College Park landowners came out in protest Tuesday night against a bill that would change the cap on how much rent they can charge, arguing the set amount was too low.
About a dozen people, many of them city landlords, came out in a largely negative showing against the ordinance, even though it raised the rent ceiling to a higher level than in previous years. The regulation will be voted on at the end of the month.
The ceiling will be increased from its current level of 0.6 percent to 0.8 percent and remain constant for the next three years. This means a property owner can only charge 0.8 percent of the property’s overall value as total monthly rent. A previous agreement saw the first year at 1 percent and a decrease by 0.1 percent each year for the next two years. Most in attendance felt not increasing the rent ceiling back to 1 percent was a mistake, given that property values have decreased in recent years.
“The factor by which you’re going to adjust rents is arbitrary,” landlord James Kane said. “There’s really no basis for it.”
But the legislation is just another chapter in the ongoing conflict between city officials and landlords, who feel the city discriminates against them.
“Their stated purpose for this ordinance is to protect the students from greedy landlords,” said Dave Dorsch, a city landlord. “There’s really no need for rent control here.”
Student Government Association President Steve Glickman disagreed, arguing that the ceiling was still too high, citing students’ lack of financial aid for housing.
“A lot of the students in College Park take advantage of renting because it’s an affordable place to live off campus,” he said at the hearing. “Even a raise to 0.8, even though some might not think it’s significant, is really significant to students in a tough economy.”
Some councilmembers seemed to have their minds made up, but at least one was swayed by the hearing.
“I’m actually still undecided about it,” District 4 Councilman Marcus Afzali said. “If the renters don’t want this and the landlords don’t want this, it doesn’t make sense to do it.”
In the end, Dorsch argued government control was not the answer and the landlords should be left to regulate rents unilaterally.
“They should let market conditions work themselves,” he said.
COUNCIL NOTE: The city council voted by a margin of 5-2 to approve letters of support that will release $5 million in state funds to the university to use for East Campus relocation costs. The letters will be sent to university President Dan Mote, as well as the General Assembly and the Board of Public Works.
But there was some concern that supporting this measure would set a poor precedent for future city-university relations.
District 3 Councilwoman Stephanie Stullich had issues with the university’s decision to undergo a cost benefit study without consulting the city. She argued that many of the city’s benefits would be impossible to quantify.
“I would like to support this letter as a gesture of good faith, but good faith is a two-way street,” she said.
Both District 3 councilmembers, Stullich and Mark Cook, voted against supporting the letters.
The council also voted unanimously to approve the liquor license for the Ledo Pizza restaurant moving to College Park this summer. The popular pizza chain will move into the basement of the city’s new parking garage.
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