Planning and Development Review Process

Minimum Threshold and Percentage Required

The requirement to provide a certain percentage of Moderately Priced Dwelling Units (MPDUs) applies to any new development in City of Annapolis with 10 or more units. This requirement applies even if the development is phased in over time. 

The percentage of MPDUs required is 15% of the total number of units for rental properties and 15% of the total number of units in the development for sale properties. Developments that do not receive a density bonus are still required to provide the required number of MPDUs.  The City of Annapolis Planning and Zoning Department (P&Z) sets the actual percentage and number of MPDUs required as part of the review process for the project.   

Required Agreements for Development Review Process - The Agreement to Build MPDUs and Declaration of Covenants

There are two main agreements the Applicant must execute with the Department of Planning and Zoning (P&Z) during the development review process, the Agreement to Build Moderately Priced Dwelling Units (20.30.040 Application and inclusionary housing plan) and The Declaration of Covenants.  Both documents are required before the city will approve a record plat.   

Once P&Z approves the MPDU requirement part of the development review process, the Applicant must execute an Agreement to Build Moderately Priced Dwelling Units with P & Z.  This agreement must be executed before the final record plats are recorded in the Anne Arundel County Land Records. 

Along with the standard form document, the Agreement to Build must include:   

  • a listing of the individual addresses (if available) of the MPDUs and the market rate units; 
  • a copy of the final approved site plan (8 ½ “x 11” or 8” ½ x 14” – reduced) with the MPDUs clearly highlighted.   

Assuming the Applicant submits a complete and acceptable Agreement, P & Z will make every effort to return the executed document within 7 to 14 days so that the Applicant may obtain building permits.   

The Agreement to Build is the document that enforces the development requirements of 20.30.040 of Chapter 20 MODERATELY PRICED DWELLING UNITS.  Among other things, this agreement must require that:  

  • a specific number of MPDUs must be constructed on an approved time schedule; 
  • in single-family dwelling unit subdivisions, each MPDU must have two or more bedrooms; and 
  • in multi-family dwelling unit subdivisions, the number of efficiency and one-bedroom MPDUs each must not exceed the ratio that market-rate efficiency and one-bedroom units respectively bear to the total number of market-rate units in the subdivision. 

Additionally, the Agreement requires that the construction phasing requirements for building MPDUs comply with the law so that:  

  • MPDUs are built along with or before other dwelling units; 
  • no or few market rate dwellings are built before any MPDUs are built; 
  • the pace of MPDU production reasonably coincides with the construction of market rate units; and 
  • the last building built must not contain only MPDUs.
  • Please refer to Chapter 20 to review the full requirements of the law. 

The Declaration of Covenants is signed at the same time as the Agreement to Build and is recorded once the Offering Agreement (See Sales and Rental Process) is executed and prior to sale.  

Amendments to the Agreement to Build

If at any time the MPDU requirement for a development changes (due to a site plan amendment, for example), or if the construction schedule contained in the agreement changes, the Applicant must notify P & Z and  request an amendment to the Agreement to Build to reflect the changes.  Failure to do so may result in sanctions ranging from "stop work" orders to civil fines.