2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 8 - Real Property Assessment and Tax › Subchapter II - Authority and Procedure to Establish Real Property Tax Rates › § 47–857.08. Tax abatements for new residential developments — Tax abatement for new, very mixed-income housing projects in higher-cost and other qualified areas throughout the District of Columbia

§ 47–857.08. Tax abatements for new residential developments — Tax abatement for new, very mixed-income housing projects in higher-cost and other qualified areas throughout the District of Columbia.
(a) Subject to § 47-857.02, there shall be allowed as an abatement of the real property tax imposed by § 47-811 on an eligible real property in eligible area #3 an amount computed as follows: 100% of the difference between the residential real property tax imposed by § 47-811 before and after development or a dollar amount based on criteria or formulas promulgated by the Mayor, pursuant to regulation, which equals approximately 100% of the difference between the residential real property tax imposed by § 47-811 before and after development; provided, that:
(1) Five percent of the housing units in the eligible real property shall be affordable to, and occupied by, low-income households for 20 years after the certificate of occupancy for the eligible real property is issued.
(2) An additional 10% of the housing units in the eligible real property shall be affordable to, and occupied by, households with household incomes of 60% or less of the area median income for 20 years after the certificate of occupancy for the eligible real property is issued.
(3) An additional 5% of the housing units in the eligible real property shall be affordable to, and occupied by, extremely low-income households for 20 years after the certificate of occupancy for the eligible real property is issued.
(4) The dwelling units occupied by low-income households, 60%-of-area-median-income households, and extremely low-income households shall be equivalent in size and quality to other dwelling units in the development.
(5) The variety of the sizes of dwelling units occupied by low-income households, 60%-of-area-median-income households, and extremely low-income shall be reasonably similar to the variety of sizes of dwelling units in the eligible property as a whole.
(6) The tax abatement for an eligible real property allowed by this section shall expire at the end of the 10th tax year after the tax year in which a certificate of occupancy is issued for the eligible real property.
(7) If, during a tax year for which the tax abatement is authorized by this section, the property for which the abatement was granted contains fewer than 10 dwelling units, the abatement shall not be allowed.
(b) If, during one of the last 10 years of the 20-year period of affordability required by subsection (a)(1) of this section, the owner fails to comply with the unit set-aside requirements of subsection (a) of this section, the owner of the property shall be assessed a penalty of $10,000 per year for each unit which does not meet the income or set-aside requirements; provided, that the Mayor may waive the penalty upon a showing of good cause.
(c) The Mayor may require an owner to demonstrate that the rents and tenant income for the eligible real property are consistent with the requirements of the tax abatement. If the requirements are not met, the abatement shall not be allowed and the owner shall remit all taxes owed for the period of non-compliance.
(Apr. 19, 2002, D.C. Law 14-114, § 601(b), 49 DCR 1468.)
Section References
This section is referenced in § 47-857.02 and § 47-857.09.