Council votes to raise multifamily rental fee $6 to cover DHCA staffing; fourth requested position placed on reconciliation list

Montgomery County Council members voted to raise the multifamily rental registration fee by $6 for FY26, a move county staff said will fund DHCA's staffing needs related to licensing, code enforcement and landlord-tenant case management.

The council acted after a committee briefing that framed the fee increase as a way to close an FY26 gap in DHCA's budget and to cover costs for requested positions. Director-level staff told council members the department faced a roughly $1.65 million shortfall tied to compensation and other cost increases and that an incremental fee increase would address ongoing service needs.

Why it matters: DHCA enforces licensing and troubled-property rules and operates programs that affect landlords and tenants across the county. The department requested four enhancements: two licensing positions (a manager and a program specialist), a program manager for code enforcement, and a program manager for the Office of Landlord-Tenant Affairs. The committee recommended funding three positions in the base budget and placing the fourth position on the reconciliation list.

What the council decided and why: After discussion about whether to make the fee increase cover multiple years or only FY26, Councilmember Friedson moved to set the rate at $82 (a $6 increase). The council adopted the motion by voice, recorded as 10 in favor. DHCA staff said the larger fee would produce a cushion for future years and would support the department—s ability to better enforce licensing and inspect troubled properties.

Debate and concerns: Some council members warned that raising fees to build a general-fund cushion risks shifting costs to small landlords and, ultimately, tenants. Councilmember Lukey urged caution: "What we're asking this department to do, unlike virtually any other department that's not an enterprise fund, is to say we're asking you to cover ... the fee that is cushioning the general fund," a concern expressed during the committee discussion. DHCA staff and committee members said the committee prioritized three positions tied directly to licensing and enforcement as core functions and recommended that the landlord-tenant program manager be placed on reconciliation for later consideration.

Operational context: DHCA staff explained that licensing has been understaffed relative to workload and enforcement needs. Staff described existing high workloads for code enforcement and said added administrative capacity would help reduce reinspection delays for troubled properties. Division chief Nathan Bovell said average reinspection turnaround times vary by property size, with large properties taking several months to schedule and process.

Ending: The $6 fee increase passed and will appear in the FY26 schedule; three requested DHCA positions move forward in the base recommendation while the fourth remains for later reconciliation. Council members directed staff to continue working with stakeholders and return data as needed during reconciliation and future committee work.