The Montgomery County Council unanimously passed new legislation Tuesday that will hold landlords to the same consumer protection standards as retail merchants.
The legislation, sponsored by councilmember Kristin Mink (D-Dist. 5), will remove an exemption for landlord and tenant issues under county consumer protection laws, making it easier for the Office of Consumer Protection and the Office of the County Attorney to enforce compliance when landlords fail to correct housing code violations.
Under current county law, landlords are exempt from some consumer protection laws because they are not considered “merchants.” According to a council staff report, the legislation will amend the language of the laws to include landlords under the category of “merchants,” which will enable government officials to hold landlords accountable if they provide unfit rental housing, do not provide amenities as advertised, fail to repair essential building services, impose junk fees, or if they have committed chronic housing code violations.
According to Mink, the loophole in the county’s consumer protections laws has made it difficult for county agencies to enforce fines when landlords violate building regulation and tenant safety laws. In fiscal year 2024, which ended June 30, the county Department of Housing and Community Affairs (DHCA) attempted to recover more than $1.5 million in unpaid fines from landlords in actions filed in Montgomery County District Court. Due to the current loophole, the county recouped just $100,000, a recovery rate of 6.5% of what was sought.
“The hope is that this is going to allow us to actually recover the unpaid fines that result from DHCA code enforcement efforts,” Mink said Tuesday. “We know that there are a lot of unpaid fines that go to District Court, and we recover very, very few of those, maybe 4 to 5% of those, so another tool is very much needed here.”
The bill was co-sponsored by council President Kate Stewart, Vice President Will Jawando (D-At-Large) and councilmember Dawn Luedtke (D-Dist. 7). It was endorsed by local labor unions MCGEO and SEIU Local 500, Action in Montgomery, CASA, the Muslim Community Center in Silver Spring, Islamic Society of the Washington Area, the Enclave Tenant Association, Jews United for Justice, Everyday Canvassing, Progressive Maryland and the Housing Initiative Partnership. County Executive Marc Elrich (D) also publicly supported the bill.
Proposal drew public support, opposition
The legislation received a mixed reception during a March 4 public hearing. Supporters said the bill would hold landlords accountable for not fixing ongoing health and safety concerns in their buildings.
“Imagine living in a home infested by rodents and insects, mold creeping through AC vents, unaddressed leaks and a lack of security so severe that even basic safety is out of reach,” said Sharon Litton John, president of a tenant association at a senior living community in Gaithersburg. “Now imagine the frustration of exhausting every avenue, working with management, the county and the code enforcement, only to be met with the stark reality that those responsible cannot be held accountable, despite numerous violations and fines.”
Critics argued that existing state and county laws already protect tenants. Chris Bruch, president of Washington, D.C.-based real estate company Donahoe, called the legislation “a solution in search of a problem.”
“In my view, you’re legislating for the 2% bad actors at the expense of the 98% reputable landlords,” Bruch said. “This legislation is duplicative, as our state and county already have laws, restrictions, codified procedures and requirements that protect tenants from bad landlords.”
Mink said the legislation was inspired by the work that she and other elected officials have done to hold landlords accountable for chronic health and safety issues at large apartment complexes including the Enclave in White Oak. In recent years, Mink and other elected officials have tried to get Enclave’s management to respond to chronic health and safety concerns within the complex. One particular concern, according to Mink, is that residents’ leases require them to pay for the complex’s security officers, but security officers were not always provided. In October, the apartment complex received widespread media attention after several refugee families that lived there were threatened with evictions.
The legislation will go into effect 91 days after being signed into law by Elrich. A date for signing the bill has not been set.
