The resolution declares an emergency regarding the need to amend the Rental Housing Act of 1985 to clarify that rental units participating in the Low-Income Housing Tax Credit (LIHTC) program are exempt from the Rent Stabilization Program. This exemption was previously established but was overturned by a court ruling, which could potentially subject over 11,000 LIHTC-assisted units to rent stabilization. The resolution emphasizes that without this exemption, these properties may face financial difficulties, risking defaults on their commitments and hindering the production of affordable housing in the District of Columbia.

The resolution argues that the LIHTC program already imposes its own rent increase limitations, ensuring that rents remain affordable and aligned with tenants' incomes. It asserts that clarifying the exemption is crucial for preserving the financial viability of LIHTC properties and maintaining the integrity of the affordable housing market. The Council of the District of Columbia has determined that these circumstances warrant immediate action, allowing the resolution to take effect without delay to protect tenants and the housing market.