D.C. ‘Rent Freeze’ Alert: Initiative 88 – Current Status, Legal Challenges, and Implications for Property Owners

This Alert provides an update on Initiative 88, officially titled The Rent Control and Housing Eligibility Adjustment Amendment Act of 2026 (commonly referred to as the D.C. Rent Freeze), which we reported on in prior Alerts (January 9 Alert | May 6 Alert | May 21 Alert).

Initiative 88 Overview

Initiative 88 was submitted to the D.C. Board of Elections (BOE) in November 2025. Originally filed as the “D.C. Housing Modernization and Accessibility Act of 2026,” the measure was subsequently revised multiple times and resubmitted in its current form on January 16, 2026. If the proposal makes it to the ballot and passes, the initiative could have a significant impact on residential multifamily rental housing in the District.

Key provisions include:

• Scope of Coverage: The initiative would apply to all existing and new multifamily housing (except exempt federal and D.C. government housing).
• Two-Year Rent Freeze: A blanket freeze on residential rents, including all fees and charges under a lease for all non-exempt rental properties (whether the property is currently subject to rent control or not), for two years following enactment.
• CPI Trigger for Additional Freezes: After the initial two-year freeze expires, a new 12-month rent freeze would be automatically imposed when the Consumer Price Index (CPI) surpasses 5 percent in the D.C. Metro Area in any 12-month period.
• Impact on Properties Currently Subject to Rent Control: When a rent freeze is not in effect, the maximum permitted total rent increase for occupied units subject to rent control would be reduced from 10 percent to 6 percent (i.e., the new rent increase allowed under rent control would be the current rent plus the adjustment of general applicability plus 2 percent, provided that the total adjustment does not exceed 6 percent). Initiative 88 would not change how rent increases for vacant units subject to rent control are calculated when a rent freeze is not in effect.
• Appropriations Clause: The initiative contains a “subject to appropriations” clause providing that it will not be implemented unless the D.C. Council appropriates funds for any costs associated with implementation.

Notably, the D.C. Chief Financial Officer’s Fiscal Impact Statement estimates that Initiative 88 would reduce projected revenues by $1.4 million in FY 2028 and $23 million over the current four-year financial plan period. The Chief Financial Officer (CFO) further concluded that funds are not sufficient in the proposed budget to implement the initiative.

As of July 6, 2026, Initiative 88 missed the deadline to qualify for the November 2026 general election ballot. A pending lawsuit from the Housing DC’s Future ballot initiative committee (a coalition of industry groups) has blocked signature collection, and both legislative and constitutional challenges remain active. While deferred, the initiative may not be dead—the earliest it could appear on a ballot is the expected spring 2027 special election. If the legal challenge is resolved in favor of the proponents of Initiative 88, they would need approximately 24,000 valid signatures (5 percent of registered District voters citywide, including 5 percent in at least five of D.C.’s eight wards), and would have 180 days from the time of final approval to collect them.

In addition to the pending litigation, there is also D.C. Council legislation that could further impede or block Initiative 88:

The FILTER Act (Fair Initiatives Lend Transparency to Every Resident)

Introduced by Councilmember Anita Bonds in October 2025, this bill is moving through the legislative process. Key provisions include:

• A requirement that the D.C. CFO issue a Fiscal Impact Statement before the BOE accepts or rejects any ballot initiative.
• A mandate that a summary of the Fiscal Impact Statement appear on the physical ballot, so voters can see the financial impact before voting.
• A requirement that the BOE reject any initiative that addresses more than one subject or includes unrelated matters.

The single-subject requirement is particularly significant: Initiative 88 contains seven distinct subject matters, which would likely disqualify it under the FILTER Act if the FILTER Act is enacted in time.

Timing: On July 8, 2026, the Committee on Executive Administration and Labor voted in favor of the FILTER Act 4-0. On July 14, 2026, an amendment to the definition of “one subject” was added and the FILTER Act was scheduled for its first reading on September 22, 2026 (the D.C. Council is on recess from July 15 to September 15, hence the delay before the first reading). If approved at the first reading, a second reading could occur as early as October 6, 2026. If approved at the second reading, the FILTER Act would then go to the D.C. Mayor.

Takeaways

While the missed July 6, 2026, deadline provides near-term relief, multifamily property owners and landlords in the District should be aware of the following:

• The Initiative Is Not Dead. Proponents can revise and restart the initiative process. While Initiative 88 will not make it on the November ballot in its current form, the underlying movement appears to continue. The earliest possible ballot appearance is the expected spring 2027 special election.
• Multiple Lines of Defense Remain Active. The pending lawsuit and the FILTER Act each independently threaten the initiative’s viability. The August 2026 court briefing will be a key milestone.
• Council Has a Backstop. Even if Initiative 88 were to pass at the ballot, the D.C. Council retains the option to decline the initiative, decline to appropriate funding (effectively blocking implementation), or modify the measure. Given that the initiative did not originate from the Council and many members view it unfavorably, legislative action to mitigate it remains plausible.
• Continued Vigilance Is Required. Property owners should continue to monitor both the litigation and the legislative process.

Recommended Actions

• Review existing lease provisions to understand exposure in the event of a blanket rent freeze (including non-rent charges).
• Support and engage with industry coalitions (including Housing DC’s Future) that are actively opposing the initiative through legal and legislative channels.
• Monitor the August 2026 court proceedings and the FILTER Act’s progress through the first reading (July 14).
• Contact our team with any questions regarding the potential impact on your specific portfolio or for assistance with engagement.

We will continue to monitor this matter and provide updates as the litigation and legislative process advances. Please do not hesitate to reach out with questions by contacting us at CondoMultifamilyTeam@ballardspahr.com.

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