By Adam Pagnucco.
Earlier today, the county council’s Planning, Housing & Parks (PHP) Committee amended and voted in favor of one of two rent control bills introduced in the spring. The issue now moves to the full council.
The two rent control bills at the council are 15-23 (Anti Rent Gouging Protections) and 16-23 (Rent Stabilization/HOME Act). The anti-gouging bill is co-sponsored by a majority of the council, including Council Members Gabe Albornoz, Marilyn Balcombe, Andrew Friedson, Natali Fani-Gonzalez, Sidney Katz and Dawn Luedtke. The HOME Act is co-sponsored by Council Members Will Jawando and Kristin Mink and is supported by County Executive Marc Elrich and a host of progressive groups. The HOME Act is the stronger of the two bills. I compared the provisions of these bills to other rent control regimes in the region back in March.
The committee, composed of Andrew Friedson (chair), Natali Fani-Gonzalez and Will Jawando, added the following four amendments to the anti-gouging bill before approving it. All were proposed by Fani-Gonzalez.
1. Capital improvements qualifying for a rent surcharge were defined as including those required by federal, state or county law. This was adopted unanimously.
2. Fani-Gonzalez wanted to replace the exemption for single family homes and condos with an exemption for units owned by people or corporations who own just one rental unit. Friedson preferred to trigger an exemption at two units. Jawando preferred no exemption. Fani-Gonzalez ultimately agreed with Jawando and they stripped the exemption for single family homes and condos 2-1 with Friedson voting against.
3. The exemption for “financial hardship” was replaced with a provision allowing landlords to petition the county for a “fair return.” The definition of fair return and any implementing formula would be subject to county regulation to be approved by the council. This was adopted unanimously.
4. Fani-Gonzalez proposed changing the allowable increase from CPI plus 8 points to CPI plus 3 points with a cap of 6 percent. Jawando countered with 2 plus 2. Fani-Gonzalez replied, “I compromised, Will. Don’t push it.” Jawando ultimately agreed to vote for Fani-Gonzalez’s motion but said he would try to get the rate lowered at the full council. It passed 2-1 with Friedson voting against.
Natali Fani-Gonzalez’s movement fundamentally shifted the direction of the rent control debate.
Council Member Sidney Katz could not vote as he is not a member of the committee but he said he could support the motion to lower the allowable rate, stressing the need to get to 6 votes.
Council Member Marilyn Balcombe said she could not support Fani-Gonzalez’s proposal on the rate. Like Katz, she is not a member of the committee and could not vote. She is a co-sponsor of the anti-gouging bill and now her vote is in question.
Jawando made a motion to cover vacant units with rent control as is present in his bill. Friedson and Fani-Gonzalez opposed it and Jawando withdrew it. Jawando made a motion to address troubled properties through regulations, which passed unanimously.
While the anti-gouging bill, rather than the HOME Act, is now the vehicle for rent control, it is being rapidly strengthened through the legislative process. The former bill at this moment has allowable rates of CPI plus 3 points with a cap of 6 and no exemption for single family homes or condos. Jawando appears emboldened and could very well push for more changes at full council. As it is, the amended bill passed on a 2-1 vote with Jawando and Fani-Gonzalez voting yes and Friedson voting no. As a result of its amendments, the committee did not bother to formally consider the HOME Act.
I have been anticipating a crack in the six-member majority supporting the weak rent control bill and I witnessed it today. Both Fani-Gonzalez and Katz parted ways with their four co-sponsoring colleagues in supporting lower allowable rates. Waiting in the wings are three other council members – Evan Glass, Laurie-Anne Sayles and Kate Stewart – who have not co-sponsored either bill. Stewart has previously laid out her positions and they seem achievable through amendments and compromise. Deal making between these five plus Jawando, Mink and County Executive Marc Elrich could more than make up for any lost votes among the anti-gouging bill’s original supporters.
This council member had a good day.
Jawando’s HOME Act won’t pass but rent control advocates should nevertheless be optimistic. They are on the verge of getting a fairly tough version of rent control passed in Montgomery County.
Friedson said, “We essentially amended the anti-gouging bill to look very similarly to the HOME Act.”
Indeed.