TOPA Reform Under Consideration by D.C. Council

This article is part of the 2025 Mid-Year Housing Industry Update. Click here to read the full newsletter.

As Washington, D.C., continues to grapple with challenges to housing affordability and new development, lawmakers are weighing proposals to reform the Tenant Opportunity to Purchase Act (TOPA), a D.C. law enacted in 1980 that gives tenants a right of first refusal when their building is sold.

Introduced in March by D.C. Council Chairman Phil Mendelson, the RENTAL Act proposed key exemptions from TOPA for certain rental housing transfers, specifically, buildings newly constructed or substantially improved within the past 25 years, if rents exceed affordability levels for households earning 80% of AMI or above, and properties with recorded affordability covenants lasting at least 20 years.

In April, Councilmember Brianne Nadeau introduced the Common Sense TOPA Reform Amendment (CSTRA) Act. The CSTRA Act included an exemption for new construction for three years post-occupancy. Though intended to incentivize investment in housing, it is unclear how much that exemption would do so. Other provisions, such as mandatory public disclosure of TOPA settlement terms, restrictions on assigning rights, and expanded post-settlement oversight by the D.C. Department of Housing and Community Development, could raise other concerns from investors, such as potential transaction delays, loss of flexibility in settlement negotiations between tenants and landlords, and investment and personal privacy risks. Both bills were referred to the Committee on Housing (COH) for further review.

In July, Councilmember and COH Chair Robert White introduced amendments to the RENTAL Act (Amended RENTAL Act) that combined aspects of the RENTAL Act and the CSTRA Act. The COH approved the Amended RENTAL Act by a 3-1 vote. The Amended RENTAL Act includes a 15-year blanket exemption for new construction, as compared to the 25-year exemption originally proposed in the RENTAL Act. The Amended RENTAL Act includes an exemption for sales if the purchaser is willing to enter into affordable covenants restricting at least 51% of the units to households earning at or below 80% AMI for at least 20 years. It also includes some of the elements from the CSTRA Act, such as a new “TOPA Transparency Portal” and a 15-day “cooling-off” period during which the property owner (and affiliates) cannot negotiate with the tenants. These elements potentially could increase the disclosure and timing requirements for TOPA transactions.

The D.C. Council considered the Amended RENTAL Act at the July 14, 2025, legislative meeting; however, the vote was postponed until the next legislative meeting on July 28, 2025. If the Amended RENTAL Act is approved by the D.C. Council at the July 28 meeting by majority vote, it must be ratified at the next D.C. Council legislative meeting that takes place at least 14 days after the present meeting. As a result, the Amended RENTAL Act will not be passed before the summer recess. If the D.C. Council approves the Amended RENTAL Act at second reading, the bill is then sent to the Mayor, who has been critical of the COH amendments. It would also be subject to a 30-day Congressional review period before it becomes law.

As the Mayor and Councilmembers consider ways to sustain and attract investment in the District’s housing stock at a time in which the District has more limited financial resources, it is critical that stakeholders and conveners, such as the District of Columbia Building Industry Association, provide input about ways meaningful TOPA reform could encourage housing investment by reducing uncertainty and delays.

For a detailed breakdown of TOPA reform efforts and stakeholder insights, read our recent client Alerts: June 3, 2025 | June 12, 2025 | July 2, 2025 | July 11, 2025.

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