Housing mediation pilot for rent debt

Summary#

The Shared Housing Agreements and Resolution Effort Pilot Program Amendment Act of 2026 would amend the District’s Rental Housing Act of 1985. It would require an early dispute-resolution process for certain rent-nonpayment cases at selected rental properties; its stated goal is to help resolve some cases before a court action for possession is filed. The bill is introduced and is not law.

  • The Department of Housing and Community Development (DHCD) would run the pilot, starting in fiscal year 2028, and select properties for participation. The bill shows a limit of [2,000] rental units, with brackets that leave the intended limit unclear.
  • At participating properties, a housing provider must send an eligible tenant a Notice of Diversion Rights when the amount owed is more than $600 and less than the lower of $6,000 or three months’ rent. The provider must also send the notice to the program’s community-organization grantee.
  • The grantee must contact the tenant within seven days. A provider cannot file an action for possession over the rent debt until the grantee issues a Certificate of Completion. A certificate is due if the parties reach an agreement within 21 days, mediation fails after good-faith participation, or the tenant does not respond or declines.
  • Agreements may cover repayment, moving out, lease changes, repairs, rent forgiveness, or financial help. The bill does not require a tenant to agree to mediation or to a particular settlement.
  • DHCD would administer a fund that may help carry out signed agreements. Rental help to a housing provider is limited to one-third of the debt, and the provider must forgive at least one-third. The fund may also cover specified moving costs for a tenant.
  • DHCD must issue a grant to an eligible community organization by December 1, 2027. It may also award grants for tenant counseling or same-day legal representation, if funds are available.

What it means for you#

  • Tenants at participating properties: If your rent debt falls within the bill’s amount limits, you would receive a notice and the grantee must contact you. You could take part in mediation, but the bill allows the process to end if you do not respond or decline. You would not automatically receive money or have rent forgiven.
  • Housing providers: If your property is approved for the pilot, you would have to send the required notice and wait for a Certificate of Completion before filing a possession action for an eligible rent debt. Other properties you own or manage would not automatically be covered.
  • Community organizations: The grantee would provide or arrange mediation, contact tenants, collect specified program data, and share it with DHCD, the Council, and any third-party evaluator.
  • District residents: The bill creates a pilot, not a guarantee that every tenant facing eviction will receive mediation or financial assistance. It does not itself change rent limits or create a general right to stay in a home.
  • Current law: The supplied material does not include the full Rental Housing Act, so the bill’s interaction with all current eviction rules could not be verified.

Money#

The bill creates a fund and requires DHCD to provide a grant, but the available material gives no cost estimate.

  • The fund could receive Council appropriations, grants, gifts, donations, and other directed funds. Its balance would carry over, subject to an approved budget and financial plan.
  • DHCD may award assistance for signed agreements. Provider payments cannot be issued before all parties sign; the Mayor must set rules on steps required before payment.
  • A tenant may receive fund assistance no more than twice. That limit does not bar the tenant from mediation or an agreement without fund assistance.
  • DHCD must prioritize participating properties or their providers for Housing Production Trust Fund repair funding for certain code-violation repairs. This is a priority, not a guarantee of funding.
  • The bill authorizes a grant for the pilot and allows further grants for counseling or legal representation, but gives no staffing or cost figures.

What is unclear#

  • The bill’s unit cap is written as [2,000]; the brackets make it unclear whether that number is final.
  • It does not set out the full property-selection process, or say how much funding will be available or how assistance will be allocated.
  • It does not define “good faith participation” or explain when the 21-day period begins.
  • It leaves compliance steps to Mayor’s rules and does not specify privacy safeguards for the detailed household data the grantee must collect.
  • The bill’s full fit with current eviction procedures could not be checked because the parent Act was not supplied.

Case for#

  • The process would begin before a possession action is filed, when the amount of debt is within the bill’s limits. That may give the parties a chance to address the debt before court proceedings.
  • The bill allows agreements to address more than repayment, including rent forgiveness, repairs, lease changes, or moving costs.
  • Requiring a housing provider to forgive at least one-third of the debt for rental assistance could make public help conditional on the provider also giving up part of the claim.
  • The pilot requires data collection, including outcomes and housing retention, which could help assess whether the approach is useful.

Case against#

  • The waiting period before a possession action may delay a housing provider’s case, while the bill does not ensure that mediation will produce an agreement or that assistance will be available.
  • The pilot covers only approved properties and a defined debt range. Tenants outside those limits would not get this process under the bill.
  • The bill leaves important matters—such as funding levels, payment rules, and what counts as good-faith participation—to later decisions or rules.
  • The bill requires collection of sensitive household information but does not describe limits on access, storage, or use in the text supplied.