** INFLATION PROTECTION UPDATE **

Effective 06/29/2023, the Council of the District of Columbia enacted legislation capping inflation-based rent adjustments for a two-year cumulative limit of 12% of the rent charged before 05/01/2023 for nonelderly and nondisabled tenants. This means if a rental unit’s rent was increased by more than 6.7% in 2023, the rent increase adjustment on or after 05/01/2024 must be less than 4.9%. The calculation is due to the legislation’s compounding requirement that the rent increases are based on the rent in effect on 04/30/2023. Applicable limits for affected rental units must be carefully calculated.