For Immediate Release: Tuesday, July 18, 2023
The bill limits annual allowable rent increases to CPI plus three percent with a cap of six percent
The Montgomery County Council voted (7-4) today to enact Bill 15-23, Rent Stabilization, which establishes maximum allowable rent increases to the lesser of the local annual Consumer Price Index for All Urban Consumers (CPI-U) plus three percent or six percent of the base rent.
The legislation, sponsored by Councilmembers Natali Fani-González and Sidney Katz, takes a balanced approach by stabilizing rents in Montgomery County while also ensuring landlords can earn a fair return on their investment. Keeping in mind the County’s need to build 31,000 housing units by 2030, the legislation exempts newly built units for 23 years.
“Everyone should have a safe, stable place to call home regardless of how much money they make,” said Councilmember Fani-González. “I'm proud to live in a County that cares for families and our entire workforce, not only with words but with legislation that protects the most economically vulnerable to work and live in Montgomery County. While the debate on this legislation has been fierce, my approach was to bring people together to pass a meaningful and workable solution. We have done just that.”
“Rent stabilization is a complex and emotionally charged issue, balancing the needs of our tenants in providing stable housing protection while allowing landlords the flexibility to invest and enhance in their properties within the County,” said Councilmember Katz. “I am pleased the Council found the right compromise and path forward to enact this bill.”
“Today, Montgomery County has taken an important step forward by establishing permanent rent stabilization,” Councilmember Will Jawando said. “The Council has balanced the need for strong renter protections and important incentives for landlords and builders. I appreciate my colleagues’ dedication to working on a compromise bill that is responsive to the needs of our communities. We now have a rental framework that creates stability and predictability for renters and landlords.”
“It is an honor to stand with my colleagues on this historic day, as we pass rent stabilization in Montgomery County, Maryland that will provide tenants with housing stability,” said Councilmember Kristin Mink. “This couldn’t have happened without the voices of tenants and advocates who stood up for their families and neighbors.”
"I’m glad we could compromise on Bill 15-23 after a tough, deliberative process with lots of stakeholder input. While this bill is not perfect, it balances the needs of renters and landlords by limiting rent increases and increasing our supply of affordable housing,” Councilmember Laurie-Anne Sayles said. “I will continue to engage with renters and landlords to ensure that the implementation of Bill 15-23 goes smoothly and will be ready to adapt, should there be significant changes or unintended consequences of this legislation. I also look forward to increasing our supply of affordable housing with the passage of Councilmember Friedson's and my Opening Pathways to Economic Necessity (O.P.E.N.) ZTA."
Councilmembers Gabe Albornoz, Marilyn Balcombe, Dawn Luedtke and Vice President Andrew Friedson voted against the bill as amended.
“Today, our County started down a very complicated path of ensuring much needed stability for our renters at the very likely expense of much needed future housing,” Councilmember Albornoz said. “While the public narrative unfortunately framed this as tenant versus landlord, that is simply not the case. This did not have to be a zero-sum game. We need to protect our renters from rent gouging by unscrupulous landlords. The original language introduced in Bill 15-23 was a very measured, true compromise that would have achieved that. The outcome today concerns me greatly and we will need to make more difficult decisions to rebalance the marketplace in order to attract the crucial new housing we desperately need.”
“The rent control approved by a majority of the Council today – the strictest of any major jurisdiction in the region – will not make rents more affordable and will likely only exacerbate our housing issues by disincentivizing new housing supply,” said Councilmember Dawn Luedtke. “Further, our County now faces real risks of existing rental housing coming off the market and decreased property tax revenue given this Bill’s uniquely stringent approach to regulating a critical part of our economy. I supported the original Bill 15-23 as a needed consumer protection measure to protect tenants from double-digit rent increases combined with additional County investment to preserve and build new affordable housing units. Unfortunately, I’m afraid the final version of the bill severely misses the mark when it comes to balancing tenant protections and housing providers’ ability to create new units and adequately maintain existing units.”
Bill 15-23 provides exemptions from rental increase restrictions for certain units, including newly constructed units that have been offered for rent for less than 23 years, religious facilities, licensed assisted living facilities or nursing homes, among other exemptions.
The legislation permits certain rental increases to fund capital improvements, requires landlords to comply with existing requirements for annual reports regarding rents and generally amends County law concerning rents and landlord-tenant relations.
The Planning, Housing and Parks (PHP) Committee held two work sessions on June 15 and June 26 to review and amend Bill 15-23. The legislation will be effective in 91 days and becomes operational and enforceable once regulations to implement the bill are drafted by Montgomery County’s Department of Housing and Community Affairs and transmitted by County Executive Marc Elrich to the Council for review and approval.
More information can be found in the staff report. Today’s Council vote on Bill 15-23 can be viewed here.
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