Rent Stabilization
Takoma Park’s Rent Stabilization Law (City Code Chapter 6.20 Rent Stabilization) was first adopted in 1981 and is one of the City’s primary affordable housing programs. Although it has undergone a number of revisions since its adoption, the program is designed to preserve the city’s affordable housing stock and maintain economic and ethnic diversity by controlling the frequency and amount of rent increases that may be imposed by a landlord.
All landlords who are under rent stabilization are required to give at least a two-month written notice of a rent increase and cannot increase the rent more than the city’s rent stabilization allowance in effect at the time of the increase.
A summary of the basic requirements of Takoma Park’s Rent Stabilization requirements follows.
Rental Properties Subject to Rent Stabilization
The City’s rent stabilization law applies to all individual condominium units and multi-family rental facilities.
Rent stabilization law DOES NOT apply to single family houses, accessory apartments, and duplexes when one of the units is occupied by the owner as their primary residence.
Landlords with tenants receiving rental assistance (i.e. Section 8 Housing Choice Voucher program) and those who provide affordable housing to low and moderate income households under contract with a governmental agency such as the State of Maryland may apply to the City for an exemption from rent stabilization. Newly constructed multi-family rental facilities are also eligible for an exemption.
Annual Rent Increase Allowance
The City publishes, on a yearly basis in late spring, its annual rent stabilization allowance. The allowance is the maximum amount a landlord can increase a tenant’s rent during any twelve-month period. The allowance is equal to the annual increase in the Consumer Price Index for the Washington/Baltimore region and is effective for a twelve-month period beginning July 1.
The CURRENT RENT INCREASE ALLOWANCE is 3.4% and applies to all rent increases occurring between July 1, 2024 through June 30, 2025.
A landlord may apply for an additional rent increase, above that permitted by the rent stabilization allowance, in situations where the net operating income generated by the rental facility has not been maintained due to escalating operating expenses. Visit the Fair Return Rent Increase page for more information.
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Annual Rent Increase Allowance – continued
Beginning July 1, 2024 through June 30, 2025, the Rent Stabilization Allowance is 3.4%. Landlords are required to comply with Takoma Park’s Rent Stabilization law and cannot increase the rent on occupied units any higher than this allowance.
Multi-family rental units and rental condominium units are subject to Rent Stabilization. Rent increases are limited to the percentage change in the Consumer Price Index published by the Department of Bureau of Labor Statistics for the period of March 2022 through March 2023. Pursuant to the City Code, a two-month written notice must be provided to the tenant (s) before a landlord can legally increase the rent. (City Code Chapter 6.20.050(C) Notice of Annual Rent Increases).
Annual Rent Reports
Landlords are required to submit an annual accounting of the rents and fees charged to their tenants and any rent increases that may have been imposed during the twelve month period between July and June of the following year. The Rent Stabilization Report is due on September 30 of each year and must be submitted online.
This requirement DOES NOT apply to licensed single family houses, accessory apartments, or duplexes when one of the units is occupied by the landlord as their primary residence.
