News reports published last week disclosed that the County Executive for Montgomery County, Maryland plans to encourage legislation imposing a 3 percent rent increase limitation for a period of “at least another six months.”
County Executive Marc Elrich announced the proposal on May 19 at the County’s annual Affordable Housing Conference in Bethesda. No legislation has been introduced to date.
Given the upcoming elections (six Council seats and the County Executive position), it is difficult to predict if and when any rent control legislation may be considered. There are County Executive and Council candidates on both sides of this issue, so the elections may have significant consequences. The County’s primary is Tuesday, July 19, 2022, and the general election is Tuesday, November 8, 2022.
As we previously reported, County Code § 29-54(a) requires landlords to provide tenants with written notice at least 90 days prior to increasing rent. While generally such rent caps are voluntary, the 0.4 percent cap that lapsed in May was mandatory. It is assumed that any new legislation limiting rent increases would be mandatory as well.
Ballard Spahr attorneys in the Mixed-Use, Condominium, and Multifamily Development practice will continue to monitor any new legislation seeking to limit rent increases. Should you have any questions, please feel free to contact us.
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