Bill > PR26-0326

This resolution declares an emergency to clarify that Low-Income Housing Tax Credit (LIHTC) rental units are exempt from the District of Columbia's Rent Stabilization Program, addressing a recent legal decision that threatened the financial stability of 99 buildings with over 11,000 affordable housing units. The resolution explains that LIHTC units have historically been exempt from rent stabilization since 1985, and a recent court ruling challenged this status by reinterpreting the definition of government subsidies. The emergency legislation aims to preserve the existing rent increase limitations already established by the U.S. Department of Housing & Urban Development (HUD), which caps annual rent increases at 5% or two times the national median income percentage, not exceeding 10%. By clarifying the exemption, the resolution seeks to protect LIHTC properties from potential financial default, ensure continued investment in affordable housing, and maintain the original financing agreements that keep rents affordable for tenants. The Council determines that these circumstances necessitate immediate action to prevent foreclosure risks and maintain the LIHTC investment market's strength, ultimately protecting both property owners and low-income residents.

https://lims.dccouncil.gov/Legislation/PR26-0326