- Petra Management Group will pay $700K and overhaul its leasing practices after allegedly misusing DC’s housing voucher program to charge higher rents while sidelining rent-controlled tenants.
- The settlement stems from a lawsuit that accused Petra of illegally restricting access to affordable housing by targeting only subsidized tenants and excluding others eligible for lower, rent-controlled units.
- The reforms apply to all Petra-managed properties in the district and include mandatory fair housing training and three years of compliance monitoring by the Office of the Attorney General.
The Background
Petra, a collective of LLCs, manages over 100 units across three apartment buildings in Washington, DC. The company has been accused of exploiting a legal exemption intended to encourage landlords to accept housing vouchers. Instead, Petra allegedly used the loophole to boost its profits, reports MultifamilyDive. The Office of the Attorney General (OAG) alleged that Petra selectively rented only to government-subsidized tenants while charging inflated rents, all while circumventing rent control laws that should have applied to the buildings.
Where It Happened
The lawsuit named three properties operated by Petra:
- The Adams – 4825–4829 North Capitol St. NE (Ward 5)
- The Keystone – 743 Fairmont St. NW (Ward 1)
- The Madison – 5616 13th St. NW (Ward 4)
All three buildings are subject to rent control due to being built before 1976. The law allows exemptions when leasing to voucher holders, which Petra allegedly used to its advantage by excluding all other renters.
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The Violations
According to the OAG, Petra:
- Advertised units only at elevated voucher-supported rents.
- Failed to disclose legally required rent-controlled rates to prospective tenants.
- Discriminated against non-voucher renters, including seniors and individuals with disabilities, by effectively locking them out of affordable housing opportunities.
Beth Mellen of the OAG called the conduct a “deliberate exploitation” of both DC taxpayers and vulnerable renters.
The Settlement Terms
Under the agreement (pending court approval), Petra must:
- Pay $700K to the District of Columbia.
- Advertise rent-controlled units at their legal rates across all DC properties.
- End discriminatory leasing practices throughout its portfolio.
- Provide fair housing training to all leasing and property management staff.
- Undergo three years of monitoring by the OAG to ensure compliance.
A Pattern Of Noncompliance
This isn’t Petra’s first encounter with DC enforcement. In August, the Department of Buildings issued 486 code violations across 15 Petra-associated properties, totaling over $546K in fines during a multi-day inspection blitz.
Why It Matters
The case underscores the risks of unchecked misuse of housing voucher programs. It also highlights how profit-driven tactics can reduce access to affordable housing for tenants without vouchers. The settlement sends a strong signal that income-based discrimination and rent law violations will be actively pursued by DC authorities.
What’s Next
With branded and affordable housing increasingly under scrutiny in DC, enforcement actions like this one show the city’s renewed focus on equitable access. The Petra case could set a precedent for how aggressively the district polices misuse of rent control exemptions going forward.
