Council Member Nadeau critiques amendments to TOPA affecting tenant rights and affordability

The Committee on Housing in the District of Columbia convened on July 9, 2025, to discuss significant amendments to the Tenant Opportunity to Purchase Act (TOPA). The meeting highlighted concerns regarding proposed exemptions that could impact housing affordability and tenant rights.

One of the primary issues addressed was a provision that would exempt properties from TOPA if a new income-restricted affordability covenant is promised. This raised concerns about the administrability of such exemptions, as they do not align with existing timelines and notice requirements. The exemption would only apply if the affordability covenant is established at the time of sale or transfer, which complicates enforcement since tenants must be notified of a sale before it occurs. Critics argue that this could lead to situations where property owners claim exemptions based on commitments that have not yet materialized.

The committee also discussed the affordability aspect of the proposed amendments. The exemption would apply to buildings where at least 51% of the units are restricted to 80% of the median family income (MFI) or below. For context, this means a family of three could earn up to $111,400 annually, with approved rents for such units reaching up to $2,400 per month. However, the proposed changes do not consider existing rents, potentially allowing buildings to be exempt from TOPA even if rents increase significantly.

Enforcement of these exemptions poses additional challenges. The Department of Housing and Community Development (DHCD) would need to monitor compliance over a 20-year period, ensuring that rents align with the affordability covenant and that tenant incomes are recertified annually.

Another significant amendment discussed would limit the ability of tenants and tenant associations to negotiate during the TOPA process. The current law allows tenants to consider any benefits they find acceptable, but the proposed changes would narrow this to a specific list of five allowable benefits. This change aims to address concerns about cash buyouts, which, while rare, can create tension among tenants. However, critics argue that this amendment may push more buyouts outside the TOPA process, leaving tenants without legal representation vulnerable.

Council members expressed a desire to balance the need for new investments in housing with the protection of tenant rights. Some emphasized the importance of creating new affordability covenants in the face of a housing crisis, while others cautioned against measures that could inadvertently harm tenants.

The committee's discussions reflect ongoing tensions in the District regarding housing affordability and tenant protections. As the council continues to deliberate on these amendments, the implications for both current and future residents remain a critical concern.