Takoma Park has set its annual rent increase to 3.7 percent through June 2024, officials announced this week.
For the period of July 1, 2023, through June 30, 2024, the Rent Stabilization Allowance will be 3.7%. In accordance with Takoma Park’s Rent Stabilization Law, landlords cannot increase the rent on occupied units higher than the Rent Stabilization Allowance.
As stated in the announcement, Takoma Park’s law maintains rental affordability by limiting rent increases on specific rental units. Generally, rent may only be increased once every 12 months.
Multi-family rental units and rental condominiums are subject to rent stabilization. For the period March 2022 through March 2023, rent increases in Takoma Park are limited to the percentage change in the Consumer Price Index published by the U.S. Bureau of Labor Statistics.
In accordance with the City Code, a landlord must provide tenants with two months’ written notice before increasing the rent legally.
Exemptions to rent stabilization rules include:
- Units leased to tenants through the Housing Choice Voucher Program;
- Any rental facility where the rents are regulated under contract by a government agency that controls the rent level of not less than half of the rental units in the rental facility and restricts the occupancy of these units to tenants with low and moderate incomes; and
- Rental units that have been newly constructed for a period of five years following construction.
Takoma Park’s announcement comes as a Montgomery County Council committee has advanced one bill aimed at limiting rent increases across the county.
After being amended on Monday, Bill 15-23 limits rent increases to 3% plus the Consumer Price Index, which is capped at 6%.
In its original form, Bill 15-23 would have set a maximum rent increase of 8% plus the CPI. It was sponsored by Councilmembers Gabe Albornoz, Marilyn Balcombe, Natali Fani-González, Andrew Friedson, Sidney Katz, and Dawn Luedtke.
Alternatively, Bill 16-23, the Housing Opportunity, Mobility, and Equity Act (HOME Act), would have limited rent increases to 3% or the rental component of the CPI, whichever is lower. Councilmembers Will Jawando and Kristin Mink sponsored this bill, and County Executive Marc Elrich also endorsed it.
On Monday, Fani-González, who supported the original proposal of 8% plus CPI, proposed 3% plus CPI with a cap of 6%. This passed 2-1 in the Planning, Housing, and Parks (PHP) committee and will be considered by the full council.
Friedson voted against the resolution, while Jawando and Fani-González voted in favor. According to Montgomery County Media, Jawando, who noted that the 6% cap is double the HOME Act proposal, still supports the bill, saying the new limit is better than nothing, though it is still a stretch for many families.
Elrich pledged his support for the amended Bill 15-23 on Wednesday.
Takoma Park graphic