The Montgomery County Council passed a rent stabilization measure limiting annual rent increases to CPI plus three percent with a cap of six percent.
Earlier this week the Montgomery County Council voted (7-4) to enact Bill 15-23, Rent Stabilization, which establishes maximum allowable rent increases to 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. This act is just the latest example of counties moving to ensure access to affordable housing.
Bill 15-23 provides exemptions from rental increase restrictions for certain units, including newly constructed units that have been offered for rent for less than 23 years, religious facilities, licensed assisted living facilities or nursing homes, among other exemptions.
The legislation permits certain rental increases to fund capital improvements, requires landlords to comply with existing requirements for annual rent reports, and generally amends County law concerning rents and landlord-tenant relations.
The Planning, Housing and Parks (PHP) Committee held two work sessions on June 15 and June 26 to review and amend Bill 15-23. The legislation will be effective in 91 days and becomes operational and enforceable once regulations to implement the bill are drafted by Montgomery County’s Department of Housing and Community Affairs and transmitted by County Executive Marc Elrich to the Council for review and approval.