This Regulation is intended to establish a comprehensive regulatory system to assure that the practices used by landlords to allocate water and sewer (wastewater) costs to tenants are just and reasonable and include appropriate safeguards for tenants, and are in compliance with Section 29-30(a)(6), “Landlord-Tenant Relations,” of the Montgomery County Code, 2001, as amended (“County Code”). The provisions of this Regulation apply to apartment complexes that bill tenants for water and sewer utility service on an allocated basis, referred to as a “Ratio Utility Billing System” (“RUBS”). In this Regulation the following words and terms have the following meanings unless the context clearly indicates otherwise: (A) Allocated utility service - Water and Sewer utility service that is master metered to a landlord by the Washington Suburban Sanitary Commission (“WSSC”) and that the landlord allocates to tenants using a Ratio Utility Billing System. (B) Apartment complex - A set of related buildings that have the same landlord and all contain multifamily rental dwelling units. (C) Department - The Department of Housing and Community Affairs. (D) Director - The Director of the Department of Housing and Community Affairs or the Director’s designee. (E) Landlord - The owner, the owner’s agent, lessor, or sublessor of the dwelling unit authorized to exercise any aspect of the management of the premises, except persons engaged solely in custodial and maintenance functions. (F) Lease - Any written agreement that establishes or modifies the terms, conditions, rules, regulations or any other provisions concerning the use and occupancy of a dwelling unit. (G) Master meter - A meter used to measure, for billing purposes, all water usage of an apartment complex, including common areas, common facilities, and dwelling units. (H) Ratio Utility Billing System - the system under which the cost of water and/or sewer utility service that is master metered to a landlord by WSSC, is allocated to tenants by the landlord through the use of a formula that estimates the water and sewer use of each rental unit in the apartment complex. (I) Tenant - Any person who occupies a dwelling unit for living or dwelling purposes with the landlord’s consent. (A) When a landlord uses a Ratio Utility Billing System to bill tenants for water and/or sewer utility service, the Lease between the landlord and the tenant must include all of the following: (1) A statement that the tenant will be billed by the landlord for allocated water and sewer utility services; (2) The precise formula used by the landlord to allocate the cost of water and sewer utility services to the tenant; (3) A statement that an disputes relating to the computation of the tenant’s bill are between the tenant and the landlord, not a third party billing agent; (4) The average monthly bill for all dwelling units in the apartment complex in the previous calendar year and the highest and lowest month’s bills for that period; (5) Information regarding billing such as meter reading dates, billing dates, and due dates; (6) The time period within which the landlord must repair leaks in the tenant’s dwelling unit and in common areas, if common areas are not submetered. (7) A statement that the tenant has the right to receive information from the landlord to verify the water and sewer utility bill; (8) The maximum amount of any service charge or administrative fee that can be billed to tenants by the landlord; and, (9) A statement that a copy of this Regulation is available upon request. (B) If the landlord institutes a Ratio Utility Billing System at the commencement of the Lease, or upon renewal of an existing Lease, Section 29-34(b)(2) of the County Code does not apply. (A) Upon 10 days written request by a tenant or the Director, the landlord must make the following records available for inspection at the onsite manager’s office during normal business hours: (1) A current and complete copy of this Regulation; (2) Information or tips on how tenants can reduce water usage; (3) All the bills from WSSC to the landlord for the preceding two (2) year period; (4) An explanation of what formula the landlord uses to calculate the tenants’ bills; (5) The total amount billed to all tenants each month; (6) Total revenues collected from the tenants each month to pay for water and sewer utility service; and (7) Any other information necessary for a tenant to calculate and verify a water and sewer bill. (B) Each of the records referred to in 29.00.01.05(A) must be maintained for the current year and the previous calendar year. Charges billed to tenants under a Ratio Utility Billing System must only include bills for water and sewer utility service from WSSC, and must not include any other fees billed to the landlord by WSSC such as deposits, disconnect or reconnect fees, late payments, or other similar fees. (A) Common Area Calculation. Before a landlord may allocate the WSSC master meter bill for water and sewer service to the tenants, the landlord must first deduct common area usage such as installed landscape irrigation systems, pools and laundry rooms, if any, as follows: (1) if all common areas are separately metered or submetered deduct the actual common area usage; (2) if common areas are not separately metered or submetered, the landlord must deduct from the total amount of the bill, seasonal common area usage for the billing period as follows: (a) 15 percent for an installed landscape irrigation system; (b) 10 percent for laundry room(s); (c) 10 percent for a swimming pool and for each other amenity that uses water. (B) Formula for Calculating Tenants’ Bills. To calculate a tenant’s bill, the landlord must divide the amount of the WSSC bill, less the common area usage, by the total number of occupants in all rental units at the beginning of the month of WSSC’s billing period, and multiply that number by: (1) the number of occupants in the tenant’s rental unit at the beginning of the month for which bills are being rendered; or, (2) the ratio occupancy formula below which assigns a fractional portion per occupant and which is determined by the number of occupants in a rental unit at the beginning of the month for which bills are being rendered: (a) rental unit with one occupant = 1 (b) rental unit with two occupants = 1.6 (c) rental unit with three occupants = 2.2 (d) rental unit with more than three occupants = 2.2 + 0.4 per each additional occupant over three (3) any other formula that is presented by a landlord and approved by the Department in advance. The landlord has the burden of proving to the Department that the proposed formula fairly and accurately allocates water and sewer usage among tenants. The Department has 30 days from the date it receives the landlord’s proposed formula to make a determination whether to approve or deny use of the formula. If the Department denies use of a proposed formula, the Department must send written notice to the landlord with reasons for the denial. At the same time that a landlord presents a proposed formula to the Department, the landlord must notify all tenants in the property by first class mail that an alternate RUBS formula has been proposed to the Department, that the Department has 30 days to approve or deny use of the formula, and that the tenants have the right to submit comments regarding the proposed formula to the Director of the Department during the 30 day review period. If a tenant moves in or out during a billing period, the landlord may calculate a pro-rated bill for the tenant by dividing the number of days the tenant lived in the rental unit by the number of days in the month multiplied by the bill for the month. If a tenant moves out during a billing period before the landlord receives the bill for that period from WSSC, the landlord may calculate a final bill by calculating the tenant’s average bill for the last three months and multiplying that average bill by the number of days the tenant was in the rental unit divided by the number of days in that month. If a landlord uses a Ratio Utility Billing System, the bill format for each billing period must show the amount of any customer service or administrative fee charged. Such service charge or administrative fee must not exceed the maximum allowable under § 54G of the Maryland Public Service Commission Law for such fees, which is currently $1 per unit per month. The landlord may not impose any additional charges. (A) Bills for allocated water and sewer charges may be rendered to tenants on a monthly basis even though WSSC may bill the landlord on a quarterly basis. (B) Information on bill. The bill must clearly state the following: (1) the duration of the billing period; (2) amount due for allocated water usage; (3) amount due for allocated sewer usage; (4) amount due for customer service charge or administrative fee; (5) total amount due for the billing period; (6) a statement that the bill is not from WSSC; (7) name and address of the tenant to whom the bill is applicable; (8) name, address, and telephone number of the firm rendering the bill; and, (9) name, address, and telephone number of the party to whom payment is to be made. (C) Due date. The due date on the bill may not be less than 15 days after it is mailed or hand delivered to the tenant. A payment is delinquent if not received by the due date. (D) Estimated bill. An estimated bill may be rendered if a master meter has been tampered with, cannot be read, or is out of order. In such a case the bill must be distinctly marked as an estimate and the subsequent bill must reflect an adjustment for actual charges. (E) Over billing and under billing. (1) Over billing. If any tenant is over billed for water and/or sewer utility service, the landlord must calculate an adjustment to the tenant’s bill, and the tenant is due a refund by the landlord. (2) Under billing. If a tenant is under billed for water and/or sewer utility services, the landlord may calculate an adjustment for bills issued, so long as the bills were issued in the previous six months. However, the landlord cannot calculate an adjustment if the tenant was under billed due to submeter malfunction, except as provided in 29.00.01.10(D). If the total amount that a tenant was undercharged is $25 or more, the landlord must offer the tenant a deferred payment plan option for the same length of time as that of the under billing. Adjustments for usage by a previous tenant must not be back billed to a current tenant. (F) Failure by a tenant to pay a properly calculated and properly rendered allocated water and sewer utility bill constitutes a breach of lease by the tenant, and cannot be construed by a landlord to be non-payment of rent. (G) Disputed bills. In the event of a dispute between a tenant and a landlord regarding any bill, the tenant must notify the landlord of the dispute in writing, and the landlord must investigate the matter and report the results of the investigation to the tenant in writing. The landlord’s investigation and report must be completed within 30 days from the date the tenant gives written notification of the dispute to the landlord. (H) If a landlord fails to comply with any provision of this Regulation, a tenant may file a complaint with the Director pursuant to Section 29-36(a) and (b), “Tenant’s Complaints,” of the County Code. Any landlord who intends to use a Ratio Utility Billing System to allocate water and/or sewer utility service to tenants, must register with the Department in a form prescribed by the Director at least 60 days before implementing a Ratio Utility Billing System, or within 30 days of the effective date of this Regulation if a landlord is already using a Ratio Utility Billing System.

The following words or phrases are defined as follows for use in this regulation: Class 3 accessory apartment license means a license issued by the Department for an accessory apartment that does not have a special exception approved before May 20, 2013. Department means the Department of Housing and Community Affairs. Director means the Director of the Department of Housing and Community Affairs or the Director’s designee. Owner means any person who holds legal title to a one-family detached dwelling unit. Primary Residence means a one-family detached dwelling unit where the owner regularly resides and is the location designated by the owner for legal purposes of obtaining a driver’s license and filing tax returns. (a) The annual license fees for rental dwelling units are hereby established as follows: (1) For a Class 1 multi-family rental facility license, $82.00 per dwelling unit in an apartment complex or an accessory apartment approved by special exception and $73.00 per dwelling unit for all others. (2) For a Class 2 single-family rental facility license, $130.00 per dwelling unit. (3) For a Class 3 accessory apartment license, $125.00 per unit. (b) The annual license fee shall not be prorated and must be made payable to Montgomery County, Maryland. (c) Failure to obtain a rental facility license is a Class A violation under Section 1-19 of the Montgomery County Code. (d) In addition to the annual license fee, the following fees for a Class 3 accessory apartment license are hereby established as follows: (1) The application filing fee is $260.00, of which $130.00 is refundable if the Director finds the proposed accessory apartment does not meet the requirements of the zoning ordinance prior to the Department’s inspection of the proposed accessary apartment to ascertain whether it complies with Chapter 26 of the Montgomery County Code. (2) The sign fee is $230.00, of which $115.00 is refundable if the sign is returned to the Department within 15 days of the end of the posting period. (A) The sign fee is not refundable if the sign is not returned or is returned but damaged. (B) If the sign is lost during the posting period, the original sign fee of $230.00 will not be refunded and a new sign fee of $230.00 will be charged. (3) The fee for the transfer of an accessory apartment license is $250.00. (a) An owner must file a completed license application on a form provided by the Department which will require at least the following supporting documents to be submitted with the application form: (1) Evidence of primary residence as specified in Section 29-19(b)(1)(B). (2) A drawing of the dimensions of the single family dwelling, including the dimensions and location of the proposed accessory apartment. (3) A drawing or photograph with the dimensions and locations of the proposed parking spaces. (4) An affidavit from the owner attesting that the owner will continue to use the property as the owner’s primary residence after obtaining an accessory apartment license. (5) An affidavit from the owner attesting that the total number of occupants residing in the accessory apartment who are 18 years or older will be limited to 2. (6) The filing fee, license application fee, and sign fee established by this Regulation. (b) The Director will review the application for completeness and will send a notification by regular mail or electronic mail about whether the application was accepted by the Department or whether the application will be returned to the applicant. Returned applications will contain all filing fees and an explanation about why the application is being returned. (c) The Director will inspect the property and the proposed accessory apartment for compliance with the provisions of Chapter 26 and in Section 59-A-6.20 of the Montgomery County Code. (d) When the Department has determined the application is complete, the owner must erect a sign furnished by the Department. A determination by the Director that an application is complete is not a determination about whether the proposed accessory apartment satisfies the zoning requirements in Section 59-A-6.20 or the requirements of Chapter 26. (1) Unless otherwise provided by the Department, the sign must be erected on the property in a place visible from each public road which abuts the property, as determined by the Department. (2) Unless otherwise provided by the Department, the sign must be erected so that the bottom of the sign is at least 2 ½ feet from the ground. The sign will be of such material and color or colors as the Department specifies, with the height and width of not less than 2 and 3 feet, respectively, and must contain in conspicuous lettering not less than 2 ½ inches in height the following: (A) Inform the public of a pending accessory apartment application with the application’s reference number. (B) Provide the Department’s website address for information about the application and information on filing an objection to the application. (C) Provide a telephone number to contact the Department regarding the status of the application. (3) The sign must be posted within 5 days of the acceptance of the application by the Department and remain posted for at least 30 days after the issuance of the Director’s report with the Director’s findings concerning the application. (4) Before a Class 3 accessory apartment license is issued, the owner must provide a signed affidavit attesting that the sign was posted in compliance with this Regulation. (5) The sign must be returned to the Department within 15 days after the end of the posting period for a partial refund of the sign fee. (6) Failure to post the sign in accordance with this Regulation will result in the return of the application and filing fees and the Director denying the proposed accessory apartment. (e) The Director will issue a report on all findings required by this Regulation concerning the proposed accessory apartment within 30 days of the Department’s acceptance of the application. A copy of the report will be sent to the owner by regular mail or electronic mail and posted on the Department’s website. The owner or any aggrieved party may file objections to the Director’s report with the Office of Zoning and Administrative Hearings within 30 days under the provisions of Chapter 29-26(b)(3). (f) The Director will issue or deny a new license 30 days after the issuance of the Director’s report. (1) If any repairs or improvements are required before the license may be approved, they must be completed within 30 days of the Director’s report or the application may be denied and the license and application fees forfeited. The Director may waive or extend the 30 day requirement at the Director’s discretion. Any waiver or extension of the 30 day period must be in writing. (2) If new construction is required before the license may be approved, it must be completed within 180 days or the application may be denied and the license and application fees forfeited. The Director may waive or extend the 180 day requirement at the Director’s discretion. Any waiver or extension of the 180 day period must be in writing. (g) The Director may renew a license only if the requirements of Chapter 29-19(b)(3) are met. (h) The Director may transfer an accessory apartment Class 3 license once the requirements of Chapter 29-19(b)(5) are met. (i) The Director may invoke an accessory apartment Class 3 license under the provisions of Chapter 29-25. This regulation sets forth a schedule of fees, and guidelines for assessing those fees, for certain inspections conducted as part of a triennial inspection or an annual inspection of rental housing required under Sections 29-22(a) and 29-22(b) of the Montgomery County Code, and inspections of rental housing conducted as part of a corrective action plan under Section 29-22(c) of the Code. Unless defined below, all terms herein have the same meanings as those in Chapter 29 of the Code. (a) Initial Inspection means the first inspection of rental housing within each three year period under Section 29-22(a). (b) Initial Inspection Date means the date of an Initial Inspection, and the date from which any inspection fees are calculated. (c) Multifamily Dwelling Unit means “dwelling unit, multifamily” as defined in Chapter 29 of the Code. (d) Second Inspection means an inspection following an Initial Inspection to determine whether violations identified by the Department during the Initial Inspection have been corrected. (e) Subsequent Inspection means any inspection conducted after an Initial Inspection, including a Second Inspection, Third Inspection, Fourth Inspection, and so forth, that is required to determine whether violations identified by the Department during prior inspections have been corrected. (f) Third Inspection means an inspection after the Second Inspection to determine whether any violations identified by the Department during the Initial Inspection or Second Inspection have been corrected. (a) The Department shall bear the cost of an Initial Inspection and a Second Inspection for rental housing required to be inspected within each three-year period under Section 29-22(a). If, after a triennial inspection, the Department determines that rental housing requires a corrective action plan under Section 29-22(c), the Landlord must pay, as provided in the fee schedule below, for each re-inspection following the Initial Inspection and Second Inspection performed as part of the triennial inspection. (b) If, within a three-year period, the Department is required to conduct Subsequent Inspections after the Second Inspection because the violations identified by the Department during prior inspections have not been corrected, the Department shall charge a fee to the Landlord according to the following fee schedule: (1) The fee for the Initial Inspection is $0; (2) The fee for the Second Inspection is $0; (3) The fee for the Third Inspection is $100 for the Apartment Complex and an additional fee of $25 for each Multifamily Dwelling Unit that must be re-inspected; (4) The fee for the Fourth Inspection is $200 for the Apartment Complex and an additional fee of $50 for each Multifamily Dwelling Unit that must be re-inspected; (5) The fee for the Fifth Inspection is a $500 for the Apartment Complex and an additional fee of $125 for each Multifamily Dwelling Unit that must be re-inspected; (6) The fee for the Sixth Inspection, and any Subsequent Inspections after the Sixth Inspection, is $1,000 for the Apartment Complex and an additional fee of $250 for each Multifamily Dwelling Unit that must be re-inspected. (c) In addition to the Inspection Fees, a Landlord that fails to correct violations identified by the Department during an inspection may be subject to the revocation of the Landlord’s rental license as provided in Section 29-25 of the Code. (d) The Department may take legal action to collect any fees assessed against a Landlord under this regulation. A Landlord that fails to make timely payment of any fees assessed under this regulation may also be subject to the revocation of the Landlord’s rental license as provided in Section 29-25 of the Code. (a) Inspection notice. The Department shall mail notice of an Initial Inspection to a Landlord of rental housing required to be to be inspected by the Department under Section 29-22 of the Code. The notice shall be mailed to the address provided by the Landlord in its application for a rental housing license. After providing the notice, the Department and the Landlord shall establish a mutually agreed upon date or dates for an Initial Inspection of the rental housing. (b) The inspection notice must contain: (1) The contact information for the Department’s inspector assigned to the inspection; (2) The name and street address of the rental housing to be inspected; (3) The percentage of Multifamily Dwelling Units in the rental housing that will be inspected as part of the Initial Inspection; (4) A notice that the Landlord must, at least 72-hours prior to the date of the Initial Inspection, provide notice to all tenants in the rental housing that the Department will be inspecting the rental housing; (5) Any other information that the Department determines to be relevant. (c) Improper tenant notice. If, at an Initial Inspection, the Department determines that tenants of the rental housing have not received from the Landlord at least 72-hours’ notice prior to the Initial Inspection, the Department shall inspect only the exterior and common areas of the rental housing during the Initial Inspection and the Department and the Landlord shall establish a new, mutually agreed upon date for a Second Inspection. Fees for all inspections of the rental housing following the Second Inspection shall be charged according to the fee schedule in Section 29.20.02.03. (d) At its discretion and based upon the Department’s findings during an Initial Inspection, the Department may increase the percentage of Multifamily Dwelling Units inspected from that stated in the inspection notice without giving advanced notice to the Landlord. (e) During any inspection of rental housing by the Department, the Landlord must provide access to all of the rental housing’s common areas, service areas and the Multifamily Dwelling Units designated by the Department. (f) Second Inspection. If violations are found during an Initial inspection, the Department shall direct the Landlord to correct the violations by a specified date, such date being designated as the Second Inspection. (g) If the Landlord is unable to provide the Department access to any Multifamily Dwelling Unit, common area or service area during an inspection, the Landlord must provide access to that Multifamily Dwelling Unit, common area or service area on the date the Department conducts a Subsequent Inspection. If the Department finds a violation in the previously inaccessible areas during a Subsequent Inspection, which requires the Department to schedule an additional inspection to verify that the violation has been corrected, the Landlord shall be charged according to the fee schedule in Section 29.20.02.03. (h) If, during a Subsequent Inspection, the Department finds a new violation in any Multifamily Dwelling Unit, Common Area or Service Area that was previously inspected and which requires the Department to schedule an additional inspection to verify that the violation has been corrected, the Landlord shall be charged according to the fee schedule in Section 29.20.02.03. (a) If, during a Second Inspection, the Department finds that the Landlord has not corrected one or more violations identified by the Department at the Initial Inspection, a civil citation may be issued to the Landlord unless the Director, in the Director’s discretion, determines that the Landlord’s failure to correct a violation was due to circumstances beyond the control of the Landlord. In this case, the Department shall conduct a Third Inspection of the rental housing, but may waive the fee. Examples of factors beyond the control of the Landlord include, but are not limited to, material or supplies to correct the violation are on back-order, repairs cannot be made due to seasonal conditions, or a lack of cooperation by a tenant. (b) For a fee waiver to be granted, the Director must determine that the Landlord has made a good faith effort to correct violations by the Second Inspection, as demonstrated by at least fifty percent (50%) of the violations identified during the Initial Inspection have been corrected. (c) For a fee waiver to be granted, the Landlord must provide documentation, acceptable to the Director, substantiating the reason for the Landlord’s delay in correcting violations, documenting the Landlord’s good faith efforts since the Initial Inspection to correct all violations, including but not limited to providing the Director executed contracts for services and labor and invoices for materials and supplies, and providing the Director with a good faith plan, including a reasonable timeframe, to correct all remaining violations by the Third Inspection. (d) A Landlord’s failure to comply with the requirements of this Section 29.20.02.05 may result in the Department issuing civil citations and charging the Landlord for any inspection fees that would have been charged at the time of the Third Inspection.

Landlords have the legal responsibility and obligation to correct violations of Chapter 26 of the County Code in an expeditious manner in order to provide decent, safe and sanitary housing for the use and enjoyment of their tenants. In cases where the Department has determined that the landlord has failed to meet this responsibility and obligation, Montgomery County has adopted a remedy available to tenants to correct a violation and deduct the reasonable cost of the repair, up to one month’s rent, from the tenant’s rent. This remedy is in addition to any other remedies available under State and County law, and may be used to correct any type of violation subject to the following regulations. Unless defined below, all terms herein have the same meaning as in Chapters 26 and 29 of the County Code. (a) Life and Safety Violation is any violation listed in Section 29-22(b) of the County Code, Inspection of Rental Housing, any violation with a high severity rating as required in Section 29-22(c) as criteria for a troubled property, and any violation that creates an unfit dwelling or severe condition as defined in Chapter 26, Housing and Building Maintenance Standards. (b) Reasonable and Specified Time to Correct means that legally required period of time under Chapters 26 and 29 of the County Code after a landlord is issued a notice of violation during which the landlord has the responsibility, obligation, and opportunity to correct the violation. (c) Repair and Deduct Provision means the remedy available to tenants as provided for and described in Chapter 29, Section 22(f)(1) of the County Code. (a) For life and safety violations, the landlord shall be given 24 to 48 hours from the time the notice of violation is issued to correct the violation, with the specific time frame being determined by the nature of the violation. (b) For violations that do not threaten the immediate life and safety of the tenant, the landlord shall generally be given between 15 and 30 days from the time the notice of violation is issued to correct the violation, with the specific time frame being determined by the nature of the violation. (c) In cases where the Department finds any violation for which it has previously issued citations on two or more occasions within the preceding twelve-month period, the Department shall give the landlord no more than 48 hours to correct the violation. (a) The use of the Repair and Deduct Provision may only be initiated following an inspection by the Department and the issuing of a notice of violation to the landlord. (b) The Department shall provide written notification to the landlord of the availability and scope of the Repair and Deduct Provision at the time a notice of violation is issued. (c) If, upon expiration of the Reasonable and Specified Time Period to Correct contained in the notice of violation, the Department finds that the violation has not been corrected as required under the Department’s order, the Director may authorize the tenant to use the Repair and Deduct Provision. (d) A tenant may use the Repair and Deduct Provision only after receiving written authorization from the Director, along with a copy of this executive regulation. The authorization must specify the exact violation or violations for which the authority is being granted to the tenant. The Department must provide a copy of said authorization, along with a copy of this executive regulation, to the landlord via hand delivery and/or the use of certified mail, return receipt requested. (e) In determining whether or not to authorize a tenant to use the Repair and Deduct Provision, the Director shall consider the following factors: (1) Whether or not the complaining party is the tenant under the lease; (2) Whether or not the tenant has granted the landlord and/or the landlord’s contractors the necessary entry to correct the violation, as required under the lease, provided that the landlord issued the notice of entry to the tenant required under the lease; (3) Whether or not the violation was deliberately caused by the tenant in order to initiate or claim rights under the Repair and Deduct Provision, or to claim other rights under Chapters 26 or 29 of the County Code; (4) Whether or not the correction made by a landlord meets the standard required by law as determined by the Department, regardless of whether or not a tenant believes the corrective action is satisfactory or sufficient; (5) Which party is responsible for correcting the violation, under the lease; and/or (6) Whether or not the tenant is current in the payment of rent to the landlord. (f) If a dispute exists as to the presence of one or more of the above circumstances, the Director shall refer the complaint to the Office of Landlord Tenant Affairs, or to the Commission, for investigation and further action. Such action may include a recommendation to the Director to authorize a tenant to use the Repair and Deduct Provision. (g) The Repair and Deduct Provision shall not be authorized for items that are solely cosmetic or aesthetic, such as a new paint color, new cabinets, or new carpeting, unless repairs to or replacement of these items is attendant to and required to correct a violation. (h) The Repair and Deduct Provision shall not be authorized for the replacement of heating and/or cooling systems or appliances unless such replacement is required to correct a violation and there are no other reasonable corrective actions available. (i) The Repair and Deduct Provision shall not be authorized for the purpose of making major capital improvements to the dwelling unit or property unless such improvement is required to correct a violation and there are no other reasonable corrective actions available. (j) The Repair and Deduct Provision may not be used to withhold rent to pay for the cost of repairs for which the landlord would have been able to charge the tenant, such as the repair of a violation or other damage that was intentionally caused by the tenant or damage that is due to the tenant’s negligence. (k) The Repair and Deduct Provision shall not supplant the existing and mutually agreed upon terms of the tenant’s lease. (l) The use of the Repair and Deduct Provision does not prohibit the Department from issuing a citation to the landlord for failure to correct a violation under Chapter 26 of the County Code, or for taking other remedial actions such as revoking the landlord’s rental license under Section 29-22(f)(2) of the County Code. (a) In selecting a contractor, the tenant may choose a general home improvement contractor with the ability to make a wide range of repairs, including repairs to the existing violation experienced by the tenant, or a contractor that specializes in repairs to the existing type of violation. (b) The tenant must select a contractor licensed to do business in the State of Maryland (including a Maryland Home Improvement License and any other license specific to the contractor’s specialty) to perform any corrective action under the Repair and Deduct Provision. The Maryland Home Improvement Commission (MHIC) within the Maryland Department of Labor, Licensing and Regulation (DLLR), maintains an internet website with information for consumers on home improvement contractors, including a resource to verify whether or not a general contractor or specialized contractor (e.g. electrician, plumber, HVAC) is licensed in the State. The MHIC website is: https://www.dllr.state.md.us/license/mhic/ (c) The Better Business Bureau of Greater Maryland (https://www.bbb.org/greater- maryland/accredited-business-directory ) provides to the public list of contractors accredited by that organization. (d) The tenant shall attempt to solicit the lowest responsible and responsive bid to correct the violation. (e) The tenant may only deduct the cost of the repair of the specific violation designated in the Director’s letter, up to one month’s rent. The tenant may not deduct the cost of any other repairs or work performed by the contractor. (f) The tenant or the tenant’s contractor is responsible for securing any necessary permits, paying any fees, and arranging any inspections by the appropriate permitting officials, which are separate from any inspections performed by the Department. (g) The tenant must request and maintain documentation to be provided to the landlord and the Department upon request. Information to be documented includes: (1) A copy of the Director’s letter of authorization permitting the tenant to proceed with contracting for the specific repair at issue; (2) Information on the number and cost estimates of the bids received, if applicable; (3) Contact and business license information for the contractor selected, and the amount of payment to the contractor for the work performed, including associated costs such as cost of materials, labor, permitting or inspection fees, etc.; (4) A description of the specific repair that was made; and, (5) Copies or information on any warranties from the contractor on the work performed. (a) Upon completion of the repair, the tenant must contact the Department to conduct an inspection to verify whether or not the violation has been corrected in a workmanlike manner. Once the Department finds that the violation has been sufficiently corrected, the tenant shall provide the documentation listed in Section 29.22.01.05, and a copy of the tenant’s current lease showing the tenant’s rent, to the Department for review. (b) Within 14 days of the Department’s inspection, and upon the Director’s determination of the completeness and sufficiency of the tenant’s documentation, the Department shall provide the tenant with written authorization to withhold the cost of the repair from the tenant’s monthly rent, subject to the terms of Chapter 29, a copy of which shall be forwarded to the landlord. (c) In reviewing the cost of the repair, the Department shall not make any determination as to the reasonableness of the costs claimed besides the determination that the cost does not exceed the amount of one month of the tenant’s rent. (d) In cases where the landlord had abrogated his or her responsibility under the County Code, thereby requiring the tenant to use the Repair and Deduct provision, the Department shall not dismiss the aforementioned notice of violation issued to the landlord, and shall proceed through the established legal process for code enforcement. (a) Disputes related to the use of the Repair and Deduct Provision are between the tenant and landlord. The Director shall refer any disputes related to the exercise of this remedy, including but not limited to the reasonableness of the repair cost or the quality of the workmanship, to the Office of Landlord Tenant Affairs, or to the Commission, for further investigation and action. (b) The Department shall not be a party to any contract for work performed, nor is it responsible to provide funds for the performance of a corrective action. (c) The Department is not liable for the quality of materials provided or the work performed, or for any damage or additional violations that may occur attendant to, or resulting from, the corrective action. The minimum maintenance standards that multifamily rental properties, as defined below, must meet are set forth in Chapter 26 of the Montgomery County Code. When the Department conducts an inspection of a multifamily rental property for compliance with Chapter 26 and all other applicable laws, any violations of the Chapter 26 standards and other applicable laws are noted by the Department without distinction as to the severity of the violation, except those violations cited under Section 26-13 and Section 26-15 of the Code. However, for the purposes of meeting the requirements of Section 29-22(b)(2), the Department categorizes and ranks Code violations identified during Department-scheduled inspections in the order of severity, as outlined in this regulation to determine whether the multifamily rental property is to be designated as a troubled property, an at-risk property or a compliant property as defined in Section 29-22(b)(2). This regulation sets forth a methodology to designate a multifamily rental property as a troubled property, an at-risk property, or a compliant property under Section 29-22(b)(2) of the Montgomery County Code based on the severity and quantity of Chapter 26 violations violations of other applicable laws, and other criteria as outlined in 29.22.02.04 of these regulations. Unless defined below, all terms herein have the same meanings as those in Chapter 29 of the Code. (a) At-risk property means a multifamily rental property that, because of the severity and number of violations under Chapter 26 or any other applicable laws, is at risk of becoming troubled but does not meet the threshold for being designated as a troubled property. To be designated as an at-risk property, the multifamily rental property’s SV or TV Score exceeds the thresholds established by the Department under Section 29.22.02.04. (b) Compliant property means a multifamily rental property whose TV and SV Scores are both below the thresholds established by the Department under Section 29.22.01.04. (c) Corrective action plan means a written multifamily rental property maintenance plan prepared by the landlord of a troubled property, that describes in detail the specific actions that the landlord will take within a specified schedule to both identify and correct existing housing code violations in a timely manner and prevent future housing code violations to the greatest extent possible. (d) Department-scheduled inspection means an inspection scheduled by the Department as required under Section 29-22 of the Code. (e) Multifamily rental property means any apartment complex/building or other multifamily building, including duplexes that are offered for rent as personal living quarters whose owner is required to obtain a Class 1 rental housing license under Section 29-16 of the Code. (f) Quarterly tenant work request logs are records of all open, pending, and completed tenant or other work requests kept by landlords to track work requests, including the date or time that the work request was submitted, the specific nature of the work request, and for completed work, the time that the work was completed, and details of what work was done to satisfy the request. (g) Requested inspection means an inspection requested by a landlord whose multifamily rental property has received a troubled or at-risk designation for the purpose of obtaining a change to the property’s designation when the landlord believes that violations identified during a Department-scheduled inspection have been corrected. (h) Severity of Violations Score or SV Score is a criterion used to assess the violations found in rental housing, calculated using the methods set forth in 29.22.02.04. (i) Total Number of Violations or TV Score is a criterion used to assess the violations found in a multifamily rental property, calculated using the methods set forth in 29.22.02.04. (j) Troubled property means a multifamily rental property whose TV and SV scores both exceed the thresholds established by the Department under Section 29.22.01.04 or where at least 20 percent of the property’s units contain extensive and visible mold growth or have an infestation of insects, rodents or other vermin. (k) Unsafe conditions mean a failure by the landlord or tenant to maintain all or a portion of a multifamily rental property in a safe and sanitary condition. Unsafe conditions include, but are not limited to, fire safety hazards, physical hazards, environmental hazards, pest infestations, and security issues. (a) Health and safety violations. Health and safety violations are Code violations that present an imminent or immediate risk to tenants including, but not limited to: (1) those violations listed in Section 29-22(b)(1) of the Code; (2) violations that cause the Department to condemn a unit or property as unfit for human habitation under Section 26-13 of the Code; (3) missing, disabled, or non-functioning smoke detectors; (4) broken entrance doors and/or missing or broken locks; (5) HVAC system not maintaining a temperature of at least 68 degrees in heating months; (6) health and safety relate unsafe conditions; or (7) HVAC system not maintaining a temperature of no more than 80 degrees in cooling months. (b) Higher priority violations. Higher priority violations are generally those that do not present an imminent or immediate risk to tenants’ health or safety, but require more substantial and expensive repairs, including but not limited to: (1) damage to interior doors and/or door locks; (2) major wall damage; (3) the limited presence of mold that does not meet the standard set in Section 26-13(a)(3) of the Code; (4) overcrowding; (5) infestation not rising to the level established in Section 29-22(b)(1)(a); (6) non-functioning or inadequately functioning major appliance, such as a refrigerator not cooling, or a stove not heating, to the required temperature; (7) other damage to windows not related to egress; (8) missing address indicators; or (9) high priority unsafe conditions. (c) Medium priority violations. Medium Priority Violations are generally those related to ongoing maintenance issues including, but not limited to: (1) faucet leaks and other non-emergency plumbing repairs Faucet leaks and other non-emergency plumbing repairs; (2) minor wall or tile repairs that may allow water infiltration or access by rodents or insects; (3) carpet or floor damage that may cause trip or other hazards; (4) deteriorated refrigerator gaskets; or (5) HVAC system requiring general maintenance. (d) Lower priority violations. Lower priority violations are generally those of a superficial or cosmetic nature including, but not limited to: (1) interior walls and ceilings requiring general painting, scraping and preparation; (2) lights and light covers in need of repairing or replacing that do not cause electrical or other hazards; (3) window blinds in need of repairing or replacing; (4) superficial carpet or floor damage (5) broken or damaged toilet seat; (6) broken or damaged bathroom towel rack and/or toothbrush holder; or (7) bathtub in need of re-glazing and/or repairing grout and caulking. (a) After an inspection of a multifamily rental property and based on the inspection findings, the Department must calculate the SV and TV Scores to be assigned to each multifamily rental property (b) Severity of Violations (“SV”) Score. The Severity of Violations score must be based on the following point system: (1) five (5) points for each health and safety violation found; (2) three (3) points for each higher priority violation found; (3) two (2) points for each medium priority violation found; and (4) one (1) point for each lower priority violation found. (c) The Department will assign the appropriate point value to each violation based on its severity and will add the points together to calculate the total number of points. The Department will then divide this total number of points by the total number of violations found in the multifamily dwelling units inspected to determine an average number representing the average severity per violation identified in the inspection process. This average will then be multiplied by the percentage of inspected units affected by violation, to calculate a final Severity of Violations ("SV") Score that reflects the proportional severity of violations across the inspected units. (d) Total Violations ("TV") Score. The Department will divide the total number of violations found in the rental housing by the total number of multifamily dwelling units inspected to determine an average number of violations per unit which will be the Total Violations ("TV") Score for that rental housing. (e) The Department will, within 30 days after completion of the analysis,: (1) ascertain whether a property will be designated as a troubled property, at-risk property, or compliant property, and the TV Score and SV Score for each multifamily property will be evaluated based on the TV Score and SV Score thresholds established by the Department. The TV and SV score thresholds are set at 2.0 and 1.5, respectively; (2) if a multifamily rental property exceeds both the TV score and SV score thresholds, the property will be classified as a troubled property. Additionally, a multifamily rental property will be automatically designated as a troubled property if, as a result of an inspection, the Department determines that 20 percent or more of the property’s units have mold or an infestation of insects, rodents, or other vermin. Troubled properties are subject to annual inspections, the submission of a corrective action plan, and the submission of quarterly tenant work request logs; (3) if a multifamily rental property exceeds only one of the designated thresholds with either its TV Score or its SV Score, the property will be classified as an at-risk property. At-risk properties may be subject to more frequent inspections by the Department to monitor their conditions and encourage landlords to avoid being designated as a troubled property during future inspections; (4) if neither the TV nor the SV score of the multifamily rental property is above the designated threshold, the property will be designated as a compliant property; (5) if a multifamily rental property is designated as a troubled property or an at-risk property, the notice to the landlord will include supporting documentation to support or explain that designation. The written notice will also include: A. the date established by the Department of the upcoming Department-scheduled inspection; B. for troubled multifamily rental properties, the requirement for, and description of, a corrective action plan which must be submitted to and approved by the Department; C. for troubled multifamily rental properties, the requirements of Section 29-22(e), including the requirement to submit quarterly maintenance logs to the Department, effective as of the date of the written notice; D. the requirements under paragraphs (7) and (8) for the landlord to submit a request to have the multifamily rental property inspected sooner than the next Department-scheduled inspection; and E. the remedies available under Section 29-25 and Section 26-l 6 of the Code if the landlord fails to comply with the requirements of all applicable laws. (6) The Department will inspect every troubled property at least once within the succeeding 12-month period, as measured from the date all previously identified violations from the most recent inspection of the rental housing complex have been corrected and the case file for that property is closed. So long as the multifamily rental property remains a troubled property, the Department will inspect the multifamily rental property at least once within each succeeding 12-month period until the original Department-scheduled inspection for the fiscal year yields a result where the rental housing is no longer designated as a troubled property. Rental housing that is designated as at-risk may continue to be inspected on a more frequent basis. (7) A multifamily rental property that has been designated as a troubled property may have that designation removed after the Director determines that the landlord has corrected all of the violations identified during the initial inspection, the landlord successfully completed the corrective action plan for the rental housing, that two quarters of quarterly tenant work request logs indicate the landlord’s proper maintenance of property and that a subsequent inspection by the Department occurs and yields results that do not qualify the property as being troubled. The landlord may request an inspection sooner than the next Department-scheduled inspection only after the Department has verified that the landlord has corrected all the violations identified during the initial inspection and after the Department has received and approved the corrective action plan, as well as two quarters of quarterly tenant work requests. For the troubled designation to be removed, the TV and SV Scores resulting from the requested inspection or the next Department-scheduled inspection must not be above the designated threshold. (8) A multifamily rental property that has been designated as an at-risk property may have that designation removed after the Director determines that all violations identified during the initial inspection have been corrected and that a subsequent inspection occurs, yielding results that do not qualify the property as being designated as at-risk. The landlord may request an inspection sooner than the next Department-scheduled inspection only after the Department has verified that the landlord has corrected all violations identified during the initial inspection. For the at-risk designation to be removed, the TV and SV Scores of the requested inspection or the next Department-scheduled inspection must not be above the designated threshold. (9) The Department will schedule and perform requested inspections as soon as feasible, taking into account the Department’s responsibility to conduct emergency inspections, previously scheduled inspections, the size of the property, and other Departmental inspection needs. (10) In order for a troubled or at-risk property not to be subjected to Rent Stabilization rent increase restrictions, the property must achieve a designation as a compliant property after a requested inspection or the next Department-scheduled inspection. (11) Landlords that apply for requested inspections will be charged fees in accordance with COMCOR 29.20.02.03.

A. Authority. In accordance with the authority conferred under Chapter 29, Section 29-27 of the Montgomery County Code, 2014 (hereinafter referred to as the “Code”), as amended, the County Executive hereby promulgates this regulation to implement County law pertaining to the rights and responsibilities of tenants as set forth in Chapter 29 of the Code. B. Applicability. This regulation applies to all leases for rental housing in Montgomery County. A residential lease must include a list of tenant rights and responsibilities that is consistent with the following form: LEASE SUMMARY This summary is mandatory under Section 29-27(w) of the Montgomery County Code. It presents key terms of the attached lease and summarizes tenant rights and responsibilities under applicable laws and as described in the lease. It also provides information about services available to tenants from the Montgomery County Department of Housing and Community Affairs and the Commission on Landlord-Tenant Affairs. Approved by Montgomery County Office of Landlord-Tenant Affairs, 240-777-0311 www.montgomerycountymd.gov/olta Tenant’s Name: ______________________ Landlord’s Name ___________________________ Authorized Occupants are: ________________________________________________________ Property Address: _______________________________________________________________ Agent’s Name _______________________ Landlord’s address: _________________________ Primary contact’s phone number: __________; In case of emergency contact: __________ Lease Date: ________________ Term (1yr [ ], 2yr [ ], month-to-month [ ], other [ ]) Rent: $________ /mo. 1st year; $________ 2nd year; Total Amount for Lease Term: $________ Term ______ to ______ Pro-Rata $__________ Dates ______ 2-Year Lease Offer. I was offered and accepted [ ]; rejected [ ] a 2-year lease. If a 2-year lease was not offered, a written explanation as to why is attached to the lease. Amenity Fee*: (1x only), Amenities __________ Rent Due Date: __________ Late Fee: (after 10 days -5% of rent due) $___________; THIS IS NOT A GRACE PERIOD Returned Check Fee: $35.00 (or maximum amount allowed by law) Utilities. Tenant is responsible for the following utilities: gas []; electric []; water and sewer []; telephone []; cable []; Other______. Security Deposit (including pet deposit): $__________. Pets. The Tenant is not allowed to keep pets on the property without the express written consent of the landlord. Pets allowed: Yes [] No []; Type of Pet(s) ______Weight ______ License No(s) ______ Insurance. Landlord’s insurance policy does not provide coverage for a tenant’s personal belongings. For this property, Renter’s Insurance is: recommended []; required []. * An amenity MUST exist for this fee to be charged; Does not apply to MPDU tenants TENANTS’ RIGHTS Tenants have the right to: > Receive at least 24 hours-notice prior to a landlord/agent/contractor entering the premises, except in cases of emergency; > Receive 72 hours-notice prior to annual/biannual or triennial inspections from County Code Enforcement; > Sublet with written permission from the landlord if it is not prohibited by the home-owner’ > Review the proposed lease at any location of your choosing, prior to signing said lease; > Make repairs with permission of the DHCA Director, after notice to the landlord and DHCA’s issuance of a civil citation, and deduct the cost from the rent (up to the equivalent of one month’s rent) if the landlord fails to make required repairs as ordered by DHCA in the required timeframe**; > Receive a copy of the current Landlord-Tenant Handbook at move-in unless you decline a copy and accept referral to a copy on the County website; > Be given all information required under the Public Utilities Article of the Maryland Code and applicable COMAR provisions governing electric and gas sub-meters and energy allocation systems if the tenant(s) is paying for gas and electricity in a building built prior to 1978; > Receive at least 90 days-notice of any proposed rent increase. > Form, join, meet, or assist one another within or without tenant organizations; to meet and confer with the landlord with assistance from a representative if the tenant so chooses; > Have access to meeting rooms and other tenant accessible areas suitable for meetings within the property during reasonable hours and notice to the landlord to hold tenant organization meetings; > Have the first tenant organization meeting of each month free of any room reservation fees; any meetings after that are subject to the regular fee charged for reserving this area by the property; > Distribute freely and post in central locations of the property, literature concerning Landlord-Tenant issues, if the origin of the literature is properly identified; > Call the Office of Landlord-Tenant Affairs (240-777-0311) should they have any questions regarding Landlord-Tenant law; and > File complaints with the Office of Landlord-Tenant Affairs (240-777-0311) individually or as a group. * This pertains to violations that are a threat to health and safety ONLY TENANTS’ RESPONSIBILITIES Tenants are responsible for: > Obtaining prior written approval from the landlord before keeping any pets on the premises; > Maintaining the property in a clean, safe and sanitary condition; > Using the property for orderly and lawful purposes by yourself, authorized occupants and guests; > Reporting any problems requiring repair or replacement to the landlord in writing, in a timely manner, and paying any costs incurred due to abuse or negligence by the tenants, guests or other authorized occupants; > If renting in a common ownership community, complying with all rules, regulations and notices of the common ownership community. The landlord must furnish a copy of these rules at move-in; > Obtaining the landlord’s prior written approval before subletting the property; > Requesting to be present during a move-in or move-out inspection; > Removing all personal property at move-out, leaving the property in broom-clean condition, ordinary wear and tear, and returning all keys. DHCA SERVICES > Mediate disputes between landlords and tenants; > Investigate and resolve formal complaints from tenants and landlords; > When a resolution is not forthcoming, refer the complaints to the Commission on Landlord-Tenant Affairs (COLTA) for adjudication; > Approve rental housing licenses; > Inspect rental properties to ensure compliance with all applicable housing codes; > Answer questions from the public regarding Landlord-Tenant issues, Licensing and Registration, Housing Code Enforcement, affordable housing and any other housing issues; and > Maintain a website that has access to numerous printed and downloadable publications: www.montgomerycountymd.gov/olta If a court holds that a portion of this regulation is invalid, the other portions remain in effect.

Leases for single family rental units may, after August 12, 1992, pursuant to Section 29-30(a)(3) of the Montgomery County Code, 1984, as amended, include a clause that transfers to the tenant the responsibility for maintenance expenses but not for replacement of or repairs to structural elements of the building, major appliances, or electrical , plumbing, heating, or air-conditioning systems. Should the tenant not handle the maintenance items at tenant's expense, the landlord may handle the maintenance items and charge the tenant for those actual expenses in accordance with this Executive Regulation. Maintenance includes but is not limited to: (a) caulking bathtubs and sinks (b) changing HVAC filters, fuses, batteries and light bulbs (c) clearing gutters, window wells and drainage areas (d) cleaning chimneys, fireplaces and pools (e) cleaning appliances, carpets, floors, tubs, sinks, commodes and generally maintaining the rental unit, garage, shed and any other appurtenances provided as part of the occupancy of the rental unit Major appliances include but are not limited to: (a) stoves and microwave ovens (b) refrigerators and freezers (c) garbage disposals and trash compactors (d) dishwashers, washing machines and clothes dryers (e) window a/c units, humidifiers and dehumidifiers Structural elements are those elements within and attached to the building which include, but are not limited to: (a) roof framing members and system (rafters and trusses) (b) floor and ceiling system (joists; including decks) (c) bearing walls and partitions including such sheathing or other reinforcement necessary to provide rack-bracing (d) columns, lintels, girders and load bearing beams (e) foundation systems and footings (f) all interior stair-carriage systems (g) all necessary materials required for the joining, support, fastening or attachment of the above segments to themselves or one another (h) all components of the exterior building envelope designed to prevent infiltration of water into the structure (paint, shingles, siding, trims) (i) those exterior systems required to permit safe access to the structure including handrailings where required by code (steps, sidewalks and driveways) As of the effective date of this Regulation, should the tenant not handle the maintenance items at tenant's expense, the landlord may charge up to a maximum of $50.00 in actual expenses per maintenance occurrence not to exceed a maximum of $250.00 per annual lease term. This Regulation defines and implements the Required Service Standards in Section 26-7(f)(2) of the Montgomery County Code (Code), and Reasonable Maintenance and Repair of air conditioning as required under Section 29-30(a)(9) of the Code, for air conditioning in rental housing. (a) Reasonable Maintenance and Repair means the timely repair and/or maintenance related installing, servicing or replacing of air conditioning required under Chapters 26 and 29 of the Code and in conformance with the provisions set forth in Section 29.30.02.03 of this Regulation. (b) Required Service Standard means, except when air conditioning requires Reasonable Maintenance and Repair, landlords of rental housing must supply and maintain air conditioning in safe and good working condition that is capable of maintaining a temperature of no more than eighty degrees Fahrenheit (80°F.) in each habitable space at a distance of 3 feet above the floor between June 1 and September 30 of each year. (c) Rental housing is defined under Section 26-7(f)(1) of the Code. (a) A landlord’s requirement to provide Reasonable Maintenance and Repair of air conditioning in rental housing is met if the landlord complies with the following: (1) Regular servicing of air conditioning for rental housing must be accomplished, to the extent feasible, between the months of October and May of each year to ensure that a rental housing’s air conditioning meets the Required Service Standard during June 1 through September 30. (2) If a rental housing’s air conditioning must be serviced or replaced between June 1 and September 30, the landlord must, except in the case of an emergency, notify all of the tenants in advance of such service or replacement and provide an estimate of the time during which the air conditioning will not meet the Required Service Standard. In the event of an emergency, if the air conditioning will not meet the Required Service Standard for more than a 24-hour period, the landlord must provide the tenants with an estimate of the time during which the air conditioning will not meet the Required Service Standard. Any servicing or replacing air conditioning not meeting the Required Service Standard during June 1 through September 30 must be completed within 5 calendar days of the air conditioning not meeting the Required Service Standard unless the landlord requests, and receives, an extension of time from the Director as provided in subsection (c), below. (b) If, after the Department inspects rental housing in response to a complaint or during a regularly scheduled inspection, it is determined that the rental housing’s air conditioning does not meet the Required Service Standard, the landlord must immediately commence repair or replacement of the air conditioning, with such repair or replacement being completed no later than 5 calendar days from the date of the Department issuing a Notice of Violation. (c) A landlord, within the 5 calendar day time frame under subsections (a) and (b). may request an extension of time from the Director when circumstances beyond the landlord’s control prevent the (i) repair of air conditioning or (ii) replacement of air conditioning that becomes inoperable or economically infeasible to continue to operate being completed to meet the Required Service Standard. To request an extension of time, the landlord must submit to the Department a written request for an extension and: (1) Documentation providing that the repairs will be completed to bring the air conditioning to meet the Required Service Standard within 15 calendar days of the landlord’s request, including a copy of a signed invoice or contract with a third-party licensed HVAC contractor or engineer outlining the scope of the repairs, and/or a copy of one or more paid invoices to third-party vendors for parts ordered to make the repairs, accompanied by a letter specifying that the repairs will be completed to bring the air conditioning to meet the Required Service Standard within 15 calendar days of the request. (2) Documentation providing that the installation of new air conditioning units or the installation of a new central air conditioning system will be completed to bring the air conditioning to meet the Required Service Standard within 21 calendar days of the landlord’s request, including a copy of a third party licensed HVAC contractor or engineer that the air conditioning units or the central air conditioning system cannot be repaired, or it is not economically feasible to do so, along with a copy of one or more paid invoices to third party vendors for the replacement of the air conditioning units or the central air conditioning system, accompanied by a letter specifying that the air conditioning units or the central air conditioning system, will be installed and meet the Required Service Standard within 21 calendar days of the request. (d) When determining whether to grant an extension of time, the Director may consider whether or not one or more tenants grants the landlord, and the landlord’s contractors, necessary access into the rental units to correct the air conditioning so that it meets the Required Service Standard. Notice of entry into the rental units must be provided in the manner required under the lease. If the Director finds that one or more tenants fails to provide necessary access, the timeframes in subsection (c) for correcting air conditioning so that it meets the Required Service Standard may be extended until such access is granted. (a) In rental housing that does not have air conditioning, a landlord’s requirement to supply air conditioning in rental housing is met if the landlord installs new air conditioning units or a new central air conditioning system that will meet the Required Service Standard within 30 calendar days from the effective date of this Regulation. (b) If during the Department’s inspection of rental housing in response to a complaint, or during the Department’s regularly scheduled inspection of the rental housing, it is determined that the rental housing does not have air conditioning, the landlord must immediately secure any necessary permits and commence installation of new air conditioning units or a new central air conditioning system that will meet the Required Service Standard within 30 days from the date of the Department issuing a Notice of Violation. (c) A landlord may apply for an extension of time of up to 6 months to comply with the installation of new air conditioning provided the request is made in writing to the Department within 5 calendar days of the Department issuing a Notice of Violation and the Director finds that: (1) The landlord must make electrical upgrades to the rental housing to meet the Required Service Standard; and (2) Making the repairs would cause financial hardship to the landlord.

This regulation provides minimum safety standards and administrative procedures under Section 29-35D of the Code concerning the installation and maintenance of Window Guards in certain multi-family rental housing (i) occupied by children under the age of 11 or (ii) when a tenant makes a written request that Window Guards be installed in the tenant’s unit. A multi-family housing unit is considered occupied by a child under the age of 11 if the child is physically present in an apartment or condominium rental unit, either on a permanent or semi-permanent basis as a member of the tenant’s household, or on a non-permanent but re-occurring or frequent basis. All terms herein have the same meanings as those in Chapter 29 of the Code and are included here for convenience. (a) Department means the Department of Housing and Community Affairs. (b) Director means the Director of the Department of Housing and Community Affairs or the Director’s designee. (c) Landlord means the owner, the owner’s agent, lessor, or sublessor of the dwelling unit authorized to exercise any aspect of the management of the premises, except persons engaged solely in custodial and maintenance functions. (d) Window Guard means a physical barrier, or limiting device such as a window stop, attached to a window to prevent occupants from falling out of the window, as further specified in this regulation. (a) Building Code and permits. All construction, reconstruction, installation, or other work associated with this regulation must be done in accordance with all applicable building codes adopted by Montgomery County and all applicable permits must be obtained prior to commencing work. (b) Installation. A Landlord must strictly follow the instructions accompanying Window Guards to ensure the proper and safe installation of the Window Guards for each specific type of window for which the Window Guard is intended, including the manufacturer’s width and height specifications for the window and the Window Guard. (c) Window Guard condition. All Window Guards used must be in like-new, undamaged condition at the time of installation. (d) Material. Window Guards must be constructed of rigid metal, free of sharp projections, edges, or rough surfaces, and must permit natural light and ventilation to pass through it. (e) Limitations on opening. (1) Window Guards must be constructed and installed to prevent the passage of a solid sphere four (4) inches in diameter at every space and interval, including between rails, bars, slats, and the around the perimeter of the Window Guard. (2) Limiting devices must be installed to prevent a window from opening more than four (4) inches. (f) Minimum weight resistance. At a minimum, Window Guards must bear a one hundred and fifty pound (150 lb.) load at its center span when extended to its maximum width, as specified by the manufacturer. (g) Screws. All Window Guards must be secured with screws made of metal supplied by, or specified by, the manufacturer in order to safely and properly install the Window Guard. Screws must be counter-sunk flush with the stile or stopping device. (h) Coating. The coating on Window Guards must not contain lead-based paint, as certified by the manufacturer. (i) Non-telescoping bars. For Window Guards utilizing non-telescoping bars, there must be a permanent spot weld on at least two (2) of the horizontal bars in order to provide a minimum of two (2) inches overlap when the Window Guard is fully extended. (j) Telescoping bars. For Window Guards utilizing telescoping bars: (1) when the Window Guard is fully extended to the maximum allowable width, there must be a minimum overlap of five (5) inches, or one-third (1/3) of the length of the bar, whichever is greater; and (2) there must be an additional stile or other approved support at the telescopic opening of the outer tubing of the bars that prevents the bars from spreading once the Window Guard is installed. (k) Mounting holes. The stiles must each have at least two (2) mounting holes. If Window Guards are more than fifteen (15) inches in height, additional mounting holes are required to provide a maximum interval of eighteen (18) inches between mounting holes. (l) Fire escapes. Window Guards must not be installed on windows providing access to fire escapes. (m) Structurally sound installation. Window Guards must be installed only in structurally sound (non-rotting) mountings or tracks. (a) Window coverage. Window Guards must regulate or control the full openable area of each window. (b) Mounting L stops. Window Guards must be installed so that the bottom horizontal members are mounted a maximum of four (4) inches above the windowsill; and stops as specified in subsections (c), (d), and (e) below must be installed to limit the opening above the lowest section of the top horizontal bar of the Window Guard to four (4) inches when the bottom window is raised. (c) Limiting devices/window stops. Rigid metal “L” shaped stops must be a minimum of one-half (1/2) the width of the window track. Each side of the “L” shaped stop must be at least two (2) inches long with one side securely fastened to the upper tracks on each side of the bottom window to prevent the bottom window from being raised more than four (4) inches above the lowest section of the top horizontal bar of the Window Guard. (d) Metal strip installation. Where “L” shaped stops cannot be placed in the window track without interfering with the normal operation of the window, a rigid metal strip may be securely fastened across the track of the bottom window to prevent the lower window from being raised more than four (4) inches above the lowest section of the top horizontal bar of the Window Guard. (e) Rigid L stops. In situations where the stops described in (c) and (d) above cannot be used, such as in ballast windows, rigid metal “L” shaped stops may be securely fastened to the frame of the window to prevent the lower window from being raised more than four (4) inches. (a) Casement and other types of windows. Window Guards must be used on casement windows and must fill the entire window opening, limiting the passage of a solid sphere four (4) inches in diameter through every space or interval in the Window Guard. (b) Sliding and pivoting windows. Sliding windows and vertical pivoting windows may use stopping devices as follows: (1) Sliding windows. A solid metal block, measuring at least one-half (1/2) the depth of the window track and one-half (1/2) the width, must be securely fastened to the bottom window track, and a solid metal block or an “L” shaped metal stop must be securely fastened into the upper window track, to prevent the window from opening more than four (4) inches. (2) Vertical pivoting windows. Metal stopping devices must be securely fastened to the upper and lower window frames to prevent the window from pivoting open more than four (4) inches. The height of the stopping devices must extend no less than one (1) inch nor more than two (2) inches beyond the window frame, as needed, to stop the window from opening more than four (4) inches. The protruding edge of the stopping device must be smooth and rounded. (c) Other window types. A Landlord whose buildings include window types not specified in 29.35D.01.04 or 29.35D.01.05 must request a variance from the Department in accordance with 29.35D.02.07. The Landlord must maintain onsite at the rental property, and have available for review by the Department, the following information: an up-to-date inventory of the model(s) of Window Guards used in the rental housing; the location of Window Guards by unit; the number of Window Guards installed in each unit; and a statement indicating that all Window Guards meet the requirements of this regulation. (a) Compliance is infeasible. In limited situations in which a Landlord’s compliance with the Window Guard technical requirements provided in this regulation are structurally infeasible, a Landlord may request that the Director grant a variance from the technical requirements. (b) Requirements of proposed substituted device. In order for a variance request to be considered, the Landlord must demonstrate that the substituted device or devices proposed by the Landlord meet the same criteria and standards of safety prescribed in this regulation, including but not limited to, installing the device safely and securely, limiting the opening of the window to no more than four (4) inches, and preventing the passage of a solid sphere four (4) inches in diameter at every space and interval of the device, including around its perimeter. (c) Variance request in writing. A Landlord must request a variance from the Director in writing. (d) Variance request tor multiple properties. A Landlord desiring a variance for more than one property must submit a separate written request for each property. (e) Variance request requirements. The written request for a variance must be submitted to: Department of Housing and Community Affairs, 1401 Rockville Pike, 4th Floor, Rockville, Maryland 20852, Attn: Director. The written request must include the following information: (1) the name, address, phone number, and email address of the Landlord; (2) the rental license number, address or addresses of the multi-family rental housing for which a variance is being requested, and the type and number of windows involved; (3) a detailed reason for the request, including a description of the condition or conditions warranting the request; (4) a photo and/or mechanical drawing of the window or windows for which a variance is being requested depicting the structural issue necessitating the request; (5) a description, and a photo and/or mechanical drawing, of the proposed alternative device; and (6) if the Landlord is requesting the Director’s consideration of a limiting device, the variance request must also include a sample of the alternative device, along with the hardware for installation. (f) Contents of Landlord certification. The written request must include the following certification, signed by the Landlord: “By submitting and signing this request for a variance under Section 29-35D of the Montgomery County Code, I/we certify that such a variance is necessary due to factors which make compliance with the County’s requirements infeasible. Furthermore, I/we certify that if a variance is approved by the Director, I/we will conduct annual inspections and ongoing monitoring of the device installed to ensure the device’s ongoing integrity and safety.” (g) Director discretion. Approval of a variance request is at the sole discretion of the Director. Approval will be granted only upon a satisfactory finding that a variance is justified and appropriate, and that the granting of a variance will ensure that all safety requirements herein are met. (h) Limitations on variance. If approved, a variance may be granted for a limited period of time. The continued appropriateness of the variance will be subject to review, renewal, or retraction by the Director at the expiration of the prescribed time period. The Director may require documentation from the Landlord supporting the Landlord’s request to continue the variance. (a) Current tenant notification. A Landlord must notify current tenants in writing of the tenants’ rights relating to Window Guards, on a form prescribed by the Department, by no later than February 1, 2022. Thereafter, tenants must be notified of their rights at least once annually at the earlier of lease renewal or notice of rent increase. The Landlord must inform tenants that they may request a Window Guard at any time, even if the tenant previously indicated that they did not want a Window Guard. (b) New tenants. New tenants must be notified of their rights relating to Window Guards at the time of lease signing. (c) Delivery of tenant notification. A Landlord may deliver the Window Guard notification by any of these delivery methods: in person, by hand delivery to a unit, or by mailing the notice to the unit. A Landlord must document the date and method of delivery of each notice. (d) Tenant responsibility. A tenant must complete, sign, and date the notification form (tenant-executed notification form) and return it to the Landlord within thirty (30) days of receipt. If the Landlord has not received the tenant-executed notification form from a tenant within the required timeframe, the Landlord must deliver an additional notification to the tenant. The Landlord must document the date and method of delivery for each attempted notice. (e) Removing Window Guards. A Landlord may remove a Window Guard from an unoccupied unit, or upon the written request of a tenant if the unit is not occupied by a child under the age of 11.

(a) A landlord of a regulated rental unit must not increase the base rent of the unit more than once in a 12-month period. (b) The annual rent increase allowance governing the first year of a multi-year lease applies to the subsequent lease years. (c) Unused rent increase allowances under (b) may be banked under Section 29-58(a) of the Code. (a) If the landlord of regulated rental units located in a property designated by the Department as Troubled or At-Risk under Section 29-22(b) of the Code meets the following conditions before the property’s next scheduled inspection under COMCOR 29.40.01, the Director must remove the Troubled or At-Risk Property designation. (1) For properties designated as Troubled: (A) all violations identified during the initial inspection must be corrected by the landlord and verified by the Department; (B) the landlord must submit to the Department a corrective action plan, as defined in COMCOR 29.40.01.02(a), that meets the Department’s approval; (C) the landlord must submit a minimum of two quarters of maintenance logs to the Department under COMCOR 29.40.01.04(k)(3); and (D) a reinspection of the property determines that the SV and TV scores do not result in a designation as a Troubled or At-Risk Property under COMCOR 29.40.01. (2) For properties designated as At-Risk: (A) all violations identified during the initial inspection must be corrected by the landlord and verified by the Department; and (B) a reinspection of the property determines that the SV and TV scores do not result in a designation as a Troubled or At-Risk Property under COMCOR 29.40.01. (b) A landlord of a regulated rental unit located in a property designated by the Department as Troubled or At-Risk under Section 29-22(b) of the Code must not increase rent in excess of an amount the Director determines necessary to cover the costs required to improve habitability. If a landlord or a regulated rental unit located in a property designated by the Department as Troubled or At-Risk under Section 29-22(b) of the Code is unable to meet the requirements of COMCOR 29.58.01.02(a), the landlord may submit a fair return application under Section 29-59 of the Code. (1) If the Director approves the fair return application, the landlord may increase the rent on a regulated rental unit in the amount approved by the fair return application while the property is still designated by the Department as Troubled or At-Risk under Section 29-22(b) of the Code. (2) If the Director denies the fair return application, the landlord must not increase the rent on the regulated rental unit while the property is designated by the Department as Troubled or At-Risk under Section 29-22(b) of the Code. (a) If a unit becomes vacant after the effective date of these regulations, the base rent for the unit may be increased up to the banked amount or to no more than the base rent on the date the unit became vacant plus each allowable increase under Section 29-58(a) of the Code. (b) If a regulated rental unit was vacant before these regulations became effective, then upon return to the market, the landlord may set the base rent in the landlord’s discretion. After the unit is leased, the rent for the subsequent lease or lease renewal must be determined by Section 29-58(a) of the Code. (a) A landlord may petition the Director for a limited surcharge for capital improvements under Section 29-58(d) of the Code. (b) Processing of Capital Improvement Petitions. (1) Filing. The Capital Improvements Petition, in the form published by the Director, and one copy of supporting documents, must be filed with the Department. (2) Notice to Tenants of Filing. The landlord must notify each affected tenant of the filing of the Capital Improvement Petition by sending a copy of the Capital Improvement Petition (excluding supporting documentation) by first-class mail and electronic mail, within five business days of the filing. (3) Petition Processing. Within 30 days of receiving a Capital Improvement Petition, the Director must review the Capital Improvement Petition and notify the landlord in writing that (a) the Capital Improvement Petition is complete, or (b) the Capital Improvement Petition is incomplete and identify the missing information or documentation. If the landlord fails to deliver the missing information or documentation to the Director within ten business days of receipt of the notice in (b) above, then the Director may deny the Capital Improvement Petition by written notice to the landlord. (4) Preliminary Decisions. Within 60 days after receiving a complete Capital Improvement Petition, the Director must review the petition and issue a preliminary decision, either approving or denying the petition. The decision must include a reasoning and, if applicable, the allowable surcharge for capital improvements in accordance with the phasing schedule set forth in the Capital Improvement Petition (“Preliminary Approval”). (5) Material Change. If there is any material change in the scope, phasing, pricing, or other matter set forth in the Capital Improvement Petition, the landlord must submit to the Director a supplement to the Capital Improvement Petition (“Supplement”) including any revisions to the recommended surcharge for capital improvements, if any, to be allowed in accordance with the phasing schedule set forth in the Capital Improvement Petition. Within 30 days after receiving the Supplement, the Director must notify the landlord of a decision stating the reasons for the approval or denial of the Supplement, including any revisions to the recommended surcharge for capital improvements. (6) Final Reconciliation. Upon completion of the capital improvements set forth in the Capital Improvement Petition or upon completion of the capital improvements applicable to any phase set forth in the Capital Improvement Petition, the landlord must submit a final reconciliation package to the Director identifying the actual costs of the completed capital improvements with supporting documentation and a recalculation of the surcharge for capital improvements (“Reconciliation Package”). Within 30 days after receiving the Reconciliation Package, the Director must issue and notify the landlord of a decision identifying the approved surcharge for capital improvement by unit applicable to the completed project or phase. (7) Notice to Tenants of Decision. The landlord must by first class mail and electronic mail, notify all affected tenants of the decision within 5 business days of the receipt of the decision. (c) Except as provided in (d), the landlord must not recover the cost of a capital improvement through a rent surcharge under Section 29-58(d) of the Code if a landlord makes the improvement to a rental unit or a housing accommodation before the approval of a Capital Improvement Petition. (d) A landlord who makes a capital improvement without prior approval of a Capital Improvement Petition may recover the cost of the improvement under Section 29-58(d) of the Code, following the approval of the Petition, only if the capital improvement was immediately necessary to maintain the health, safety, and security of the tenants and the Petition was filed no later than 30 days after the completion of all capital improvement work. (e) A landlord must file a Capital Improvement Petition certifying: (1) that the subject improvements are capital improvements; (2) whether the capital improvements are required under federal, state, or County law; (3) that the capital improvements do not include the costs of ordinary repair or maintenance of existing structures; (4) that the capital improvements would protect or enhance the health, safety, and security of the tenants or the habitability of the rental housing; (5) whether the capital improvements will result in energy cost savings that will be passed on to the tenant and will either result in a net savings in the use of energy in the rental housing or are intended to comply with applicable law; provided, however, that energy cost savings are not required for capital improvements to qualify for a surcharge for capital improvements; (6) the basis under the federal Internal Revenue Code for considering the improvement to be depreciable; (7) the estimated costs of the capital improvements, including any interest and service charge; (8) the dollar amounts, percentages, and time periods computed by following the instructions listed in (f); (9) all regulated units are properly registered and licensed with the Department; and (10) the planned phasing schedule for the capital improvements, if applicable. (f) The Capital Improvement Petition must contain comprehensive calculations for the following in accordance with this section and in accordance with the phasing schedule, if applicable: (1) the estimated total cost of a capital improvement calculated in accordance with the phasing schedule, if applicable; (2) the dollar amount of the surcharge for capital improvements for each regulated rental unit in the rental housing and the percentage increase above the base rents charged as of the date of the Capital Improvement Petition; and (3) the estimated duration of the surcharge for capital improvements and its pro-rated amount in the month of the expiration of the surcharge. (g) The total cost of a capital improvement must be the sum of: (1) any costs actually incurred, to be incurred, or estimated to be incurred to make the capital improvement, in accordance with (i); (2) any interest that must accrue on a loan taken by the landlord to make the capital improvement, in accordance with (j); plus (3) any service charges incurred or to be incurred by the landlord in connection with a loan taken by the landlord to make the capital improvement, in accordance with (k). (h) The interest and service charge on, “a loan taken by the landlord to make the capital improvement” is the portion of any loan that is specifically attributable to the costs incurred to make the capital improvement, in accordance with (l). The dollar amount of the calculated interest and service charge must not exceed the amount of the portion of that loan. (i) The costs incurred to make a capital improvement must be determined based on invoices, receipts, bids, quotes, work orders, loan documents or a commitment to make a loan, or other evidence of costs as the Director may find probative of the actual, commercially reasonable costs of the capital improvement. The total cost of a capital improvement must be reduced by the amount of any grant, subsidy, credit, or other funding not required to be repaid that is received by a landlord from or guaranteed by a governmental program for the purposes of making the subject capital improvement. (j) The interest on a loan taken to make a capital improvement means all compensation paid or required to be paid by or on behalf of the landlord to a lender for the use, forbearance, or detention of money used to make a capital improvement over the amortization period of the loan, in the amount of either: (1) the interest payable by the landlord at a commercially reasonable fixed or variable rate of interest on a loan of money used to make the capital improvement, or on that portion of a multi-purpose loan of money used to make the capital improvement, as documented by the landlord by means of the relevant portion of a bona fide loan commitment or agreement with a lender, or by other evidence of interest that the Director finds probative; or (2) in the absence of any loan commitment, agreement, or other evidence of interest, the Director may apply the average 52-week Wall Street Journal’s U.S. Prime Rate, as reported by The Wall Street Journal’s bank survey, applied over a seven-year period. The average is calculated as the mid-point between the high and low Prime Rates reported for the 52 weeks immediately before the effective date of the surcharge for capital improvements. (k) For the purposes of (j)(1), if a landlord has obtained a loan with a variable rate of interest, the total interest payable for the purposes of the Capital Improvement Petition must be calculated using the actual rate of the loan over its term, provided that if the Capital Improvement Petition is submitted before the expiration of the loan term, the total interest rate for any unexpired term of the loan must be calculated using the actual interest rate applicable at the time the Capital Improvement Petition was filed. If the interest rate changes over the duration of the loan, any Certificate of Continuation must list all changes and recalculate the total interest on the loan. (l) The service charges in connection with a loan taken to make a capital improvement must include points, loan origination and loan processing fees, trustee’s fees, escrow set-up fees, loan closing fees, charges, costs, title insurance fees, survey fees, lender’s counsel fees, borrower’s counsel fees, appraisal fees, environmental inspection fees, lender’s inspection fees (in any form the foregoing may be designated or described), and other charges (other than interest) required by a lender, as supported by the relevant portion of a bona fide loan commitment or agreement with a lender, or by other evidence of service charges as the Director may find probative. (m) Except when a continuation is permitted in accordance with (s), the duration of a rent surcharge for capital improvements requested or allowed by a Capital Improvement Petition or phase therein must be the quotient, rounded to the next whole number of months, of: (1) the total cost of the capital improvement, in accordance with (g); divided by (2) the sum of the monthly surcharges for capital improvements permitted by Sections 29-58(d)(3) and (4) of the Code on each affected regulated rental unit. (n) A surcharge for capital improvements in the final month of its duration must be no greater than the remainder of the calculation in (m), prior to rounding. (o) A Capital Improvement Petition must include external documents to substantiate the total cost of a capital improvement and must be supplemented with any new documentation reflecting the actual total cost of the capital improvement, until the capital improvements are complete. (p) A Capital Improvement Petition, as filed with the Director, must include a listing of each rental unit in the housing accommodation, identifying: (1) which regulated rental units will be affected by the capital improvements; (2) the base rent for each affected regulated rental unit, and any other approved surcharges for capital improvements; and (3) the dollar amount of the proposed surcharge for capital improvements for each regulated rental unit and the percentage by which each surcharge for capital improvements exceeds the current rents charged as of the date of the Capital Improvement Petition. (q) A decision authorizing a surcharge for capital improvements must be implemented within 12 months of the date of issuance but no earlier than 12 months following any prior rent increase for an affected regulated rental unit; provided that if the capital improvement work renders the unit uninhabitable beyond the expiration of time, the surcharge for capital improvements may be implemented when the unit is reoccupied. The amount of the surcharge for capital improvements must be clearly identified as an approved surcharge for capital improvements in the new lease or in the lease renewal and may not be implemented during the lease term. (r) Not less than 90 days before the expiration of an authorized surcharge for capital improvements a landlord may request to extend the duration of the surcharge for capital improvements by filing an application with the Director and serving each affected regulated rental unit with notice by first-class mail and electronic mail, if, within five business days that the total cost of the capital improvement has not been recovered during the originally approved period of the surcharge for capital improvements and requesting to extend the approval (“Certificate of Continuation”). The application for a Certificate of Completion must be deemed complete when delivered to the Director unless within ten business days after receiving the Certificate of Continuation, the Director notifies the landlord in writing of missing or incomplete information or documentation. If the landlord fails to provide the missing or incomplete information or documentation to the Director within ten business days after receipt of the notice, the Director may reject the Certificate of Continuation. (s) A Certificate of Continuation must set forth: (1) the total cost of the capital improvements as approved by the Capital Improvement Petition, including, if applicable, any changes in the total interest due to a variable-rate loan; (2) the dollar amount actually received by the implementation of the surcharge for capital improvements within its approved duration, including any amount estimated to be collected before the expiration of its approved duration; (3) an accounting of and reason(s) for the difference between the amounts stated in (1) and (2); and (4) a calculation of the additional number of months required, under currently known conditions, for the landlord to recover the total cost of the capital improvements by extension of the duration of the surcharge for capital improvements. (t) The Director must review the Certificate of Continuation and must issue and notify the landlord of a decision either approving or denying the continuation. The Director must only approve the request if the landlord demonstrates good cause for the difference between the amounts stated in (s)(1) and (2). If the Director approves the Certificate of Continuation, the landlord must notify each affected tenant by first-class mail and electronic mail, within five business days of the receipt of the Director’s notice of approval. (u) If the Director does not issue a decision before the expiration of the surcharge for capital improvements, the landlord may continue the implementation of the surcharge for capital improvements for no more than the number of months requested in the Certificate of Continuation. If a Certificate of Continuation is subsequently denied, the order of denial is a final order to the landlord to pay a rent refund to each affected tenant in the amount of the surcharge for capital improvements that has been demanded or received beyond its original, approved duration in which it was implemented, and, if the surcharge for capital improvements remains in effect, to discontinue the surcharge. (v) A surcharge for capital improvements implemented pursuant to an approved Capital Improvement Petition may be extended by Certificate of Continuation no more than once. (w) If a Capital Improvement Petition is denied by the Director, the property may not file a subsequent petition for six months following the issuance of a denial.

A landlord has a right to a fair return as defined by Chapter 29 of the Montgomery County Code. This Regulation establishes the fair return application process. In this Regulation, the following words and terms have the following meanings: (a) Terms not otherwise defined herein have the meaning provided in Article VI of Chapter 29 of the Montgomery County Code, 2014, as amended (“Chapter 29" or “Code”). (b) “Base Year” means the year immediately prior to the year the unit became a regulated unit per requirements of Chapter 29 of the Code. (c) “Current Year” means either the calendar year (January 1st to December 31st) or the fiscal year (July 1st to June 30th) immediately preceding the date that the Fair Return Application required in Section 29.59.01.04 is filed. (d) “Current Year CPI-U” means either: (1) if the Current Year is a calendar year, the Current Year CPI-U is the annual CPI-U for that year; or (2) if the Current Year is a fiscal year, the Current Year CPI-U must be the CPI-U for December during the current year. (e) “Gross Income” means the annual scheduled income for the property based on the rents and fees (other than fees that are reimbursed to the tenants) the landlord was permitted to charge at the time of the Fair Return Application. (f) “Net Operating Income” means the rental housing’s Gross Income minus operating expenses for the applicable period. (a) Fair Return. The fair return rent increase formula is computed as follows: Gross Income minus operating expenses permitted under Section 29.59.01.06 for the Current Year. (1) In calculating Gross Income for the Current Year, the Base Year Net Operating Income under Section 29.59.01.06 must be adjusted by the annual rent increase allowance under Section 29-57 since the Base Year. (2) Any Fair Return Application must identify a requested rent increase based on: (A) actual operating expenses to be offset through a fair return rent increase; or (B) returns on investments equal to real estate investment risk premium of three percent (3%) plus the annual yield on the ten-year US Treasury Note, with the gross cost basis being the assessed value of the property as of July 1, 2023, increased annually in accordance with the CPI-U. (b) Fair Return Rent Increases. Fair return rent increases (“rent increases”) approved by the Director must be determined as a percentage of the Current Year rents, and each regulated rental unit in the rental housing must be subject to the same percentage increase. (1) Except as provided herein, a fair return rent increase approved by the Director must be implemented within 12 months of the date of the issuance of the decision or at the end of the current tenant’s lease term, whichever is later, in accordance with Section 29.59.01.07. The amount of the fair return rent increase must be clearly identified as an approved fair return rent increase in the new lease or in the lease renewal and may not be implemented mid-lease. (2) If the rent increase for an occupied unit is greater than 15%, the rent increase assessed to the tenant must be phased-in over a period of more than one year until such time as the full rent increase awarded by the Director has been taken. Rent increases of more than 15% must be implemented in consecutive years. (3) If a rental unit requiring a fair return rent increase of more than 15% is vacant or if the unit becomes vacant before the required increase has been taken in full, the landlord may elect to implement the required increase for that unit to be taken in one year or upon the vacancy of that unit, provided the unit became vacant as a result of voluntary termination by the tenant or a termination of the tenancy by the landlord for just cause. (a) Requirement. A landlord may file an application for a fair return and required supporting documentation (“Fair Return Application”) with the Director to increase the rent more than the amount permitted under Section 29-57 or 29-58 of the Code. (b) Rolling Review. The Director will consider Fair Return Applications on a rolling basis. (c) Prerequisites for a Fair Return Application. In order for the Director to consider a Fair Return Application, it must meet the following requirements: (1) all units within the rental housing listed in the Fair Return Application must be properly registered and licensed with the Department; (2) the Fair Return Application must be completed in full, signed, and include all required supporting documents; and (3) all Banked Amounts have been applied to regulated rental units. (d) Fair Return Application Requirements. A Fair Return Application must include the following information and must be submitted in a form published by the Department: (1) the applicant must submit information necessary to demonstrate the rent necessary to obtain a fair return; (2) the application must include all the information required by these Regulations and contain adequate information to confirm the calculation of the Gross Income for the Current Year. If the required information is not available for the Base Year, a landlord may, at the discretion of the Director, use an alternative year no more than three years in the past. The approval must be secured in writing from the Director before the filing of the application; (3) the landlord must supply the following documentation of operating and maintenance expense items for both the Base Year and the Current Year: (A) copies of tax returns, bills, invoices, receipts, or other documents that support all reported expense deductions must be submitted. The Department reserves the right to inspect the rental housing to verify that the identified maintenance has been completed and associated costs are reasonable; (B) copies of time sheets maintained by the landlord in support all self-labor charges must be submitted if such charges are claimed. The time sheet must include an explanation of the services rendered and the landlord’s calculation of the expense. If the landlord is claiming an expense for skilled labor, a statement substantiating the landlord’s skill, or a copy of the applicable license is required; (C) for amortized capital improvement expenses, copies of bills, invoices, receipts, or other documents that support all reported costs are required. The Director reserves the right to inspect the rental housing to verify that identified capital improvements have been completed and associated costs are reasonable; (D) all expense documentation must be organized in sections by line item on the application. A copy of a paid invoice or receipt documenting each expense must be attached to the front of the documentation for each line item. The documents must be submitted to the Director in the same order as the corresponding amounts on the invoice or receipt. The total of the documented expenses for each line item on the invoice or receipt must be equal to the amount on the corresponding line on the application; (E) any justification for exceptional circumstances that the owner is claiming under this regulation; (F) any additional information the landlord determines would be useful in making a determination of fair return; and (4) upon a finding by the Director that the net operating income calculated using the financial information included on the landlord’s tax return for the Base Year is more accurate than the financial information provided on the application, the Base Year net operating income must be re-computed using the financial information on the tax return. This decision must be made at the Director’s discretion. (a) Filing of Application. The Fair Return Application must be filed with the Department. (b) Notice to Tenants of Filing. Within five business days of filing the Fair Return Application, the landlord must notify each affected tenant of the filing by first-class mail and electronic mail, providing each tenant a copy of the Fair Return Application (excluding supporting documentation). (c) Fair Return Application Processing. Within 30 days of receipt of a Fair Return Application, the Director must review the Fair Return Application and supporting documentation and notify the landlord in writing that: (1) the Fair Return Application is complete; or (2) the Fair Return Application is incomplete, identifying specifically the missing information or documentation. If the landlord fails to deliver the missing information or documentation to the Director within ten business days of receipt of the notice in (b) above, then the Director may deny the Fair Return Application by written notice to the landlord. (d) Decision on a Fair Return Application. The Director must review the Fair Return Application and within 60 days after receiving the Fair Return Application issue and notify the landlord of a decision stating the approval or disapproval with reason of the Fair Return Application, including the rent increase identified therein, to be allowed in accordance the Fair Return Application. (e) Notice to Tenants of Decision. (1) The landlord must distribute a copy of the decision to each affected tenant by first-class mail and electronic mail, within ten business days of the date of the Director’s approval of the Fair Return Application together with posting in common areas of the rental housing. (2) The implementation of any rent increase awarded by the Director must comply with Section 29-54 of the Code, and must be clearly identified in the lease, rent increase notice, and/or renewal as a fair return increase authorized by the Department. Said increases are contingent on the decision of the Director becoming final in accordance with Section 29.59.01.05(c) of these Regulations. (a) Gross Income. Gross income for both the Base Year and the Current Year includes the total amount of rental income the landlord could have received if all vacant rental units had been rented for the highest lawful rent for the entire year and if the actual rent assessed to all occupied rental units had been paid. (1) Gross income includes any fees paid by the tenants for services provided by the landlord. (2) Gross income does not include income from laundry and vending machines, interest received on security deposits more than the amounts required to be refunded to tenants, and other miscellaneous income. (b) Operating Expenses. (1) For purposes of fair return, operating expenses include the following items: (A) utilities paid by the landlord, except to the extent these costs are passed through to the tenants; (B) administrative expenses, such as advertising, legal fees, accounting fees; (C) management fees, whether performed by the landlord or a property management firm; if sufficient information is not available for current management fees, management fees may be assumed to have increased by the percentage increase in the Annual CPI-U between the Base Year and the Current Year, unless the level of management services either increased or decreased during this period. Management fees must not exceed six percent (6%) of Gross Income unless the landlord demonstrates by a preponderance of the evidence that a higher percentage is reasonable; (D) payroll; (E) amortized cost of capital improvements over the useful life as determined by the Internal Revenue Service. An interest allowance must be allowed on the cost of amortized capital expenses; the allowance must be equal to the interest the landlord would have incurred had the landlord financed the capital improvement with a loan for the amortization period of the improvement, making uniform monthly payments, at an interest rate equal to the average 52-week Wall Street Journal’s U.S. Prime Rate, as reported by The Wall Street Journal’s bank survey. The average is calculated as the mid-point between the high and low Prime Rates reported for the 52 weeks immediately before the completion of the renovation; (F) maintenance related material and labor costs, including self-labor costs computed in accordance with the regulations adopted pursuant to this section; (G) property taxes; (H) licenses, government fees, and other assessments; and (I) insurance costs. (2) Reasonable and expected operating expenses which may be claimed for purposes of fair return do not include the following: (A) expenses for which the landlord has been reimbursed by any security deposit, insurance settlement, judgment for damages, agreed-upon payments, or any other method; (B) payments made for mortgage expenses, either principal or interest; (C) judicial and administrative fines and penalties; (D) damages paid to tenants as ordered by Office of Landlord-Tenant Affairs issued determination letters or consent agreements, Commission on Landlord-Tenant Affairs, or the courts; (E) depreciation; (F) late fees or service penalties imposed by utility companies, lenders or other entities providing goods or services to the landlord or the rental housing; (G) membership fees in organizations established to influence legislation and regulations; (H) contributions to lobbying efforts; (I) contributions for legal fees in the prosecution of class-action cases; (J) political contributions for candidates for office; (K) any expense for which the tenant has lawfully paid directly or indirectly; (L) attorney’s fees charged for services connected with counseling or litigation related to actions brought by the County under County regulations or this title, as amended. This provision must apply unless the landlord has prevailed in such an action brought by the County; (M) additional expenses incurred as a result of unreasonably deferred maintenance; and (N) any expense incurred in conjunction with the purchase, sale, or financing of the rental housing, including, but not limited to, loan fees, payments to real estate agents or brokers, appraisals, legal fees, accounting fees, etc. (c) Base Year Net Operating Income. A landlord may request to adjust the Base Year Net Operating Income if the Net Operating Income for the Base Year was abnormally low and did not reflect market circumstances. The Director must adjust the Base Year Net Operating Income if the Director makes at least one of the following findings: (1) the Base Year Net Operating Income was abnormally low due to one of the following factors: (A) the landlord made capital improvements during or before the Base Year which were not reflected in the Base Year rents and the landlord did not obtain a surcharge for capital improvements for these capital improvements; (B) substantial repairs were made to the rental housing due to exceptional circumstances or new laws; (C) other expenses were unreasonably high, notwithstanding prudent business practice; or (D) other exceptional circumstances exist requiring equitable adjustment to the Base Year Net Operating Income. (2) The Base Year rents did not reflect market transaction(s) due to one or more of the following circumstances: (A) there was a special relationship between the landlord and tenant (such as a family relationship) resulting in abnormally low rent charges; (B) the rents have not been increased for five years preceding the Base Year; (C) the tenant lawfully assumed maintenance responsibility in exchange for low rent increases or no rent increases; (D) the rents were based on MPDU or other affordability covenants at the time of the rental housing’s Base Year; or (E) other special circumstances that establish that the rent was not set as the result of an arms-length transaction. (a) Duration. Except as provided in 29.59.01.03(b), a rent increase established under an approved Fair Return Application remains in effect for each regulated rental unit for a 12-month period. (1) No annual rent increase allowance under Section 29-57(a) of the Code may be applied to a regulated rental unit for the 12-month period during which the regulated rental unit is subject to a rent increase pursuant to a Fair Return Application (as such rent increase includes any annual rent increase allowance). (2) A landlord may simultaneously charge a surcharge for capital improvements and fair return rent increase if approved or otherwise allowed in accordance with these regulations. (b) Establishment of New Base Year Net Operating Income. The Net Operating Income, income, and expenses, determined to be fair and reasonable pursuant to a prior Fair Return Application must constitute the Base Year income, expenses, and Net Operating Income for those regulated rental units included in the finding of fair return for purposes of reviewing subsequent Fair Return Applications. (c) Limitations on Future Fair Return Requests. (1) If a Fair Return Application is approved by the Director, the landlord may not file a subsequent application for the greater of 24 months following the issuance of an approval, or until any remainder of the increase permitted under Section 29.59.01.03(b) (when a fair return rent increase is permitted above 15%) has been applied. (2) If a Fair Return Application is denied by the Director, the property may not file a subsequent application for 12 months following the issuance of a denial.

(a) A landlord seeking an exemption for a substantial renovation under Code Section 29-60(12) must file an application (“Substantial Renovation Application”) with the Director that includes the following: (1) detailed plans, specifications, and documentation showing the total cost of the renovations, in accordance with Section 29.60.01.02; (2) copies of all applications, if any, filed for required building permits for the proposed renovations or copies of all required permits if they have been issued; (3) documentation of the value of the rental housing building(s), exclusive of land value, as assessed by the State Department of Assessments and Taxation; (4) a schedule showing all regulated rental units in the rental housing to be renovated showing whether the rental unit is vacant or occupied; and (5) a schedule showing the current lawful base rent. (b) Within five days of filing the application with the Director, a landlord must send by first-class mail and electronic mail, a copy of the application (excluding supporting documentation) to the tenants of all units in the rental housing for which the application has been filed with the Director. (c) Substantial Renovation Application Processing. Within 30 days of receipt of a Substantial Renovation Application, the Director must review the Substantial Renovation Application and notify the landlord in writing that: (1) the Substantial Renovation Application is complete; or (2) the Substantial Renovation Application is incomplete, identifying specifically the missing information or documentation. If the landlord fails to deliver the missing information or documentation to the Director within ten business days of receipt of the notice in (b) above, then the Director may deny the Substantial Renovation Application by written notice to the landlord. (d) Decisions on Substantial Renovation Application. The Director must review the Substantial Renovation Application within 30 days of notifying the landlord that their application is complete and notify the landlord of either a Preliminary Substantial Renovation Application Approval or disapproval with reason(s) in the case of disapproval. (e) The landlord must notify all affected tenants of a Preliminary Substantial Renovation Application Approval within ten business days of the receipt of the decision by first-class mail and electronic mail. (f) Substantial Renovation Application Supplement. If there is a material change in the scope, price, or other matter set forth in the Substantial Renovation Application, the landlord must submit the change(s) to the Director as a Substantial Renovation Application Supplement. Within 30 days after receiving a Substantial Renovation Application Supplement, the Director must issue and notify the landlord of a decision stating the approval or disapproval with reason(s) in the case of disapproval. (g) Final Reconciliation. Upon completion of the substantial renovations set forth in the Substantial Renovation Application and approved in a Preliminary Substantial Renovation Application Approval and Substantial Renovation Application Supplement, the landlord must submit a final Substantial Renovation Application Reconciliation Package to the Director identifying the actual costs of the completed substantial renovations with supporting documentation identifying the completion date of the substantial renovations. Within 30 days after receiving the Substantial Renovation Application Reconciliation Package, the Director must issue and notify the landlord of a decision confirming the final approval of the Substantial Renovation Application and the effective date of the exemption. Notwithstanding the foregoing, the Director’s review of the Substantial Renovation Application Reconciliation Package must not contradict any prior approval of a Preliminary Substantial Renovation Application Approval or Substantial Renovation Application Supplement provided that it is consistent with the Preliminary Substantial Renovation Application Approval and Substantial Renovation Application Supplement approval. The total cost of renovations must be the sum of: (a) any costs actually incurred, to be incurred, or estimated to be incurred to make the renovation, in accordance with Section 29.60.01.04; (b) any interest that must accrue on a loan taken by the landlord to make the renovation, in accordance with Section 29.60.01.05; plus (c) any service charges incurred or to be incurred by the landlord in connection with any loan or debt taken by the landlord to make the improvement or renovation, in accordance with Section 29.60.01.06. For the purposes of calculating interest and service charges, “any loan or debt taken by the landlord to make the renovation” is the portion of any loan or debt that is specifically attributable to the costs incurred to make the renovation, in accordance with Section 29.60.01.04. The dollar amount of that portion must not exceed the amount of the portion of that loan or debt that is specifically attributable to the costs incurred to make the renovation in accordance with Section 29.60.01.04. The costs incurred to renovate the rental housing must be determined based on invoices, receipts, bids, quotes, work orders, loan documents, estimates, or a commitment to make a loan, or other evidence of expenses as the Director may find probative of the actual, commercially reasonable costs of the renovations. The interest on a loan taken to renovate the rental housing means all compensation paid by the landlord to a lender for the use, forbearance, or detention of money used to make the renovation over the amortization period of the loan, in the amount of either: (a) the interest payable by the landlord at a commercially reasonable fixed or variable rate of interest on a loan of money used to make the renovation, or on that portion of a multi-purpose loan of money used to make the renovation, as documented by the landlord by means of the relevant portion of a bona fide loan commitment or agreement with a lender, or by other evidence of interest as the Director may find probative; or (b) in the absence of any loan commitment, agreement, or other evidence of interest, the Director may apply the average 52-week Wall Street Journal’s U.S. Prime Rate, as reported by The Wall Street Journal’s bank survey, applied over a seven-year period. The average is calculated as the mid-point between the high and low Prime Rates reported for the 52 weeks immediately prior to application for an exemption for a substantial renovation. For the purpose of Section 29.60.01.05(a), if a landlord has obtained a loan with a variable rate of interest, the total interest payable must be calculated using the initial rate of the loan. The service charges in connection with a loan taken to renovate the rental housing must include points, loan origination and loan processing fees, trustee’s fees, escrow setup fees, loan closing fees, charges, costs, title insurance fees, survey fees, lender’s counsel fees, borrower’s counsel fees, appraisal fees, environmental inspection fees, lender’s inspection fees (in any form the foregoing may be designated or described), and such other charges (other than interest) required by a lender, as supported by the relevant portion of a bona fide loan commitment or agreement with a lender, or by other evidence of service charges that the Director may find probative of the actual, commercially reasonable costs. Any costs, and any interest or fees attributable to those costs, for any specific aspect or component of a proposed improvement or renovation that is not intended to enhance the value of the rental housing, as provided by Section 29.60.01.09, must be excluded from the calculation of the total cost of the renovation. The Director must determine whether a proposed substantial renovation is intended to enhance the value of the rental housing building(s), exclusive of land value, by considering the following: (a) the existing physical condition of the rental housing; (b) whether the existing physical condition impairs or tends to impair the health, safety, and security of any tenant; (c) whether deficiencies in the existing physical conditions could instead be corrected by improved maintenance or repair; and (d) whether the proposed renovations are optional or cosmetic changes. (a) The substantial renovation exemption must be effective on the date of the Director’s approval of the Substantial Renovation Application Reconciliation Package, unless the Department determines that the landlord seeking the exemption is in violation of Chapters 8, 26, or 29 of the Code. In such case, the exemption must be effective on the date that the Department determines that the landlord is not in violation of Chapters 8, 26, or 29. (b) Once a decision approving a substantial renovation exemption has been issued, the exemption must be implemented within 12 months of the approval, but no earlier than the expiration of the current lease, if any, for that rental unit.

(a) Regulated Fees. Except as provided in subsection (b) and as otherwise permitted by law, including regulations, landlords are limited to charging the following fees on regulated rental units: (1) Application fee. In accordance with Section 8-213 of the Real Property Article, Annotated Code of Maryland, a landlord of a regulated rental unit must not retain a fee or charge a fee of more than the landlord’s actual cost for a credit check and other expenses arising out of the application for rental of the regulated rental unit. (2) Late fee. Late fees must comply with Section 29-27 of the Code. (3) Pet fee. (A) A landlord of a regulated rental unit must not assess or collect from the tenant of the unit any fee, charge, or deposit in connection with the tenant having a pet present in the unit, except that the landlord may require the tenant of the unit to pay a $25 monthly pet fee per pet and maintain with the landlord during each rental term a pet deposit not exceeding $300. The pet deposit must be held in escrow by the owner. The Department must increase the maximum allowed monthly pet fee and the maximum allowed pet deposit annually by the CPI-U. (B) The pet deposit must be returned in full within 45 days after the termination of the tenancy unless costs are incurred by the landlord as a result of damages in the regulated rental unit relating to the presence of the pet(s). The tenant may choose to use any balance toward a deposit for an ensuing lease term. (C) If any portion of the pet deposit is withheld, the landlord must present by first-class mail directed to the last known address of the tenant, within 45 days after the termination of the tenancy, a written list of the damages claimed under this section with an itemized statement and proof of the cost incurred. (4) Lost key fee. A landlord of a regulated rental unit must not assess or collect from the tenant of the unit any fee or charge for the replacement of a mechanical or electronic key exceeding the actual duplication or replacement cost plus $25. (5) Lock out fee. A landlord of a regulated rental unit must not assess or collect from the tenant of the unit any lockout fee or charge exceeding $25. The Department must increase the maximum allowed fee annually by the CPI-U. In the event the landlord engages a third-party service provider for the lockout service, the landlord may charge the tenant a fee not exceeding the actual charge incurred for the service. The landlord must provide a tenant with verifiable documented evidence detailing the actual costs associated with the service. (6) Secure storage unit accessible only by tenant. A landlord of a regulated rental unit must not assess or collect from the tenant of the unit any fee or charge for storage located within or attached to or associated with the unit. (7) Internet or cable television. (A) A landlord must not require a tenant of a regulated rental unit to pay an internet or cable television fee. If a tenant voluntarily opts for either service, the landlord must bill the tenant no more than the amount that the internet or cable television provider charges the landlord, without any additional fees. If multiple tenants opt into the service, the landlord must divide the cost to the landlord of the internet or cable television equally by the number of units opting into the service. The fee cannot include any common area services. (B) A landlord must provide a tenant of a regulated rental unit documentation of the total cost paid by the landlord for internet or cable television service and the calculation of the fee charged to the tenant. (8) Motor vehicle or motorcycle parking fee. (A) A landlord must not impose a parking fee on a tenant of a regulated rental unit unless the tenant has expressly opted to use the parking facilities. (B) A landlord of a regulated rental unit must not increase the fee for parking spaces for motor vehicles or motorcycles, as defined in Section 31-1 of the Code, more than once in a 12-month period. (C) Upon a lease renewal or new lease agreement for a parking space, a landlord must not increase the fee for the parking space to an amount greater than the current fee for the parking space plus CPI-U. (D) A landlord of a regulated rental unit who has not previously charged a fee for motor vehicle or motorcycle parking spaces must not charge a fee for such parking unless the landlord provides documentation to the Director demonstrating that the base rent is insufficient to allow the landlord to recover all costs related to the provision of parking. If the Director determines that the base rent is insufficient for the landlord to recover the foregoing costs, the Director must notify the landlord that tenants using the parking facilities may be charged an amount that will allow the landlord to recover its operating costs related to parking. The amount of the fee must not exceed 10% of the lowest base rent for a regulated rental unit at the property. After the parking fee has been established, any fee increase must be determined under (B) and (C). (E) This Section does not require a landlord to charge rent or fees for motor vehicle or motorcycle parking. (9) Bicycle parking fee. A landlord of a regulated rental unit may charge a tenant of the unit a bicycle parking fee under Section 29-35A of the Code. (b) Exceptions. (1) A landlord may charge fees for unregulated optional services, not listed in subsection (a), and opted into by the tenant. (2) For purposes of this Section an optional service does not include a service required to ensure unit access, maintenance, or lease compliance. (c) Implementation. (1) Fees may not be implemented during the lease term unless they relate to an optional service opted into by the tenant. (2) Regulated fees in subsection (a) and fees that fall under the exception in subsection (b) may only be increased once in a 12-month period and require a 90-day written notice. (3) Landlords must comply with this Section within ninety days after the effective date of these regulations.

These regulations may be enforced in accordance with Section 29-8 of the Code.