2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 47 - Exemptions and Abatements Approval Requirements › § 47–4701. TAFA requirements

§ 47–4701. TAFA requirements.
(a) A bill introduced in the Council that grants an exemption or abatement of a tax imposed by this title or by § 42-1103, unless the exemption or abatement is one of general applicability, shall not receive a Council hearing until a completed tax abatement financial analysis (“TAFA”) has been provided to the Council and made available to the public.
(b)(1) The TAFA shall include:
(A) The terms of the exemption or abatement;
(B) The estimated annual value of the exemption or abatement;
(C) The purpose for which the grantee seeks the exemption or abatement;
(C-i) If the estimated aggregate value of the exemption or abatement is $250,000 or more:
(i) A list of the contributions, as that term is defined in [§ 1-1161.01(10)], made, from the date of the bill's introduction to the date that the TAFA is provided to the Council, by the grantee and the principals of the grantee, to the following persons:
(I) The Mayor and any Councilmember;
(II) A candidate for Mayor or Councilmember;
(III) Any political committee, as that term is defined in [§ 1-1161.01(44)], affiliated with an individual listed in sub-sub-subparagraphs (I) or (II) of this sub-subparagraph; and
(IV) Any constituent-service program established pursuant to [§ 1-1163.38], affiliated with an individual listed in sub-sub-subparagraphs (I) or (II) of this sub-subparagraph; and
(ii) A list, provided by the grantee, of any contracts, as that term is defined in [§ 1-1161.01(10C)(A)(ii)], that the grantee is seeking or holds with the District government;
(D) A summary of the proposed community benefits to be provided by the grantee of the exemption or abatement, including, if applicable, the number of jobs that may be created, delineated in accordance with paragraph (2)(A)(iv), (v) and (vi) of this subsection;
(E) If, in the opinion of the Chief Financial Officer, it is unlikely that the grantee’s stated purpose could be accomplished without the proposed exemption or abatement:
(i) An estimate of the amount of exemption or abatement necessary to accomplish the purpose;
(ii) Efforts by the grantee to obtain alternate financing; and
(iii) Any factors that limit the ability of the grantee to obtain adequate financing; and
(F) A financial analysis prepared by the Office of the Chief Financial Officer, which shall consist of:
(i) For existing buildings, a review and analysis of the financial condition of the recipient of the proposed exemption or abatement and an advisory opinion stating whether or not it is likely that the recipient could be reasonably expected to meet its fiscal needs without the proposed exemption or abatement;
(ii) For new developments, a review and analysis of the financial condition of the recipient of the proposed exemption or abatement and of the financing proposal submitted by the recipient and an advisory opinion stating whether or not it is likely that the project could be financed without the proposed exemption or abatement;
(iii) For exemptions or abatements related to a person or group of persons that can be readily identified, a review and analysis of the financial condition of the recipient of the proposed exemption or abatement and an advisory opinion stating whether or not it is likely that the recipient could be reasonably expected to meet its fiscal needs without the proposed exemption or abatement. If individual financial information is not available, the requirements of this sub-subparagraph may be met through an advisory opinion on whether the proposed exemption or abatement can reasonably be expected to meet the proposed public policy goal[;and]
(iv) For exemptions or abatements related to a category or group of property owners or taxpayers that cannot be readily identified, a review and analysis of the public policy goal intended to be addressed, if applicable, by the exemption or abatement, including whether the exemption or abatement is appropriately targeted and likely to achieve the intended goal.
(2)(A) In addition to the requirements described in paragraph (1) of this subsection, where applicable, the TAFA shall include in the summary of the proposed community benefits:
(i) The number of affordable housing units to be developed;
(ii) For what level of Area Median Income, as defined by § 47-858.01(1)(A)(i), the units will be affordable;
(iii) The assessed financial value of the subsidy, which shall be measured as the difference between the market rate of a comparable unit within the same neighborhood and the rate that is being charged as affordable housing;
(iv) The number of jobs that will be created, delineated by status as to whether a job is:
(I) Permanent;
(II) Temporary;
(III) Full-time; or
(IV) Part-time;
(v) The estimated wages and benefits for each job created;
(vi) Any commitment made to hiring District residents; and
(vii) A description of any other public policy goal that the exemption or abatement is meant to address, including expected results.
(B) The summary shall state which community benefits are already required by law, such as inclusionary zoning, the community amenities that have already been negotiated as part of a planned-unit-development approval, and the requirements or incentives already included in law or regulation, such as environmental standards.
(Sept. 14, 2011, D.C. Law 19-21, § 7142(b), 58 DCR 6226; Sept. 26, 2012, D.C. Law 19-171, § 114(f), 59 DCR 6190; Dec. 24, 2013, D.C. Law 20-61, § 7162(a), 60 DCR 12472; June 26, 2014, D.C. Law 20-117, § 16, 61 DCR 2032; Mar. 13, 2019, D.C. Law 22-250, § 9, 66 DCR 985.)
Section References
This section is referenced in § 47-4703.
Effect of Amendments
The 2012 amendment by D.C. Law 19-171 validated a previously made technical correction in (b)(3)(A)(ii).
The 2013 amendment by D.C. Law 20-61 rewrote the section.
The 2014 amendment by D.C. Law 20-117 rewrote (b)(1)(F)(iii) and (iv); and substituted “where applicable” for “for a bill that grants an exemption or abatement to a housing development” in the introductory language of (b)(2)(A).
Applicability
Section 2 of D.C. Law 24-328 provided the amendments made to this section by D.C. Law 22-250 shall not apply to: (1) Any inaugural or transition committee organized in 2022; and (2) Contracts, as defined in § 1-1161.01(10C)(A)(ii), including those contracts' option periods or similar contract extensions or modifications, sought, entered into, or executed before November 9, 2022.
Section 2 of D.C. Act 25-33 provided the amendments made to this section by D.C. Law 22-250 shall not apply to: (1) Any inaugural or transition committee organized in 2022; and (2) Contracts, as defined in § 1-1161.01(10C)(A)(ii), including those contracts' option periods or similar contract extensions or modifications, sought, entered into, or executed before November 9, 2022.
Section 2 of D.C. Act 24-676 provided the amendments made to this section by D.C. Law 22-250 shall not apply to: (1) Any inaugural or transition committee organized in 2022; and (2) Contracts, as defined in § 1-1161.01(10C)(A)(ii), including those contracts' option periods or similar contract extensions or modifications, sought, entered into, or executed before November 9, 2022.
Section 10(b) of D.C. Law 22-250 required that the amendments made to this section by D.C. Law 22-250, (1) Apply as of November 4, 2020; and (2) Not apply to contracts, as defined in D.C. Official Code § 1-1161.01(10C)(A)(ii)), including those contracts' option periods or similar contract extensions or modifications, sought, entered into, or executed before November 4, 2020.
Emergency Legislation
For temporary (90 day) amendment of this section, see §§ 2(b), 3(b), and 6 of the Fiscal Year 2014 Budget Support Technical Clarification Emergency Amendment Act of 2013 (D.C. Act 20-180, October 4, 2013, 60 DCR 1949).).
For temporary (90 days) amendment of this section, see § 7162(a) of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).
For temporary (90 days) amendment of this section, see § 7162(a) of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).
Temporary Legislation
For temporary (225 days) amendment of section, see § 3 of the Fiscal Year 2014 Budget Support Technical Clarification Temporary Amendment Act of 2013 (D.C. Law 20-56, December 13, 2013, 60 DCR 15165).
Short Title
Short title: Section 7141 of D.C. Law 19-21 provided that subtitle O of title I of the act may be cited as “Exemptions and Abatements Information Requirements Act of 2011”.
Section 7161 of D.C. Law 20-61 provided that Subtitle P of Title VII of the act may be cited as the “Tax Abatement Financial Analysis Requirements Act of 2013”.
Editor's Notes
Section 7183 of D.C. Law 24-45 provided that the amendments made to this section by D.C. Law 22-250 shall not apply to contracts, as defined in § 1-1161.01(10C)(A)(ii), including those contracts' option periods or similar contract extensions or modifications, sought, entered into, or executed before November 9, 2022.
Section 7183 of D.C. Act 24-159 provided that the amendments made to this section by D.C. Law 22-250 shall not apply to contracts, as defined in § 1-1161.01(10C)(A)(ii), including those contracts' option periods or similar contract extensions or modifications, sought, entered into, or executed before November 9, 2022.
Applicability of D.C. Law 20-61: Section 11001 of D.C. Law 20-61 provided that, except as otherwise provided, the act shall apply as of October 1, 2013.
Applicability of D.C. Law 20-117: Section 18 of D.C. Law 20-117 provided that the act shall apply as of October 1, 2013.