Bill Summary – FastDemocracy

Countilmember Elissa Silverman                                   Councilmember Anita Bonds

                                                                                  imbet Trayon White, Sr.

                                               ABILL

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                     IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

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 To amend the Rental Housing Act of 1985, to define rent ceiling; to clarify that the

         abolition of rent ceilings applies to all unimplemented and expired rent increases;

         to reset rents charged based on the rent charged and any unexpired rent surcharges

        in effect on the effective date of this act; to clarify that rent increases may not be

         implemented more than 30 days after a housing provider is first eligible to take

        the increase; to specify requirements for notices of  a rent charged, rent charged

        adjustment, or rent surcharge; to regulate discounted rents; to define a discounted

        rent as rent charged that is at least 10% less than the rent charged aprior or

        current tenant; to require that for as long as a tenant with a discounted rent is a

        tenant ofa rental unit: 1. the discounted rent must be the sole basis for the

         calculation of adjustments to the rent charged for the duration of a tenants

        tenancy, 2. the rent for the rental unit must be equal to the amount of the initial

         discounted rent, plus any implemented rent charged adjustments and unexpired

        rent surcharges, and 3. the discounted rent must be granted to a tenant

         unconditionally; to permit a housing provider that had granted adiscounted rent to

         charge the next tenant of the same rental unit up to the amountof rent charged

        immediately before the establishment of  a discounted rent, plus authorized but

         unimplemented rent charged adjustments; to disallow rent increases 1. not

        implemented within 30 days after a tenant with a discount vacates a unit, and 2.

         when the amount filed pursuant to section 206(h)(2) is not correct; to require that

        late fees for a tenant with a discounted rent be based on the rent charged; to

         require that rental advertisements include the proposed rent charged, any rent,

         surcharge in effect, and any unexpired rent surcharges; to provide for penalties for

        violations of the requirements of this act; and to clarify rent increases to vacant

         units.

         BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this

 act may be cited as the Rent Concession Amendment Act of 2019,

         Sec. 2. The Rental Housing Act of 1985, effective July 17, 1985 (D.C. Law 6-10; D.C.

 Official Code  42-3501.01 et seq.), is amended as follows:

         (a) Section 103 (D.C. Official Code  42-3501.03) is amended as follows:

                 (1) Paragraph (29) is amended to read as follows:

         (29) Rent ceiling means the maximum rent that a housing provider was legally

 entitled to demand, receive, or charge for a rental unit once unimplemented increases in the rent

 charged were taken, in effect prior to the abolition of rent ceilings by the Rent Control Reform

 Act of 2006 (D.C. Law 16-145)..

                 (2) Paragraph (29B) is redesignated as paragraph (29C).

                 (3) A new paragraph (29B) is added to read as follows:

         (29B) Rent Stabilization Program means the program and related requirements

 established by title II..

         (b) Section 206 (D.C. Official Code  42-3502.06) is amended as follows:

                 (1) The title of section 206 is amended to read as follows:

         Sec. 206. Rent charged..

                 (2) Subsection (a) is amended to read as follows:

          (a) Rent ceilings are abolished..

                 (3) Subsection (b) is amended by striking the phrase by subsection (a)ofthis

 section and inserting the phrase pursuant to the Rent Stabilization Program in its place.

                 (4) Subsection (e) is amended to read as follows:

         (e)(1) A tenant may challenge a rent charged, rent charged adjustment, or rent surcharge

 implemented under or authorized by any section of this Act by filing a petition with the Rent

 Administrator under section 216.

                  (2) No petition may be filed with respect to any rent charged, rent charged

  adjustment, or rent surcharge, under any section of this Act more than 3 years after the effective

  date of the rent charged, rent charged adjustment, or the rent surcharge, except that

B                            (A) The 3-year statute of limitations established by this subsection shall

 not apply to a challenge to the basis for any such rent charged, rent charged adjustment, or rent

 surcharge; and

                         (B) The new base rent as provided in section 103(4) may not be

 challenged more than 6 months after the date the housing provider files the base rent as required

 by this Act..

                  (5) New subsections (a-1), (a-2), (a-3), (h), and (i) are added to read as follows:

         (a-1) Base rents on April 30, 1985.  No housing provider may demand, receive, or

 charge for a rental unit subject to this Act, a rent in excess of the base rent, plus subsequent rent

 charged adjustments and rent surcharges authorized by the Rent Stabilization Program that have

 not expired or were not abolished after April 30, 1985.

         (a-2) Reset of rents charged on the effective dateofact.  (1) No housing provider may

 demand, receive, or charge for a rental unit subject to this Act, a rent in excess of the sum of the

 rent charged and any unexpired rent surcharge in effect on the effective date of B23-XXX, the

 Rent Concession Amendment Act of 2019, plus subsequent rent charged adjustments and any

 unexpired rent surcharge in effect and authorized by the Rent Stabilization Program.

                 (2) If section 208(e) limits the application of this subsection toa tenant, then

  upon the expiration of the term of the lease or rental agreement entered into prior to the effective

  dateof this act, the rent for the rental unit shall not exceed the sum of the rent charged and any

  applicable and unexpired rent surcharges during the termofthe lease or rental agreement, plus

subsequent rent charged adjustments and unexpired rent surcharges authorized by the Rent

Stabilization Program.

               (3) No provisionofthis act shall be construed as authorizing a rent charged

adjustment or rent surcharge implemented either prior to or after the effective date of this act,

that a court or administrative body may otherwise deem to be in violationofthe rent ceiling

  abolition, or any other provisionofthe Rent Stabilization Program.

         (a-3) Thirty-day expiration ofunimplemented rent charged increases and rent

surcharges,  Except as otherwise provided in section 208a(e):

                 (1) A housing provider shall forfeit any portionofan increase to the rent charged

  ora rent surcharge that is not implemented by an increase to the rent charged or imposition ofa

  rent surcharge within 30 days of first becoming eligible to implement the increase or the

  surcharge under the Rent Stabilization Program.

                 (2) In the event that section 208(g) or 208a prohibits or limits the immediate

  implementation of an increase to the rent charged or a rent surcharge, the right of a housing

  provider to preserve or implement any unimplemented portion of the rent charged increase or

  rent surcharge shall expire 30 days after the housing provider's first opportunity to implement

  the rent charged increase or rent surcharge under the Rent Stabilization Program.

                 (3) This section shall apply to any rent charged adjustment or rent surcharge

iil   authorized or approved, but not yet implemented prior to the effective date of this act.

        (h) (1) All notices or disclosures provided to a tenant and filed with the Rent

 Administrator of

                     a rent charged, rent charged adjustment, or rent surcharge shall be on a form

 provided by the Rent Administrator that includes the following information for the rental unit:

                   (A) Current and new rent charged;

                   (B) The amountofany rent reduction;

                   (C) Any unexpired rent surcharges; and

                   (D) Any approved or authorized but unimplemented rent charged adjustments

 and unexpired rent surcharges, and the date of expiration of each adjustment and surcharge

 pursuant to subsection (a-3).

                (2) The amount of any rent reduction pursuant to paragraph (1)(B)ofthis

 subsection shall mean the amount of the reduction in rent charged that is in effect at the time of

 the notice or disclosure regarding a discounted rent established pursuant to section 208a.

        (i) No tenant may sublet a rental unit for a rent greater than the rent charged to the

 tenant plus any unexpired rent surcharges in effect for the rental unit.

        (c) Section 208 (D.C. Official Code  42-3502.08) is amended as follows:

                (1) Subsection (e) is amended by striking the word rent wherever it appears and

 inserting the phrase rent charged or rent surcharge in its place.

                (2) Subsection (h)(2)(A) is amended by striking the phrase current allowable.

        (d) A new section 208a is added to read as follows:

        208a Discounted rent.

        (a) A housing provider may offer a discounted rent to a tenant for a rental unit.

        (b) For the purposes of this section, a discounted rent means a rent charged that is at

 least 10% less than the rent charged the prior tenantof a rental unit or, in the case of

                                                                                             a discounted

 rent established after the commencement of the tenancy, 10% less than the rent charged

 immediately before the establishment of the discounted rent.

                                                                         a rental unit:

             (c) For as long as a tenant with a discounted rent is a tenant of

                (1) The discounted rent shall be the sole basis for the calculation of adjustments

 to the rent charged and new rent surcharges for the duration of the tenancy of the tenant;

                (2) The rent for the rental unit shall be equal to the amountofthe initial

 discounted rent, plus any implemented rent charged adjustments and unexpired rent surcharges

 authorized by the Rent Stabilization Program; and

                (3) A discounted rent shall be granted to a tenant unconditionally, and may not

 be rescinded by a housing provider for any reason.

        (d) A discounted rent may be offered a tenant at the commencement of, or at any time

 during a tenancy.

        @ (1) After a tenant with a discounted rent vacates a rental unit, the housing provider

 may demand, receive, or charge the next tenantofthe same rental unit up to:

                         (A) The rent charged immediately before the establishmentof the

 discounted rent; plus

                         (B) Any rent charged adjustments or unexpired rent surcharges that were

 authorized but not implemented on or after the date of the establishment of the discounted rent of

 the vacating tenant.

                (2) A housing provider shall forfeit any portionof a rent charged increase

 pursuant to paragraph (1)ofthis subsection, if:

                        (A) The rent charged increase is not implemented as an increase to the

 rent charged or imposition ofa rent surcharge for the next tenant within 30 days after a tenant

 with a discounted rent vacates a unit; or

                (B) The amount filed pursuant to section 206(h)(2) of this Act is not correct.

        () Within 30 days of the effective date of

                                                        a discounted rent, the housing provider shall

 file with the Rent Administrator and provide to the tenant, an affidavit certifying the discounted

 rent and the amount of the reduction in rent charged that is implemented pursuant to this section

 208a in establishing the discounted rent for the rental unit.

                (1) The affidavit shall include a statement by the housing provider that the

 discounted rent:

                        (A) Was granted unconditionally;

                        (B) Shall not be rescinded by a housing provider for any reason; and

                        (C) Shall be the basis of all future rent charged adjustments and rent

 surcharges for the tenant with a discounted rent that are authorized by the Rent Stabilization

 Program, notwithstanding the expiration of any lease or rental agreement or the term of any lease

 or rental agreement.

                (2) A housing provider may not implement a rent charged adjustment or impose

 arent surcharge fora rental unit until the affidavit required by this subsection is provided to the

 Rent Administrator and a copy provided to the tenant.

        (g) For as long as a discounted rent is in effect, the amountof a late fee for the late

 payment of rent pursuant to section 531 shall be based on the rent charged.

         (h) Any advertisement for a rental unit shall include the proposed rent charged, any rent

  surcharge in effect, and any unexpired rent surcharges that were authorized but not implemented.

         (i) Ifa housing provider violates any requirement of this act:

                 (1) The housing provider shall cure the violation; and

                 (2) In the case of

                                        a substantial violation, the rent charged for the next tenant who

  occupies the rental unit shall be no more than the discounted rent that should have been charged

  the prior tenantifthe housing provider had complied in full with the act and may be a lower

  amountifso determined by the Rent Administrator..

         () Section 213 (D.C. Official Code  42-3502.13) is amended follows:

                 (1) Subsection (a) is amended as follows:

                         (A) The lead-in text is amended by striking the phrase rent charged by

  and inserting the phrase rent charged for the next tenant by in its place.

                         (B) Paragraphs (1) and (2) are amended to read as follows:

         (1) Up to 10% of the amount of rent charged to the prior tenant for the unit, if the

  previous tenant occupied the unit for 10 years or less; or.

         (2) Up to 20%ofthe amountofrent charged to the prior tenant for the unit,ifthe

  previous tenant occupied the unit for more than 10 years.

                 (2) Subsection (d) is amended as follows:

195,                            (A) Paragraph (1) is amended by striking the phrase rent charged and

  inserting the phrase applicable rent charged and any applicable rent surcharges in its place.

                           (B) Paragraph (2) is amended to read as follows:

         (2) The amount of the increases in the amount of rent charged and of any new rent

 surcharge for the rental unit during the preceding 3 years, including the basis for each increase

 and surcharge, and the current increase in the rent charged and the amount of any new rent

 surcharge to be imposed on the new tenant; and.

                         (C) Paragraph (3) is amended to read as follows:

         (3) Any additional information required by section 206(h)..

        Sec. 3. Rulemaking.

        Within 180 days of the effective date of this act, the Rental Housing Commission shall

 promulgate rules to implement this act. The proposed rules shall include revisions necessary to

 update relevant housing provider reporting forms according to the requirements of this act.

        Sec. 4, Fiscal impact statement.

        The Council adopts the fiscal impact statement in the committee report as the

 fiscal impact statement required by section 602(c)(3) of the District of Columbia Home

 Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code  1-

 206.02(c)(3)).

        Sec. 5. Effective date.

        This act shall take effect following approval by the Mayor (or in the event of veto

 by the Mayor, action by the Council to override the veto), a 30-day period of

 Congressional review as provided in section 602(c)(1)ofthe District of Columbia Home

 Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code

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 206.02(c)(1)), and publication in the District of Columbia Register.