How will my rent be affected as a result of the renovations?

Residents in affordable units: Rents will remain unchanged throughout their current lease term. Annual rent increase amounts will remain subject to Montgomery County’s Department of Housing and Community Affairs (DHCA) Voluntary Rent Guidelines (VRG).

All other residents: Under rent stabilization, a landlord may petition for an exemption from rent stabilization for an existing building if they conduct substantial, permanent renovations that enhance the building’s value and cost at least 40% of the building’s value.

HOC submitted a preliminary petition for rent stabilization exemption to Montgomery County Department of Housing and Community Affairs (DHCA) on March 31, 2026. If approved, the exemption starts when DHCA approves the Substantial Renovation Application Reconciliation Package, which occurs after the completion of the renovation. After the substantial renovation exemption is approved, the rent increases must be implemented within 12 months. However, if there are existing tenants in the rental unit, landlords must wait until the current lease term ends before implementing rent increases. Additionally, landlords must give tenants at least 90 days’ prior written notice of any rent increase. The amount of your rent increase in the interim will be in accordance with the Rent Stabilization Law.

The amount of your rent increase depends on a number of factors, including your unit type and your existing rent. Final rents will be determined if and when the final approval of the Substantial Renovation Application is received.

For more information about the rent stabilization exemption, please read this document.