ROCKVILLE, Md. — After a marathon, all-day session, the Montgomery County Council passed a rent-stabilization law, which capped the ability of landlords to raise rent by 3% plus inflation costs, maxing out at 6% per year. Inflation costs are measured through the Consumer Price Index.
The bill represents a major change for the approximately 400,000 Montgomery County renters, which make up nearly 40% of the total population.
"It's kind of surreal," said Councilmember Jawando just minutes after the bill was passed. "It's exciting - not just for me personally, but for the 400,000 residents who rent. I was one of them growing up here."
Even before the bill was finalized, supporters gathered for an afternoon news conference to celebrate what they considered a major victory for rent affordability.
“This legislation is incredibly important," said Councilmember Kristin Mink. "Incredibly impactful. It’s going to contribute greatly.”
The bill was a compromise, leaving neither side fully happy. Affordable housing advocates were initially calling for a cap of three percent, without the provision, relating to CPI. Others, who were worried about the chilling effect on development, called for a higher cap of nine percent or greater.
“It’s a tough day," said Councilmember Gabe Albornoz. "It’s a tough conversation.”
Albornoz was one of the lawmakers, who initially called for a higher cap. On Tuesday, he pitched an unsuccessful amendment that would have raised the cap to 9%
"We’ve tried to be nuanced and have a balanced approach," he said. "But at the moment it feels like it is not balanced. And my concern is that this will stifle development projects that everyone agrees we need."
It was a balancing act, as advocates like Matt Losak from the Montgomery County Renter's Alliance was calling for even greater restrictions. He said he supported maxing out the rent cap at 3%, rather than 6%
"We’re not thrilled with that," he said. "But we can live with it. It’s progress."
The bill also limited the amount that a landlord could increase fees. Lawmakers wanted to make sure the rent costs weren't just passed along as fees instead. Another provision limited how much a landlord could spike the rent after one tenant leaves. Advocates argued this provision was needed, so that landlords weren't incentivized to remove residents, so they could hike the rent for the next tenant.
Many amendments were proposed at the council meeting, which didn't wrap up until after 6 p.m., despite starting at 9 a.m.
One failed provision, proposed by Councilmember Albornoz would have created a sunset on the bill, lasting five years. Since this didn't pass, the cap has no end date.
Patricia Beckham, a renter from Silver Spring, said that these changes were welcome news for senior citizens like herself.
"I think I’ve had four rent increases in five years," she said. "And for me and other people on fixed incomes, that’s a lot of money.”