LIHTC Rent Stabilization Exemption Clarification Amendment Act of 2025

26th Council Period (2025-2026) Introduced by Robert White

The bill clarifies that LIHTC properties are exempt from local rent controls, protecting over 11,000 affordable units and ensuring housing stability for low-income families.

Law L26-0111, Effective from Apr 16, 2026 Published in DC Register Vol 73 and Page 006783

Introduction

The LIHTC Rent Stabilization Exemption Clarification Amendment Act of 2025 (B26-0429) was introduced on October 10, 2025, by Councilmember Robert C. White, Jr. This legislation aims to clarify the exemption status of rental units participating in the Low-Income Housing Tax Credit (LIHTC) program from the District's Rent Stabilization Program.

Purpose and Intent

The primary intent of B26-0429 is to restore and clarify a long-standing exemption under the District of Columbia Rental Housing Act of 1985. This exemption is crucial for ensuring that LIHTC properties remain free from additional local rent restrictions, thereby supporting low- and moderate-income families under federal affordability guidelines.

Key Provisions

Clarification of Exemption: The bill amends Section 205(a)(1) of the Rental Housing Act to explicitly state that any rental unit receiving tax credits through the LIHTC program is exempt from the Rent Stabilization Program.

Restoration of Legislative Intent: The amendment seeks to counteract a recent Superior Court ruling (Milestone v. Daniels) that created uncertainty regarding the exemption status of LIHTC properties, potentially jeopardizing nearly 100 LIHTC-assisted properties and over 11,000 affordable units.

Applicability: The provisions of this act will apply retroactively from July 17, 1985, the original effective date of the Rental Housing Act.

Impact

Affordable Housing Stability: By clarifying the exemption, the bill aims to protect tenants and maintain the financial viability of affordable housing in the District. It is expected to preserve confidence in the District's housing programs and ensure that LIHTC properties can continue to operate without the burden of additional local rent controls.

Potential Risks: Without this legislative clarification, the affordable housing market could face significant disruptions, leading to defaults and loss of affordable housing options for residents.

Procedural Aspects

Public Hearing: A public hearing on B26-0429 is scheduled for November 20, 2025, at 10 AM in the John A. Wilson Building and via Zoom. The Committee on Housing invites public testimony, with a deadline for sign-up on November 17, 2025.

Legislative Timeline: The bill was referred to the Committee on Housing on October 21, 2025, and a notice of public hearing was published in the District of Columbia Register on November 7, 2025.

Conclusion

The LIHTC Rent Stabilization Exemption Clarification Amendment Act of 2025 is a critical piece of legislation aimed at safeguarding affordable housing in the District of Columbia by clarifying the exemption status of LIHTC properties. Its successful passage would help maintain the integrity of the affordable housing market and protect the interests of low- and moderate-income families.

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