Committee takes no position on DPIE fees to implement rent-stabilization, asks for more data

Laurie Paris, chief of staff at the Department of Permitting, Inspections and Enforcement, told the committee that fees are needed to staff implementation of the Permanent Rent Stabilization and Protection Act of 2024 and that DPIE currently has two investigators assigned to handle application reviews.

Paris explained that the proposed fee schedule includes application and approval fees tied to regulated units; in one slide she referred to a "regulated fee of $2.50 per regulated unit" while later discussion and public testimony repeatedly referenced a per-unit fee at the $250 level (transcript contains inconsistent amounts and committee requested clarification). Paris said the fees are intended to cover review costs, recordkeeping, and public reporting and that the department would be open to alternative fee designs.

Hugo Cantu of the Apartment/Office Building Association said his members (representing roughly 80,000 multifamily units in the county) oppose per-unit charges at the proposed level, arguing the fees would discourage capital improvements, create barriers for landlords to rehabilitate units and could have unintended consequences for tenants and local investment. Cantu testified the association's written comments proposed alternatives.

After extended questioning about fee mechanics, economies of scale for multiunit buildings and whether Montgomery County charges similar fees, Council member Harrison moved that the committee take no position and forward CR73 to the full council for further consideration; the committee voted 4-0 in favor of that procedural motion. Paris committed to provide comparative Montgomery County data and additional staff analysis to the committee.