Montgomery County Rent Stabilization Law Now in Effect

The Montgomery County City Council this week unanimously passed new rent stabilization rules that immediately put limits on rent increases.

Montgomery County’s Bill 15-23, Rent Stabilization (PDF), passed in 2023 and limits rent increases for eligible buildings to six percent or inflation plus three percent, whichever is lower. Executive Regulation 2-24, Landlord-Tenant Relations—Rent Stabilization, was enacted under an executive order from County Executive Marc Elrich (PDF) and provides specific guidance on the requirements of the rent stabilization law to help landlords and tenants understand their legal obligations in Montgomery County, according to a county news release.

MoCo360 reported on Wednesday that while the law was approved last year, the new rules in the implementing decree are necessary for its enforcement.

“As a council member representing the county with the highest number of multifamily apartment buildings, I appreciate the thoughtful work of the Department of Housing and Community Affairs in writing this regulation and look forward to the implementation that many residents of our community have been waiting for,” said Kate Stewart, vice president of the council, in a press release. “We are facing an unprecedented housing crisis in terms of availability and affordability in the county, and as we address the crisis, our goals of ensuring stable, safe, and affordable housing must be paramount. Today, we take a huge step forward in achieving our goals.”

The new regulations were approved a week after the council implemented new tenant safety rules in response to the deadly February 2023 fire at the Arrive Silver Spring apartment complex in downtown Silver Spring.

“Every week, I hear from residents who are facing unaffordable and unreasonable rent increases, including one that will increase by 20 percent on August 1,” said Councilmember Kristin Mink. “As these urgently needed protections go into effect, I am grateful to the many community members who worked tirelessly to draft and amend the legislation.”

According to MoCo360, the purpose of Elrich’s decision is to address and refine regulations regarding several aspects of the Rent Stabilization Act, including:

• Rent increases in multi-year rental contracts;
• Problematic or risky properties;
• Previously vacant buildings;
• Limited allowances for capital improvements;
• Fair rent increase;
• Exceptions for major renovations; and
• The regulation of rental prices.

In addition, the legislation provides for a 23-year exemption for newly built homes.

“Housing costs continue to skyrocket in Montgomery County and the region. Rent stabilization is a tool to improve housing affordability in our community,” said Councilman Evan Glass. “The passage of this legislation balances our need to protect renters today with continuing to build housing for tomorrow.”

Matt Losak, executive director of the downtown Silver Spring-based tenant advocacy group Montgomery County Renters Alliance, told MoCo360 that while the new regulations didn’t include everything the nonprofit wanted, he overall sees them as a big win for renters.

“The best part is that we don’t see anyone pushing rents higher than 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.”

Photo: “View from Downtown Silver Spring 02” by Bohemian Baltimore is licensed under CC BY-SA 4.0. Montgomery County Graphic