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 has 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). Rent stabilization is one of four tools that were identified as a City priority in the 2021 Housing Action Plan. This tool would be particularly beneficial to helping low-income tenant families maintain their current housing. However, rent stabilization helps all tenants, regardless of their income, who would occupy licensed rental units covered by the Ordinance if adopted by the City Council.
The City examined the rent stabilization tool in more detail in the 2023 Rent Stabilization Study. The City Council then directed the City's Attorney to draft a rent stabilization ordinance that reflected Council desires and many of the Study's recommendations. In 2024, the City Council and staff reviewed a first draft of the rent stabilization Ordinance and is now ready to obtain community feedback in advance of further City Council action.
Additionally, and as anticipated, Prince George's County adopted a rent stabilization Bill, CB-055-2024 on July 16, 2024. 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 and would result in lower rents.
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 stabil...
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