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B 26-0377

LIHTC Rent Stabilization Exemption Clarification Temporary Amendment Act of 2025

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

The bill exempts Low-Income Housing Tax Credit units from rent stabilization, allowing landlords to set rents freely, which may raise costs for low-income tenants.

Law L26-0072, Effective from Dec 31, 2025 Published in DC Register Vol 73 and Page 000605, Expires on Aug 13, 2026
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Bill Summary · B 26-0377

Summary of Bill B 26-0377: LIHTC Rent Stabilization Exemption Clarification Temporary Amendment Act of 2025

Purpose and Intent

The LIHTC Rent Stabilization Exemption Clarification Temporary Amendment Act of 2025 aims to clarify the relationship between the Low-Income Housing Tax Credit (LIHTC) program and the District of Columbia's rent stabilization program. Specifically, the bill seeks to ensure that rental units participating in the LIHTC program are explicitly exempt from the rent stabilization requirements outlined in the Rental Housing Act of 1985.

Key Provisions

  • Amendment to Rental Housing Act: The bill amends Section 205(a)(1) of the Rental Housing Act of 1985. It replaces the existing language that defines certain rental units with a new provision that includes any rental unit receiving tax credits under the LIHTC program.
  • Exemption Specification: The amendment clarifies that rental units receiving LIHTC are not subject to the rent stabilization program, thereby allowing for greater flexibility in setting rents for these units.

Affected Parties

  • Housing Providers: Landlords and property owners who participate in the LIHTC program will benefit from the exemption, as it allows them to set rents without the constraints of the rent stabilization program.
  • Low-Income Tenants: While the bill aims to support housing providers, it may impact low-income tenants by potentially allowing for higher rents in LIHTC units, which could affect affordability.

Procedural Aspects

  • Legislative Timeline:
    • Introduced: October 2, 2025
    • First Reading: October 7, 2025
    • Final Reading: October 21, 2025
    • Signed by Mayor: November 10, 2025, and enacted as Act Number A26-0189.
    • Returned from Mayor: November 10, 2025
  • Effective Date: The act will take effect following approval by the Mayor and a 30-day congressional review period. It is set to expire 225 days after taking effect.

Fiscal Impact

The bill includes a fiscal impact statement adopted from the Budget Director, which outlines the financial implications of the proposed changes. However, specific dollar amounts or budgetary impacts are not detailed in the provided documents.

Conclusion

The LIHTC Rent Stabilization Exemption Clarification Temporary Amendment Act of 2025 serves to clarify the exemption status of LIHTC units from rent stabilization, potentially impacting both housing providers and low-income tenants in the District of Columbia. The bill reflects ongoing efforts to balance the needs of affordable housing development with the regulatory framework governing rental units.

Compiled from official sources — confirm details with the bill’s official record.

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