Government Neighborhoods  

Council Approves Rent Stabilization

Montgomery County Councilmembers on Tuesday approved rent stabilization, capping allowable rent increases to whatever the current consumer price index is plus 3%, with a cap of 6% of a tenant’s base rent.

New building units are exempt for 23 years.

The goal is to prevent large rent increases, which some tenants have experienced since the end of pandemic regulations.

The law actually went into effect on October 23, 2023. Tuesday’s action allows the Department of Housing and Community Affairs (DHCA) to enforce it beginning Wednesday.

According to bill sponsors Councilmembers Natali Fani-González and Sidney Katz, this legislation strives to ensure that landlords earn a fair return on their investments.

“Today is a great day for Montgomery County renters,” said Fani-González. “No longer will they have to fear exorbitant rent increases as they strive for a better life for their families. From the beginning, my approach on this difficult topic was to bring people together to pass a meaningful and workable solution for both tenants and landlords. ”

Council Vice President Kate Stewart praised the staff of the Department of Housing and Community Affairs for crafting the regulations.

“We face an unprecedented housing crisis in terms of the availability and affordability in the County, and as we address the crisis, our goals of ensuring stable, safe, and affordable homes must be at the forefront,” she said.

Councilmember Laurie-Anne Sayles noted that the new rent limits “a compromise that balances the needs of renters, landlords and developers. I remain committed to revitalizing our economy, which includes accelerating the development of more affordable housing so people can continue to live, work, and thrive in our county.”

“I hear from residents every week facing unaffordable and unreasonable rent increases, including one facing a 20 percent increase on August 1st,” said Councilmember Kristin Mink. “Getting this done was urgent.”

Council President Andrew Friedson expressed reservation. “I still have significant concerns that we have gone a little too far here in terms of what that could mean to the quality and quantity of housing stock we have in Montgomery County.”

David Stein, newly elected president of the Montgomery County Education Association praised the new legislation.

“As educators, we see on a daily basis how our students’ living conditions impact their ability to succeed in school, and we see this legislation as directly improving the lives of our students and their families, as well as the lives of many of our members.”

Also celebrating rent stabilization were Gino Renne, president of the Montgomery County Government Employees Union, UFCW 1994, and Travis Smith, executive director of SEIU 500.

The legislation also:

  • Requires buildings identified by the Department of Housing and Community Affairs as “Troubled” or “At Risk” properties to receive prior County approval for any rent increase, which must be necessary to cover the costs required to improve habitability.
  • Allows landlords to apply for an increase above the typical rent stabilization limit if they can show that such an increase would be necessary to maintain profitability after substantially increased operating costs or to pay for substantial renovations and capital improvements.
  • Regulates fees that landlords can charge tenants to ensure that they are reasonable and necessary.

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