritizing high-impact developments.
Community Role in Shaping the Program
As the workgroup continues its efforts, resident engagement will be critical. Future public hearings will allow community members to voice support or concerns, ensuring the program meets local needs. For example, residents may advocate for stricter affordability criteria or express concerns about funding allocation. The Commissioners’ commitment to transparency ensures that affordable housing in Charles County remains a collaborative effort.
In conclusion, the proposed PILOT program represents a significant step toward addressing the housing affordability crisis in Charles County. The county aims to create a sustainable model for affordable housing development by incentivizing developers and streamlining the application process. Residents are encouraged to stay engaged through official channels and participate in upcoming discussions to shape this vital initiative.