Councilmember Laurie-Anne Sayles (D-At-large) said in news release after the bill was signed in July, “I will continue to engage with renters and landlords to ensure that the implementation of Bill 15-23 goes smoothly and will be ready to adapt, should there be significant changes or unintended consequences of this legislation.How to get the best from your tramway ticket on Metro Rail Red Line?Ĭapital Metro operates Metro Rail Red Line at Texas, TX. Time will tell if rent stabilization has any consequences on development in the county. County Council voted 7 to 4, with opposition votes from councilmembers Gabe Albornoz (D-At Large), Andrew Friedson (D-Dist. The lead sponsors of the legislation were councilmembers Natali Fani-Gonzalez (D-Dist. 1, 2000, religious facilities and licensed assisted living and nursing homes, among others. Russell Brazil, an associate real estate broker at RLAH and the treasurer of the Greater Capital Area Association of Realtors, told MoCo360 that since the bill passed, he has also seen a number of multifamily projects be put on hold, as well as landlords contacting agents about selling off their rental properties.Įxemptions under the bill include 23 years for newly built units, 15 years for substantially renovated or rehabilitated buildings, property owners that rent two or fewer units, buildings constructed after Jan. According to a Montgomery Planning report, the county’s office vacancy rate in the first quarter of 2023 was 16.3%, as compared to 2020’s 12.4% first quarter.

HIP Projects also decided to forgo the redevelopment of three vacant office buildings into apartments, a big opportunity for new housing projects, they wrote in the letter. “Of the six I have thus far spoken to, all have confided that they are finishing out their Montgomery County ‘pipeline’ projects where they have existing financial obligations and are now shifting resources to other areas including Northern Virginia, Texas, the Carolinas and Florida.” “This experience is shared by the approximate 16 apartment developers active in the Montgomery County market,” Henry wrote in the letter to County Council. The MBIA is a non-profit trade organization that represents builders, remodelers and developers in Maryland and Washington, D.C.Īlex Vazquez, the Montgomery County lead community organizer at CASA, told MoCo360 he’s skeptical of the development sector’s concerns. “You know, by 2025 to 2027 you’re going to see a real crunch in the rental unit market. “By 2024, projects that are currently going through the pipeline will continue, but you’re going to see projects getting shelved, companies pulling out entirely,” said Griffin Benton, vice president of government affairs at the Maryland Building Industry Association (MBIA). According to Juliana DeSouza, a data analyst at the county’s Department of Permitting Services, the county added approximately 11,308 new individual housing units from Jan. The Metropolitan Washington Council of Governments (MWCOG) estimated that the county needs to add 41,000 housing units from 2020 to 2030 to meet the housing demand, which would be approximately 4,100 new units per year. One major point of concern for multifamily developers and realtors is if the county will now be able to reach future housing targets. The impact the new legislation – which County Council officials say will start being enforced in late Spring 2024 – will have on development in the county is largely unknown. Montgomery County developers and realtors are concerned the rent stabilization bill (Bill 15-23) passed by the County Council in July could deter new multifamily development, reduce rental housing stock and have the opposite effect lawmakers sought.

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