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 recently 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, many properties may default on their financial commitments due to reduced rental income, jeopardizing 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 affordable housing and maintaining the strength of the LIHTC investment market. The Council of the District of Columbia recognizes the urgency of this situation and intends to adopt the necessary amendments swiftly to prevent foreclosure of LIHTC properties and ensure tenants can remain in their homes. The resolution is set to take effect immediately upon adoption.