District Attorney General files lawsuit alleging voucher-only leasing scheme to bypass rent limits at three buildings

Lawsuit targets three apartment complexes and their owners and manager

The District of Columbia Office of the Attorney General has filed a civil lawsuit alleging that a family-run rental operation used an “elaborate” leasing and advertising strategy to increase revenue by steering rent-controlled apartments exclusively to tenants with government-funded housing vouchers. The complaint names Petra Management Group, LLC; property owner Rashid Salem; and three related ownership entities tied to buildings at 4825–4829 North Capitol Street NE, 5616 13th Street NW, and 743 Fairmont Street NW.

The three properties—identified as The Adams, The Madison, and The Keystone—collectively contain more than 100 units, the lawsuit states.

How the alleged scheme worked under District rent-control rules

District law generally applies rent control to apartment units built before 1976, unless an exemption applies. One exemption allows a landlord to charge more than the rent-controlled amount when the unit is leased to a tenant using a government-subsidized housing voucher. The exemption is described as conditional: the higher rent is permitted only after the unit is leased to a voucher holder and the landlord obtains District approval, and the unit must revert to rent control when that tenant moves out.

The lawsuit alleges that Petra used this exemption as a profit-maximization tool by renting units exclusively to voucher holders, excluding prospective tenants who do not have housing subsidies. The case frames the alleged impact as falling on renters who may still struggle with housing costs but do not qualify for subsidies, including lower-wage workers who earn too much to qualify for voucher programs, seniors, and people with disabilities on fixed incomes.

Claims include discriminatory advertising and misleading statements

In addition to alleging that units were rented only to voucher holders, the lawsuit claims that vacant apartments were advertised only at higher subsidized rates even when the rent-control exemption had not yet been obtained for those units. As an example, the complaint describes a three-bedroom unit at The Adams that would be subject to a rent-controlled rate of $1,000.25 for a tenant without a voucher but was advertised and rented at $3,131.00 per month under subsidized pricing.

The District alleges these practices violate the District’s Human Rights Act by discriminating based on source of income, and also violate the Consumer Protection Procedures Act through false or misleading statements tied to pricing and availability.

What the District is seeking

• An order to stop the alleged conduct at the three properties
• Restitution and damages for any identifiable victims
• Civil penalties, costs, and attorney’s fees payable to the District

In the same announcement, the attorney general’s office noted that Attorney General Brian L. Schwalb is recused from the case.

The lawsuit arrives amid continued scrutiny of rent-control compliance and voucher administration in Washington, as policymakers balance tenant protections, landlord participation in subsidy programs, and enforcement against practices alleged to distort access to rent-regulated units.