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(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.)
(a) Regulations. The Director must issue Method (2) regulations regarding limitations on fee increases or new fees charged by the landlord to the tenant for a regulated rental unit.
(b) Fee schedule. At the discretion of the Director, a fee schedule may be included, as a part of the regulations. (2023 L.M.C., ch. 22
. § 1.)
(a) In accordance with the requirements under Section 29-51, a landlord must comply with and submit data to the Department regarding regulated rental units, rents, fees charged to tenants, and notices of rent increases.
(b) The annual rental housing survey data collected by the Department under Section 29-51 must be made available for the Council to review and determine the effectiveness and compliance with this Act. (2023 L.M.C., ch. 22. § 1.)
Editor’s note—Former Sections 29-56—29-65 were reserved by 2000 L.M.C., ch. 32, § 1.
Editor’s note—Former Sections 29-57 and 29-58 were deleted as they expired at 12:00 midnight on January 31, 1981, as provided in former section 29-54(c).
Editor’s note—The following 7 Sections, which comprised Division 3, Extraordinary Rent Increases, were repealed pursuant to 2000 L.M.C., ch. 32, § 1:
(1) Former Section 29-59, Application of division, which was derived from 1979 L.M.C., ch. 56, § 10; 1980 L.M.C., ch. 53, § 2; 1996 L.M.C., ch. 13, §1.
(2) Former Section 29-60, Complaints and investigations, which was derived from 1979 L.M.C., ch. 56, § 10; 1980 L.M.C., ch. 53, § 2; 1996 L.M.C., ch. 13, §1.
(3) Former Section 29-61, Rent escrow requirements, which was derived from 1979 L.M.C., ch. 56, § 10; 1980 L.M.C., ch. 53, § 2; 1996 L.M.C., ch. 13, §1.
(4) Former Section 29-62, Commission hearings, which was derived from 1979 L.M.C., ch. 56, § 10; 1980 L.M.C., ch. 53, § 2; 1996 L.M.C., ch. 13, § 1.
(5) Former Section 29-63, Commission authority to order rent rebates, which was derived from 1979 L.M.C., ch. 56, § 10; 1980 L.M.C., ch. 53, § 2.
(6) Former Section 29-64, Appeal to court, which was derived from 1979 L.M.C., ch. 56, § 10; 1980 L.M.C., ch. 53, § 2.
(7) Former Section 29-65, Rent adjustment standards, which was derived from 1979 L.M.C., ch. 56, § 10; 1980 L.M.C., ch. 53, § 2; 1996 L.M.C., ch. 13, §1.
Former Sections 29-59—29-65 [formerly Chapter 93A, which concerned rent control guidelines] are cited in Lawrence N. Brandt, Inc. v. Montgomery County Commission on Landlord-Tenant Affairs, 39 Md.App. 147, 383 A.2d 688 (1978).
In this article, the following words have the meanings indicated:
(1) Mobile home means a structure that is:
a. Intended for residential use;
b. Transportable in one (1) or more sections;
c. Eight (8) body feet or more in width and is thirty-two (32) body feet or more in length;
d. Built on a permanent chassis; and
e. Designed to be used as a dwelling with or without permanent foundation, when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems contained in the structure.
(2) Mobile home does not mean a recreational vehicle as defined in section 59-A-2.1 of the Zoning Ordinance of this Code.
(3) Mobile home park or park means any plot of ground upon which two (2) or more mobile homes occupied for dwelling or sleeping purposes are located, whether or not a charge is made for the accommodations.
(4) Mobile home space means a plot of ground within a mobile home park designed to accommodate one (1) mobile home.
(5) Owner means the owner of a mobile home park.
(6) Recreational vehicle means a vehicle that is:
a. Mounted on wheels for use on highways and streets;
b. Propelled or drawn on its own or other motor power;
c. Of a size or weight that does not require special highway movement permits when drawn by a motorized vehicle;
d. Primarily designed and constructed to provide temporary living quarters for recreational, camping, or travel use; and
e. Of a body width of no more than eight (8) feet and a body length of no more than thirty-two (32) feet when factory-equipped for the road. (1987 L.M.C., ch. 23, § 3.)
(a) Space in mobile home parks must be used exclusively for mobile homes. A person must not locate a recreational vehicle, tent, camper, or similar housing on a space in a mobile home park.
(b) A recreational vehicle, camper, or similar housing that is located on a mobile home space when this article takes effect may remain where it is located until:
(1) Its owner either sells or moves it; or
(2) The occupant at the time this law takes effect moves. At that time, subsection (a) applies. (1987 L.M.C., ch. 23, § 3.)
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