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Sponsor presses bill to curb investor rent gouging; landlords and industry warn of unintended harms
Summary
HB 14‑60 would cap rents on investor‑owned single‑family rentals and require ownership transparency; tenant witnesses described high rents and poor conditions while industry groups argued the proposal functions as rent control and could reduce supply and investment without careful definition and exemptions.
The sponsor of HB 14‑60 argued the bill targets “bad actors” who buy single‑family homes and charge excessive rents, often to vulnerable households. The draft ties a maximum allowable rent to the greater of (a) 120% of HUD fair‑market rent for the ZIP code and (b) a mortgage‑linked metric, and proposes disclosure, fee limits and civil remedies for tenants, including injunctive relief, attorney’s fees and civil fines.
Tenant testimony described real situations of high rents and poor conditions in Langley Park; a Spanish‑language translation of a tenant (Maria) recounted paying heavy rents while living with pest infestations and limited landlord responsiveness. Economic action advocates argued investor purchases and rent spikes are displacing families.
Industry groups—including the Realtors, Maryland Multifamily Association, and Building Industry Association—strongly opposed as drafted. They said HUD fair‑market rates are designed for voucher calculations and sit low relative to local market rents; build‑to‑rent communities and other institutional owners could be unintentionally swept into the definition; and strict penalties and funding remedies risk chilling investment that supports supply. Witnesses urged clearer definitions (to exclude build‑to‑rent), targeted thresholds for institutional players, and more limited remedies.
The sponsor acknowledged concerns and said technical amendments are under development (to narrow definitional language and target true bad actors). The committee recorded a mix of passionate tenant testimony and detailed industry opposition and asked the sponsor to refine definitions and penalty language before further action.
