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Earlier today, the Montgomery County Council unanimously passed Bill 8-26, Landlord-Tenant Relations – Prohibition Against Price Coordination and Rent-Setting Algorithms (The Anti-Algorithmic Price Fixing Act), introduced by Councilmember Will Jawando and cosponsored by Councilmembers Shebra Evans and Kristin Mink. The Planning, Housing, and Parks (PHP) Committee, of which Councilmember Jawando is a member, had previously unanimously amended the bill to be consistent with the City of Rockville’s similar law that was recently passed.
This bill follows significant litigation regarding the issue of algorithmic price-fixing at the national and state level. Jurisdictions around the country are grappling with how to protect residents from collusion in the rental housing market that results in higher rent and unfair rental terms for residents.
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Councilmember Jawando said, “I am thankful to my Council colleagues for unanimously supporting the passage of this important bill for our County. We have heard overwhelming support from residents for this bill because it directly tackles rental housing affordability by banning algorithmic collusion that results in higher rent for residents. Passing this bill is one tangible way of addressing resident concerns regarding housing affordability.”
“As housing costs keep increasing, we must continue to fight any unfair practices that contribute to higher prices” said Councilmember Evans. “Renters represent the largest percentage of the housing market in Montgomery County and approximately 62 percent of renters that earn under $50,000 annually spend over half their income on housing. Rental costs must be market driven, not determined by hidden algorithms which are being used more and more to drive up rental costs and create the appearance of low housing availability. Bill 8-26 addresses this by prohibiting the use of algorithmic devices to establish rents or rental terms in the County and also provides for the enforcement of the prohibitions.”
“Tenants benefit when landlords are competing – not colluding – to set rent prices,” said Councilmember Mink. “With the cost-of-living skyrocketing for so many families, I’m grateful to Councilmember Jawando for leading on this legislation to ensure that our rental market is fair for the hundreds of thousands of renters in Montgomery County.”
Councilmember Jawando elaborated, “We have the responsibility to protect residents against this unfair practice. Similar work is happening at the state level, with Attorney General Anthony Brown engaged in litigation on this issue and legislative proposals in Annapolis in previous years. Our colleagues in Rockville provided us a powerful model this summer by becoming the first city in Maryland to ban this practice, and I appreciated our collaboration with them. Earlier this month, I was also pleased that Governor Wes Moore included stopping algorithmic rent collusion as a core issue in his proposed AI Framework. We are moving in a positive direction in Maryland, and this bill is an important part of that effort.”
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Read the original article at mccouncil
