Frederick City Council weighs eliminating property taxes for 306-unit affordable housing project
Council members are considering whether to reduce city property taxes to zero for Joyfield at Wormans Mill, a 306-unit affordable housing development near Md. 26 and U.S. 15.
HERE'S WHAT WE KNOW
Joyfield at Wormans Mill would include 306 affordable apartments. Fifteen units would serve households below 50% of area median income. The rest would target households below 60% of area median income. The initial city proposal would cut property taxes from about $873 to $79 per unit. Council members are considering reducing the tax bill to $0. The agreement would last 40 years. The project includes a required $1.18 million pedestrian bridge over Md. 26. A council vote is expected next week.
Frederick City Council members are considering whether to eliminate city property taxes for a planned 306-unit affordable housing development at Wormans Mill Court.
The project, formerly known as Wormans Mill Court Apartments and now called Joyfield at Wormans Mill, is being developed by Standard Communities near Md. 26 and U.S. 15. The developer says the apartments are intended for working households facing high housing costs.
The discussion centers on a proposed agreement through the city’s Payment in Lieu of Taxes program, which can reduce property-tax obligations for qualifying affordable housing developments.
Fifteen of the apartments would be reserved for households earning less than 50% of the area median income, while the remaining units would target households earning below 60% of the area median income.
The city’s initial proposal would provide an annual tax credit of about $242,964, reducing the developer’s city property-tax burden from approximately $873 per unit to $79 per unit. The agreement would last 40 years.
Council members discussed going further and reducing that tax obligation to $0 per unit. City staff said current law allows the city to do that.
Several council members said the additional relief could help offset major costs attached to the development, including a $1.18 million pedestrian bridge over Md. 26 required as a condition of rezoning.
Standard Communities also told the council it has deferred 80% of its developer fee to help finance the project and related amenities.
The developer also raised concerns about delays in the city’s zoning and permitting process. According to the presentation, financing-closing costs that were expected to total $2.3 million in December 2025 are now projected to rise by about $1.16 million.
The City Council is expected to vote on the tax-credit agreement next week.
WHAT IT MEANS
The decision will determine how much financial support the city provides to one of Frederick’s larger planned affordable housing projects.
Supporters of the deeper tax reduction argue it could improve the project’s financial viability and help absorb infrastructure costs, while the council will also have to weigh the long-term value of giving up property-tax revenue in exchange for hundreds of income-restricted housing units.
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