For any renter, being advised of an upcoming large rent increase can be a gut punch. Montgomery County, Maryland’s new rent stabilization law is now in effect.
Tuesday, the County Council adopted the regulations that allow Bill 15-23, which was approved a year ago, to be implemented.
Under the new law, the most a landlord is allowed to raise rent is 6%, or the rate of inflation plus 3%, whichever is less.
🎉 HUGE NEWS: Rent stabilization is now effective and enforceable in Montgomery County!
THANK YOU to the many residents, community groups, local advocates, and labor unions who worked so hard to make this day a reality!
I am so proud of the work we’ve done together! pic.twitter.com/U0e2mFZmXU
— Kristin Mink (@KristinMink_) July 23, 2024
Newly-constructed rental units are exempt from the cap for 23 years as the county seeks to build 31,000 housing units by 2030.
Council member Natali Fani-Gonzalez, who co-sponsored the bill with Sidney Katz, called the approval “a great day for Montgomery County renters.”
“No longer will they have to fear exorbitant rent increases as they strive for a better life for their families,” Fani-Gonzalez said in a statement. “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.”
Buildings that have been designated by the county as “troubled” or “at risk” due to code violations, will have to get county approval for any rent increase, which must be needed to cover costs to make the unit more livable.
Landlords can apply for a “fair return” increase that’s above the rent stabilization limit if they can demonstrate the increase is needed to maintain profitability after substantially increased operating costs, or to pay for substantial renovations and capital improvements.
“Housing costs continue to skyrocket in Montgomery County and across the region,” said Council member Evan Glass. “The approval of these regulations balances our need to protect renters today while continuing to build housing for improvement.”
After last year’s bill passage, details regarding implementation had to be written by the county’s Department of Housing and Community Affairs. On Tuesday, the council approved those regulations.
“We cannot have stable communities without stable homes, and we cannot have stable homes without stable rents,” said Council member Will Jawando, in a statement. “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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