For Immediate Release: Tuesday, July 23, 2024
Implements Bill 15-23, Rent Stabilization, which caps annual allowable rent increases to CPI plus three percent with a cap of six percent, exempts newly built units for 23 years
ROCKVILLE, Md., July 23, 2024—Today, the County Council approved Executive Regulation 2-24, Landlord-Tenant Relations - Rent Stabilization. Adoption of the regulation allows Bill 15-23, Rent Stabilization law to go into effect.
In July 2023, the Council approved Bill 15-23 to prevent excessive rent increases for regulated rental units. Under the law, the maximum allowable rent increase is 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, took 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.
This legislation also requires the adoption of regulations before becoming effective. The regulations include:
“Today is a great day for Montgomery County renters,” said Councilmember Natali 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. Through the deliberative work of my colleagues on the Council, County Executive Elrich, the Department of Housing and Community Affairs and stakeholders on all sides, we have done just that.”
"As the Councilmember representing the district with the highest number of multi-family apartment buildings, I appreciate the thoughtful work of the Department of Housing and Community Affairs in writing these regulations and look forward to the implementation of which many residents in our community have been waiting," said Council Vice President Kate Stewart. "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. Today, we take a huge leap forward in achieving our goals."
“Thank you to the many advocacy groups, associations, municipalities, and the County Executive for sharing feedback on the rent stabilization regulations," said Councilmember Laurie-Anne Sayles. "I am glad that we could come to 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.“
“Housing costs continue to skyrocket in Montgomery County and across the region. Rent stabilization is one tool to address housing affordability in our community,” said Councilmember Evan Glass. “The approval of these regulations balances our need to protect renters today while continuing to build housing for tomorrow.”
“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. “As these urgently needed protections go into effect, I’m grateful to the many community members who advocated tirelessly throughout the drafting and amendment process for the passage of strong legislation.”
“We cannot have stable communities without stable homes, and we cannot have stable homes without stable rents,” said Councilmember Will Jawando. “This legislation is a crucial step towards achieving that stability in our rental housing, and I am so glad it will finally be implemented. By protecting our most vulnerable renters from unsustainable rent increases, we are investing in the long-term health and prosperity of our entire County.”
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Release ID: 24-276