Councilmember Jawando Applauds PHP Committee for Advancing Framework for Permanent Rent Stabilization

For Immediate Release: Monday, June 26, 2023

From the Office of Councilmember Will Jawando

Montgomery County Councilmember Will Jawando (At-Large), a member of the Planning, Housing and Parks (PHP) Committee, applauds the committee's work to advance strong compromise legislation to protect renters and support housing development. The PHP Committee amended Bill 15-23 - Landlord-Tenant Relations - Anti-Rent Gouging Protections and voted 2-1 to move the bill to the full Council. 

The compromise bill will keep renters in their homes by preventing rent gouging, reducing displacement, and creating cost predictability for tenants and landlords.

“Too many renters in our community are facing potential displacement or eviction as a result of exorbitant rent increases,” said Councilmember Jawando. “This legislation strikes the right balance between protecting renters and ensuring landlords can make a fair return. I appreciate Councilmember Natali Fani-González working with me and others to find common ground and consensus.”

On March 7, Councilmembers Jawando and Kristin Mink introduced Bill 16-23 - Housing Opportunity, Mobility, and Equity (HOME) Act that set the annual rent increase allowance at three percent, established vacancy regulations, and allowed landlords to request increases above the cap on an annual basis. Many critical elements from the HOME Act were incorporated into Bill 15-23 and recommended by the committee for passage by the full Council. 

Councilmembers Jawando and Fani-González (who is one of six sponsors of Bill 15-23) negotiated several key amendments to create a robust and fair framework for renters and landlords. As amended the legislation:

• Removes the exemption for single-family and condominium rental units;
• Establishes the annual rental increase allowance at the Consumer Price Index (CPI) plus three percent, capped at a maximum of six percent; Grants the Department of Housing and Community Affairs (DHCA) the ability to regulate rent increases for properties designated as "troubled" or "at-risk" in the County;
• Establishes a fair return provision to allow landlords the ability to increase the rent above the cap to ensure a reasonable return on their investment; and
• Establishes a process for landlords to apply a capital improvements surcharge for a limited period of time.

Several jurisdictions in Maryland have implemented temporary or permanent rent stabilization laws. Takoma Park (in Montgomery County) passed rent stabilization in 1981. The City of Mount Rainier (in Prince George’s County) passed rent stabilization in February 2023. The Prince George’s County Council passed a temporary rent stabilization law in March 2023. Montgomery County would be the first county in Maryland to establish a permanent rent stabilization law. 

“This compromise bill is a step towards thriving, diverse, and sustainable communities across Montgomery County. I urge my colleagues to take up this legislation at full Council before we break for summer recess."

You can watch the PHP Committee's worksession for this legislation here and access materials here.

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Release ID: 23-228
Media Contact: Michelle Whittaker 240-777-7972
Categories: Will Jawando