TKPK Newsletter: City of Takoma Park’s New Rent Stabilization Allowance Is 3.4%
The Rent Stabilization Law enacted in 1981 helps provide affordable housing to Takoma Park residents and allows the city to maintain economic and ethnic diversity by controlling the frequency and amount of rent increases that may be imposed by a landlord.
Each year the City establishes a percentage based on 100% of the Consumer Price Index (CPI) published by the Department of Labor Statistics which changes every July and is given to landlords to increase their rents. Takoma Park’s annual rent stabilization allowance this year is 3.4% CPI, starting July 1, 2024 (through June 30, 2025) to help residents afford rent. The previous CPI percentage was 3.7% (through June 30 of this year).
Landlords cannot increase rent on occupied units in the City higher than the listed allowance more than once during a 12-month period. Both multi-family rental units and individual rental condominium units are also subject to rent stabilization. Single-family houses, accessory apartments, and duplexes when the owner occupies one of the units as their primary residence are exempt from the rent stabilization law. Also, exempt with an approved application from the City, is any rental facility where the rents are regulated under contract by a governmental agency that controls the rent levels of not less than one-half of the rental units in the rental facility and restricts the occupancy of those rental units to low- and moderate-income tenants.
The City Code also mandates that landlords give two-month written notice to tenants before they can legally increase rent.
According to the rental management website Zillow.com, the average rental monthly price in Takoma Park is $1,730.
Landlords are required to submit Annual Rent Stabilization reports by Sept. 30 showing the rents, rent increases, and dates of rent increases for a particular period.
“The reports are reviewed for compliance and citations are issued for non-compliance,” said Jean Kerr, Takoma Park’s senior housing specialist. “They can also file a Fair Return Petition for a higher rent increase above the Rent Stabilization Allowance when their operating expenses have risen higher than the rental income for the property.”
This article appeared in the July Edition of the Takoma Park Newsletter. Check out this article and more on the City webpage.
