DC RENTAL Act of 2025

Rebalancing Expectations for Neighbors, Tenants and Landlords (RENTAL) Act

The Rebalancing Expectations for Neighbors, Tenants and Landlords (RENTAL) Act passed the DC Council on a second reading vote on September 17, 2025, but is not yet law. Facing mounting distress in DC’s affordable housing sector—driven by rising non-payment of rent, rising costs, and declining developer interest—the Bowser administration proposed the RENTAL Act in February 2025 to “recalibrate” DC’s housing laws and incentives. The stated goals are to protect existing affordable housing, encourage new affordable housing production, streamline housing finance and operations, and rebalance certain protections between tenants and housing providers.

Affordable Housing

A core component of the Act is to preserve subsidized and regulated housing. One major change is to increase the eligible income threshold for households qualifying for Local Rent Supplement Program (LRSP) vouchers. Under the RENTAL Act, eligibility expands from 30 percent of area median income (AMI) to 50 percent AMI, enabling more units and households to participate.

The Act also makes permanent certain key elements of the Emergency Rental Assistance Program (ERAP). The changes in ERAP are not all pro-tenant, but seek to rebalance tenant protections, landlord rights, and operational efficiency in eviction and rent assistance processes.

Additionally, the Act preserves the DC Housing Authority Stabilization and Reform (STAR) Board, thereby maintaining continuity of oversight in public housing.

Eviction & Tenant Safety Changes

In a response to landlords and housing advocates, the Act “rebalance” certain COVID-era protections, streamline eviction processes and court procedures, and adjust tenant protections. A controversial element, the RENTAL Act authorizes eviction when a tenant or occupant is arrested or charged with a violent offense in or adjacent to the housing unit—even before a criminal adjudication. It also seeks to streamline court timelines, bringing eviction processing more in line with pre-pandemic norms and neighboring jurisdictions, shortening notice periods, and reducing procedural lags.

TOPA (Tenant Opportunity to Purchase Act) Reforms

Perhaps the most contentious changes proposed by the Act is a reconfiguration of how and when TOPA applies. The Act provides exemptions for buildings that are newly built (fifteen (15) years), many substantially renovated properties, and buildings with long-term affordability covenants. Many owners of now exempted, buildings will no longer be required to provide full TOPA (Offer of Sale and Right of First Refusal), rather, a seller may now need to only send a Notice of Transfer to tenants, informing them that the building is being sold and that a TOPA right does not apply. The Act is not all bad news for tenants. Under the new law, after receiving a TOPA rights notice, there is a 45-day “cooling-off period” during which tenants cannot immediately assign their TOPA rights (i.e. sell or transfer them). This provision is designed to allow time for tenants to make informed decisions and to consider whether they want to buy or negotiate collectively before assigning their rights to a third party.

TOPA has been widely and justifiably criticized in recent history for being an unreasonable barrier to development with lack of clarity and understanding of the law. In 2018 DC Council provided for an exemption from TOPA for “single-family accommodations”. In an amendment to the Act, DC Council has further recognized a distinction between smaller buildings and the 5 or more unit buildings, by providing an exemption for 2-4 unit buildings that are not owned by a business corporation (as defined by DC law). Additionally, the Act provides for clarified definitions of “owner”, “tenant” and “transfer”.

Conclusion

Landlord and real estate groups have broadly supported these reforms, seeing them as essential to reviving housing investment in DC under strained market conditions. Tenant advocates counter that the bill would heighten displacement risk, weaken procedural protections, and reduces tenant voice in property sales. The RENTAL Act of 2025 is a sweeping legislative redesign of DC’s rental and affordable housing regime. It blends expansion of subsidy programs (LRSP, ERAP reform) with more aggressive changes to eviction law and property transaction rules (TOPA exemptions, expedited timelines and definitions). Its final implementation—and how courts, agencies, landlords, and tenants adapt—will determine whether it achieves a stable, equitable housing balance or shifts burdens disproportionately onto renters. Remember it is not yet law as the final Bill needs to be sent to the Mayor for signature and is then subject to a thirty (30) day Congressional review period.