District Of Columbia § 42-3502.12 - Hardship petition.

Full text of District Of Columbia D.C. Code § 42-3502.12 — Hardship petition., with citation guidance and answers to common questions.

§ 42-3502.12. Hardship petition.

42-3502.12
(a)

Where an election has been made under to seek a rent adjustment through a hardship petition, the Rent Administrator shall, after review of the figures and computations set forth in the housing provider’s petition, allow additional increases in rent which would generate no more than a 12% rate of return computed according to subsection (b) of this section.

(b)

In determining the rate of return for each housing accommodation, the following formula, computed over a base period of the 12 consecutive months within 15 months preceding the filing of a petition under this chapter, shall be used to:

(1)

Obtain the net income by subtracting from the sum of maximum possible rental income which can be derived from a housing accommodation to which this section applies and the maximum amount of all other income which can be derived from the housing accommodation the following:

(A)

The operating expenses, but the following items shall not be allowed as operating expenses:

(i)

Membership fees in organizations established to influence legislation and regulations;

(ii)

Contributions to lobbying efforts;

(iii)

Contributions for legal fees in the prosecution of class action cases;

(iv)

Political contributions to candidates for office;

(v)

Mortgage principal payments;

(vi)

Maintenance expenses for which the housing provider has been reimbursed by any security deposit, insurance settlement, judgment for damages, agreed upon payments, or any other method;

(vii)

Attorney’s fees charged for services connected with counseling or litigation related to actions brought by the District government due to the housing provider’s repeated failure to comply with applicable housing regulations as evidenced by violation notices issued by the Department of Consumer and Regulatory Affairs; and

(viii)

Any expenses for which the tenant has lawfully paid directly;

(B)

The management fee, where applicable, of not more than 6% of the maximum rental income of the housing accommodation unless an additional amount is approved by the Rent Administrator as follows:

(i)

The housing provider shall first file with the Rent Administrator a petition which contains information the Rent Administrator may require, including, but not limited to, the name of the payee; and

(ii)

If the Rent Administrator determines, based on the petition and other information the Rent Administrator may require, that the excess over 6% of maximum possible income or part of income is reasonable, the Rent Administrator may permit the same excess or so much of the excess as is reasonable;

(C)

Property taxes;

(D)

Depreciation expenses to the extent reflected in decreased real property tax assessments;

(E)

Vacancy losses for the housing accommodation of not more than 6% of the maximum rental housing income of the housing accommodation unless an additional amount is approved by the Rent Administrator;

(F)

Uncollected rents; and

(G)

Interest payments;

(2)

Then, divide the net income by the housing provider’s equity in the housing accommodation to determine the rate of return.

(c)

The Rent Administrator shall accord an expedited review process for a petition filed under this section and shall issue and publish a final decision within 90 days after the petition has been filed. If the Rent Administrator does not render a final decision within 90 days from the date the petition is filed, the rent charged adjustment requested in the petition may be conditionally implemented by the housing provider. The conditional rent charged adjustment shall be subject to subsequent modification by the final decision of the Rent Administrator on the petition. If a hearing has been held on the petition, and the Rent Administrator, by order served upon the parties at least 10 days prior to the expiration of 90 days, makes a provisional finding as to the rent charged adjustment justified by the petition, the housing provider may implement only the amount of the rent charged adjustment authorized by the order. Except to the extent modified by this subsection, the provisions of shall apply to any adjustment under this section.

Annotations

See Historical and Statutory Notes following .

Termination of Law 6-10

Source: official District Of Columbia text · Last verified 2026-08-27

Frequently Asked Questions About District Of Columbia § 42-3502.12

What does D.C. Code § 42-3502.12 cover?

Section 42-3502.12 ("Hardship petition.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite District Of Columbia § 42-3502.12?

A common citation format is "D.C. Code § 42-3502.12" (District Of Columbia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of District Of Columbia law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the District Of Columbia official source linked on this page or consult a licensed District Of Columbia attorney.

How does District Of Columbia § 42-3502.12 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in District Of Columbia can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in District Of Columbia.