2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 8 - Real Property Assessment and Tax › Subchapter III - Miscellaneous › § 47–865. Tax abatement for preservation of section 8 housing in qualified areas

§ 47–865. Tax abatement for preservation of section 8 housing in qualified areas.
(a) For the purposes of this section and § 47-866, the term:
(1) “Affordable multifamily housing property” means residential real property consisting of 5 or more dwelling units in which, as the result of use restrictions or other covenants, at least 20% of the dwelling units are occupied by very low-income households.
(2)(A) “Area median income” means:
(i) For a household of 4 persons, the area median income for a household of 4 persons in the Washington Metropolitan Statistical Area as set forth in the periodic calculation provided by the United States Department of Housing and Urban Development;
(ii) For a household of 3 persons, 90% of the area median income for a household of 4 persons;
(iii) For a household of 2 persons, 80% of the area median income for a household of 4 persons;
(iv) For a household of one person, 70% of the area median income for a household of 4 persons;
(v) For a household of more than 4 persons, the area median income for a household of 4 persons, increased by 10% of the area median income for a family of 4 persons for each household member exceeding 4 persons.
(B) Any percentage of household income referenced in this section or § 47-866 (e.g., 80% of household income) shall be determined through a direct mathematical calculation and shall not take into account any adjustments made by the United States Department of Housing and Urban Development for the purposes of the programs it administers.
(3) “HAP contract” means a project-based housing assistance payments contract executed between the owner of an affordable multifamily housing property and the Secretary or a public housing agency pursuant to the United States Housing Act of 1937.
(4) “Household income” shall have the same meaning as “household gross income” in § 47-1806.06(b)(2).
(5) “Housing accommodation” shall have the same meaning as in section 103(11) of the Rental Housing Conversion and Sale Act of 1980, effective September 10, 1980 (D.C. Law 3-86; D.C. Official Code § 42-3401.03(11)).
(6) “Low-income household” means a household consisting of one or more individuals with a household income equal to, or less than, 80% of the area median income and greater than 50% of the area median.
(7) “Qualified area” means a census tract in which the average rent for one bedroom and 2-bedroom apartments exceeds the fair market rent by 25% or more.
(8) “Secretary” means the Secretary of the United States Department of Housing and Urban Development.
(9) “Tenant” shall have the same meaning as in section 103(36) of the Rental Housing Act of 1985, effective July 17, 1985 (D.C. Law 6-10; D.C. Official Code § 42-3501.03(36)).
(10) “United States Housing Act of 1937” means the United States Housing Act of 1937, approved September 1, 1937 (50 Stat. 888; 42 U.S.C. § 1437 et seq.).
(b) Subject to subsection (c) of this section, if the owner of a housing accommodation that receives assistance pursuant to a HAP contract that is scheduled to expire after December 31, 2001, renews or extends the contract, or transfers the property to an owner who enters into a new contract with substantially the same use restrictions, the real property tax imposed on the property under § 47-811, or the payment in lieu of taxes imposed by § 47-1002(20), shall be reduced as follows:
(1) If the contract is renewed for 5 years, the owner shall receive a tax abatement equal to 75% of the tax imposed by § 47-811, or the payment in lieu of taxes imposed by § 47-1002(20), for the taxable year in which the renewed contract begins and for each of the 4 taxable years thereafter.
(2) If the contract is renewed for 10 years, the owner shall receive a tax abatement equal to 100% of the tax imposed by § 47-811, or the payment in lieu of taxes imposed by § 47-1002(20), for the taxable year in which the renewed contract begins and for each of the 9 taxable years thereafter.
(c) The tax abatement provided in subsection (a) of this section shall be allowed only if:
(1) The housing accommodation is located in a qualified area;
(2) The housing accommodation would not be subject to a reduction in federal subsidy as a result of receiving the tax abatement.
(d)(1) On or before the first day of the tax year for which a tax abatement is first granted, the Mayor shall certify to the Office of Tax and Revenue a list of the qualified properties which specifies the exact parcel subject to abatement, an estimate of the tax abatement, and a statement that the property owner qualifies for the abatement.
(2) The tax abatement shall be computed by the Office of Tax and Revenue by comparing the assessment of the qualified property for the first year that the property is qualified or the assessment in any succeeding year and comparing it to the assessment in the base year which is the assessment on the tax roll for the year preceding the first year for which the tax abatement is first received less any new construction first assessed in the base year. The tax abatement percentage shall be applied to the difference between base year assessment and the current year’s assessment for each tax year. The Mayor shall certify to the Office of Tax and Revenue that each property owner and each property qualifies for the program annually regarding income level and mix of tenants.
(e) This section shall apply for tax years beginning on or after October 1, 2002.
(Apr. 19, 2002, D.C. Law 14-114, § 291, 49 DCR 1468.)
Section References
This section is referenced in § 42-2851.02.
Editor's Notes
Building permit fee—Historic rehabilitation deemed new construction: Section 303 of D.C. Law 14-114, provided: “A residential project involving the rehabilitation of an individually designated landmark building or a building located in an historic district that provides more than 100 apartment units and involves the replacement of all building systems (mechanical, plumbing, electrical) shall be deemed new construction for the purposes of calculating the building permit fee. This section shall apply to any building permits issued after October 31, 2001.”
Section 1101 of D.C. Law 14-114 provided: “The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), shall promulgate rules to implement this act.”
Delegation of Authority
Delegation of Authority-Tax Abatements under Section 291 of the Housing Act of 2002, see Mayor’s Order 2009-202, November 25, 2009 ( 56 DCR 9222).