By Adam Pagnucco.
The rent control law passed by the Montgomery County Council last year has an important exception: it does not necessarily cover municipalities. The county has nineteen municipalities, and one of them – Takoma Park – already has a rent control law. Of the others, two – Rockville and Gaithersburg – have roughly 70,000 residents each and have substantial opportunities for housing construction. Will either of them pass rent control?
First, state law contains a broad (but not absolute) exemption preventing county laws from automatically applying in municipalities. In many cases, municipalities can choose to adopt a county law, not adopt it or pass an alternative version applying within their borders. This state law exemption is restated in both the Rockville City Code and the Gaithersburg City Code. So the fate of rent control in those cities will be determined by their respective city councils.
Last summer, Gaithersburg’s City Council came out hard against rent control. Recent elections do not seem to have disrupted its position on the issue. Rockville is the question. Recently, in response to a city resident’s request that Rockville adopt rent control, the city manager’s office sent this email in reply.
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Thank you for your email regarding your support for rent stabilization in the City of Rockville. Your message was received by all members of Mayor and Council, as well as key staff members who work on housing and related matters.
The Mayor and Council take the issue of housing affordability seriously. We recognize that, especially since the pandemic, residents of rental housing have been adversely impacted by rising rents and other economic pressures such as inflation. This is why, during the COVID-19 public health emergency, the City of Rockville placed a temporary limit on rent increases at 2.6%.
The City has also had a longstanding practice of establishing annual voluntary rent guidelines, an important tool to encourage landlords to maintain low and reasonable rental rates. The Mayor and Council recently set the 2024 voluntary rent guidelines at 2.6% (effective March 19, 2024). Since this is a voluntary standard, it is not a requirement that the City of Rockville can enforce.
The Mayor and Council have recently decided to bring agenda items on housing affordability and rent stabilization for their discussion on their future meeting agendas.
We sincerely appreciate your taking the time to write to the Mayor and Council to share your perspective on this topic, especially as a resident of Rockville. Mayor and Council and staff will keep your views in mind as we continue to work to address affordable housing in the City of Rockville. We look forward to hearing from you in the future.
Regards,
Mary Grace Sabol
Management Assistant / Community Support Advocate
City Manager’s Office
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Whatever this is, it’s not a hard no on rent control. At the very least, the issue is in play in Rockville.
A huge body of evidence shows that rent control laws damage housing supply. Montgomery County had rent control in the 1970s and abolished it because it led to rampant conversions of rental units into condos. In Takoma Park, rent control has prevented the construction of new multifamily rental buildings for more than 40 years. And some Montgomery County developers have already pulled back on housing projects despite the county law not even taking effect yet.
Will Rockville and Gaithersburg become islands of new housing supply? Or will one or both of them fall victim to the proven follies of rent control?