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Montgomery County residents discuss rent stabilization bills

There are two bills before the county council that aim to stop the practice of rent gouging.

ROCKVILLE, Md. — Montgomery County residents voiced their opinions about two competing rent stabilization bills at two hours-long meetings Tuesday.

In two separate public hearing sessions, residents discussed the contents of Bill 15-23 and Bill 16-23, which is also known as the “H.O.M.E. Act” bill.

The first bill would cap rent increases in the county at 8% in addition to the consumer price index. It would also permit certain rental increases to fund capital improvements and require landlords to submit annual reports regarding rents.

The latter bill, which was sponsored by Montgomery County Councilmember Will Jawando, would prohibit rent increases of more than 3%. It would also establish an excise tax for vacant rental units and specify the use of certain tax revenues for the acquisition of affordable housing, among other things.

Both pieces of legislation would also provide exemptions for certain buildings from rent stabilization requirements.

Jawando said it was time for the council to act on the issue of rent increases in the county.

“It’s not just enough to pass something,” he said. “We have to pass something that will actually keep people in their homes and allow landlords to have a fair return.”

Supporters and opponents of both bills spoke at hearings located in the county council building Tuesday afternoon. One hearing started at 1:30 pm and lasted for an hour and a half. The other hearing started at 7 pm.

Gaithersburg resident Lindsay Bouie testified she thinks her family will be able to handle the 8% rent increase they just learned will impact their property, but she’s worried many of the other families in her apartment complex may not.

“What about all the value we lose if we just look the other way while hundreds of low-income families quietly move away because they can’t afford the rent?” she said.

Another Montgomery County resident, Marie Ndip, said she is feeling hopeless as she can’t afford the four percent rent increase that has now gone into effect for her home.

“Finding a new affordable home in Montgomery County has proven to be extremely difficult,” she said.

Still, some people are concerned rent control and stabilization measures could hurt Montgomery County and its small landlords.

“Rent regulations have a well-documented history of negatively impacting the supply of housing,” said Brian Anleu of the Apartment & Office Building Association.

Lily Goldstein, of the developer JGB Smith, said her firm is worried rent caps could hurt investment too.

“Housing providers will simply have to forgo routine maintenance and capital investments leading to a potential disaster and undermining our shared goal of safe and affordable housing,” she said.

But Jawando disagreed with that assertion.

“We also allow for a ten-year exemption on new construction,” he said. “You can charge whatever you want when you build it and then whatever you want, increase-wise, for ten years. That is not de-incentivizing new construction.”

Jawando said both bills probably wouldn’t be voted on until June.

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