Per Montgomery County: From the Office of Councilmember Will Jawando
Montgomery County Councilmember Will Jawando (At-Large), applauded the County Council for passing renter regulations that balance the need to protect tenants along with providing landlords economic tools to maintain and build housing. Montgomery County is the first County in Maryland to established a permanent rent stabilization at a maximum cap of six percent.
“If we want to maintain four of the top 10 most diverse cities in the country, then we need to protect tenants,” said Councilmember Jawando. “They deserve the same stability as homeowners with a 30-year mortgage.”
Councilmember Jawando stressed the importance of advancing rent stabilization and its impact on residents, particularly the nearly 40 percent of Montgomery County residents who rent who are disproportionately people of color. “Stability and predictability are essential for our community. When families are evicted or are forced to move because the rent is unsustainable, it destabilizes our schools and uproots communities. This amended bill will protect our most vulnerable renters but it will also help all residents seeking affordable rental housing.”
The compromise bill, 15-23 Rent Stabilization, prevents rent gouging, reduces displacement and creates cost predictability for tenants and landlords by:
- Setting an annual rental increase allowance of CPI-U plus three percent, capped at a maximum of six percent;
- Directing the Department of Housing and Community Affairs (DHCA) to issue regulations for properties designated as “troubled” or “at-risk” in the County;
- Directing DHCA to establish guidelines for fees and fee increases for regulated rental units;
- Establishing provisions for the landlord to increase the rent above the cap and apply a surcharge for renovations; and
- Defining a process for landlords to bank unused rental increase allowances.
The bill passed Council 7 to 4 and it will go into effect after DHCA regulations are approved.