Montgomery County Maryland May Extend Rent Control Into 2023

Rent control continues to be a contentious issue with potentially devastating impact on existing and new housing, including much needed affordable housing.

As mentioned in a prior alert, the Montgomery County Council, at the request of County Executive Marc Elrich, has now introduced Expedited Bill 22-22. If enacted in its current form, this legislation will extend rent control in the county into 2023. The key elements of the current proposal are:

• The legislation was introduced July 12th and is scheduled for a public hearing July 26 at 1:30 p.m.
• The rent control limitations that began in 2020 will be continued into 2023.
• The maximum rent increase will be 4.4 percent.
• Rent increases above 4.4 percent will be prohibited for nine months after the effective date.
• The legislation is retroactive. Any increases above 4.4 percent must be rolled back to 4.4 percent.
• The retroactivity provision results in the rent control limitations extending more than nine months.
• This legislation does not apply to incorporated municipalities. Rockville and Gaithersburg had their own rent control provisions that have lapsed.

Much has been written about the adverse consequences of rent control, including an analysis this week in The Wall Street Journal.

Ballard Spahr attorneys in the Mixed-Use, Condominium, and Multifamily Development practice will continue to monitor any new legislation seeking to limit rent increases.

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