HB 1283
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
House Bill 1283 (Delegate Wells)
Environment and Transportation
Real Property – Residential Leases – Rent Restrictions
This bill establishes restrictions on rent increases for “restricted rental units.” Specifically,
a landlord is generally prohibited from increasing rent on a restricted rental unit by more
than 0.4% each year. If the lease agreement is on a month-to-month basis, the landlord may
not increase rent more than 0.2% every six months. If the rent for a restricted renal unit is
below fair market value, the landlord may increase the rent in the first year of this
divergence by up to 3.0% if necessary to reach fair market value. The restrictions
established in the bill are not applicable once the rent of a restricted rental unit reaches a
minimum of $2,250 per month.
Fiscal Summary
State Effect: The bill is not anticipated to materially affect State government operations
or finances.
Local Effect: Potential decrease in local revenues to the extent counties own rental units
that are subject to the requirements of the bill. Expenditures are not affected.
Small Business Effect: Meaningful.
Analysis
Bill Summary: A “restricted rental unit” means any real property:
 rented or offered for residential use or occupancy, including an apartment,
townhouse, house, or mobile home or a building, structure, or room located within
a structure forming a single habitable unit with facilities that are used or intended to
be used for living, sleeping, cooking, and eating purposes;
 newly constructed before 1985;
 where, as of January 1, 2021, rent was less than $2,250 each month; and
 occupied by a tenant that earns less than $150,000 annually.
Current Law: There is no State rent stabilization law. However, generally, a landlord
may not arbitrarily increase the rent or decrease services to which the tenant is entitled
solely because:
 the tenant or the tenant’s agent has filed a good faith written complaint with the
landlord or with a public agency against the landlord, as specified;
 the tenant or agent has filed a lawsuit or lawsuits against the landlord or testified or
participated in a lawsuit involving the landlord; or
 the tenant is a participant in any tenants’ organization.
A tenant may raise a retaliatory action of a landlord (1) in defense to an action for
possession or (2) as an affirmative claim for damages.
Small Business Effect: The restrictions on rental fee increases established in the bill may
significantly decrease revenues for landlords. Because there is no current State rent
stabilization law, as long as a rent increase does not constitute a retaliatory action, a
landlord may increase a rental fee by any amount at the end of a lease. If the existing tenant
is unable or unwilling to pay, the landlord can either reduce the new rental fee to keep the
tenant or find a new tenant that is willing to pay the increased amount.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Judiciary (Administrative Office of the Courts); Department of
Legislative Services
Fiscal Note History: First Reader - February 28, 2021
md/jkb
Analysis by: Donavan A. Ham Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 1283/ Page 2


Statutes affected:
Text - First - Real Property – Residential Leases – Rent Restrictions: 8-209 Real Property