2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 35 - Lower Income Homeownership Tax Abatement and Incentives › § 47–3502. Lower income homeownership households — Qualifications

§ 47–3502. Lower income homeownership households — Qualifications.
(a) In order to qualify as a lower income homeownership household in the District of Columbia, a lower income household must meet the following conditions:
(1) The income of the household shall not be in excess of 120% of the lower income guidelines established pursuant to 42 U.S.C. § 1437f, for the Washington Standard Metropolitan Statistical Area (SMSA), as the median is determined by the United States Department of Housing and Urban Development and adjusted yearly by historic trends of that median, and as further may be adjusted by an interim census of District of Columbia incomes by local or regional government agencies; and
(2) The household shall occupy the unit and shall either:
(A) Become an owner in fee simple; or
(B) Receive, pursuant to a shared equity financing agreement which complies with the requirements of 26 U.S.C. § 280A(d)(3), at least a 5% qualified ownership interest, the right to occupy the unit, and an option to purchase the remaining ownership interest at a specified later date.
(b) Notwithstanding the requirements of subsection (a) of this section, a household may qualify as a lower income household in the District of Columbia if it meets each of the following requirements:
(1) The household occupies a residential property including a single-family home, condominium, or cooperative, located in an economic development zone approved pursuant to § 6-1501;
(2) The property is the principal place of residence of its owner;
(3) The property is owned in fee simple, or the equivalent with respect to occupancy rights in a cooperative, by a first time home buyer; and
(4) The household income does not exceed 110% of the area median income guidelines established pursuant to § 42-2604.
(c) This chapter shall not apply if the fair market value of the unit or residential property exceeds 80% of the median sale price for homes within the District of Columbia in the prior year as of the date that the application for exemption is filed, unless the unit or residential property is a for-sale unit constructed pursuant to [subchapter I of Chapter 28 of Title 42 (§  42-2801 et seq.)] that remains affordable for 180 months or a longer period selected by the developer, in accordance with section 2218 of Title 14 of the District of Columbia Municipal Regulations (14 DCMR § 2218), then this chapter shall apply.
(Oct. 8, 1983, D.C. Law 5-31, § 3, 30 DCR 3879; Oct. 20, 1988, D.C. Law 7-177, § 11, 35 DCR 6158; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 4, 2003, D.C. Law 14-282, § 11(uu), 50 DCR 896; Oct. 20, 2005, D.C. Law 16-33, § 1281(b), 52 DCR 7503; Oct. 22, 2015, D.C. Law 21-36, § 2053, 62 DCR 10905.)
Prior Codifications
1981 Ed., § 47-3502.
Section References
This section is referenced in § 47-802, § 47-3503, § 47-3504, and § 47-3505.
Effect of Amendments
D.C. Law 14-282 added subsec. (c).
D.C. Law 16-33, in subsec. (c), substituted “80% of the median sale price for homes within the District of Columbia in the prior year” for “$250,000”.
The 2015 amendment by D.C. Law 21-36 added “unless the unit or residential property is a for-sale unit constructed pursuant to the Housing Production Trust Fund Act of 1988, effective March 16, 1989 (D.C. Law 7-202; D.C. Official Code Section 42-2801 et seq.), that remains affordable for 180 months or a longer period selected by the developer, in accordance with section 2218 of Title 14 of the District of Columbia Municipal Regulations (14 DCMR Section 2218), then this chapter shall apply” in (c).
Cross References
Real property assessment and tax, “owner” and “taxpayer” defined, see § 47-802.
Emergency Legislation
For temporary (90 day) amendment of section, see § 12(bbb) of Tax Clarity and Recorder of Deeds Emergency Act of 2002 (D.C. Act 14-381, June 6, 2002, 49 DCR 5674).
For temporary (90 day) amendment of section, see § 12(ccc) of Tax Clarity and Related Amendments Emergency Act of 2002 (D.C. Act 14-456, July 23, 2002, 49 DCR 8107).
For temporary (90 day) amendment of section, see § 12(ccc) of Tax Clarity and Related Amendments Congressional Review Emergency Act of 2002 (D.C. Act 14-510, October 23, 2002, 49 DCR 10247).
For temporary (90 day) amendment of section, see §§ 1281(b), 1282, 1283 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 days) amendment of this section, see § 2053 of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).
Temporary Legislation
For temporary (225 day) amendment of section, see § 12(ccc) of Tax Clarity and Related Amendments Temporary Act of 2003 (D.C. Law 14-228, March 23, 2003, law notification 50 DCR 2741).
Editor's Notes
Mayor authorized to issue rules: Section 13 of D.C. Law 7-177 provided that the Mayor shall issue rules to implement the provisions of the act.
Applicability and expiration of subtitle HH of title I, §§ 1280 to 1284, of D.C. Law 16-33: Sections 1282 and 1283 of D.C. Law 16-33, as amended by D.C. Law 17-219, § 7068(f), (g), provided:
“Sec. 1282. Applicability; conditional effect.
“(a) Section 1281 shall apply for taxable years beginning after September 30, 2005.
“(b) Repealed.
“Sec. 1283. Repealed.”