Last researched: September 21, 2026. Montgomery County introduced Bill 41-26 on September 15, 2026. The bill would change the County’s accessory dwelling unit rental-licensing rules by removing the owner-occupancy requirement and would create fee relief for qualifying affordable ADUs. It is not current law: the official Council record lists the bill as introduced, with a public hearing scheduled for October 6, 2026 at 1:30 p.m.
Homeowner takeaway: If you are planning an ADU today, continue using Montgomery County’s current owner-occupancy and licensing requirements. Bill 41-26 matters for future rental and affordability planning, but homeowners should not budget or structure ownership around its proposed changes until the Council acts and an effective date is confirmed.
Bill 41-26 at a glance
| Question | Verified status |
|---|---|
| Bill | Bill 41-26 — Landlord-Tenant Relations – Licensing Procedures and Fees – Accessory Dwelling Unit |
| Introduced | September 15, 2026 |
| Current status | Introduced; not enacted |
| Committee | Planning, Housing & Parks (PHP) |
| Public hearing | October 6, 2026 at 1:30 p.m. |
| Owner occupancy | Proposal would remove the ADU rental-license owner-occupancy requirement |
| Fee relief | Proposal would waive certain ADU-related fees when qualifying affordability conditions are met |
| Does it replace ZTA 26-06? | No. Bill 41-26 and ZTA 26-06 address different parts of Montgomery County’s ADU framework. |
What Bill 41-26 would change
The County Council’s official bill summary identifies two changes that matter directly to ADU owners. First, the legislation would remove the owner-occupancy requirement associated with accessory dwelling unit licensing. Second, it would establish a waiver of fees for ADUs that meet specified affordability requirements.
Those are rental-licensing and fee changes. They should not be confused with the separate zoning changes proposed in ZTA 26-06, which addresses issues such as where ADUs are allowed, size, setbacks, density treatment and parking. For the complete zoning transition, use our Montgomery County ADU Rules 2026 guide.
Owner occupancy: what applies today?
Montgomery County’s current ADU framework still uses an owner-occupancy condition for the ADU rental license. In practical terms, homeowners should not read the introduction of Bill 41-26 as permission for an absentee owner to rent both the principal dwelling and ADU under the proposed rule.
The correct planning approach is to separate current law from pending legislation. Until Bill 41-26 is enacted and its effective date is known, confirm the current Class 3 ADU licensing requirements with the Montgomery County Department of Housing and Community Affairs before relying on a rental-income model.
The affordable-ADU fee waiver could affect project economics
Bill 41-26 also proposes fee relief for qualifying affordable ADUs. That is potentially useful for homeowners considering a long-term below-market rental strategy, but it is not a general waiver of every ADU project cost.
Do not subtract proposed savings from a construction budget yet. The final legislation, affordability commitment, qualifying rent or income standard, duration, application procedure and exact fees covered all need to be checked in the enacted version and implementing guidance.
For current project budgeting, use the fees actually quoted by the County for your application rather than an anticipated Bill 41-26 waiver.
Bill 41-26 and ZTA 26-06 are separate
This distinction is easy to miss because both measures are moving during Montgomery County’s 2026 ADU transition.
| Measure | Main issue | Status as checked Sept. 21 |
|---|---|---|
| Bill 41-26 | Rental licensing, owner occupancy and affordability-related fee relief | Introduced Sept. 15; pending |
| ZTA 26-06 | Zoning standards including size, eligible zones, setbacks, density and parking | Pending; do not treat proposed standards as enacted |
A homeowner can therefore face two moving rule sets at once. A zoning amendment can change whether and how the physical ADU fits the property, while separate legislation can change how the completed unit is licensed or rented.
What homeowners should do before the October 6 hearing
- Use current rules for applications now. Do not apply Bill 41-26 as though it has passed.
- Confirm zoning separately. If your design depends on the proposed 75% size framework or other ZTA 26-06 changes, verify the currently effective zoning standard with DPS.
- Ask DHCA about the rental plan. If either dwelling will be rented, confirm the Class 3 licensing requirements that apply today.
- Keep proposed fee relief out of the base budget. Treat it as a possible future reduction, not committed project funding.
- Recheck after October 6. A public hearing is not enactment. The bill can proceed, change, remain pending or fail to advance.
Why this matters beyond investors
Owner-occupancy rules affect more than traditional landlords. They can matter when an owner moves temporarily, inherits a property, changes living arrangements, or wants flexibility over which dwelling is rented. Fee relief can also matter to homeowners considering an ADU specifically as a long-term affordable rental.
But the exact practical effect depends on the final text. This page will continue to track Bill 41-26 as a legislative measure rather than folding proposed provisions into the County’s current-law table.
Bill 41-26 timeline
- September 15, 2026: Bill 41-26 introduced. The official Council record lists its status as Introduced and assigns it to the Planning, Housing & Parks Committee.
- September 21, 2026: Status rechecked for this article; no enactment is shown in the Council’s bill record.
- October 6, 2026 at 1:30 p.m.: scheduled public hearing.
Related Montgomery County ADU planning
If you are trying to determine what you can build rather than tracking this specific bill, start with the Montgomery County ADU Rules 2026 page. It separates the existing zoning framework from ZTA 26-06 and covers size, parking, setbacks, permits and licensing. If you are unsure whether Montgomery County zoning controls your address, use the Maryland ADU Jurisdiction Finder first.
Primary sources checked
- Montgomery County Council — Bill 41-26 official legislative record
- Maryland Department of Planning — Accessory Dwelling Units
- Maryland Land Use § 4-504
Maryland ADU Guide is an independent research publication. This page tracks pending legislation and is not legal, zoning, tax, architectural, engineering or permitting advice. Proposed provisions can change before enactment.
What to do next
Start by finding the office that reviews your property. A mailing city or a county guide does not establish your parcel’s authority.
- Find Who Reviews My Property.
- Obtain your parcel identifier, survey, floor plans and utility records.
- Ask the reviewing office which current rules, supporting documents and approvals apply.
- Continue to your planning workspace.
Enable JavaScript to prepare a downloadable next-step brief. Planning guidance is not permit approval.