D.C. Code tit. 42 § 42-3502.09
Rent charged upon termination of exemption and for newly covered rental units.
Operative Text
(a) Upon the expiration or termination of an exemption claimed pursuant to § 42-3502.05(a)(1) , (3) , or (5) , rent charged for a unit may not exceed the following: (1) For a unit exempted pursuant to § 42-3502.05(a)(1) or (5) : (A) (i) If the unit is not vacant when the exemption terminates or expires, the sum of the rent charged on the date the unit became exempt and each subsequent adjustment of general applicability authorized pursuant to § 42-3502.06(b) ; (ii) If the unit is vacant when the exemption terminates or expires: (I) 110% of the sum authorized under sub-subparagraph (i) of this subparagraph; or (II) The amount of rent charged for a substantially identical rental unit in the same housing accommodation; provided, that the increase shall not exceed 30% of the sum authorized under sub-subparagraph (i) of this subparagraph; or (B) If the rent charged on the date the unit became exempt was either not properly filed with the Rent Administrator or is no longer available at the Division, and the housing provider is not able to provide a stamped copy of the original filing demonstrating the rent charged on the date the unit became exempt, the lowest of: (i) The most recent rent charged on file with the Rent Administrator before the date the unit became exempt, plus each subsequent adjustment of general applicability authorized under § 42-3502.06(b) ; (ii) The applicable Small Area Fair Market Rent for the Washington-Arlington-Alexandria Metropolitan area based on unit size and zip code, as established by the U.S. Department of Housing and Urban Development pursuant to 24 CFR § 888.113; or (iii) The average rent charged during the last 6 consecutive months of the exemption. (2) For a unit exempted pursuant to § 42-3502.05(a)(3) , up to 105% of the average rent charged during the last 6 consecutive months of the exemption. (a-1) An increase in rent charged pursuant to subsection (a) of this section may be effected only in accordance with the procedures specified in §§ 42-3502.08 and 42-3509.04 . (b) A structure or building, including the land appurtenant, that is located in the District in which one or more rental units as defined in § 42-3501.03(33) are established after July 17, 1985, shall subsequently be defined as a “housing accommodation” for the purposes of this chapter. If any rental unit in such a housing accommodation is not otherwise exempted by one of the provisions of § 42-3502.05 , the rent charged for the initial leasing period or the first year of tenancy, whichever is shorter, shall be determined by the housing provider and is considered to be the equivalent of making the computations specified in § 42-3502.06 . (c) Repealed. (d) Repealed.
D.C. Code § 42-3502.09 sets the maximum rent a housing provider may charge when a unit's exemption from rent stabilization ends, or when a newly created rental unit first enters the rent stabilization system. The allowable rent ceiling depends on whether the unit was occupied or vacant at the time the exemption expired, which type of exemption applied, and whether proper rent records are on file with the Rent Administrator. For brand-new rental units established after July 17, 1985, the initial rent is set by the housing provider for the first lease period or first year of tenancy, whichever is shorter, and that figure then serves as the baseline for future rent stabilization calculations.
Plain English — not legal advice.
Housing providers whose units are coming off an exemption under D.C. Code § 42-3502.09 are generally expected to determine the applicable rent ceiling by identifying which exemption category applied and whether the unit is occupied or vacant at the time of termination. Compliant operators maintain accurate records of the rent charged on the date the unit became exempt and any subsequent general adjustments, because missing or unfiled records can result in a lower allowable ceiling based on HUD Small Area Fair Market Rents or historical averages. Any rent increase implemented upon termination of an exemption must follow the procedural requirements of §§ 42-3502.08 and 42-3509.04, including proper notice and filing with the Rent Administrator.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under D.C. Code § 42-3502.09, tenants moving into or remaining in a unit that has just lost its rent stabilization exemption have protections limiting how high the rent can be set. If a housing provider lacks proper documentation of the original exempt rent, the allowable ceiling may be lower than what the provider might otherwise claim, which can be a meaningful protection for tenants to be aware of. Tenants who believe their rent exceeds the ceiling established by this provision may consider raising the issue with the D.C. Office of the Tenant Advocate, filing a complaint with the Rent Administrator, or consulting a tenant-rights organization familiar with District rent stabilization law.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
Rules and statutes cited by this regulation
References In
Rules and statutes that cite this regulation