News & Resources

By Jennifer Jette

On February 12, 2025, Washington, D.C. Mayor Muriel Bowser introduced the Rebalancing Expectations for Neighbors, Tenants, and Landlords Act (RENTAL Act)—a legislative package designed to stabilize D.C.’s housing system amid growing market distress. The proposed changes could have significant implications for developers, property owners, investors, and tenants navigating D.C.’s complex real estate landscape. 

The RENTAL Act seeks to reform existing regulations to balance the interests of tenants and landlords while encouraging housing development.  

Key provisions include: 

• Exempting certain properties from the Tenant Opportunity to Purchase Act (TOPA)  

• Accelerating eviction proceedings 

By making these changes, the RENTAL Act is designed to boost real estate activity, attract investment, and ensure a more functional housing market across Washington, D.C. 

Exemption of Market-Rate and Certain Mixed-Income Properties from TOPA 

A noteworthy provision in the RENTAL Act is the exemption of market-rate and select mixed-income apartment buildings from the Tenant Opportunity to Purchase Act (TOPA). TOPA gives tenants the right of first refusal to buy or choose a preferred buyer when their landlord puts their apartment building up for sale, which leads frequently to prolonged negotiations, increased costs, and uncertainty for sellers. One of the goals of the RENTAL Act is to refocus TOPA on properties with more than 51% of units below 80% of the Median Family Income. 

For years, industry insiders have argued that TOPA’s requirements have stalled transactions and contributed to declining multifamily sales and that TOPA has been exploited by tenants who often negotiate thousands of dollars from their landlords in order to waive their TOPA rights. Many investors have been deterred from the D.C. market due to the complexities associated with TOPA, leading to stagnation in multifamily transactions. 

By exempting market-rate and certain mixed-income properties from these requirements, the RENTAL Act aims to reinvigorate the multifamily sales market by providing a more predictable and efficient transaction process. This change could encourage more investment in D.C.’s rental housing stock, ultimately increasing housing availability and economic activity.  

While tenant advocates may raise concerns about displacement risks, proponents argue that reducing barriers to multifamily sales will enhance overall market health and encourage further development. If passed, this exemption could significantly streamline property sales, reducing delays and uncertainty for both buyers and sellers. 

Accelerating Evictions 

In addition to TOPA, the RENTAL Act includes a series of provisions to expedite court timelines for evictions and would make permanent the temporary changes to the Emergency Rental Assistance Program that were enacted in October 2024. The Act would require the scheduling of an initial hearing for the nonpayment of rent to occur within 45 days of the complaint being filed (instead of the current unlimited timeframe). Additionally, the Act proposes to shorten the window in which landlords may send past-due notices from 30 days to 10 days after a missed payment of rent and also reduce the timeframe between serving an eviction notice and scheduling a hearing from 30 days to 14 days at the earliest. Evictions would also be accelerated if a tenant is arrested or charged with a violent offense within or next to their rental property. Such changes would provide landlords with more efficient remedies in situations of nonpayment or lease violations and establish better accountability for both landlords and tenants. 

Potential Impact on Commercial Real Estate 

For real estate developers and investors, these proposed changes represent a significant shift in the regulatory landscape, potentially altering how transactions are conducted and how properties are managed in Washington, D.C. With fewer regulatory hurdles, these changes could offer a more predictable environment for development and investment, improving confidence across the market.  

The D.C. commercial real estate market could see:  

• Greater Liquidity in the Multifamily Market – The TOPA exemptions could encourage more sales of market-rate and mixed-income apartment buildings by removing barriers that have historically complicated transactions. This may attract more investors looking for certainty in deal timelines. 

• Improved Landlord Protections – Faster eviction proceedings may offer landlords more confidence in leasing decisions, reducing risks associated with prolonged nonpayment disputes. 

• Increased Development Opportunities – If the legislation successfully accelerates housing production, we may see an increase in mixed-use and residential development projects, creating new opportunities for commercial real estate activity. 

Looking Ahead 

The RENTAL Act is set to undergo further debate, and stakeholders across the real estate spectrum—including property owners, developers, and tenant advocacy groups—will be weighing in. If passed, the legislation could reshape the future of D.C.’s multifamily housing market, altering how transactions and tenant relationships are managed. 

Jennifer Jette is a commercial real estate and corporate attorney who frequently assists both sellers and purchasers of multifamily property in DC regarding compliance with TOPA. For more information, contact jjette@fmlaw.com.