The D.C. Council recently enacted the Fair Housing Practices Amendment Act of 2026, which took effect on August 14, 2026. The act rewrites the District's rule on which fees a housing provider may charge a tenant. It reaches charges such as utility surcharges, lock charges, trash fees, and “administrative” line items from third-party billing companies when they cover services the housing provider must already supply.

For D.C. landlords, the change affects leases, billing practices, and relationships with vendors. Here are a few important highlights:

The New Rule: No Fees for Habitability Services

The act amends the Rental Housing Act of 1985 to specify that a housing provider “shall not charge a fee to a prospective tenant before move-in, during a tenancy, or after move-out for services required of the housing provider to maintain a housing accommodation or rental unit in a condition consistent with the implied warranty of habitability” and with Titles 12 and 14 of the District of Columbia Municipal Regulations, which contain the District's construction codes and housing regulations.

Three features of this language stand out.

1. It covers every stage of the tenancy. The ban applies before move-in, during the lease, and after move-out. A fee for a covered service is barred whether it appears on an application, a monthly bill, or a final account statement.
2. It is tied to habitability. D.C. law reads an implied warranty of habitability into residential leases. That warranty requires the housing provider to keep the unit in a condition that meets the District's housing regulations. The new rule says the provider can't charge a fee for delivering services it is already legally required to provide.
3. It names specific categories. The statute expressly reaches “any fee charged to tenants for services or facilities related to utilities, trash, locks, administrative fees for third-party billing, or other services or facilities required to be provided.”

The rule does not bar every fee. It reaches fees for services the housing provider is already required to provide.

The express mention of administrative fees for third-party billing is significant. Some D.C. buildings use outside companies to bill utilities, and those companies may add a monthly service or processing fee. Under the new rule, if the underlying service is one the housing provider must supply, a separate administrative fee for it is prohibited.

What the Rule Does Not Prohibit: Security Deposit Deductions for Damage

The act does not leave landlords without recourse when a tenant damages a unit. The statute states that nothing in the fee provision prohibits a housing provider from withholding a tenant's security deposit to replace damaged items if the tenant has caused damage beyond ordinary wear and tear, as that standard is defined elsewhere in the Rental Housing Act.

In practice, this separates two kinds of charges:

• Fees for services the housing provider must supply to keep a unit habitable, such as working locks and trash service. These may no longer be charged as separate fees.
  
  
• Charges for repairing damage a tenant caused beyond ordinary wear and tear. Housing providers can still deduct these from the security deposit, subject to D.C.'s existing security deposit rules.

The line between ordinary wear and tear and tenant-caused damage often decides who is right in a deposit dispute. Landlords should document the condition of a unit carefully at move-in and move-out.

Related Changes in the Same Act

The fee rule is one part of a broader package. The act also bans separate billing for common-area and vacant-unit utilities, starting January 1, 2027. From that date, neither a housing provider nor a contracted third party may separately charge tenants, other than through monthly rent, for utility charges from common spaces or vacant units. Common spaces include areas such as lobbies, leasing offices, business centers, pools, and fitness centers. The act still permits Ratio Utility Billing Systems (RUBS) to allocate master-metered utility charges, subject to the limits of the new section.

What Housing Providers Should Do Now

Because the fee rule is already in effect, housing providers should review their practices promptly. A practical checklist:

1. Audit leases and fee schedules. Flag any charge connected to utilities, trash, locks, or third-party billing, and ask whether it covers a service the housing provider is legally required to provide.
   
   
2. Review vendor contracts. If a billing company adds administrative or processing fees to tenant bills, confirm whether those fees remain permissible.
   
   
3. Plan for January 1, 2027. A building that passes common-area or vacant-unit utility costs to tenants needs a plan for those costs once separate billing ends. Any rent change remains subject to the Rental Housing Act's rent stabilization limits where they apply.

How We Can Help

The Law Office of Alfredo Vasquez advises clients on D.C. real estate and landlord-tenant matters, including lease compliance, fee disputes, and security deposit claims. Housing providers with questions about how the Fair Housing Practices Amendment Act of 2026 affects their properties may contact our office to schedule a consultation.

This post is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship.