Property Managers

Adjust Rent Request

DCHFA approves and monitors rent increases for the Agency’s bond-financed multifamily projects. Property Managers (Borrowers) must make sure rent levels and rent increases satisfy all relevant requirements.

Request Process

1) Governing Documents

Rent increase approval requirements vary from project to project.

These requirements can be found in the following specifications:

  • Financing and Regulatory Agreements
  • Tax Regulatory Agreements
  • Bond Requirements
  • LIHTC Program Regulations

2) Timeline for Submissions

  1. Submit Rent Increase Request at least 90 days prior to the proposed start date for the new rent rate
  2. DCHFA will render a decision within 30 days of the submission date
  3. If approved, tenants must be given written notification at least 30 days prior to the new rent rate

3) Required Information

  • Request for Rent Increase
  • Current Rent
  • Proposed Rent
  • Utility Allowance Schedule
  • Dollar and Percent amount of Rent Increase
  • Market Survey
  • Certification confirming that the following requirements are met:
    • Financing and Regulatory Agreements
    • Tax Regulatory Agreements
    • Bond Requirements
    • LIHTC Program Regulations

Side Note: For projects that are not subject to DCHFA’s approval process, the above information should be submitted except the rent increase request.

Additional Information

DCHFA’s Rent Increase Review Process 

Our Asset Management Staff reviews the request for rent increases according to the Financing and Regulatory Agreement, Tax Regulatory Agreement, applicable bond requirements, and LIHTC program regulations. As long as the proposed rents are below rent limits of the applicable financing programs, the Owner should implement rent increases within the range of 2-4%. A larger percentage of rent increases may be approved depending on the status of both the project’s financial status and rental market. The Owner should avoid large increases that may bring undue financial burden to the tenants.

Non-Compliance Notices

If a project’s rent increases are not in accordance with the bond and applicable LIHTC program requirements, DCHFA may issue a Notice of Non-Compliance and require the Owner to take necessary corrective actions. The Notice will become a part of the project’s compliance records and may be shared with the District of Columbia Department of Housing and Community Development (“DHCD”). Pursuant to the LIHTC program guidelines, DHCD may file Form 8823 to IRS for the project’s non-compliance.

If rents are above limits for the applicable bond or LIHTC program, the owner must refund the excess rents to tenants affected by the rent increase.

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