D.C. Code tit. 42 § 42-3651.07
Termination of receivership.
Operative Text
(a) Except as provided in subsection (b) of this section, a receivership shall terminate when: (1) The Court determines that the receivership is no longer necessary because the grounds on which the appointment of the receiver was based no longer exist; the receiver has received proper compensation for the services provided; the District of Columbia has been reimbursed for all expenses related to the appointment of the receiver; the District of Columbia has been reimbursed for all expenses related to abatements performed by the District or on its behalf by any third-party; and all fines, infractions, and penalties arising from code violations at the property to date have been paid in full to the District of Columbia; or (2) The Court determines on recommendation from the receiver that the violations giving rise to the appointment of the receiver cannot be abated and serves a copy of the order within 10 days on the Director of the Department of Buildings. (b) (1) Notwithstanding subsection (a) of this section, a receivership of a rental housing accommodation shall not be terminated in favor of any person who was the owner of the rental housing accommodation or his representative at the time the petition was filed under § 42-3651.03 , or, in the discretion of the Court, any person who is or was an affiliate of the owner, agent, lessor, or manager, unless he or she first reimburses the District of Columbia for the expenses incurred in creating the receivership, for all expenses related to abatements performed by the District or on its behalf by any third-party, and all fines, infractions and penalties arising from code violations at the property to date have been paid in full to the District of Columbia. (2) The Court may in addition require that, before a person specified in paragraph (1) of this subsection resumes control of a rental housing accommodation, he or she post bond in an amount the Court deems appropriate as security against noncompliance with the law. If the receivership is not reinstated under subsection (c) of this section, the bond money shall be returned with all applicable interest. (c) Should it appear that, within 2 years after a receivership is terminated in favor of a person specified in subsection (b) (1) of this section, that person is not maintaining the affected rental housing accommodation in substantial compliance with all applicable laws, and should the Court so find after granting notice and a hearing to all parties to the earlier receivership proceeding, the previous order appointing a receiver may be reinstated. A receiver thus reappointed may use all or part of any bond posted pursuant to subsection (b) (2) of this section to remedy the deficiencies. (d) As part of any order terminating a receivership, the Court may also permanently enjoin the respondent from continuing any of the actions, practices, or pattern of neglect at the rental housing accommodation and at any other rental accommodations owned, managed, or controlled by the respondent.
Under D.C. Code § 42-3651.07, a court-supervised receivership over a rental property ends only when specific financial and legal conditions are fully satisfied — including payment of all fines, reimbursement of District expenses, and confirmation that the original grounds for the receivership no longer exist — or when a court finds that the underlying violations simply cannot be fixed. Former owners seeking to regain control of their property face additional hurdles, including repaying all receivership-related costs and potentially posting a bond as security. Even after a receivership ends, the court retains authority to reinstate it within two years if the property falls back out of compliance, and may permanently enjoin the respondent from similar conduct at other properties.
Plain English — not legal advice.
Property owners and managers subject to a receivership under D.C. Code § 42-3651.07 should be aware that regaining control of a rental housing accommodation requires full reimbursement of all District expenses — including abatement costs and receiver compensation — as well as payment in full of all outstanding fines and code-violation penalties. Courts have discretion to extend these requirements to affiliates of the original owner and to require a bond before control is restored. Compliant operators generally maintain thorough records of all payments made to the District and document ongoing code compliance, since the court can reinstate a receivership within two years of termination if the property is not kept in substantial compliance with applicable law.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in a property under receivership have a stake in how D.C. Code § 42-3651.07 operates, because it governs when — and under what conditions — a former owner can reclaim control of their building. The law's two-year reinstatement window means that if a landlord who regains control allows conditions to deteriorate again, tenants or the District can return to court to seek reappointment of a receiver. Tenants who observe renewed neglect or code violations after a receivership ends may wish to contact the District of Columbia's housing enforcement agencies, consult a tenant-rights organization, or raise the issue in court proceedings to which they may already be a party.
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.
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