By Adam Pagnucco.
In another sign of growing support for strict rent control legislation, Council Member Laurie-Anne Sayles has come out in favor of a rent cap of 5 to 6 percent, a 15-year exemption for new construction, the application of rent control to vacant units and fair return language. Sayles has not co-sponsored either of the two rent control bills introduced in the spring, but she stated her positions in a memo distributed to council members at yesterday’s meeting of the Planning, Housing and Parks committee.
Sayles’s memo is reprinted below.
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CONFIDENTIAL MEMORANDUM
June 26, 2023
TO: Members of the Planning, Housing and Parks Committee
FROM: Laurie-Anne Sayles, Councilmember At-Large
SUBJECT: Rent Stabilization Amendment
Based on conversations with various stakeholders and in reviewing correspondence from constituents and other interested parties, I have found that the double-digit increases proposed under the Anti-Rent Gouging bill are far too high. Additionally, I am also concerned that the 3% cap in the HOME Act could cool the housing market.
To that end, I support a cap of around 5% or 6%. It would be unreasonable to increase the cap beyond that, particularly due to the large number of our residents that are rent burdened. While this number is not ideal, I believe it is a good middle ground that balances the needs of developers with renters.
I would like to express my support for several other provisions that should be included in the final bill. An appropriate exemption to this cap for new buildings should be 15 years, as stipulated in the Anti-Rent Gouging bill, since it provides a reasonable amount of time to pay back investors before being impacted by the cap.
Another primary concern of mine is vacancy control. I am very concerned that, without holding the base rent from one tenant to another, we will only incentivize landlords to not renew leases in an attempt to drive up their income, while essentially evicting residents.
Finally, the fair use return language discussed in the previous committee session should be included in the final version of the bill, as it is a good balance to the needs of both renters and landlords.
I welcome my colleagues’ suggestions to the points I have raised in this memo and look forward to discussing this when it comes to the full Council for discussion.
Copy to:
Members of the County Council
County Executive Marc Elrich
