Comer Investigates Unconstitutional DC Housing Practices

WASHINGTON—The House Committee on Oversight and Government Reform is investigating the District of Columbia’s housing policies and the ongoing practice of seizing the home equity of homeowners in foreclosures involving outstanding tax obligations. D.C.’s practices appear to be misaligned with Supreme Court legal precedent and disproportionately impact elderly and minority homeowners. In a letter to D.C. Council Chairman Phil Mendelson, House Oversight Committee Chairman James Comer (R-Ky.) seeks a staff briefing and information regarding the Council’s intentions to fix these pervasive issues.

“While many states have amended their laws to abide by the Court’s ruling in [Tyler v. Hennepin County], the District continues the practice of taking generational wealth accrued through home ownership from hard-working families and handing it to third-party investors. Washington, D.C., our nation’s capital, is depriving Americans of their property through punitive tax law that results in home equity theft.The Committee is concerned that the District is one of the last few jurisdictions not to comply with Tyler,” wrote Chairman Comer. “Because of the District’s policies, homeowners who undergo this process lose, on average, 80 percent of their equity for debts sometimes only worth 20 percent of the value of the home.”

The Supreme Court unanimously ruled in its 2023 Tyler decision that the government is in violation of the Constitution’s Takings Clause when it retains the excess value of a property beyond the amount needed to satisfy a property owner’s tax debt. Current D.C. law allows the District to assign or sell property tax liens to third-party investors, who can then collect 18 percent annual interest on the debt. If a property owner fails to pay delinquent taxes and the property is ultimately foreclosed upon, the investors and the District government may keep any equity or profits from the property’s sale that exceed the outstanding tax debt and interest, while the former property owner receives none of the remaining equity.

“The Committee raised concerns about the District’s practices to Attorney General Schwalb and Mayor Bowser in November 2025. Attorney General Schwalb’s brief response to the Committee was dismissive, and Mayor Bowser has still not yet responded despite repeated follow-up from the Committee. This lack of a response from two of three branches of the District’s government is emblematic of its insistence on continuing the practice of illegal takings, wiping out the life savings of vulnerable residents. Failure to change current statutes to align with the Court’s ruling places the District in unconstitutional territory,” concluded Chairman Comer.

Read the letter to the Council of the District of Columbia here.