The Montgomery County Council passed new rent stabilization regulations Tuesday in a quick and unanimous vote, allowing a 2023 law to limit rent hikes to take effect immediately.
The law caps increases for eligible buildings at 6% or the rate of inflation plus 3%, whichever is less, according to the 2023 legislation passed by the council.
While the law was approved last year, the new rules were required for it be enforced.
The council approved the regulations created under an executive order by County Executive Marc Elrich. The new rules clarify the specifics of the county’s rent stabilization law to give landlords and tenants an understanding of what is required under the law.
“It will make a difference for families in apartments with rent stabilization, and hopefully people will see how it’s working and we will have the opportunity to expand and modify the law in the future, but for now this is a really important moment,” Elrich said in a Tuesday news release praising the passage of the regulations.
Elrich’s order focuses on addressing and refining regulations pertaining to several areas of the rent stabilization law, including:
- Rent increases for multi-year leases;
- Troubled or at-risk properties;
- Previously vacant properties;
- Limited surcharges for capital improvements;
- Fair return rent increases;
- Exemptions for substantial renovations; and
- The regulation of rental fees.
The council’s Planning, Housing and Parks Committee recommended the full council pass the proposed regulations.
“We cannot have stable communities without stable homes, and we cannot have stable homes without stable rents,” councilmember Will Jawando (D-At-large), who worked closely on the 2023 bill, said in a news release Tuesday. “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.”
Matt Losak, executive director of the Montgomery County Renters’ Alliance, said in an interview Tuesday that while the new regulations didn’t contain everything the nonprofit organization wanted, he generally sees this as a huge victory for renters.
“The best part of it is that we are not going to see anybody gouge rents over 6%. That’s the most important thing,” Losak said. “That’s progress, and it’s also a recognition by the council that the culture is changing.”
Losak said he hopes the council will work on additional regulations to support tenants in the future.