D.C. Council passes temporary rent stabilization amendments for housing inflation protection

The Council of the District of Columbia has introduced Council Bill 260003, known as the “Rent Stabilized Housing Inflation Protection Continuation Temporary Amendment Act of 2025,” aimed at providing temporary relief to tenants in rent-stabilized units. Introduced on April 8, 2025, the bill seeks to amend the Rental Housing Act of 1985 by limiting annual rent increases for a two-year period.

The bill proposes that the annual adjustment for rent in stabilized units be capped at either 6% or the Standard Metropolitan Statistical Area Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) plus 2%, with a cumulative limit of 12% over two years. For units leased by home and community-based services waiver providers, the increase is limited to 4% or the general adjustment, with an 8% cumulative cap. Additionally, for units occupied by elderly tenants or those with disabilities, the increase is similarly capped at 4%, the general adjustment, or the most recent cost-of-living adjustment for social security recipients, also with an 8% cumulative limit.

The bill has sparked discussions among council members and stakeholders, with proponents arguing that it is essential to protect vulnerable tenants from rising housing costs amid economic uncertainty. Critics, however, express concerns that such caps may discourage investment in rental properties and could lead to a decline in housing quality.

The implications of this bill are significant, as it addresses ongoing concerns about housing affordability in the District of Columbia. Experts suggest that while the temporary measures may provide immediate relief to tenants, the long-term effects on the rental market and housing supply will need careful monitoring.

As the council prepares for further discussions, the bill's future remains uncertain, with potential amendments and debates expected in the coming weeks. The council's decision will be closely watched by both tenants and landlords, as it could set a precedent for future housing policies in the district.