By Adam Pagnucco.
The first bill has come due for the county’s new rent control law, and it will be paid by the taxpayers. That’s because County Executive Marc Elrich is requesting a special appropriation of $1,347,470 to pay for nine new positions to implement the law. And since the money was not contained in the county’s recently passed operating budget, it will come out of reserves.
In a memo to the county council, Elrich wrote the following:
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I am recommending a special appropriation to the FY24 Operating Budget in the amount of $1,347,470 for the implementation of the Rent Stabilization Bill 15-23 as passed by the County Council on July 18, 2023, and signed into law on July 24, 2023. Appropriation for the rent stabilization program will ensure the timely execution of this bill.
The Montgomery County Council set a six-month timeline to complete the promulgation of regulations and enforce the new rent stabilization program. This special appropriation is required to establish a new Rent Stabilization Office and information technology infrastructure essential for implementation of Bill 15-23. The funds will be utilized to hire personnel to manage the annual rent increase reporting requirements; enforce compliance with the rent stabilization law and regulations; manage tenant complaints; the application and appeals processes for the fair return, capital improvement, and substantial rehabilitation petitions; conduct community outreach; respond to service inquiries and troubleshoot service problems; and investigate and enforce remedies for noncompliance. In addition, the Department of Housing and Community Affairs must develop an online website related to all rent stabilization matters, including landlord petitions and tenant complaints, and a portal for landlords to report the mandated rent increase data.
I recommend that the County Council approve this appropriation request to the FY24 Operating Budget in the amount of $1,347,470 and specify the source of funds as General Fund: Undesignated Reserves.
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Of the $1,347,470, personnel accounts for $786,930 and operating expenses account for $560,540. It’s unclear how much of this will be ongoing expenses although it seems at least the personnel hires will be permanent.
The full memo is reprinted below.
