MoCo Executive Marc Elrich Signs Rent Stabilization Bill Into Law

MONTGOMERY COUNTY, MD — Montgomery County Executive Marc Elrich signed a rent stabilization bill into law on Monday, making the county the first in Maryland to establish permanent rent stabilization with a maximum cap.

The purpose of the bill, according to county officials, is to prevent rent-gouging in the county. The bill, sponsored by Councilmembers Natali Fani-González and Sidney Katz, limits annual rent increases to 3 percent plus the measure of inflation consumer price index, or 6 percent, whichever is lower. Newly built rental units, though, would be exempt from the restrictions for 23 years.

At the bill signing ceremony, Elrich said he has been working on rent stabilization for almost 16 years, first as a councilmember and now as county executive.

"This bill is going to make an enormous difference for people," Elrich said. "There are going to be people who are going to be able to stay in their homes and have some security and have a sense of what their long-term costs are going to be."

The county council estimates that 40 percent of county residents are renters, and many of those renters struggle to pay their rent each month.

At Monday's press conference, Katz said that contrary to the bill's opponents, it will not stifle investment in housing. "We are saying, 'Please invest, we will work with you,'" he said.

READ ALSO: Montgomery County Council Approves Rent Stabilization Bill

Montgomery County will work to make the law a success so that other areas of Maryland and the rest of the country can look to the county as a place where rent stabilization worked, Katz said.

“This is an amazing day. We are the first county in the state of Maryland to enact permanent rent stabilization,” Councilmember Will Jawando said at the press conference.

"We will look back at this day and say, 'We created stability, not only for families, who are burdened, but we created stability in the housing market,'" Jawando said. "And we're going to keep building housing."

Councilmember Laurie-Anne Sayles said the bill balances the needs of renters and landlords by limiting rent increases and increasing the supply of affordable housing in the county.

"I will continue to engage with renters and landlords to ensure that the implementation of Bill 15-23 goes smoothly and will be ready to adapt, should there be significant changes or unintended consequences of this legislation," Sayles said.

Councilmembers Gabe Albornoz, Marilyn Balcombe, Dawn Luedtke and Vice President Andrew Friedson voted against the bill as amended.

“The rent control approved by a majority of the Council today — the strictest of any major jurisdiction in the region — will not make rents more affordable and will likely only exacerbate our housing issues by disincentivizing new housing supply,” Luedtke said on July 18, when the council voted to pass the bill.