1 1 2 3 Chairman Phil Mendelson Councilmember Matthew Frumin 4 5 6 7 Councilmember Brianne K. Nadeau Councilmember Charles Allen 8 9 10 11 Councilmember Anita Bonds Councilmember Christina Henderson 12 13 14 15 16 Councilmember Janeese Lewis George Councilmember Zachary Parker 17 18 19 20 Councilmember Brooke Pinto 21 22 23 A BILL 24 25 _________ 26 27 28 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 29 30 __________________ 31 32 33 To amend the Rental Housing Act of 1985 to remove the exemption from the Rent Stabilization 34 Program for units rented to tenants using a tenant-based subsidy, to prohibit the 35 administrator of any tenant-based subsidy from paying an increased rent without 36 receiving proper notice that the increase is compliant with the Rent Stabilization 37 Program, to prohibit agreements to waive the requirements of the Rent Stabilization 38 Program, to empower the subsidy administrator to challenge any inappropriate rent and to 39 prohibit it from denying any reasonable rent increase, and to provide for reasonable 40 increases to unit rent after a tenant voluntarily vacates the unit. 41 42 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 43 act may be cited as the “Rent Stabilization Protection Amendment Act of 2025”. 44 2 Sec. 2. The Rental Housing Act of 1985, effective July 17, 1985 (D.C. Law 6- 10; D.C. 45 Official Code § 42- 3502.05 et seq. ), is amended as follows: 46 (a) Section 103 (D.C. Official Code § 42- 3501.03) is amended as follows: 47 (1) Paragraph (29B) is amended by striking the phrase “title II of this act” and 48 inserting the phrase “sections 205(g) through (h), 206 through 216, and 224 of this act” in its 49 place. 50 (2) A new paragraph (33B) is added to read as follows: 51 “(33B) “Subsidy administrator” means a federal or District agency or instrumentality or 52 other organization that makes rent payments to a housing provider as part of a tenant-based 53 subsidy program.” 54 (3) A new paragraph (36B) is added to read as follows: 55 “(36B) “Tenant-based subsidy program” means a federally or District-funded program 56 through which money is paid by a subsidy administrator to a housing provider as partial or total 57 rent, including the Housing Choice Voucher Program , the Local Rent Supplement Program, the 58 Family Re-housing Stabilization Program.” 59 (b) Section 205 (D.C. Official Code § 42- 3502.05) is amended as follows: 60 (1) Section 205(a)(1) is amended to read as follows: 61 “(a) Except as provided in subsection (e) of this section, the Rent Stabilization Program 62 shall apply to each rental unit in the District; provided, that the following rental units shall be, 63 upon proper registration with the Rent Administrator in accordance with subsection (f) of this 64 section, exempt from the requirements of the Rent Stabilization Program: 65 “(1)(A) Any rental unit: 66 “(i) In a federally- or District- owned housing accommodation; 67 3 “(ii) In any housing accommodation with respect to which the 68 mortgage or rent is federally- or District- subsidized, if that subsidy is conditioned on the housing 69 provider limiting the rent for the subject rental unit and is not made pursuant to title III of this 70 Act, except as provided in subparagraph (B) of this paragraph; or , 71 “(iii) That is rented or co -leased by a home and community- based 72 services waiver provider and is occupied by a tenant with a disability as defined in section 73 103(29A) . 74 “(B)(i) The exemption provided by s ubparagraph (A)(ii) shall not include 75 a rental unit leased to and occupied by a tenant participating in a tenant-based subsidy program 76 under a lease commencing or renewed on or after October 1, 2026. If a rental unit leased to and 77 occupied by a tenant participating in a tenant-based subsidy program is under a month- to-month 78 lease, the exemption provided by subparagraph (A)(ii) shall not apply after April 1, 2027. 79 “(ii) For a rental unit subject to the Rent Stabilization Program 80 pursuant to subparagraph (B)(i ): 81 “(I) Neither the tenant nor the subsidy administrator shall 82 sign a voluntary agreement pursuant to section 215; 83 “(II) Section 224 shall not apply to such tenants; and, 84 “(III) Both the tenant and the subsidy administrator shall 85 have standing to challenge any rent adjustment pursuant to section 216 and to obtain relief in 86 accordance with section 901. 87 “(iii) For any rental unit for which the exemption previously 88 provided by this paragraph terminates pursuant to subparagraph (B)(i), the allowable rent 89 4 charged pursuant to the Rent Stabilization Program shall be computed in accordance with 90 section 209. 91 (c) A new section 205(g)(3) is added to read as follows: 92 “(3) For a rental unit subject to the Rent Stabilization Program pursuant to section 93 205(a)(1)(B), a housing provider shall serve on the subsidy administrator a cop y of any notice 94 required by paragraph (1) of this subection. 95 (d) A new section 205(j) is added to read as follows: 96 “(j) A subsidy administrator shall make a payment to a housing provider only after 97 receiving a copy of the notice required to be served on the tenant required by the Rent 98 Stabilization Program. The total rent paid to the housing provider may not exceed the amount 99 lawfully computed under the Rent Stabilization Program and timely filed with the Rent 100 Administrator. 101 “ (1) Each subsidy administrator shall annually send to the Rent Administrator a 102 list of units that it is subsidizing that are subject to the Rent Stabilization Program and the rent 103 paid for each unit. 104 “(2) For so long as a tenant participating in a tenant-based subsidy program 105 occupies a rental unit subject to the Rent Stabilization Program, the subsidy administrator shall 106 take care and exercise all available legal remedies to ensure that any rent adjustment for the 107 rental unit complies with the Rent Stabilization Program. 108 “(3) The subsidy administrator shall not deny a request for annual increase that is 109 in compliance with the Rent Stabilization Program unless the proposed rent would: 110 “(i) be unreasonable pursuant to federal regulations governing the housing 111 assistance payment and rent (at 24 C.F.R. § 982.507 or its successor) ; or, 112 5 “(ii) deviate from any other federal or District law or regulation setting or 113 approving rent levels for subsidized tenancies. 114 “(4) Nothing in this Title is intended to allow a tenant who is part of a tenant -115 based subsidy program to be treated differently from any other tenant in violation of the D.C. 116 Human Rights Act.” 117 (e) Section 206(e) (D.C. Official Code § 42–3502.06(e)) is amended to read as follows: 118 “(e) “For a rental unit subject to the Rent Stabilization Program pursuant to Subparagraph 119 205(a)(1)(B), a petition under section 216(a) shall always be timely. For any other rental unit, no 120 tenant may file a petition with respect to any rent adjustment, under any section of this chapter, 121 more than 3 years after the effective date of the adjustment. 122 (f) Section 216 (D.C. Official Code § 42–3502.16) is amended by striking the word 123 “tenant” wherever it appears and inserting the phrase “subsidy administrator, if one exists for the 124 unit, or tenant of the unit”. 125 (g) Section 209(a)(1)(A) (D.C. Official Code § 42–3502.09(a)(1)(A)) is amended to read 126 as follows: 127 “(A)(i) If the unit is not vacant when the exemption terminates or expires: 128 “(I) The sum of the rent charged on the date the unit 129 became exempt and each subsequent adjustment of general applicability authorized pursuant to 130 subsection 206(b); or 131 “(II) If the unit was exempt pursuant to section 205(a)(1) 132 for more than 12 years, the sum of the rent charged on the date the unit became exempt and 133 101.5% of each subsequent adjustment of general applicability authorized pursuant to section 134 206(b); 135 6 “(ii) If the unit is vacant when the exemption terminates or expires: 136 “(I) 110% of the sum authorized under sub- subparagraph 137 (i) of this subparagraph, if the previous tenant occupied the unit for 12 years or less; or 138 “(II) 120% of the sum authorized under sub-subparagraph 139 (i) of this subparagraph, if the previous tenant occupied the unit for more than 12 years.” 140 Sec. 3. Fiscal impact statement. 141 The Council adopts the fiscal impact statement in the committee report as the fiscal 142 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 143 approved October 16, 2006 (12 Stat. 2038; D.C. Official Code § 1- 301.47a). 144 Sec. 4. Effective date. 145 This act shall take effect following approval by the Mayor (or in the event of veto by the 146 Mayor, action by the Council overriding the veto) and a 30- day period of congressional review 147 as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 148 24, 1973 (87 Stat. 813; D.C. Official Code § 1- 206.02(c)(1)). 149