DC UrbanTurf recently got a question from a reader regarding a tenant selling his Tenant Opportunity to Purchase Act (TOPA) right of first refusal. In answering the question, DC UrbanTurf quoted Attorney Aaron Sokolow, who regularly advises landlords and tenants on DC TOPA rights and litigation. The article can be found here.
DC Tenant Bill of Rights
Last year the District of Columbia City Council passed a bill requiring landlords to supply all tenants with a pamphlet, published by the Office of the Tenant Advocate, that explains basic DC landlord and tenant law. This pamphlet is known as the District of Columbia Tenant Bill of Rights. The law (§ 42-3502.22, Disclosure to Tenants) can be found here.
On April 3, 2015, the District of Columbia Tenant Bill of Rights was first published. The DC Register Tenant Bill of Rights can be found here. The requirements take effect 90 days after the April 3, 2015 publication. The Bill of Rights includes a signature line for the tenant to sign to confirm receipt.
The penalty for willful noncompliance with the disclosure requirements is severe. The law says, “The rent for any rental unit shall not be increased if the housing provider: (1) Willfully violates the provisions of this section; or (2) Fails to comply within 10 business days of written notice of any failure to comply with the provisions of this section.”
While the goal of this law is clear, from a DC real estate attorney’s prospective, this law raises many questions. The disclosures must be given to “prospective tenants.” Does that mean that ALL applicants need to be given the Tenant Bill Of Rights? Aren’t all applicants prospective tenants by definition? What if the chosen tenant signed the form, but not the applicants who were not chosen? Is it logistically feasible to have all applicants sign off on receipt of the Bill of Rights? Will a failure to have non-chosen applicants sign for receipt of the Bill of Rights invalidate future rent increases? If so, for how many years? Is there a statute of limitations? If the landlord cannot prove that each prospective tenant was given, and signed, the Bill Of Rights, are ALL future rent increases invalid? How does that affect future owners? How might this affect the sales price of a rental property? Will lenders want to see the signed Bills Of Rights for all prospective tenants before lending to new owners? What if the signed Bill of Rights is lost or damaged? What constitutes willful noncompliance?
The enactment of the DC Tenant Bill of Rights is yet another example of a seemingly simple law that may be the source of litigation for years to come.
2015 DC Rent Control CPI Index
The Rental Housing Commission has issued the 2015 DC Rent Control CPI Index. The recent Resolution indicates that effective May 1, 2015, the Consumer Price Index (CPI) used to calculate rent increases for properties subject to Washington, DC Rent Control will be 1.5 %. The Resolution can be found here.
Rent Control Housing Clearinghouse Amendment Act of 2015
This week Councilmember Anita Bonds introduced legislation, the Rent Control Housing Clearinghouse Amendment Act of 2015, to the DC Council, which would establish an online database of every single rental unit subject to the Washington, DC Rental Housing Act, and therefore rent control. It should be noted that while Councilmember Bonds’ press release refers to the legislation applying to affordable housing, the actual text of the bill applies to every unit subject to rent control, which is a very different standard than just “affordable housing.”
The creation of a database of every single rent control unit in Washington, DC would be a monumental task. The bill calls for the database to maintain tremendously detailed information on each unit, such as Basic Business License number, RAD registration number, Certificate of Occupancy number, housing inspection dates, administrative orders, and historic rent information. Perhaps most importantly, there is no information provided on who would be checking for compliance, or what penalties would apply for failing to comply. At this point, the Rent Control Housing Clearinghouse Amendment Act of 2015 seems more political than realistic.
