In a recent decision from the District of Columbia Superior Court’s Landlord & Tenant Branch in the matter of Milestone East Capitol 2, LLC v. Daniels (2024-LTB-007847), Judge Julie Becker holds that a rental housing accommodation financed with the use of low-income housing tax credits (LIHTC) is not entitled to an exemption from the rent stabilization (rent control) provisions of the Rental Housing Act of 1985, as amended (D.C. Code 42-301.01 et seq.). Judge Becker’s decision may be found here.
Notwithstanding a decades old advisory opinion from the Rent Administrator which holds that LIHTC-financed rental housing accommodations are entitled to such an exemption, as well as the long-standing doctrine of primary jurisdiction vesting the Rent Administrator, and not the courts, with such authority, Judge Becker concludes that she, in fact, has jurisdiction to determine the validity of a claimed exemption.
If sustained, Judge Becker’s decision will require housing providers who claim an exemption based on LIHTC status to re-register those units as subject to rent control.
Currently, this decision is only binding on the litigants in the Milestone East Capitol 2, LLC, matter pending before Judge Becker. If sustained, the impact of Judge Becker’s decision is that all housing providers that currently claim an exemption based on LIHTC status must re-register those units as subject to rent control.
Emergency legislation has been proposed to the City Council which, if adopted, will confirm that LIHTC properties continue to be exempt from rent stabilization.
Should you have any questions about this matter, please contact Richard W. Luchs, Vincent Mark J. Policy, or Joshua M. Greenberg.
