Short-Term Rental Regulation Amendment Act of 2026

MURIELBOWSERMAYOR
March 13,2026
‘TheHonorablePhilMendelsonChairman
CounciloftheDistrictofColumbiaJohnA.WilsonBuilding
1350PennsylvaniaAvenue,NW,Suite504Washington,DC 20004
DearChairmanMendelson:

EnclosedforconsiderationandadoptionbytheCounciloftheDistrictofColumbiaistheShort-termRentalRegulationAmendmentActof2026.SincetheCouncilpassedtheShort-termRentalRegulationActin2019(“Act”),thedemandfortheshort-termrentallicenseshas
increasedsignificantly.SincetheActbecamelaw,thecostoflivingandforeverydaynecessities,includinggroceries,hasincreasedsubstantially.Formanyresidents,operatingshort-
termrentalpropertiesprovidesthemwithanothersourceofincome.
Presently,onlyDistrictresidentswhocanobtainaHomesteadTaxCreditareabletoobtainashort-termrentallicense.Thisrequirement,however,haspreventedDistrictresidentsthatarerentersfrombeingabletoobtainthelicense.Thus,theyareexcludedfromenjoyingtheeconomicbenefitsthatshort-termrentalpropertiescanprovide,Further,theDistrict’slawisinconsistentwithotherjurisdictions,includinginneighboringMarylandandVirginia,thatallowrenterstoobtainshort-termrentallicenses.TheShort-termRentalRegulationAmendmentActof2026addressesthis.
Further,thebillwouldallowDistrictresidentsthatownasecondpropertyintheDistricttoobtainashort-termrentallicenseforthesecondproperty.Thiswillgreatlybenefitthosewhoinheritahomefromadeceasedfamilymember.Additionally,thebillwouldestablishaShort-term Rental:SpecialEvent Endorsement forthosewho want to offertheirhome tothosevisiting
the Districtforspecialeventssuch as the U.S. PresidentialInaugurationand the Cherry Blossom
Festivalwithoutbeingboundbythelaw’scurrent90-daylimitation.
Finally,thebillwouldaddressthenumberofunlicensedshort-termrentalpropertiesthatare
advertisedonbookingservicesplatformsbyrequiringthebookingserviceplatformtoobtainabusinesslicensetooperateintheDistrict.Additionally,thelegislationwouldrequirethe
bookingservicesplatformtorequirethehosttoprovidetheirshort-termrentallicenseendorsementnumber,whichtheplatformwillberequiredtopostonthelisting.TheseadditionalrequirementswillprotectDistrictresidentsandtransientguestsstayingontheproperty.
TheShort-termRentalRegulationAmendmentActof2026willhaveapositiveimpactontheDistrict’seconomyandlong-termeconomicgrowth.Thus,IencouragetheCounciltotakeswiftactiononthelegislation.
Ifyouhaveanyquestionsregardingthislegislation,pleasecontactTiffanyCrowe,Director,DepartmentofLicensingandConsumerProtection,at{iffany.croweade.gov,
Sincerely,
‘MutielBoyser
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7 A BILL
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l!f!::J'~
~ Phil Mendelson
at the request of the Mayor
11 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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15 To amend the Short-Term Rental Regulation Act of 2018 by amending the definitions of
16 "primary residence" and "short-term rental", repealing the definition of "vacation
17 rental", and adding definitions of "family member" and "metropolitan area"; allowing
18 a host to obtain a short-term rental license endorsement for a property that is not their
19 primary residence; requiring a host to provide notice to the Department of Licensing
20 and Consumer Protection when selling their primary residence or terminating their
21 lease; excluding rent-stabilized rental units from eligibility for short-term rentals;
22 allowing an applicant to attest to having clean hands and that their condominium
23 association, homeowner's association, or co-op allows short-term rentals on the
24 premises, if applicable; requiring a host to provide proof of District residency; allowing
25 tenants to obtain a short-term rental license; establishing new short-term rental
26 endorsement categories; prohibiting an applicant from obtaining a short-term rental
27 license for 2 years if their license has been revoked; prohibiting an applicant from
28 obtaining a short-term rental license if a rental unit for short-term rental is not properly
29 registered with the Rental Accommodations Division; establishing an exemption to the
30 90-day maximum stay for Short-Term Rental License: Vacation Rental endorsements
31 for military service; requiring booking services to obtain a basic business license to
32 operate and requiring them to include the host's basic business license number in the
33 listing; and clarifying the grounds for the imposition of a civil infraction.
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35 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA , That
36 this act may be cited as the "Short-Term Rental Regulation Amendment Act of 2026".
37 Sec. 2. The Short-Term Rental Regulation Act of 2018, effective April 25, 2019 (D .C.
38 Law 22-307; D.C. Official Code§ 30-201.01 et seq.), is amended as follows:
39 (a) Section 101 (D .C. Official Code§ 30-201.01) is amended as follows:
40 (1) A new paragraph (2A) is added to read as follows:
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“(2A) “Family member” means, with respect to a host: 41 “(A) A biological, adopted, or foster son or daughter, a stepson or 42 stepdaughter, a legal ward, a son or daughter of a spouse or domestic partner of the host, or a 43 person to whom the host stands in loco parentis; 44 “(B) A biological, adoptive, or foster parent, a parent-in-law by marriage 45 or domestic partnership, a stepparent, a legal guardian, or other person who stood in loco 46 parentis to a host when the host was a child; 47 “(C) A domestic partner as defined by section 2(3) of the Health Care 48 Benefits Expansion Act of 1992, effective June 11, 1992 (D.C. Law 9-114; D.C. Official Code 49 § 32-701(4)), or spouse; 50 “(D) A grandparent, step-grandparent, or grandparent by adoption, of the 51 host, including grandparents by marriage or domestic partnership; or 52 “(E) A biological, adopted, or foster sibling of the host, including half 53 siblings and step siblings.”. 54 (2) A new paragraph (3A) is added to read as follows: 55 “(3A) “Metropolitan area” means the Washington-Arlington-Alexandria, DC-56 VA-MD-WV Metropolitan Statistical Area (or such successor metropolitan statistical area that 57 includes the District) as defined by the United States Office of Management and Budget.”. 58 (3) Paragraph (4) is amended to read as follows: 59 “(4)(A) “Primary residence” means the residence where a natural person 60 primarily resides throughout the year. A natural person may have only one primary residence. 61 For the purposes of this act, a property must receive the homestead deduction pursuant to D.C. 62
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Official Code § 47-850 in order for the property to be considered the primary residence of the 63 owner of the property.”. 64 (4) Paragraph (5) is amended to read as follows: 65 “(5) “Short-term rental” means paid lodging for transient guests in a residence 66 owned or leased by a host. A short-term rental is not a hotel, inn, motel, boarding house, 67 rooming house, or bed and breakfast.”. 68 (5) New paragraphs (5A), (5B), and (5C) are added to read as follows: 69 “(5A) “Short-term rental endorsement” means an endorsement to a basic 70 business license issued pursuant to this act that authorizes the license holder to operate a 71 residence as a short-term rental. 72 “(5B) “Special event” means: 73 “(A) A United States presidential inauguration; 74 “(B) The National Cherry Blossom Festival; 75 “(C) Independence Day; and 76 “(D) Such other events or days as may be designated by the Mayor by 77 administrative issuance or rule. 78 “(5C) “Special event rental” means a short-term rental in a residence for which 79 a Short-Term Rental: Special Event endorsement was issued.”. 80 (7) Paragraph (6) is repealed. 81 (b) Section 102 (D.C. Official Code § 30-201.02) is amended as follows: 82 (1) Subsection (a) is amended to read as follows: 83 “(a) A short-term rental shall require a basic business license with a short-term rental 84 endorsement, in addition to any other license required by law.”. 85
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(2) Subsection (d) is amended to read as follows: 86 “(d) The property at which the short-term rental is located shall be either: 87 “(1) The host’s primary residence; or 88 “(2) A second residence owned by a host whose primary residence is in the 89 District and owned by the host.”. 90 (3) New subsections (d-1) and (d-2) are added to read as follows: 91 “(d-1)(1) A host may obtain a short-term rental endorsement for only one property that 92 they own; except, that a host may obtain short-term rental endorsements for 2 properties owned 93 by the host if one short-term rental endorsement is for the host’s primary residence and the 94 second endorsement is for a second residence in the District owned by the host. 95 “(2) A host shall maintain their primary residence in the District to operate a 96 short-term rental at a second residence described in paragraph (1) of this subsection. If a host 97 ceases to maintain their primary residence in the District, their authority to operate a short-term 98 rental at a second residence described in paragraph (1) of this subsection shall expire and any 99 basic business license with a short-term rental endorsement issued to the host for that property 100 shall be void.”. 101 (4) Subsection (f) is amended to read as follows: 102 “(f) For the purposes of 18 DCMR § 2414.14, a short-term rental guest shall not be 103 considered a guest of a resident in the Advisory Neighborhood Commission area designated on 104 an annual visitor parking permit.”. 105 (5) New subsections (g) and (h) are added to read as follows: 106
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“(g)(1) A host who possesses a short-term rental endorsement for a property the host 107 owns shall notify the Department, in writing, within 14 business days after either of the 108 following occurrences: 109 “(A) The host has sold a property with a short-term rental endorsement; 110 or 111 “(B) If the host operates a short-term rental property at a second 112 residence pursuant to subsection (d-1) of this section, the host no longer has their primary 113 residence in the District or no longer owns their primary residence. 114 “(2) A host who possesses a short-term rental endorsement for a property rented 115 by the host from the property owner shall notify the Department, in writing, within 14 business 116 days after any of the following occurrences: 117 “(A) The host or the property owner has terminated the lease agreement 118 for the property; or 119 “(B) The property owner ceases to allow the host to operate the property 120 as a short-term rental. 121 “(3) Upon receipt of a notice under paragraph (1) or (2) of this subsection, the 122 Department shall cancel the short-term rental endorsement for the property and notify all 123 licensed booking services of the cancellation. 124 “(4) Upon the occurrence of an event described in paragraph (1) or (2) of this 125 subsubsection, the host shall cease operating the property as a short-term rental, shall cancel 126 any existing reservations, and shall remove the listing of the property from all booking 127 services, regardless of whether notice has been provided to the Department under paragraph (1) 128
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or (2) of this subsection and regardless of whether the Department has canceled the short-term 129 rental license endorsement for the property or notified the booking services. 130 “(h) A rental unit that is subject to the District’s rent stabilization program, established 131 by Title II of the Rental Housing Act of 1985, effective July 17, 1985 (D.C. Law 6-10; D.C. 132 Official Code § 42-3502.01 et seq.), shall not be offered or operated as a short-term rental and 133 a short-term rental endorsement shall not be issued for such a rental unit.”. 134 (c) Section 103 (D.C. Official Code § 30-201.03) is amended as follows: 135 (1) The existing text is designated as subsection (a). 136 (2) Subsection (a) is amended as follows: 137 (A) Paragraph (1) is amended to read as follows: 138 “(1) Provide evidence that the short-term rental property is the applicant’s 139 primary residence or, only as allowed under section 102(d-1), the host’s second residence;”. 140 (B) New paragraphs (1A), (1B), (1C), and (1D) are added to read as 141 follows: 142 “(1A) Provide evidence of compliance with the other requirements of section 143 102; 144 “(1B) Attest to having no outstanding debt to the District government as a result 145 of any fine, fee, penalty interest, or past due tax above the relevant thresholds set forth in D.C. 146 Official Code § 47-2862 unless the debt is subject to appeal in accordance with D.C. Official 147 Code § 47-2862(b) or has an established payment plan in accordance with D.C. Official Code § 148 47-2862(c); 149 “(1C) Provide proof that the host is a District resident, by providing the 150 Department the following: 151
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“(A) A valid District driver’s license or identification card; and 152 “(B) At least 2 of the following documents: 153 “(i) Proof of a valid motor vehicle registration; 154 “(ii) Proof of voter registration; 155 “(iii) Federal or District tax returns; 156 “(iv) A utility bill, including water, gas, or electric; 157 “(v) Any other legal documentation the Director deems sufficient 158 to prove residency; 159 “(1D) If the applicant rents the property from the property owner, provide 160 written authorization from the property owner authorizing the applicant to offer the property as 161 a short-term rental;”. 162 (C) Paragraph (2) is amended by striking the phrase “provide proof” and 163 inserting the word “attest” in its place. 164 (D) Paragraph (4) is amended to read as follows: 165 “(4) Pay the applicable license fee.”. 166 (3) A new subsection (b) is added to read as follows: 167 “(b) The evidence required by subsection (a)(1) of this section shall include the 168 following: 169 “(1) If the applicant is the property owner, the evidence must include proof that 170 the property receives the homestead deduction under D.C. Official Code § 47-850, unless the 171 property is the applicant’s second residence; 172 “(2) If the property is the applicant’s second residence, the evidence shall 173 include proof that: 174
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“(A) The applicant’s primary residence is in the District; and 175 “(B) The applicant owns both their primary residence and the property 176 for which the short-term rental license is sought, by providing: 177 “(i) Property tax documents; 178 “(ii) Property deed; 179 “(iii) Title insurance policy; or 180 “(iv) Mortgage documents; or 181 “(3) If the applicant rents the property from the property owner, the evidence 182 shall include a copy of the lease between the applicant and the property owner.”. 183 (d) New sections 103a, 103b, and 103c are added to read as follows: 184 “Sec. 103a. Short-term rental: primary residence endorsements. 185 “(a) A Short-Term Rental: Primary Residence endorsement shall authorize a host to 186 operate a short-term rental at their primary residence. 187 “(b) A host that possesses a Short-Term Rental: Primary Residence endorsement shall 188 not be required to be present on the short-term rental property during a transient guest’s stay. 189 “(c)(1) A property with a Short-Term Rental: Primary Residence endorsement shall not 190 be operated as a short-term rental for more than 90 cumulative nights in a calendar year; 191 provided, that the following nights shall not be counted toward the 90-cumulative night limit: 192 “(A) Nights during which the host is present and residing at the short-193 term rental property during the transient guest’s stay; and 194 “(B) Nights during a special event, if the property holds a Short-Term 195 Rental: Special Event endorsement. 196
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“(2) Notwithstanding paragraph (1) of this subsection, a host may obtain an 197 exemption to operate as a short-term rental for more than 90 cumulative nights in a calendar 198 year by submitting an application on a form provided by the Department requesting an 199 exemption from the 90-night limit in subsection (b) of this section, if: 200 “(A) The host’s employer requires the host to work outside of the 201 District for more than 90 days cumulatively in any calendar year; or 202 “(B) The host leaves the District to receive treatment for a serious health 203 condition, or to care for a family member who is receiving treatment for a serious health 204 condition, for more than 90 days cumulatively in any calendar year. 205 “(3) If the host is claiming an exemption pursuant to subparagraph (A) of this 206 paragraph, the application submitted pursuant to subparagraph (A) of this paragraph shall be 207 accompanied by a letter signed by a representative of the host’s employer, listing the location 208 and duration of the host’s work-related assignments outside of the District; provided, that a 209 self-employed host shall submit a signed affidavit attesting that time spent outside the District 210 is work-related and shall provide documentation of the work-related travel. 211 “(4) If the host is claiming an exemption pursuant to subparagraph (B) of this 212 paragraph, the application submitted pursuant to subparagraph (B) of this paragraph shall be 213 accompanied by a letter signed by a representative of the health care provider that is providing 214 treatment to the host or the host’s family member, attesting to the need for the host or the 215 host’s family member to receive treatment for a serious health condition outside of the District. 216 “(5) If the Department determines that the application submitted pursuant to 217 paragraph (2) of this subsection is valid, the Department shall provide the host an exemption 218
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from the 90-night limit in subsection (a-1) of this section, allowing the host to operate a short-219 term rental for the number of nights equal to: 220 “(A) For a host claiming an exemption pursuant to paragraph (2)(A) of 221 this subsection, the number of days that the host’s employer requires the host to work outside 222 of the District; or 223 “(B) For a host claiming an exemption pursuant to paragraph (2)(B) of 224 this subsection, the number of days that the host is outside of the District to receive treatment 225 for a serious health condition or to care for a family member who is receiving treatment for a 226 serious health condition. 227 “(6) If the Department issues an exemption to a host pursuant to this subsection, 228 the Department shall transmit to all booking services identified by the host a notification of the 229 number of nights that the host may operate a vacation rental. 230 “(7) By April 25, 2019, and every 6 months thereafter, the Department shall list 231 separately on its website: 232 “(A) The number of exemptions granted in the previous 6 months 233 pursuant to paragraph (2)(A) of this subsection; and 234 “(B) The number of exemptions granted in the previous 6 months 235 pursuant to paragraph (2)(B) of this subsection. 236 “(8) For the purposes of this subsection, the term “employer” means an 237 individual, partnership, general contractor, subcontractor, association, corporation, or business 238 trust operating in the District, or any person or group of persons acting directly or indirectly in 239 the interest of an employer operating in the District in relation to an employee, including a 240 prospective employer. The term shall include the armed forces of the United States.”. 241
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“Sec. 103b. Short-term rental: secondary residence endorsements. 242 “(a) A Short-Term Rental: Secondary Residence endorsement shall authorize a host to 243 operate a short-term rental on a second property that they own, if authorized by section 102(d-244 1) and (d-2). 245 “(b) A host that possesses a Short-Term Rental: Secondary Residence endorsement 246 shall not be required to be present on the short-term rental property during the transient guest’s 247 stay. 248 “(c)(1) A property with a Short-Term Rental: Secondary Residence endorsement shall 249 not be operated as a short-term rental for more than 90 cumulative nights in a calendar year; 250 provided, that the following nights shall not be counted toward the 90-cumulative night limit, if 251 the secondary residence has a year-round occupant: 252 “(A) Nights during which a year-round occupant is present and residing 253 at the short-term rental property during the transient guest’s stay; and 254 “(B) Nights during a special event, if the property holds a Short-Term 255 Rental: Special Event endorsement. 256 “(2) For the purposes of this subsection, the term “year-round occupant” means 257 a person who occupies the secondary residence as their primary residence.” 258 “Sec. 103c. Short-term rental: special event endorsements. 259 “(a) A Short-Term Rental: Special Event endorsement shall authorize a host to operate 260 their primary or secondary residence as a short-term rental during special events. 261 “(b) A host that possesses a Short-Term Rental: Special Event endorsement shall not be 262 required to be present on the property during the transient guest’s stay. 263
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“(c) A host that possesses a Short-Term Rental: Special Event endorsement may offer 264 the property for rent on a booking services platform for the period beginning 7 calendar days 265 before the date on which the special event starts and ending 7 calendar days after the day on 266 which the special event ends. In all cases, any such listing must be removed no later than 7 267 calendar days after the day on which the special event ends. 268 “(d) A property shall be operated as a special event rental for no more than 30 nights 269 cumulatively in any calendar year. 270 “(e)(1) Notwithstanding D.C. Official Code § 47-2851.04, the fee for a 2-year basic 271 business license with a Short-term Rental: Special Event endorsement shall be $49. 272 “(2) The Mayor may adjust the fee by rule; provided, that the adjusted fee shall 273 not exceed the fee for a 2-year basic business license under D.C. Official Code § 47-2851.04.”. 274 (e) Section 104 (D.C. Official Code § 30-201.04) is amended as follows: 275 (1) Subsection (a) is amended by striking the phrase “license endorsement” and 276 inserting the word “endorsement” in its place. 277 (2) Subsection (c) is amended to read as follows: 278 “(c)(1) Except as provided in paragraph (2) of this subsection, the Department shall not 279 issue more than one short-term rental license endorsement to a host. 280 “(2) The Department may issue 2 short-term rental endorsements to a host in 281 accordance with section 102(d-1).”. 282 (3) Subsections (d), (e), and (f) are amended by striking the phrase “license 283 endorsement” each time it appears and inserting the word “endorsement” in its place. 284 (2) New subsections (g) and (h) are added to read as follows: 285
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“(g) The Department shall not issue a new short-term rental endorsement to a host if a 286 short-term rental endorsement previously issued to the host was revoked by the Department 287 within 2 years before the application is filed for the new license. 288 “(h) The Department shall not issue a new short-term rental endorsement for a property 289 if a previously issued short-term rental for the property was revoked within the 2 years before 290 the application is filed for the new license, unless the ownership of the property has changed 291 within the 2-year period.”. 292 (f) Section 106 (D.C. Official Code § 30-201.06) is amended as follows: 293 (1) Subsection (b) is amended by striking the phrase “Short Term Rental or 294 Short Term Rental: Vacation Rental license endorsement” and inserting the phrase “short-term 295 rental endorsement” in its place. 296 (2) Subsections (e) and (f) are repealed. 297 (g) Section 108 (D.C. Official Code § 30-201.08) is amended as follows: 298 (1) Subsection (a)(1) is amended to read as follows: 299 “(a)(1) A booking service shall require a host to provide a prospective guest with the 300 short-term rental endorsement number for a short-term rental before booking, which shall 301 include, at a minimum, posting the short-term rental endorsement number on the listing.”. 302 (2) A new subsection (a-1) is added to read as follows: 303 “(a-1) A booking service operating in the District of Columbia shall obtain a basic 304 business license in accordance with D.C. Official Code § 47-2851.02.”. 305 (3) Subsection (b)(2)(C) is amended to read as follows: 306 “(b)(2)(C) The endorsement number of the short-term rental;”. 307
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(h) Section 110(a) (D.C. Official Code § 30-201.10(a)) is amended by striking the 308 phrase “sections 102 or 106” and inserting the phrase “this act” its place. 309 Sec. 3. Fiscal impact statement. 310 The Council adopts the fiscal impact statement of the Chief Financial Officer as the 311 fiscal impact statement required by section 4a of the General Legislative Procedures Act of 312 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 313 Sec. 4. Effective date. 314 This act shall take effect following approval by the Mayor (or in the event of veto by 315 the Mayor, action by the Council to override the veto), 30-day period of congressional review 316 as provided in section 602(c)(1) of District of Columbia Home Rule Act, approved by 317 December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the 318 District of Columbia Register. 319
Government of the District of Columbia
Office of the Chief Financial Officer
Glen Lee
Chief Financial Officer
1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 (202)727 -2476
www.cfo.dc.gov
MEMORANDUM
TO: The Honorable Phil Mendelson
Chairman, Council of the District of Columbia
FROM: Glen Lee
Chief Financial Officer
DATE: March 5, 2026
SUBJECT: Fiscal Impact Statement – Short-Term Rental Regulation Amendment
Act of 2026
REFERENCE: Draft bill as provided to the Office of Revenue Analysis on February 26,
2026
Conclusion
Funds are sufficient in the fiscal year 2026 through fiscal year 2029 budget and financial plan to
implement the bill. The Department of Licensing and Consumer Protection (DLCP) can implement
the bill within current resources.
Background
The Short-Term Rental Regulation Act of 2018 1 imposed guidelines on the operation of short -term
rentals in the District, including the requirement that hosts obtain a basic business license and adhere
to specific regulations for operation set by the DLCP2. The bill modifies existing definitions and adds
new terms to the law. It inserts definitions for “family member ”3, “metropolitan area”4, and
“employer”; amends “primary residence” to mean a single place where a natural person primarily
1 The Short-Term Rental Regulation Act of 2018, effective April 25, 2019 (D.C. Law 22 -307; D.C. Official Code §
30-201.01 et seq.)
2 Previously the Department of Consumer and Regulatory Affairs (DCRA), which was subdivided by D.C. Law
23-269 into the DLCP and the Department of Buildings (DOB) in 2022.
3 Specifically, as it relates to (step)children, (step)parents, legal guardians, domestic partners,
(step)grandparents, and (step)siblings. This was previously defined in D.C. Official Code § 30–201.06. The bill
relocates this definition to D.C. Official Code § 30–201.01.
4 The Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Statistical Area (or such) as defined by
the United States Office of Management and Budget.
The Honorable Phil Mendelson
FIS: “Short-Term Rental Regulation Amendment Act of 2026”, Draft Bill as provided to the Office of Revenue
Analysis on February 26, 2026
Page 2 of 3
resides throughout the year —instead of one eligible for a homestead deduction—though the
property must receive the homestead exemption to be considered a primary residence5; and expands
the guidelines for operation of a “short-term rental”6 to clarify that it requires a basic business license,
a Primary residence or Secondary residence endorsement, and under what conditions the rental can
qualify for a Special event endorsement (see below).
Current law7 requires the property at which the short-term rental is located to be the host’s primary
residence and that the property qualifies for the homestead deduction. The bill would allow a host
who owns more than one property in the District to obtain a short-term rental license endorsement
for one additional property if the host maintains a primary residence in the District . The bill also
allows hosts in rented properties to obtain short-term rental license endorsements, if the property
owner allows it. Hosts must notify DLCP in writing within 14 days if the host has sold the property
or terminated their lease agreement; or if the property owner ceases to allow the host to operate the
property as a short -term rental . DLCP will notify booking companies and cancel the applicable
endorsement. Rent-stabilized housing8 is ineligible for offering as a short-term rental.
To apply for a short-term rental license endorsement , in addition to the applicable license
endorsements and respective fees 9, current la w10 requires a host to have up-to-date liability
insurance of at least $500,00011 and a 24-hour accessible telephone number for guests; proof12 that
if the short -term rental is on property within a condominium, cooperative, or homeowner
association, that the relevant party permits the operation of a short -term rental; and a description,
and the number, of short-term rentals on the property. The bill adds additional conditions that the
host attests to having no outstanding debt to the District because of any fine, fee, penalty interest, or
past due tax above the relevant thresholds13; provides proof of residency; supplies evidence that the
primary residence receives the homestead exemption; and submits specific documentation14 if the
short-term rental is not the applicant’s primary residence or leased, including written authorization
from the property owner consenting to short-term rental operation.
The bill deletes reference to the Vacation Rental endorsement and distinguishes between a Primary
residence endorsement and a Secondary residence endorsement . The Primary residence
endorsement is for the primary residence; does not require the host to be present during the guests’
5 The homestead deduction is limited to owner-occupied residential property for which a properly completed
and approved application is on file. The property must be occupied by the owner/applicant and contain no
more than five dwelling units (including the unit occupied by the owner) . D.C. Official Code § 47–850.
6 Defined as paid lodging for transient guests in a residence owned or leased by a host that is not a hotel, inn,
motel, boarding house, rooming house, or bed and breakfast.
7 D.C. Official Code § 30–201.02(d).
8 Pursuant to D.C. Official Code § 42-3502.01 et seq.
9 The Mayor sets the fees for all “Short-Term Rental” endorsements, including the newly established Short-
Term Rental: Special Event license endorsement, through rule.
10 D.C. Official Code § 30–201.03.
11 The Mayor has rulemaking authority to adjust the minimum dollar amount.
12 The bill amends this to an attestation.
13 Unless said debt is subject to appeal or has an established payment plan.
14 Specific documentation is: property tax documents; property deed; title insurance policy; or mortgage
documents. The applicant must also provide proof of ownership evidence (if rented, a lease agreement) that
the primary residence is within the District.
The Honorable Phil Mendelson
FIS: “Short-Term Rental Regulation Amendment Act of 2026”, Draft Bill as provided to the Office of Revenue
Analysis on February 26, 2026
Page 3 of 3
stay; and is valid for ninety (90) cumulative nights 15, unless the host receives a waiver from DLCP
due to work-related travel or illness that requires the host be away from the District. The Secondary
residence endorsement does not require the host to be present during the guests’ stay; and is valid
for ninety (90) cumulative nights , however, those nights when the year-round occupant is present,
or a Special event license endorsement is applicable, are not counted.
The bill creates a new Special Event license endorsement for the United States presidential
Inauguration; National Cherry Blossom Festival; and Independence Day 16. Short-term rentals may
be offered under this endorsement for seven calendar days before the special event starts and up to
seven calendar days after the special event ends17; are valid for thirty (30) cumulative nights; subject
to a fee of $499; and such rentals do not require a possessor of the license endorsement to be present
on the property during the stay. The DLCP is restricted from issuing a license endorsement for two
years to anyone residing on the property if the host previously had the ir license revoked; and the
property owner must hold a valid basic business license.
The bill requires the short -term rental license endorsement number to be posted on a booking
service listing and that booking services operating in the District obtain a basic business license.
Financial Plan Impact
Funds are sufficient in the fiscal year 2026 through fiscal year 2029 budget and financial plan to
implement the bill. The DLCP can implement the bill within current resources. The DLCP anticipates
increased revenue in the Basic Business License Fund18 due to permitting renters to obtain a short-
term rental license endorsement; allowing District residents who own a second property in the city
to obtain a short-term rental license endorsement for that property; and the creation of the Special
Event license endorsement. The Office of Revenue Analysis is not certifying any additional revenue
at this time.
15 Nights the host is present and residing at the property and nights that are subject to a Special event license
endorsement are not counted.
16 The Mayor has rulemaking authority to establish additional special events.
17 The listing must be removed no later than this date. Failure to remove the listing may result in a civil
penalty or the license being suspended or revoked.
18 Per D.C. Official Code § 47–2851.13, all fees collected for the issuance of a basic business license and
endorsements, including renewals, penalties, and fines, are deposited in the Basic Business License Fund for
the purposes of maintaining and upgrading the basic business licensing system, i ncluding copying fees,
automation upgrades, personnel costs, and supplies.
2
to the draft, you should send it back to us for a new legal sufficiency review. If you have any questions
regarding this memorandum, please contact Laurie Ensworth , Senior Assistant Attorney General, Legal
Counsel Division, at (202) 724-5537, or me at (202) 262-6402.

AME/lae
3
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE ATTORNEY GENERAL

BRIAN L. SCHWALB PRIVILEGED AND CONFIDENTIAL
ATTORNEY GENERAL ATTORNEY-CLIENT COMMUNICATION

LEGAL COUNSEL DIVISION

MEMORANDUM
TO: Tomás Talamante
Director
Office of Policy and Legislative Affairs

FROM: Adele El-Khouri
Deputy Attorney General
Legal Counsel Division

DATE: February 27, 2026

SUBJECT: Legal Sufficiency Review of “Short-Term Rental Regulation Amendment Act of
2026” (AE-25-387-B)

This is to Certify that the Office of the Attorney General has reviewed the
above-referenced legislation and found it to be legally sufficient. If you have any questions in this
regard, please do not hesitate to call me at (202) 262-6402.

Adele El-Khouri