If you own rental residential property in DC, you MUST read this.

The District of Columbia recently enacted the RENTAL Amendment Act of 2025, which makes many important changes to the Tenant Opportunity to Purchase Act (“TOPA”). For the past 50 years, TOPA has required landlords who sell a residential rental property to first offer tenants the opportunity to purchase the property or assign that right to a third party. The new law keeps the core framework in place but introduces several reforms intended to simplify transactions and encourage housing development. All in all, the new law is a big plus for landlords.

The amendments give a 15-year TOPA exemption for new construction. Residential buildings constructed within the past 15 years are now generally exempt from TOPA for 15 years. Owners of newer buildings can sell the property without going through the traditional tenant purchase process. The goal is to reduce uncertainty for developers and encourage new housing investment in the District.

The amendments expand exemptions for certain ownership transfers. Some transactions will no longer trigger TOPA rights, including certain estate transfers, foreclosure related transfers, and changes involving non-controlling investors. These adjustments allow ownership structures to evolve without repeatedly activating the tenant purchase process.

The amendments can exempt buildings with 2-4 units. Properties with two to four units are largely exempt TOPA, subject to certain notifications to tenants. These amendments align the 2-4 properties with amendments made in the past several years for single tenant properties.

The amendments make certain procedural reforms. The law creates a system for “certified tenant support providers” to help tenants navigate TOPA rights and requires more standardized filings with the Department of Housing and Community Development.  

Generally, the amendments are a plus for owners for public policy purposes. While the new law narrows TOPA’s reach in several areas, the statute remains a key part of the District’s housing framework, encourages new construction and makes the TOPA process one that is more owner friendly.

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