The LIHTC Rent Stabilization Exemption Clarification Amendment Act of 2025 aims to restore and clarify an exemption under the District's Rental Housing Act of 1985, ensuring that properties participating in the Low-Income Housing Tax Credit (LIHTC) program remain exempt from local rent stabilization requirements. This legislation addresses concerns raised by a recent Superior Court ruling, Milestone v. Daniels, which distinguished between direct and indirect subsidies, creating uncertainty for nearly 100 LIHTC-assisted properties and over 11,000 affordable units. The bill emphasizes the importance of LIHTC in preserving affordable housing and maintaining financial viability for these properties.

Specifically, the bill amends Section 205(a)(1) of the District of Columbia Rental Housing Act of 1985 by deleting the phrase "as defined in section 206(f)(2)(A);" and inserting a new phrase that includes "any rental unit for which the housing provider receives tax credits pursuant to the Low Income Housing Tax Credit Program." This change is intended to clarify that LIHTC properties are exempt from the Rent Stabilization Program, thereby protecting tenants and preserving the integrity of the District's affordable housing initiatives. The act will take effect following approval by the Mayor and a 30-day congressional review period.