2023 District of Columbia Code › Title 2 - Government Administration › Chapter 12 - Business and Economic Development › Subchapter IX - Tax Increment Financing › Part A - General › § 2–1217.03. Certification of development project

§ 2–1217.03. Certification of development project.
(a) In order to be eligible for TIF, a development sponsor shall apply to the CFO for certification that the project complies with the requirements of this subchapter. The application shall consist of a development plan for the project, which shall consist of the following:
(1) A delineation of the proposed TIF area;
(2) A description of the proposed land uses of the project;
(3) The use of the financing proceeds made available pursuant to this subchapter;
(4) A pro forma projection of the revenues and expenses of the project;
(5) An assessment of the financial feasibility of the project;
(6) A general description of the timing and phasing of the project;
(7) A description of the compatibility of the project with the Comprehensive Plan;
(8) A description of the project’s compliance with the zoning regulations of the District; and
(9) An analysis of the projected tax revenue and benefits to be generated by the project.
(b) Not later than 120 days after the receipt of an application which meets the criteria set forth in subsection (a) of this section the CFO shall certify or reject the project. In determining whether to certify the project, the CFO shall consider the following criteria:
(1) Whether the project is financially feasible;
(2) Whether the project will likely result in a net increase in the taxes payable to the District, taking into consideration income taxes, franchise taxes, real property taxes, without regard to the real property tax increment revenues to be applied to payment of the TIF bonds, sales taxes, without regard to the sales tax increment revenues to be applied to payment of the TIF bonds, parking taxes, use taxes, and other taxes, over the amount that would have been payable to the District in the absence of the project;
(3) Whether the project is consistent with the Comprehensive Plan and will achieve development priorities identified in the Comprehensive Plan for the priority development area in which the project is located;
(4) Whether the project’s total anticipated benefits to the District, including public benefits as well as financial benefits, exceed the total anticipated costs to the District;
(5) Whether an allocation of the project’s real property tax increment revenues and sales tax increment revenues will compete with or supplant benefits from other sources or by other means which are otherwise available for the project on reasonable terms and conditions; and
(6) Whether the project is one of special merits and there is a reasonable probability that the special merits of the project will not be achieved without the TIF allocation.
(c) Repealed.
(d) If, upon consideration of the criteria set forth in subsections (b) and (c) of this section, the CFO determines to certify the project for Council approval, the Mayor shall enter into negotiations with the development sponsor to determine the boundaries of the TIF area for the project, the amount of tax increment allocation, the type of tax to be allocated, the terms and conditions of the agreement between the District and the development sponsor, and the termination dates for the tax increment revenues to be allocated to the project. Upon completion of negotiations, the CFO shall certify the project, the base real property tax amount for the project's TIF area for the then-current fiscal year and each subsequent fiscal year, and the base sales tax amount for the project's TIF area for the then-current fiscal year and each subsequent fiscal year, and prepare a proposed resolution for the approval of the Council consistent with the results of the negotiations and with § 2-1217.04. If the project does not comply with the criteria, the CFO shall so notify the development sponsor in writing stating in what areas the project fails to meet the criteria. The CFO shall allow the development sponsor up to 60 days to comply and cure any defects.
(e) The Zoning Administrator; the Director, Office of Planning; the Corporation Counsel; the Director, Department of Housing and Community Development; and any other relevant agency of the District government shall furnish to the CFO information and certificates as may be required by the CFO to confirm a project’s compliance with the criteria enumerated in subsections (b) and (c) of this section.
(f) Subject to the consent of each development sponsor of a project within the affected TIF areas and the rights of the holders of its TIF bonds, the CFO may abolish a TIF area, merge TIF areas or alter the boundaries of a TIF area.
(g) The CFO shall impose reasonable fees in connection with the issuance of the TIF bonds to defray administrative costs or burdens incurred as a result of the determination of the tax increment allocation and the issuance of such TIF bonds.
(h) The Mayor, pursuant to subchapter I of Chapter 5 of this title, may issue rules to implement the provisions of this section.
(i) For the preparation of the certification required by this section, the CFO shall set forth guidance regarding submission requirements and the process for review of information necessary to implement this section.
(Sept. 11, 1998, D.C. Law 12-143, § 4, 45 DCR 3724; Apr. 27, 1999, D.C. Law 12-271, § 2(b), 46 DCR 3615; Dec. 13, 2017, D.C. Law 22-33, § 7202(c), 64 DCR 7652; Sept. 21, 2022, D.C. Law 24-167, § 2012(b), 69 DCR 009223.)
Prior Codifications
1981 Ed., § 1-2293.3.
Section References
This section is referenced in § 2-1217.02, § 2-1217.04, and § 2-1217.05.
Emergency Legislation
For temporary (90 days) amendment of this section, see § 2012(b) of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).
For temporary (90 days) amendment of this section, see § 7202(c) of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).
For temporary (90 days) amendment of this section, see § 7202(c) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).
For temporary amendment of section, see § 2(b) of the Tax Increment Financing Emergency Amendment Act of 1998 (D.C. Act 12-562, January 22, 1999, 46 DCR 2104).
For temporary addition of §§ 1-2293.1 to 1-2293.11 1981 Ed., see note to § 2-1217.01.
For temporary (90-day) addition of section, see § 2(a) of the Tax Increment Financing Authorization Emergency Amendment Act of 1999 (D.C. Act 13-134, August 4, 1999, 46 DCR 6788).
Delegation of Authority
Delegation of authority pursuant to D.C. Law 12-143, the “Tax Financing Act of 1998”, see Mayor’s Order 99-197, December 6, 1999 ( 46 DCR 10566).
Delegation of Rulemaking Authority Pursuant to DC Law 12-143, the Tax Increment Financing Authorization Act of 1998, see Mayor’s Order 2001-108, August 6, 2001 ( 48 DCR 7798).