Washington, DC, Mayor Muriel Bowser unveiled legislation on February 12, 2025, aimed at protecting existing affordable housing units and improving the investment climate for newer multifamily housing in the District. Named the Rebalancing Expectations for Neighbors, Tenants, and Landlords (RENTAL) Act of 2025, the bill would significantly reform several areas of the District's housing policy, including rental assistance, the eviction process, and the Tenant Opportunity to Purchase Act (TOPA) program. Specifically, the RENTAL Act:
- Streamlines the eviction process by reducing notice periods and authorizing eviction if a tenant or other occupant of a rental unit is arrested or charged with a violent offense.
- Restores the Department of Housing and Community Development's (DHCD) authority to acquire and reposition vacant properties to increase investment in communities.
- Reforms TOPA by exempting:
- Properties where a majority of units are subject to existing affordability covenants requiring those units to be affordable to households earning 80% or less of the Area Median Income (AMI);
- Properties constructed or significantly improved in the past 25 years where the majority of units rent at market rates; and
- Transfers by limited partners or investor members who have made capital contributions, thereby allowing investors to enter or exit as owners of the property without triggering TOPA requirements.
The act would also expand the pool of those able to receive Local Rent Supplement Program (LRSP) vouchers by increasing eligibility up to 50% AMI from 30% AMI and make permanent the DC Housing Authority's Stabilization and Reform Board of Commissioners.
Taken together, these reforms are expected to improve conditions for both existing affordable housing properties and investment in new affordable and market-rate projects. For existing affordable properties, eviction reform and expanded LRSP eligibility should help owners reduce delinquency and avoid foreclosure. For owners and developers of market-rate properties, the reforms to TOPA should make those properties more attractive to investors by exempting relatively new, market-rate projects and allowing refinancing and recapitalization without triggering TOPA requirements.
The legislation will now head to the DC Council, which could amend the proposal. In any case, the RENTAL Act's introduction represents a significant step toward improving conditions for housing investment in the District.