Councilmember Allen Introduces Legislation Banning Common Area Utility Fees in Large Buildings

Councilmember Allen: “The rent is the rent. No more surprise utility fees.”

Today, DC Councilmember Charles Allen (Ward 6) is introducing legislation to ban common area utility fees from being tacked onto the monthly rent of DC residents living in large apartment buildings. These fees can add hundreds of dollars in new costs – often with little or no transparency and without disclosure of the fees when a resident signs or renews a lease.

“The District should act now to stop big buildings from imposing hidden and exorbitant fees on tenants. The rent is the rent, and when you sign a lease, that should be what it costs each month,” Councilmember Allen said. “My office has heard from so many residents seeing these fees. Common sense says the rent already covers the cost of maintaining a building and its shared utilities – but we’re going to make that clear in the law.” 

Councilmember Allen’s office has seen cases of tenants having to pay up to an additional $400 per month on top of their base rent and their individual unit’s utilities for the utility charges incurred by the building for its common spaces - spaces like a hallway, gym, or conference room. These fees have been imposed on tenants regardless of whether the tenant used or accessed those common areas and are notably in addition to their own unit’s utility charges. The practice has the effect of artificially deflating advertised rents to allow buildings to appear more competitive to tenants, only to surprise tenants after they move in. 

The bill, entitled the Fair Housing Practices Amendment Act of 2024, will require housing providers to include the costs of a building's operation in their rental calculations, giving current tenants predictability and prospective tenants clarity on how much it will cost to live there. It would not change the right of management to charge additional fees for access to amenities or services, like a pool or gym.

The bill also fixes another constituent problem brought to Councilmember Allen by requiring housing providers to notify residents of any remaining balances associated with their apartment within 45 days after moving out. Residents had shared instances of management companies sending unpaid alleged amounts owed by a tenant to a debt collector without notifying or providing the tenant with an opportunity to pay. The housing provider would have to disclose what’s being assessed and why.

The bill is co-introduced by Councilmembers Christina Henderson, Zachary Parker, Brianne Nadeau, Janeese Lewis George, and Anita Bonds.

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