Maryland At Issue - February 2019

State

Assembly Approaches Bill Filing Deadlines

The pace of the Maryland General Assembly is accelerating as the Senate and House pass their bill filing deadlines. Over 1,400 bills have been introduced to date, with another 1,400 likely to come. AOBA’s Maryland Government Affairs Committee meets Monday afternoons to review legislation. Please contact AOBA Maryland VP Ron Wineholt to participate on the Committee at rwineholt@aoba-metro.org. We will be actively engaged on the following bills in upcoming weeks:

• Montgomery County – Just Cause Eviction - The most significant bill filed to date of interest to AOBA members remains the Montgomery County Just Cause Eviction bill, MC 22-19. AOBA fielded a strong panel of opponents at the Delegation’s Dec. 3 public hearing in Rockville. The state legislation would require residential rental property owners in Montgomery County to renew a tenant's lease forever unless they can prove at least one of seven listed "just causes" for non-renewal, making it much more difficult to remove problem tenants. AOBA has provided considerable information to members through alerts and articles. We will continue to strongly oppose the bill and work for its defeat. The bill is currently under consideration in the Economic Development Committee of the Montgomery County Delegation.
   
• Assessment Notices and Orders – Email - SB 59 would authorize the State Department of Assessments and Taxation to provide income and expense form requests, real and personal property assessment notices, final notices, and certain other notices to property owners by email, if the owner has provided the Department within the past 3 years an email address for receiving notices. Currently such notices must be provided by first class or certified mail, depending on the type of notice. AOBA is supporting the bill with amendments to tighten the bill’s language so it is clear that email service of these documents would only occur when the property owner had clearly made an election for email delivery in lieu of regular mail service.
   
• Charges Collectible as Rent - SB 366 would provide clearer statutory authority for landlords to collect utilities and other charges as rent, if those charges are distinctly set apart in a written lease. The bill also requires that any system of RUBS be specified in the lease, and that a landlord provide a tenant, on written request, information to document a bill for utilities. The bill would prohibit a landlord from evicting a tenant if the only unpaid amount collectable as rent is a charge for water of less than $50. AOBA supports this bill, as it attempts to add certainty to the collection of other charges as part of summary ejectment, which has been cast in doubt since the Court of Appeals decision in the Lockett case in 2016.
   
• Broadband Services – Exclusive Agreements - HB 23 would prohibit the owner of a rental residential building that receives financial assistance for the construction or rehabilitation of the building from the State DHCD from entering into or renewing an exclusive access agreement with an Internet provider or a television provider for the building. A “television provider’ includes cable, satellite, video or fixed wireless signals for television. The bill would only apply prospectively for DHCD financial assistance recipients approved after October 1, 2019. At the bill hearing the bill sponsor also offered an amendment to prohibit rental housing providers from entering into or renewing an exclusive marketing agreement with a service provider. AOBA is strongly opposing this legislation.
   
• Carbon Monoxide Alarms - HB 70 would clarify that a rental dwelling is required to install a carbon monoxide alarm only if it contains a device that emits carbon monoxide or has an adjacent enclosed unventilated attached garage. Legislation enacted in 2016 required the installation of carbon monoxide alarms in rental dwellings by April 1, 2018. However, due to unclear wording of extensive amendments in the legislation, there could be an implication that even all-electric apartments would need a carbon monoxide alarm. AOBA supports this bill.
   
• State Tax Credits – Purple Line Construction - HB 313 would provide a state income tax credit and state property tax credit for a qualified business that incurs a loss of business income resulting from construction of the Purple Line. MD DOT and the State Comptroller would determine qualifying businesses and the amount of credits due to them. AOBA supports this legislation.
   
• Source of Income - HB 451 would add “source of income” to the list of prohibited practices that would be discrimination under the housing policy of the State. The bill prohibits certain discriminatory acts based on a person's source of income and establishes specified qualifications and limitations on the general prohibition against discrimination in housing based on source of income. AOBA has opposed similar legislation for many years, which would effectively mandate rental housing providers to participate in the Housing Choice Voucher program.
   
• Residential Leases – Definition of Rent - HB 473 would provide that under a residential lease “rent” (1) Means the fixed periodic sum for use and possession of the leased premises; and (2) Does not include any additional payments due from the tenant to the landlord under the lease. AOBA opposes this bill as it would eliminate any possibility of a rental housing provider collecting through the summary ejectment process other charges deemed collectible as rent in the lease.

Montgomery County

Council Nears Approval of “Troubled Properties” Regulations

As noted in the  Feb. 5 action alert, the Planning, Housing, and Economic Development (PHED) Committee will convene on Feb. 11 at 9:30am to discuss proposed regulations, Sept. 1, 2018 MCER No. 5-17  - Proposed Executive Regulation – Troubled Properties. Following the committee’s expected approval of the regulations, AOBA will notify the membership of the effective date of the regulations. Members can visit the Maryland Government Affairs section of the AOBA website for additional information on the new inspection protocol.

Prince George's County

Council Chair Names Committee Members

Pursuant to legislation enacted last year, the County Council reorganized its committee structure, adding a sixth standing committee. Council Chair Todd Turner last month named the Chairs and members of each committee. AOBA works closely with the committees and council members on legislation of interest to our members. More information on each committee is linked below:

• Education and Workforce Development Committee (EWF)
• Government Operations and Fiscal Policy Committee (GOFP)
• Health, Human Services and Public Safety Committee (HHSPS)
• Planning, Housing and Economic Development Committee (PHED)
• Transportation, Infrastructure, Energy and Environment (TIEE)
• General Assembly

County Economic Development Promotes Amazon Incentives

The Prince George’s County Economic Development Corporation (EDC) is reaching out to AOBA members to encourage providing rental incentives to Amazon employees locating in this area. Prince George’s County suggests offering Preferred Employer Program (PEP) incentives to attract Amazon HQ2 employees to your properties. According to Amazon, more than 25,000 employees, with an average salary of $150,000, will be hired to work at the company’s new headquarters in Crystal City, VA – conveniently accessible from Prince George’s County by Metro or in less than 20 minutes by automobile in some cases.

They advise that at least one owner of an apartment building in the county is already offering Amazon employees the following PEP incentives: 5% discount on rent; waived application fee; and no deposit required. If you are able to offer PEP incentives to Amazon employees, please the County EDC know so they can inform Amazon HQ2 management in order to promote your apartments. As your time permits, notify David Lewis at dklewis@pgcedc.com or by phone at (301) 583-4609.