Developers building in Laurel will have to sell some new homes cheaper, under an updated rule that the Laurel City Council approved last week.

 “We’re setting the standards in Prince George County,” said Laurel Mayor Keith Sydnor as he voted to support the measure, “not only looking out for renters, we’re also looking out for people buying homes.”

Prince George’s County does not require developers to sell homes at lower prices. Laurel is the only city in the county with its own zoning authority, which gives it the ability to make rules for developers.

In Laurel, any home builder developing 20 or more houses or condominiums must now offer at least 8% of those homes at a price no higher than 70% of the market — so a house that would cost $500,000 would cost $350,000. The rule would only apply to new construction homes.

Buyers who earn no more than 80% of the Area Median Income will be eligible to purchase the homes. Area Median Income is set for the county by the federal government. It varies by household size and changes every year. For a family of four, 80% of the Area Median Income is currently $131,120.

Laurel’s new affordable housing rule is an update of a 2018 rule. It clarifies the 70% price requirement, makes the rule apply to developers of 20 homes rather than 50, and allows slightly wealthier buyers to qualify for the homes. The prior version of the rule allowed only those with making 60% of Area Median Income to buy the homes.

About 438 homes are planned in the City of Laurel through various builders as of early 2025, but some council members questioned how effective the updated rule would be, given that the projects were planned before the requirements changed.

Council member Jeffrey Mills (Ward 2) said that he did not believe that there was development coming within city limits to which the new rule would apply.

“I just don’t see this time being used wisely,” he said.

At public hearings in Jan. 12 and Jan. 26, the only person to speak was attorney Edward Gibbs, representing Pulte Homes, developer of Corridor Center, who spoke in favor of the updated ordinance. A new exception in the ordinance will allow Pulte Homes to sell just 6% of homes as affordable housing, under a development plan that Laurel approved in 2025.

All council members voted to support the updated rule.