By Adam Pagnucco.
Below are the top ten stories on Montgomery Perspective in July 2023, ranked by page views.
1. Development Already Stopping Because of Pending Rent Control
3. “I Can Never Trust Them Again”
4. Mink Has Deleted Thousands of Tweets
5. Winners and Losers of the Rent Control Battle
7. Does MoCo Want to Kill its Real Estate Industry?
8. Gaithersburg Revolts Against Rent Control
9 (tie). Three Facts About MoCo Police Officers
9 (tie). Here is An Analysis I Want to See
Make no mistake – rent control was not only the top story of the month, it is absolutely one of the most significant events in the recent history of the county. We won’t fully understand its implications until the data on its impact becomes clear in coming years.
And we will have at least some of that data. Why do I say that? Because it is actually required by a new state law.
HB 151, passed by the General Assembly and signed by the governor last spring, requires landlords to provide written notices to tenants of any pending rent increases. Additionally, it requires local jurisdictions instituting permanent rent control to report multifamily building permits to the state. The language states in part:
(A) In this section, “local jurisdiction” means a county or a municipality.
(B)(1) This section applies to a local jurisdiction that adopts a local law to limit the rent increase that a landlord may charge a current tenant for a subsequent term without a gap in tenancy…
(D)(1) On or before January 31 of the second calendar year after a local jurisdiction adopts a local law for the purpose identified in subsection (B)(1) of this section, the local jurisdiction shall report to the General Assembly, in accordance with § 2-1257 of the state government article, on the number of new building permits issued by the local jurisdiction, by year, for multifamily dwellings intended to be used as rental properties:
(I) for the 2 years prior to enacting the local law; and
(II) since enactment of the local law.
(2) On or before January 31 of each year after the initial report required under paragraph (1) of this subsection, the local jurisdiction shall submit an updated report to the General Assembly, in accordance with § 2-1257 of the state government article, on the number of new building permits issued by the local jurisdiction, by year, for multifamily dwellings intended to be used as rental properties since the date the local law was enacted.
Note the amendment’s use of the word “shall.” This is not optional. Starting on January 31, 2025, Montgomery County government must send annual reports to the state showing its multifamily rental building permits for 2021 and each year thereafter. We will see the impact of this law, at least on this particular measure, in perpetuity.
On to August!