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(a) A landlord must not increase the rent until 90 days after the landlord gives the tenant written notice of the increase. A landlord must not impose more than one rent increase on a tenant in any 12-month period. Each written rent increase notice must contain the following information:
(1) The amount of monthly rent immediately preceding the effective date of the proposed increase (old rent), the amount of monthly rent proposed immediately after the rent increase takes effect (new rent), and the percentage increase of monthly rent.
(2) The effective date of the proposed increase.
(3) The applicable rent increase guideline issued under Section 29-53.
(4) A notice that the tenant may ask the Department to review any rent increase that the tenant considers excessive.
(5) Other information that the landlord deems useful in explaining the rent increase.
An otherwise valid notice of a rent increase is not invalid because the notice contained an incorrect rent increase guideline number if the landlord reasonably believed that the number was correct.
(b) Written notice may be delivered to the tenant by any reasonable means. However, a notice has not been delivered unless the notice is mailed via the United States Postal Service to the tenant's dwelling unit, or unless a signed receipt is obtained from the tenant or the tenant's representative. If the tenant is notified by mail, other than registered or certified mail, the landlord must certify, by affidavit dated at the time of mailing, that the landlord has mailed the notice. The landlord must retain a copy of the affidavit in the landlord's records.
(c) For the purposes of these notice requirements, the day after the postmark date is the date of delivery if the notice was delivered to the proper person by U.S. mail. If any notice is sent by U.S. certified or registered mail, the receipt or registration is presumptive evidence that the notice was delivered to the party to which addressed, and the date of the receipt or registration is the postmark date.
(d) When the last day for performing any act prescribed under this Chapter falls on a Saturday, Sunday or legal holiday, the performance of that act is timely if it is performed on the next day that is not a Saturday, Sunday or legal holiday. (1978 L.M.C., ch. 12, § 1; 1979 L.M.C., ch. 56, § 7; 1980 L.M.C., ch. 53, § 1; 1996 L.M.C., ch. 13, § 1; 2000 L.M.C., ch. 32, § 1; 2016 L.M.C., ch. 39, § 1.)
Editor's note—Section 29-54, formerly § 29-56, was renumbered, amended, and retitled pursuant to 2000 L.M.C., ch. 32, § 1. Former Section 29-56 [formerly Chapter 93A, which concerned rent control guidelines] is cited in Lawrence N. Brandt, Inc. v. Montgomery County Commission on Landlord-Tenant Affairs, 39 Md.App. 147, 383 A.2d 688 (1978).
(a) Definitions. In this Section, the following terms have the meanings indicated.
Emergency means the catastrophic health emergency declared by the Governor of Maryland on March 5, 2020, as amended or extended by the Governor, under Section 14-3A-02 of the Public Safety Article of the Maryland Code.
Tenant has the meaning stated in Section 29-1. Tenant includes an existing tenant. Tenant does not include a prospective tenant.
(b) Rent increases above guidelines – when prohibited. A landlord must not increase a tenant’s rent to an amount that exceeds the voluntary rent guidelines under Section 29-53 if:
(1) the rent increase would take effect during the emergency; or
(2) notice of the rent increase does not comply with subsection (c) and Section 29-54.
(c) Notices of rent adjustments.
(1) During the emergency and until May 15, 2022, a landlord must not notify a tenant of a rent increase if the increase would exceed the voluntary rent guidelines under Section 29-53.
(2) If a landlord provided notice of a rent increase to a tenant prior to the emergency and the increase would exceed the voluntary rent guidelines under Section 29-53, the landlord must inform the tenant in writing:
(A) to disregard the notice; or
(B) that the increase is amended to be less than or equal to the voluntary rent guidelines under Section 29-53.
(d) Late fees – when prohibited. A landlord must not charge a fee to a tenant for the nonpayment or late payment of rent due during the emergency, or due between the expiration of the emergency and May 15, 2022, unless the landlord first provides to the tenant, in a form prescribed by the Director:
(1) a notification that the tenant may qualify for the waiver of late fees under subsection (e); and
(2) an attestation for the tenant to sign to receive the waiver.
(e) A landlord must waive late fees for the nonpayment or late payment of rent due during the emergency, or due between the expiration of the emergency and May 15, 2022, if a tenant attests, in the application prescribed by the Director under subsection (d), that the tenant:
(1) has experienced a COVID-19 related financial hardship;
(2) has a gross household income at or below 50% of the area median income for the previous 30 days, or for the 2020 tax year; and
(3) has been a Montgomery County resident since August 2020 or earlier.
(f) A landlord must not require proof of, or challenge the veracity of, a tenant’s attestation under this Section.
(g) Notice of expiration of emergency. The Department must post on its website information about the requirements of this Section, including the date that the emergency expired, and the date that requirements under this section expire. (2020 L.M.C., ch. 14, §1.)
Editor’s note—2021 L.M.C., ch. 30, §3, as amended by 2023 L.M.C., ch. 21
, § 1, states: Application of Late Fee Restrictions. Section 29-55(d), added under section 1 of this Act: (1) applies to any uncollected late fee for rent that became due on or after the date of the emergency, including rent that became due on or after the date of the emergency and before the effective date of this Act; but (2) does not require a landlord to refund to a tenant any payment received by the landlord prior to the effective date of this Act.
2021 L.M.C., ch. 30, § 4, revises 2020 L.M.C., ch. 14, §§3 and 4 as follows: Sec. 3. Sunset date. This Act must expire, and must have no further force or effect, upon February 15, 2023.
Sec. 4. Short title. This Act may be cited as the “COVID-19 Renter Relief Act”.
Banked amount means the dollar amount of an annual rent increase allowance that a landlord did not use to increase the rent for a regulated unit.
Base rent means rent charged for a regulated rental unit under a lease, exclusive of any rental discounts, incentives, concessions, or credits that are:
(1) offered by the landlord;
(2) accepted by the tenant; and
(3) itemized in the lease separate from the rent.
Capital improvements mean permanent structural alterations to a regulated unit intended to enhance the value of the unit. Capital improvements include structural alterations required under federal, state, or County law. Capital improvements do not include ordinary repair or maintenance of existing structures.
CPI-U means the Consumer Price Index for All Urban Consumers for the Washington-Arlington-Alexandria Area, published by the U.S. Bureau of Labor Statistics.
Regulated rental unit or regulated unit means a rental unit that is not exempted under Section 29-60.
Substantial renovation means permanent alterations to a building that:
(1) are intended to enhance the value of the building; and
(2) cost an amount equal to at least 40 percent of the value of the building, as assessed by the State Department of Assessments and Taxation. (2023 L.M.C., ch. 22. § 1.)
(a) Annual rent increase allowance. The Director annually must calculate a rent increase allowance for regulated rental units equal to the lesser of:
(1) CPI-U plus 3 percent; or
(2) 6 percent.
(b) Publication. The Director must publish the annual rent increase allowance in the County Register and on the County website.
(c) Duration. A rent increase allowance under subsection (a) remains in effect for a 12-month period, beginning July 1st of each year and ending on June 30th of the following year. (2023 L.M.C., ch. 22
. § 1.)
(a) In general. Except as provided under subsection (b), upon a lease renewal or new lease agreement, a landlord must not increase the rent of a regulated rental unit to an amount greater than:
(1) the base rent; plus
(2) the rent increase allowance under Section 29-57; plus
(3) any banked amount; and
(4) does not exceed 10 percent of the base rent.
(b) Troubled or at-risk properties. Subject to Method (2) regulations adopted by the Director, a regulated unit located in a property designated by the Department as “troubled” or “at risk” under Section 29-22(b) must not increase rent in excess of an amount the Director determines necessary to cover costs required to improve habitability.
(c) Rent increase – vacant unit. Subject to Method (2) regulations, the Director must issue regulations to determine the allowable annual rent increase for a regulated unit previously vacant:
(1) for more than 12 months;
(2) with no active lease, either by a written or oral agreement; and
(3) the unit returns to the market for rent.
(d) Limited surcharge for capital improvements. Subject to subsection (e), the Director must grant a landlord’s petition to add a surcharge to the amount permitted under subsection (a) if, in accordance with Method (2) regulations, the Director determines:
(1) the surcharge is limited to an amount necessary to cover the costs of capital improvements to the regulated unit, excluding the costs of ordinary repair and maintenance;
(2) the surcharge does not take effect until after the capital improvements are completed;
(3) if the capital improvements are for all rental units within the building, the surcharge:
(A) is divided equally among the units;
(B) is prorated over at least 96 months; and
(C) does not exceed 20 percent of the base rent;
(4) if the capital improvements apply only to certain regulated rental units within the building, the surcharge:
(A) is divided equally among the affected units;
(B) is prorated over at least 60 months; and
(C) does not exceed 15 percent of the base rent;
(5) the surcharge for each unit ends once the costs of the capital improvements, including any interest and service charges, have been recovered by the landlord;
(6) the capital improvements would protect or enhance the health, safety, and security of the tenants or the habitability of the rental housing;
(7) if the capital improvements would result in energy cost savings:
(A) the savings would be passed on to the tenant; and
(B) either:
(i) the improvements would result in a net savings in the use of energy in the building; or
(ii) the improvements are intended to comply with applicable law;
(8) the capital improvements are depreciable under the federal Internal Revenue Code;
(9) the applicant has certified to the Director the costs of the capital improvements, including any interest and service charge; and
(10) the applicant has certified to the Director that required governmental permits and approvals have been granted.
(e) Surcharge – additional requirements.
(1) A landlord must maintain, and must make available to a tenant upon request, all plans, contracts, specifications, and permits related to any capital improvements for which a surcharge has been granted.
(2) Immediately upon the completion of capital improvements under this Section, a landlord must permit the return to affected rental units of any tenants displaced due to the improvements. (2023 L.M.C., ch. 22. § 1.)
(a) Fair return rent increase. In accordance with this Section and Method (2) regulations adopted by the Director:
(1) a landlord may apply to the Director to increase rent for a regulated unit in an amount that exceeds the annual rent increase allowance; and
(2) the Director must grant the application if the Director finds that the increase is necessary for the landlord to obtain a fair return on the regulated unit.
(b) For purposes of this Section, fair return means a return on investment:
(1) sufficient to offset operating expenses; and
(2) commensurate with returns on investments in other enterprises having comparable risks.
(c) The Director must adopt Method (2) regulations necessary to implement the requirements of this Section, including regulations to establish:
(1) a formula to determine the rent increase necessary to obtain a fair return for a regulated unit;
(2) application requirements, including the information an applicant must submit to demonstrate the rent necessary to obtain a fair return;
(3) a uniform system and procedures for processing applications;
(4) criteria the Director must use to evaluate and to grant or deny an application; and
(5) the duration of a rent increase approved under this Section. (2023 L.M.C., ch. 22. § 1.)
(1) a newly constructed unit that has been offered for rent for less than 23 years;
(2) a unit in a licensed facility, the primary purpose of which is the diagnosis, cure, mitigation, and treatment of illnesses;
(3) a unit in a facility owned or leased by an organization exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code if the primary purpose of the organization is to provide temporary shelter for qualified clients;
(4) an owner-occupied group house;
(5) a religious facility, including a church, synagogue, parsonage, rectory, convent, and parish home;
(6) a transient lodging facility subject to Chapter 54;
(7) a school dormitory;
(8) a licensed assisted living facility or nursing home;
(9) a building originally designed and constructed to contain only 2 dwelling units, one of which the owner currently occupies as a principal residence;
(10) an accessory dwelling unit;
(11) a unit subject to a regulatory agreement with a governmental agency that restricts occupancy of the unit to low and moderate income tenants;
(12) subject to Method (2) regulations issued by the Department, a unit located within a substantially renovated building if:
(A) the substantial renovation occurred within the prior 23 years; and
(B) the building is not in violation of Chapters 8, 26, or 29; and
(13) a rental unit owned by a landlord who:
(A) owns 2 or fewer rental units within the County; and
(B) is either:
(i) a natural person; or
(ii) the trust or estate of a decedent.
(b) Expiration of exemption. An exemption under subsection (a) expires when the conditions entitling the unit or facility to an exemption cease to exist. (2023 L.M.C., ch. 22
. § 1.)
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