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My first attempt to address the rent control crisis failed, but with people struggling to pay rent we can’t sit and do nothing, so I am proposing language in the budget to reduce the maximum rent increase in rent stabilized units to 6.9% for the next two years. After speaking with tenants, landlords, attorneys, and organizers, I believe this, rather than a 5% cap, strikes the right balance that will keep residents in their homes and prevent poor maintenance or permanent loss of affordable housing.
Several factors have influenced this proposal:
- DC law prohibits rent-stabilized rents from increasing more than the percent of inflation, as measured by the Consumer Price Index, plus an additional 2%. As of May 1, 2023, rent increases are capped at 8.9%.
- I've heard from many concerned residents that this 8.9% rent increase is putting people with limited incomes, who are already struggling with recovering from the pandemic and inflation, at risk of displacement or homelessness.
- During the pandemic, DC prohibited rent increases and froze evictions for two years to avoid massive displacement of residents.
- Landlords, particularly smaller companies, are also facing the impacts of inflation, increased labor costs, utilities, and losses from unpaid rents. Rising costs have led some landlords to sell their buildings with rent-stabilized units or reduce spending on building maintenance and security.
- DC has around 70,000 rent-stabilized units. Once the Administration completes a public rent-controlled buildings database this fall, we will have a clearer understanding of the owners of these buildings, the cost of rent, the number of vacant units, the number of bedrooms in each unit, and more. Today, we know very little beyond the approximate number of rent-stabilized units.
- Under DC law, landlords can submit a hardship petition to increase their tenants' rents higher than the rent cap to cover hardship or maintenance costs. This can have devastating impacts on renters struggling to pay rent, and I worry we would see more of these if we had any cap on rent increases lower than the cost of inflation, which is 6.9%.
The bottom line: I want to keep rent as low as possible so that people can stay in their homes, avoid reduced buildings maintenance, and retain a stable housing market that meets residents' needs. I am working to find funding before the vote on this year's revised budget at the end of this month, with a goal of a 6.9% cap taking effect by the summer. I will share updates on social media as we work to get this done.
Are you a senior citizen (62 or older) or a resident with disabilities living in a rent-controlled unit? By law, your rent cannot increase more than 5%. If you need assistance alerting your landlord to let them know you qualify for this rent cap, call the Office of the Tenant Advocate at (202) 719-6560.
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