Spring 2026 D.C./Maryland Multifamily Alert (Part One)

Happy Spring to our multifamily clients and friends. A lot has transpired since our last Alert (linked here), so we wanted to provide the following updates. Click the links below to review each topic. Please do not hesitate to reach out with questions or for additional analysis or details.

• TOPA Reform-The D.C. Rebalancing Expectations for Neighbors, Tenants, and Landlords Act (RENTAL Act)
• Proposed D.C. Rent Freeze
• New Prince George's County Rent Stabilization Regulations
• D.C. Attorney General Sues Landlord for Charging 'Junk Fees' and Hiding the Full Cost of Rent
• Right of First Refusal (ROFR) Exemption Option in Prince George's County
• Lease Renewal Regulations – City of College Park
• Proposal to Restrict Algorithmic Rent Pricing in Montgomery County
• New Emergency Safety Plan Requirements for Multifamily Rental Buildings in Montgomery County
• Montgomery County 2026 Rent Stabilization Increase and Fee Schedule

TOPA Reform-The D.C. Rebalancing Expectations for Neighbors, Tenants, and Landlords Act (RENTAL Act)

Following three rounds of public readings and deliberations, the D.C. RENTAL Act was signed and transmitted to Congress on November 17, 2025, and became effective on December 31, 2025. The RENTAL Act amended the Tenant Opportunity to Purchase Act (TOPA) with new definitions, notification requirements, agency procedures, tenant protections, and exemptions.

Importantly, the RENTAL Act exempts new multifamily buildings from TOPA Offer of Sale requirements for the first 15 years after construction; however, owners of exempt properties must provide a notice of transfer to tenants in the event of a sale. Owners of properties eligible for this TOPA exemption were required to provide tenants with written notice that the building was exempt by March 31, 2026. Also, new tenants leasing units must be provided with written notice that the building is exempt.

The RENTAL Act includes requirements for the D.C. Department of Housing and Community Development to initiate a certification process for Tenant Support Providers and Qualified Purchasers, create a template for purchase contracts, and allow TOPA notices, contracts, forms, and other filings to be delivered via email.

In addition, on April 3, 2026, the Rental Housing Commission published proposed rulemaking related to the eviction reforms in the RENTAL Act. The proposed rulemaking relates to service requirements for eviction notices, the reduction of the prefiling notice period for nonpayment of rent from 30 days to 10, and establishes a new expedited eviction process for certain illegal activities. The full notice outlining these changes can be accessed here.

Proposed D.C. Rent Freeze

As discussed in our prior Alert, the D.C. Housing Modernization and Accessibility Act of 2026 (rent freeze proposal) was submitted to the D.C. Board of Elections (DCBOE) in November 2025 as a ballot measure. If the rent freeze proposal makes it to the ballot and passes, it would (1) freeze residential rents for two years after enactment, and (2) impose a new 12-month rent freeze if the consumer price index surpasses a 5% threshold within the D.C. Metro Area in any 12-month period after the initial two-year rent freeze. This rent freeze would apply to all existing and new multifamily housing, except for exempt federal and D.C. government housing.

On April 1, 2026, the DCBOE approved the rent freeze proposal as a proper subject under the Home Rule Act. The DCBOE had 20 calendar days from its approval to draft the measure’s short title, summary statement, and text in the proper legislative format, which the DCBOE will present for adoption at a public hearing. We anticipate that this will occur at the DCBOE’s next meeting scheduled for May 6, 2026.

Once adopted, the full text will be published in the D.C. Register, a newspaper of general circulation, and on the DCBOE website. DCBOE may then certify the short title, summary statement, and text after a 10-day period for judicial challenge and rebuttal comments. If DCBOE certifies the rent freeze proposal, advocates may begin collecting signatures.

The initiative needs approximately 24,000 signatures to get on the ballot. Proponents of the ballot measure have 180 days to collect the requisite signatures after final approvals. If the signatures meet all requirements (as outlined in D.C. Code §1-1001.16), the ballot measure can be placed on the next citywide election ballot. In order to qualify for placement on the November 2026 ballot, the signatures must be obtained by July 6, 2026.

The DCBOE’s website for current ballot measures includes links to the advisory opinions from both the Office of the Attorney General for D.C. and the D.C. Council’s Office of General Counsel.

New Prince George's County Rent Stabilization Regulations

The Permanent Rent Stabilization and Protection Act of 2024, establishing protections for renters against excessive rent increases and other measures to stabilize rent in Prince George’s County, took effect September 16, 2024. However, landlords did not have the ability to petition for increases to rent increase limitations until recently. With the adoption of accompanying rent stabilization regulations by the county on February 1, 2026, landlords may now petition for fair return increases, capital improvements surcharges, and substantial renovation exemptions. The DHCD website has links to the rent stabilization regulations and policies, as well as the petition application materials.

D.C. Attorney General Sues Landlord for Charging 'Junk Fees' and Hiding the Full Cost of Rent

On April 27, 2026, D.C. Attorney General Brian L. Schwalb filed a lawsuit against the owners and managers of a large apartment building in D.C., for allegedly charging junk fees and hiding the true cost of rent from prospective tenants.

The Office of the Attorney General (OAG) alleges that the landlord overcharged tenants and violated D.C. law by assessing a variety of “illegal” fees, including mandatory monthly fees for basic services like common area maintenance. In its lawsuit, OAG alleges that the landlord misled tenants searching for housing by advertising deceptively low “starting at” prices that did not include mandatory fees and were therefore not actually available to anyone. We understand that the OAG has sent warning letters to other landlords regarding the practice of imposing mandatory fees.

Right of First Refusal (ROFR) Exemption Option in Prince George's County

In accordance with the provisions established in Section 13-1114 of the Prince George’s County Code, sellers may be eligible for an exception to the obligation to offer the County Department of Housing and Community Development (DHCD) a right of first refusal to purchase a multifamily property that is being sold. This exception may obviate the need for the seller to comply with the right of first refusal provisions of Code Sections 13-1112 and 13-1113. In the past, DHCD has granted such exceptions primarily in exchange for commitments by the new buyer to provide affordable housing. It now appears that another ROFR exception alternative may be possible.

To be eligible, the buyer must agree to a prohibition on converting the property to a use other than multifamily rental for at least three years after the date of acquisition. The buyer must enter into a written agreement for the ROFR exception with DHCD at least 30 days before the execution of the sale contract. Granting of an exception is discretionary; DHCD may approve or reject the ROFR exception after review of the property, the tenants’ ability to afford rent increases, and the need to preserve quality low- and moderate-income rental housing in Prince George’s County.

Upon satisfaction of the above and approval of the ROFR exemption, DHCD will issue a Certificate of Compliance for recordation at closing.

Lease Renewal Regulations – City of College Park

The College Park City Council unanimously approved an ordinance regulating landlords’ lease renewal practices. The ordinance (1) prevents landlords from making a renewal offer related to housing accommodation earlier than 180 days from the end of the current lease; (2) prohibits landlords from requiring tenants to accept and sign an additional lease renewal until at least 15 days after the offer is communicated; and (3) establishes what information must be included in renewal offers.

Landlords in violation may face fines for civil infractions (no less than a $500 fine for first offenses and a no less than a $2,500 fine for subsequent offenses). Landlords may be liable for violations under private actions, in which a court may order payment of up to two months’ rent for willful violations. The ordinance went into effect on February 24, 2026, and only applies to leases renewed after this date. Certain housing accommodations, such as fraternity and sorority houses, student cooperative houses, and leases with less than eight months total duration are exempt from the restriction. The ordinance text can be found here.

Proposal to Restrict Algorithmic Rent Pricing in Montgomery County

On February 10, 2026, Montgomery County Councilmember Will Jawando introduced “Bill 8-26, Landlord-Tenant Relations – Prohibition Against Price Coordination and Rent-Setting Algorithms” to the Montgomery County Council. The bill seeks to (1) ban the use of algorithmic rent pricing services in the county, (2) prohibit coordinated price-setting by landlords, and (3) provide enforcement provisions. On March 10, 2026, Councilmember Jawando held a press conference following a public hearing on the bill, which is currently under review by the Planning, Housing, and Parks (PHP) Committee, chaired by Councilmember Andrew Friedson. The PHP Committee has not yet announced the date for its first work session on the bill.

New Emergency Safety Plan Requirements for Multifamily Rental Buildings in Montgomery County

The Montgomery County Council approved Regulation 21-25, which requires submission of emergency safety plans to the Department of Permitting Services (DPS). The regulation became effective on February 26, 2026.

The regulation requires operators of multifamily rental housing (defined as a building with three or more dwelling units offered for rent) to prepare and submit emergency safety plans to DPS as part of the annual Fire Code Compliance permit process. The emergency safety plan and other fire protection information must be included in the lease.

Emergency safety plans must be updated and resubmitted every three years for review and re-approval by DPS. Condominiums, defined as buildings where residential dwelling units are individually owned and may be owner- or tenant-occupied, are exempt from these requirements, regardless of the number of leased units.

Montgomery County 2026 Rent Stabilization Increase and Fee Schedule

Rent increases for rental properties that are subject to rent stabilization in Montgomery County (other than the City of Gaithersburg or the City of Rockville) are limited to the lesser of 6% or 3% plus the Consumer Price Index for All Urban Consumers (CPI-U) in the Washington-Arlington-Alexandria area. Effective July 1, 2026, the maximum annual rent increase permitted in Montgomery County is 5.2%.

As noted in our prior Alerts, Montgomery County regulations allow landlords to petition for increases above these limits. Rental properties are also permitted an annual adjustment for certain fees based on the CPI-U. The 2026 fee schedule is shown below.

Montgomery County law requires written notice of a rent or fee increase to tenants at least 90 days prior to the effective date. Fee increases requiring notice may include, but are not limited to, the fees listed in the table above.

A number of other important legal developments are having an impact on multifamily properties in the region, and we will cover these in subsequent 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.