Are affordable housing units with recorded covenants exempt from the rental increase allowance?

Yes. Rents in market rate units that are occupied by a tenant with a housing voucher are subject to the rental assistance agreement between the property owner and the federal government, a public housing authority or the State of Maryland. For these units, rent increases are governed by the existing rental assistance contract agreements.

A unit is only exempt for as long as the conditions that place it inside of the exemption still apply. If at any point the conditions cease or no longer exist, that unit would become a “regulated rental unit” and would be subject to the cap. For example, a unit that is a part of a building cooperative is an unregulated rental unit and is not subject to the cap. However, if the cooperative converts to a different type of multifamily community, that unit would no longer be exempt and would become a “regulated rental unit.”

The PRSA creates a category of “regulated rental units” that are subject to the cap. Units that are included in one of the exemptions in Section 13-147 are not considered to be regulated rental units and, therefore, are not subject to the cap. Because of that, there is no need to separately apply for an exemption.

The PRSA does not apply to any unit within or a part of a building cooperative.

As long as the unit is owned by one or more individuals domiciled in the County, condominium units are exempt from the PRSA.

It depends on whether the room meets the definition of a dwelling unit pursuant to Section 13-138(a)(8) of the County Code. If a room qualifies as a dwelling unit, it may be a “regulated rental unit” under the PRSA unless one of the exemptions applies. (See the full list of exemptions in item #16).

The PRSA applies to units under a month-to-month rental agreement, including agreements that become month-to-month agreements after a fixed term.

The legislation applies County wide, including within the municipalities. Check with your municipality to determine whether they have specific rent stabilization laws.

No, the cap applies to tenants who are both currently residing in their units who are renewing their leases during the effective period, as well as prospective tenants, as long as the unit is eligible for rent stabilization. The law is unit-based, not tenant-based.

For the purposes of the PRSA, the “completion date” is the date that the initial certificate of occupancy for the property was issued. This is true even if different units in a community were physically completed at different times. The issuance date of the initial certificate of occupancy would still control.

The legislation gives DPIE enforcement authority to enforce the PRSA, which includes the authority to impose fines for violations including penalties of $1,000 for the first violation of the law and up to $5,000 for any subsequent violation(s).

Landlords at all other regulated units can increase your annual rent in an amount equal to the lesser of either the Consumer Price Index for All Urban Consumers for the Washington–Arlington–Alexandria Area (CPI-U) plus three percent (3%) of the base rent, or six percent (6%) of the base rent. Therefore, the allowable rental increase from October 17, 2024, to June 30, 2025, is six percent (6%) for all other covered unit types, except those residing in age-restricted senior housing facilities.

Yes, residents of school dormitories are exempt from the PRSA.

Landlords at age-restricted senior housing facilities are permitted to increase the rent no more than the lesser of the Consumer Price Index for All Urban Consumers for the Washington–Arlington–Alexandria Area (CPI-U) or 4.5 percent (4.5%). The CPI-U from May 2023 to May 2024 is 3.3%. As such, effective October 17, 2024, through June 30, 2025, landlords should not increase rental rates more than 3.3 percent (3.3%) for residents at age-restricted senior housing facilities.

It depends. The definition of “utilities included” should be defined in your lease agreement. Some leases may include the cost of the utilities in the rent, which may make them subject to the rent cap and other leases may just collect the utilities and pay them directly to the provider as a pass through. If the utilities are paid as a pass through, they are most likely not subject to the cap. Each lease or rental agreement will have to be reviewed when determining if the cap applies.

If you believe that you are overcharged, you should first contact your landlord to discuss the increase in your rent. If it is not resolved, then contact PGC311 to report your complaint. You will need to provide a copy of your lease and any notice of rent increase or proof of a rent increase. Any additional information requested by DPIE must be promptly submitted. Until a Rent Stabilization Complaint is resolved and/or adjudicated, a tenant must continue to pay rent according to the lease.

Yes, a building landlord and/or owner must always have a copy of the certificate of occupancy for each building and/or residence in their portfolio. No affirmative action on the part of a landlord/property owner is needed to claim exemption status, as long as the unit/building is compliant with the requirements of the law.

The following are exempt from the PRSA:

• A unit whose construction was completed on or after January 1, 2000
• A unit in a licensed facility if the primary purpose of the facility is the diagnosis, cure, mitigation, and treatment of illnesses
• A unit in a facility owned or leased by a 501(c)(3) IRS tax-exempt organization if the primary purpose of the organization is to provide temporary shelter to qualified clients
• Owner-occupied group homes
• Religious facilities, including churches, synagogues, parsonages, rectories, convents, and parish homes
• Hotels/motels that only serve transient residents
• Licensed assisted living facilities or nursing homes
• A building originally designed and constructed to contain only two dwelling units, as long as the owner resides in one of the units as their primary residence (domicile)
• Accessory dwelling units
• Units subject to a regulatory agreement with a governmental agency or an agreement with a third-party entity that restricts occupancy of the unit to low- and moderate-income tenants
• A rental unit owned by a landlord who owns five (5) or fewer rental units within the County if the landlord is (1) a natural person or a living trust of a natural person, or (2) the trust or estate of a decedent
• A condominium unit owned by one or more persons domiciled in the County
• Any unit within or part of a cooperative

The law was enacted on June 18, 2024, and is effective on September 15, 2024. The law establishes permanent rent stabilization throughout Prince George’s County.