Submitted by: David Cristeal
Submitting Department: Community & Economic Development
Agenda Section: Discussion
Item Title:
title
Rent Stabilization Ordinance
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Suggested Action:
recommendation
Discussion
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Summary Background:
The City drafted a Rent Stabilization Ordinance to help tenants remain in their homes by reducing monthly rent increases calibrated to be lower than market-rate (increases). The draft Ordinance was then discussed at the September 16, 2024, meeting.
Feedback from CASA of Maryland was supportive of the draft Ordinance while feedback from the Apartment and Office Building Association (AOBA) was not supportive (see attachments). Additional feedback from developers after the September 16 meeting was also not supportive of the draft Ordinance.
Since the September 16, 2024, Council meeting, Prince George's County's adopted rent stabilization Bill, CB-055-2024, became effective on October 17, 2024, by setting rent increases from that date until June 30, 2025. Rent increases throughout the County, including the City of Hyattsville, will be limited to 6%.
The City's draft Ordinance and the County's adopted legislation are similar in most ways but differ in 2 key areas that impact how many rental units are covered and the level of rents charged. In summary, the City's draft Ordinance, if adopted in its current form, covers more rental units (2,749 compared to 2,245) and would result in lower rents (3.4% vs 6%).
As rent stabilization would be a new program for the City, it will take time to set it up and educate affected stakeholders - tenants and property owners/landlords. This process would also be comparable to what Prince George's County is currently undertaking (adopting rent stabilization legislation and then taking approximately 18 months to fully implement it).
Next Steps:
For discussion on 11/18. Staff anticipate bringing this item back for further consideration at a future meeting.
Fiscal Impact:
Not to exceed $2...
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