14 DCMR § 14-4108
COOPERATIVE EXEMPTION
Operative Text
4108.1 A rental unit may be exempt from the Rent Stabilization Program under § 205(a)(5) of the Act (D.C. Official Code § 42-3502.05(a)(5)) (the cooperative exemption) if: (a) The building, structure, or housing accommodation of which the rental unit is a part is owned by a cooperative housing association (“co-op building”); and (b) The housing provider claims this exemption by filing a Registration/Claim of Exemption Form claiming the small landlord exemption in accordance with § 4107; provided, that this section shall apply to each listed unit on the Form that is part of a co-op building. 4108.2 A unit in a co-op building exclusively offered for lease or occupancy to shareholders or members in a cooperative housing association (“exclusive unit”) does not need to be registered by the association as a rental unit under this chapter. 4108.3 A rental unit in a co-op building shall not be exempt under this section if it is a non-exclusive unit, in which case the rental unit shall be registered by the association in accordance with this chapter, on a Registration/Claim of Exemption Form listing all non-exclusive units in the co-op building as part of one (1) housing accommodation. 4108.4 A shareholder’s or member’s stock ownership or membership in a cooperative housing association shall not constitute an interest in any other rental unit in the co-op building as to which the owner or member does not have a proprietary lease or occupancy agreement; provided, that if a co-op building includes any non-exclusive units, each shareholder or member shall be deemed to have an interest in each non-exclusive unit for the purposes of § 4107.
D.C. Mun. Regs. tit. 14 § 14-4108 establishes when a rental unit in a cooperative housing building may be exempt from the District's Rent Stabilization Program. Units in a co-op building that are offered exclusively to shareholders or members do not need to be registered as rental units, while units available to non-members ('non-exclusive units') must be registered and are not eligible for the exemption. A housing provider must affirmatively claim the cooperative exemption by filing the required Registration/Claim of Exemption Form, and a shareholder's ownership stake does not automatically give them an interest in other units unless non-exclusive units are present in the building.
Plain English — not legal advice.
Under § 14-4108, operators of cooperative housing buildings should determine whether each unit qualifies as an 'exclusive unit'—offered only to shareholders or members—or a 'non-exclusive unit' available to the general public. Compliant housing providers file a Registration/Claim of Exemption Form to claim the cooperative exemption for eligible units, listing all non-exclusive units together as a single housing accommodation. Operators also account for the rule under § 4108.4, which deems each shareholder or member to have an interest in every non-exclusive unit when calculating eligibility thresholds under § 4107.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section § 14-4108 means that not all units in a cooperative building are automatically shielded from the District's Rent Stabilization Program—only those exclusively offered to co-op shareholders or members qualify for the exemption. If a tenant believes their unit is a non-exclusive unit that has been improperly claimed as exempt, that claim of improper exemption may be raised as a defense or the basis of a complaint through the District's rental housing regulatory process. Tenants seeking to understand whether their unit should be registered under this chapter may consult the D.C. Office of the Tenant Advocate or a local tenant-rights organization for general guidance.
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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