Mayor Muriel Bowser put forward the Rebalancing Expectations for Neighbors, Tenants and Landlords Act of 2025 on Feb. 12, 2025. This legislation, dubbed “The Rental Act,” is intended to protect DC’s existing affordable housing supply and support the production of new affordable housing supply, as well as improving the affordable housing system for tenants and housing providers. Here are the bullet points:

• Increase Local Rent Supplement Program (LRSP), making more units to be eligible for LRSP vouchers by modifying program eligibility to allow up to 50% Area Medium Income (AMI) v. 30% AMI
• Reform the Emergency Rental Assistance Program (ERAP), making provisions of the emergency legislation permanent. The Act also strives to ensure that ERAP is sustainable and able to help those it was designed to help by removing the required stay of eviction proceedings in ERAP cases and modifying self-attestation
• Strengthen Tenant Safety Protections. The Act authorizes eviction if a tenant or other occupant of a rental unit is arrested or charged with a violent offense that occurred in or adjacent to the housing accommodation
• Streamline Court Process Timelines. Modifies eviction timelines to be consistent with pre-pandemic timelines and those of neighboring jurisdictions with the intent of providing a fairer and more predictable eviction process
• Makes permanent the D.C. Council’s legislation clarifying that the District is not liable for damages as a lender when supporting affordable housing projects
• Preserves the DC Housing Authority Stabilization and Reform (STAR) Board. Keeps the District of Columbia Housing Authority’s (DCHA) temporary STAR Board in effect to provide consistent and sustained leadership to deliver housing
• Modernizes the Tenants Opportunity to Purchase Act (TOPA). Focuses TOPA on displacement prevention by ensuring that naturally-occurring affordable housing is protected. The Act reforms TOPA to clarify which transactions are eligible and ensure that tenants are aware of their TOPA rights
• Reposition Vacant Properties into Affordable Housing. Restores the District’s Department of Housing and Community Development’s (DHCD) authority to acquire and reposition vacant properties to increase investment in communities and create more opportunities for affordable housing developments
• Maximize Impact of Affordable Housing Funding Programs. Implements technical measures to ensure DHCD can utilize the District’s tax credits for affordable housing projects

The Rebalancing Expectations for Neighbors, Tenants, and Landlords (RENTAL) Act creates new exemptions to TOPA, expanding existing provisions. Here’s a comparison between the current TOPA exemptions and the proposed changes under the RENTAL Act:​

→ Existing TOPA Exemptions

Single-Family Dwellings

Since the enactment of the TOPA Single-Family Home Exemption Amendment Act of 2018, single-family accommodations have been exempt from TOPA, except when occupied by elderly (62 or over) or disabled tenants who signed a lease by March 31, 2018 and occupied by April 15th of that year. This exemption also includes single-family dwellings with an accessory dwelling unit, and single rental units in condominiums, cooperatives, or homeowners’ associations. ​

Low-Income Housing Tax Credit (LIHTC) Properties

Transfers involving LIHTC properties may be exempt under certain conditions, such as when the transfer is to maintain affordability, or involves the exit of limited partners or investor members who have made capital contributions.

→ Proposed Exemptions Under the RENTAL Act

Recent Constructions and Substantial Improvements

• Properties constructed, or substantially improved, within 25 years prior to the sale are exempt if min. 51% of units have average rents exceeding rates affordable to households earning 80% or less of AMI during the most recent 6 month period for which rent data is available. This exemption requires certification by the Mayor confirming that the property meets these criteria.
• A stipulation of this provision is that landlords must inform tenants in writing about this exemption before lease signing. ​This would seem to disqualify buildings with pre-existing tenants, at least until lease terms end. So there would be a lag of some length before this exemption would be applicable to existing buildings. It would apply more universally to new construction properties, which are typically not contenders for TOPA anyway.

Properties with Affordability Covenants

• Buildings subject to recorded affordability covenants mandating that at least 50% of the units are rented at rates affordable to households earning 80% or less of AMI for a minimum of 20 years are exempt. To qualify, the remaining term of these covenants must be at least five years at the time of sale or transfer.
• And again, a stipulation of this provision is that landlords must inform tenants in writing about this exemption before lease signing. ​

Ownership Transfers Among Investors

The Act proposes an exemption for ownership changes involving limited partners or investor members who have made capital contributions to the property, facilitating smoother investment transitions without triggering TOPA rights. ​

Key Differences Between Current and Proposed Exemptions

Scope of Exemptions

The current exemptions focus mainly on single-family accommodations and specific scenarios involving LIHTC properties while The RENTAL Act introduces exemptions based on the property’s age, rent levels, and existing affordability covenants.​

Criteria for Exemption

The proposed exemptions under the RENTAL Act are contingent upon specific financial and occupancy metrics, such as the percentage of units with rents exceeding affordability thresholds and the presence of long-term affordability covenants. These criteria are more detailed compared to the existing exemptions.​

Notification Requirements

Both existing and proposed exemptions require landlords to provide written notice to tenants regarding the property’s exemption status. The RENTAL Act specifies that this notification must occur before lease signing, ensuring tenants are informed of their rights from the outset.​

Property Management Association (PMA):

• Educational Initiatives: The PMA has organized webinars to prepare property managers for the anticipated impacts of the RENTAL Act. These sessions aim to provide insights into the legislation’s key features, practical implications, and strategies for compliance, reflecting a proactive approach to adapting to the proposed changes.

Supportive Groups

Landlord associations and real estate industry groups have generally expressed support for the Rebalancing Expectations for Neighbors, Tenants, and Landlords (RENTAL) Act introduced by Mayor Bowser. They view the legislation as a necessary step toward stabilizing Washington DC’s housing market and fostering a more investment-friendly environment.

The DC Chamber of Commerce supports the RENTAL Act, emphasizing that affordable housing is essential for sustainable economic growth in the city.

In late 2024, D.C. Council Chair Phil Mendelson said the District must stop ‘strangling’ housing providers by preventing evictions. As BisNow reported, Mendelson stressed that legislative reform is needed to alleviate the crisis that has put housing providers at risk of shutting down as their tenants accrue tens of millions of dollars of unpaid rent.

DC Building Industry Association CEO Liz DeBarros said the RENTAL Act was a “crucial measure to stabilize the housing market.” DeBarros considers the legislation a balanced tenant protection and private investment provision. ​

Dean Hunter, the CEO of Small Multifamily Owners Association communcated strong support for the bill, its measures to expedite the court process for evictions, in particular, according to WJLA. Hunter also advocates for further reforms to exempt more properties from specific regulations.

In general, landlord groups perceive The RENTAL Act as a positive step toward addressing existing challenges in the DC housing market.

Opposition

Tenant advocates are unhappy with the legislation.

BisNow reports that Legal Aid DC has criticized the RENTAL Act, saying that its passage would displace low-income residents. They argue that the proposed changes to TOPA rights, eviction protections, and rental assistance shift the burden of DC’s affordable housing crisis onto the lowest-income residents, potentially exacerbating their vulnerabilities.

DC Legal Aid sent the DC Council a letter in September of 2024 stressing that delays in court proceedings and ERAP processing are largely outside of tenants’ control, and urging them to focus on addressing the fundamental issue that rents are outpacing income for too many District residents. Their suggestions included leveraging the Housing Production Trust Fund, funding more permanent vouchers, inclusionary zoning for new housing developments at 30% AMI, and funding the First Right to Purchase Program (FRPP) so tenant TOPA purchasers can keep their buildings affordable.

As of March 8, 2025, the RENTAL Act is just beginning the legislative process within the DC government. The typical progression for such legislation includes:​

Introduction and Referral:

The Mayor submits the proposed bill to the Council of the District of Columbia, where it is assigned a bill number and referred to the appropriate committee(s) for review.​
Committee Review:

The designated committee(s) analyze the bill, hold public hearings to gather input from stakeholders, and may amend the proposal based on feedback and deliberations.​
Committee Markup and Report:

Following the review and hearings, the committee(s) conduct a markup session to finalize the bill’s language and vote on whether to report it favorably to the full Council.​

Council Consideration:

The full Council considers the bill in two separate readings, typically held at least 13 days apart. During these readings, Councilmembers debate the bill and can propose further amendments.​

Mayoral Action:

If the Council passes the bill, it is sent to the Mayor for approval or veto. If approved, the bill proceeds to the next step; if vetoed, the Council can override the veto with a two-thirds majority vote.​

Congressional Review:

After Mayoral approval, the bill undergoes a 30-day Congressional review period, as mandated by the District of Columbia Home Rule Act. During this time, Congress can disapprove the legislation; if no action is taken, the bill becomes law.​

Given that the RENTAL Act was introduced in February, it is likely in the committee review or public hearing phase. Review legislation and staus here. For the most current information on its status, you can consult the Council of the District of Columbia’s official website or contact the relevant committee overseeing housing and rental matters.​

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