07/17/2025
On July 9th, the Committee on Housing passed its Rebalancing Expectations for Neighbors, Tenants, and Landlords (RENTAL) Act of 2025 & now it goes to the full Council for a vote. For tenants, this bill is not as bad as advertised, & let me tell you why.
Only 1/2 of the RENTAL ACT deals with changes to T**A, the Tenant Opportunity to Purchase Act. (other 1/2 deals with eviction reform). I am happy to report the RENTAL Act does not kill T**A despite the tough talk from the real estate lobby and their Council allies.
The RENTAL ACT exempts T**A from two kind of buildings - those with overwhelmingly "poor" tenants and those with relatively "rich" tenants.
The "poor" tenants (my term) are in buildings that have affordable housing covenants (usually because of government loans from HUD or DHCD or tax credits).
The "rich" buildings are those built in the last 15 years. These newer buildings are exempt from rent control, and as a result, rents are typically higher. Think of all the new apartments in NOMA, Navy Yard, West End.
Taking T**A away from either of these groups is wrong IMO. But the Mayor, the council chair, and the present and former chairs of the Housing Committee think otherwise and are perfectly comfortable taking historic rights away from tenants allegedly to promote the potential construction of "affordable" housing. Anyone who thinks this is a good tradeoff needs to look up what "affordable housing" really means and who it is intended to benefit.
Fortunately the RENTAL ACT leaves T**A intact for all other multi-family apartments. I imagine there are plenty of buildings that are neither "rich" or "poor" that will go up for sale in the next 10 years with T**A still required. Tenants who believe their building is for sale but unsure of their T**A rights should always consult a lawyer - no matter what the landlord or the listing agent tells you.
Like the Council's attempt to exempt Single Family Homes from T**A in 2018, this new attempt to exempt more of the city's rental housing from T**A's protection creates administrative hurdles and burdens for the landlords trying to sell their "rich" or "poor" buildings, giving tenants and their advocates new opportunities to exploit and leverage paperwork mistakes and bureaucratic bumbling. For example, under the Rental Act, prospective tenants applying to live in "rich" building must be notified that their building is new and can be sold without T**A before it turns 15 yrs old. Like a rent control exemption, if a landlord doesn't notify the tenant about the supposed T**A exemption at the beginning of the tenancy, it becomes void when the landlord really needs (or wants) it - when they go to sell their building.
The RENTAL ACT's exemption of "poor" buildings also foretells many legal disputes between Tenant Associations, landlords, and prospective buyers. The proposed T**A exemption is unusual because it is based on the status of the buyer - for the "poor" building T**A exemption to apply, the buyer must enter into a binding covenant to maintain at least 51% of the housing units in the building at no greater than 80% area median income or median family income for a period no less than 20 years following the date of
transfer. Per the RENTALACT, the covenant doesn't have to be entered into until the time of purchase - so does that mean that tenants won't know if they have T**A rights until the moment of closing? Poor legislating = increased litigating = tenant leverage.
The Mayor's bill certainly deserves to be named the Rebalancing Expectations ACT - even though it going to be landlords and listing agents who will have their normal practices adjusted. The RENTALACT makes it "unlawful" to “Coerce a tenant to waive their [T**A] rights, retaliate against or harass a tenant seeking to exercise their rights, or engage in conduct intended to prevent a tenant from exercising their rights." The bill also creates a 15 day "cooling off" period when the buyer & seller can't talk to the tenants. The bill also requires that anyone offering money to the tenants for the assignment of T**A rights to disclose their relationship to the buyer or seller. This all spells trouble for the sophisticated listing agents & development bros who have developed sneaky ways to scam tenants out of their T**A rights (e.g., $50 and a piece of pizza).
Another example of new bureaucratic hurdles proposed by the Rental Act - landlords are required to file "Certifications of eligibility" to exempt their buildings as "rich" or "poor" and anyone can demand copies of those certifications, which the Department of Housing and Community Development must produce within 5 days after a request.
The bill also requires DHCD to review all T**A filings. “Within 7 days of receipt, the Dept shall review each offer of sale ...and each notice of transfer received... for the purpose of ensuring compliance with all statutory and regulatory requirements." DHCD doesnt do that now.
More Rental Act bureaucracy: if tenants make a deal to sell their T**A rights, the deal has to be filed with DHCD within 30 days. If not, the deal is deemed invalid and unenforceable. Trust me - title insurers are going to💩themselves when they read this part of the RENTAL ACT.
Also included in the Rental Act: within a year, DHCD has to come up with a searchable database of T**A filings, including Offers of Sale, development agreements (which are often confidential) and Notices of Transfers. DHCD is the only DC agency I am aware of that closes for business at 3:00 pm, and they can barely handle T**A filings as it is, how will they comply with this new law? Did the Mayor include a huge boost in DHCD's budget to accommodate these new bureaucratic responsibilities?
The RENTAL ACT also proposes to give the Mayor, and therefore DHCD, new powers over the real estate market that would make Vladimir Putin blush. Under the RENTAL ACT, the Mayor gets power to decide who can buy rental properties ("qualified purchasers"), who can help the tenants with their T**A rights ("tenant support providers"), and what kind of contracts are used ("template" purchase contracts).
Curiously, the bill also requires that the Mayor seek out untested buyers, presumably those who are not already in the DC market: "The Mayor shall recruit and solicit applications from reputable parties that have not previously conducted real estate transactions in the District." Was this language included in the Rental Act to give the mayor the power to give sole source contracts to her out-of-state cronies?
Fortunately, other than the proposed exemption of "rich" and "poor" buildings from T**A, the Rental Act contains only a few additional anti-tenant provisions. Per the RENTALACT, within 15 days after receipt of the offer of sale, a tenant on an oral lease has to prove their tenancy to the owner who is trying to sell the rental building, or else they lose their T**A rights. In my experience, DC tenants on oral leases are disproportionally low income folks, Seniors, or people living in so-called "heir" properties. Seems like punching down to me, but I guess that's who the Mayor wants to go after.
The RENTAL ACT also aims to make it harder for tenants to monetize their T**A rights. The Committee on Housing's Report on the Rental Act claims the law re-writes the definition of "buy out." But the text of the law doesn't really do that. DC Code § 42–3404.06 currently says"The tenant may ...assign or sell [T**A] rights to any party, whether private or governmental. The exercise, assignment, or sale of tenant rights may be for any consideration which the tenant, in the tenant’s sole discretion, finds acceptable."
The RENTALACT changes this, so that “The ...sale of tenant rights may be for relocation assistance as provided in subchapter III; building affordability; compensation for tenant organizing expenses, attorney fees; building improvements; or building energy efficiency improvements."
Another example of bad legislating - the proposed law doesn't say that those 6 items are the only types of consideration that tenants obtain or demand for assigning their T**A rights. Inclusio unius non est exclusio alterius.
So bottom line, the RENTAL ACT has taken something that is time-honored and elegant in its simplicity, and replaced it with a Frankenstein monster of contradictory ideas and bureaucratic hurdles that fail to accomplish the Mayor's expressed goal of thwarting tenant rights & tenant leverage. Tenants win if this bill passes, and they win if the Council ultimately rejects it.This can't be the result that the GCAAR lobbyists were looking for.