Montgomery County Council Approves Rent Stabilization Bill

MONTGOMERY COUNTY, MD — The Montgomery County Council voted Tuesday in favor of a rent stabilization bill that will cap rent hikes as a way to protect tenants from skyrocketing annual rent increases.

The legislation, Bill 15-23, will limit annual rent increases to 3 percent plus the measure of inflation consumer price index, or 6 percent, whichever is lower. Newly built rental units would be exempt from the restrictions for 23 years, according to the bill.

Montgomery County is the first county in Maryland to establish a permanent rent stabilization at a maximum cap of six percent.

The county council passed the legislation to limit rent increases in a 7-4 vote. Councilmembers Natali Fani-González, Will Jawando, Sidney Katz, Kristin Mink, Laurie-Anne Sayles, Kate Stewart and Council President Evan Glass voted in favor of the legislation. Voting against the bill were Councilmembers Gabe Albornoz, Marilyn Balcombe, Dawn Luedtke and Council Vice President Andrew Friedson.

Jawando stressed the importance of advancing rent stabilization and its impact on residents, particularly the nearly 40 percent of Montgomery County residents who rent.

“This a proud day,” Jawando said. "It’s going to protect and provide stability for our residents."

The legislation will go into effect in 91 days and will be enforceable after Department of Housing and Community Affairs regulations are approved.

“Income has not kept pace with rising rent costs, but this bill helps empower renters and their families to afford their homes and thrive in Montgomery County. Families deserve to stay in Montgomery County where they call home, and now they will be,” Fani-González said in a statement.

Fourteen amendments were proposed during the discussion. The council voted against an amendment that would have increased the cap on rent increases from 6 percent to 9 percent. The council also voted against an amendment put forward by Albornoz to sunset the legislation after five years. Since this amendment did not pass, the cap has no end date.

Aobornoz said he believes the bill will stifle housing development projects in the county that "everyone agrees we need," WUSA9 reported.

CASA, an immigrant advocacy organization, welcomed the council's passage of the bill.

“This rent stabilization bill is a victory for every renter who shared their voice on behalf of the 400,000 renters in Montgomery County,” said Alex Vazquez, CASA’s lead organizer for Montgomery County. “Montgomery County has limited housing, which used to mean landlords had unfettered power to increase rents as they pleased. Now the power is back in the hands of renters.”