Multifamily Housing Changes in the Capital Region: New Tenant Protections, Rent Control, and Development Laws

Our most recent Alert (linked here) outlined some significant revisions to D.C.’s Rebalancing Expectations for Neighbors, Tenants, and Landlords Act (RENTAL Act), which significantly changed TOPA, the approval of rent control ballot materials for the D.C. Housing Modernization and Accessibility Act—as well as other important matters affecting multifamily owners and investors.

This Alert provides updates on several items we previously covered and highlights notable pieces of legislation that will take effect in Maryland on October 1, 2026. As always, please do not hesitate to reach out with questions or for additional details.

D.C. Rent Control Measure: Housing Modernization and Accessibility Act Updates

Streamlined Development: The Maryland Transit and Housing Opportunity Act of 2026

Development Confidence: Maryland’s Housing Certainty Act Promises Predictable Approvals

New Maryland Laws

• Fair Chance Housing Act Restricts Criminal Background Checks
• Fair Housing and Anti-Discrimination Act Strengthens Tenant Rights
• Fair Flow: Individual Water Submeters Authorized
• Housing Access for Subsidized Tenants

D.C. Rent Control Measure: Housing Modernization and Accessibility Act Updates

Based upon information obtained from the D.C. Building Industry Association (DCBIA), the D.C. Board of Elections (BOE) approved materials for the D.C. Housing Modernization and Accessibility Act (the rent control referendum proposal) on May 6, 2026, including the short title, summary statement, and legislative form. Notably, the approved short title adopted the General Counsel’s recommended title for the act: “The Rent Control and Housing Eligibility Adjustment Amendment Act of 2026.” The Chief Financial Officer’s Fiscal Impact Statement indicates that this rent control measure would reduce projected revenues by $1.4 million in fiscal year 2028 and by $23 million over the four-year financial plan period. The final summary states that the measure will not be implemented unless the Council appropriates funding for any associated costs. A 10-day judicial challenge window began following publication of the adopted materials in the D.C. Register’s May 15 issue. If no legal action is taken during this 10-day window, ballot signature collection could begin by May 27, giving proponents 180 days to collect signatures from at least 5% of registered voters (approximately 24,000 signatures, based on voter data from March 31, 2026). Signatures must include a minimum of 5% of registered voters from each of at least five of eight wards. The rent control measure cannot be placed on a ballot less than 90 days after BOE certification. This means that November is the earliest that the measure could be on the ballot. To meet this timeline, signatures must be gathered and submitted by July.

Streamlined Development: The Maryland Transit and Housing Opportunity Act of 2026

This legislation makes changes to Maryland law governing transit-oriented development (TOD). Importantly, the legislation will allow certain TOD areas to be designated as Enterprise Zones after the legislation’s effective date unless a local jurisdiction affirmatively elects otherwise. The legislation will require Maryland Economic Development Corporation (MEDCO) to prioritize projects that redevelop land contiguous to rail transit stations and create some restrictions on local governments such as certain prohibitions on minimum parking requirements and specified prohibitions on some local TOD land use restrictions. It is estimated that this legislation will unlock at least 300 acres of land located near existing transit stations and could produce more than 7,000 new housing units and nearly $1.4 billion in state and local tax revenue.

Development Confidence: Maryland’s Housing Certainty Act Promises Predictable Approvals

This legislation provides a degree of certainty to developers in the application review and development process. Under the Maryland Housing Certainty Act of 2026, a housing development project application approval or denial will be governed only by the laws and regulations that were in effect at the time of the application’s submission. Once approved, the applicant will have the right to the authorized use and development for five years or for a longer period determined by the local jurisdiction or the Maryland-National Capital Park and Planning Commission.

Fair Chance Housing Act Restricts Criminal Background Checks

The Fair Chance Housing Act (FCH Act) imposes limits on how landlords are permitted to use criminal background checks to evaluate prospective tenants. The FCH Act prohibits landlords from requiring or requesting criminal history information from prospective tenants. Landlords may request certain criminal history information only after extending a conditional offer, and will be required to consider mitigating information provided by the applicant. 

Fair Housing and Anti-Discrimination Act Strengthens Tenant Rights

HB573 codifies disparate impact liability in Maryland's fair housing law, making it unlawful to engage in housing practices that have a discriminatory effect on protected classes—even absent discriminatory intent. The bill authorizes the Maryland Department of Housing and Community Development to adopt regulations that encourage fair housing. A built-in safe harbor provides that conduct will not violate the law if it was unintentional, necessary to achieve a substantial and legitimate nondiscriminatory interest, and could not have been accomplished through less discriminatory means.

Fair Flow: Individual Water Submeters Authorized

HB220 permits the installation of individual submeters in apartment units and mobile home residences, provided that contractors, operators, owners, or managers will not be able to charge tenants for water or sewer costs exceeding the rate at which landlords are charged by the water company. Certain costs related to maintenance or upkeep may not be passed on to the tenant. Landlords requesting that tenants use individual submeters to pay for their services will be required to provide an initial, upfront written notification of previous service charges, as well as specific lease provisions and timely bill delivery.

Housing Access for Subsidized Tenants

HB315 mandates that a landlord may not discriminate against a prospective tenant who is intending to pay for housing costs with the assistance of income-based subsidies. Landlords may not deny applications based on the tenant’s past credit issues, score, or income that transpired before the tenant had their subsidy agreement, provided that tenant can confirm such time period predated their subsidy agreement. Landlords will maintain their right to collect the appropriate financial information, especially in the case of income-restricted units. In addition, landlords maintaining six or more rental units will be required to offer tenants the option of having positive rental payment history reported to credit bureaus.

Several other important legal developments affecting multifamily properties in the Capital region will be addressed in future Alerts.

Should you have any questions about the matters above, please contact our Mixed-Use, Condominium, and Multifamily Development Team at CondoMultifamilyTeam@ballardspahr.com.

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This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.