In a split 4-3 vote, Orange County commissioners voted to put a rent stabilization ordinance on the November ballot that would limit annual rent increases on multi-family dwellings to not more than 5%.
During an Aug. 9 board meeting, the commissioners signed off on putting the rent stabilization ordinance before county voters. The measure would apply to dwellings with four or more units, with the yearly rent cap set at either 5% or the rate of inflation, whichever is lower.
As rents have shot up around Florida, rent control ordinances have also been discussed in Pinellas County and other locations in the state this year. In Orange County, it has also been an issue of debate between the Second District commission candidates, incumbent Christine Moore and challenger Sandra Fatmi-Hall, with Moore opposed and Fatmi-Hall supporting the idea.
Tampa real estate attorney Stephen K. Hachey said there could be legal and political ramifications for counties that pass such ordinances.
“It’s really kind of a coin toss whether it’s going to hold up judicially or not,” Hachey told the Florida Record. “... There’s going to be legal challenges everywhere. People are going to be suing left and right.”
Counties where such ordinances are approved may have to put a lot of time, energy and money defending against court challenges, he said, and they may end up seeing the ordinance preempted by state lawmakers, who could pass legislation making such ordinances illegal.
“Is the juice really worth the squeeze?” Hachey asked.
He also cautioned that in the lead-up to rent ordinances taking effect, landlords may raise rates in anticipation of receiving limited income in the future. In turn, builders may simply avoid doing business in counties with rent ordinances on the books, potentially causing housing shortages in some places.
No local rent control ordinances are currently in effect in Florida, according to Hachey. One Florida statute restricts the use of controls on rents unless “such controls are necessary and proper to eliminate an existing housing emergency.”
In addition, the state law requires such ordinances to only be in effect for one year unless a new measure is passed complying with all provisions of the law. Rent stabilization measures are also barred from applying to rental units located in “luxury apartment buildings” or seasonal or tourist units, according to the state’s price-control statute.