2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 35 - Lower Income Homeownership Tax Abatement and Incentives › § 47–3505. Nonprofit housing organizations — Qualifications; exemptions

§ 47–3505. Nonprofit housing organizations — Qualifications; exemptions.
(a) In order to qualify for an exemption under this section, a nonprofit housing organization shall have been approved by the Internal Revenue Service as exempt from federal income tax under 26 U.S.C. § 501(c)(3) or (4).
(b) Transfers of property to a qualifying nonprofit housing organization shall be exempt from the transfer tax pursuant to § 47-902, if:
(1) A return under oath, certifying the organization’s intent to transfer the property, within 36 months, to a household (or to households in at least 35% of the units in a multifamily property) subject to the income limitations and conditions of transfer described in § 47-3502 or to a cooperative housing association exempt from the deed recordation tax pursuant to § 47-3503(a)(2), accompanies the deed at the time of its offer for recordation; and
(2) The purchaser receives a credit against the purchase price of the property in an amount equal to the total tax that would have been due without regard to this subsection.
(c)(1) Deeds of property transferred to a qualifying nonprofit housing organization shall be exempt from the deed recordation tax pursuant to § 42-1102, if a return under oath, certifying the organization’s intent to transfer the property within 36 months to a household (or to households in at least 35% of the units in a multifamily property) subject to the income limitations and conditions of transfer described in § 47-3502 or to a cooperative housing association exempt from the deed recordation tax pursuant to § 47-3503(a)(2), accompanies the deed at the time of its offer for recordation.
(2) Recordation of a construction loan deed of trust or mortgage, as that term is defined in § 42-1101(9), or a permanent loan deed of trust or mortgage, as that term is defined in § 42-1101(10), shall be exempt from the deed recordation tax pursuant to § 42-1102, if the property securing the deed of trust or mortgage is owned by or is being simultaneously transferred to a qualifying nonprofit housing organization.
(d) Property transferred to a qualifying nonprofit housing organization shall be exempt from the real property tax pursuant to § 47-1002, through the end of the third tax year following the year in which the property was transferred to the organization if a return under oath, certifying the organization’s intent to transfer the property within 1 year to a household (or to households in at least 35% of the units in a multifamily property) subject to the income limitations and conditions of transfer in § 47-3502 or to a cooperative housing association exempt from the deed recordation tax pursuant to § 47-3503(a)(2), accompanies the deed at the time of its offer for recordation.
(e) A qualifying nonprofit housing organization shall be exempt from the provisions of Chapter 17 of Title 42.
(f)(1) Subject to the requirements of paragraphs (2) and (3) of this subsection, any nonprofit organization that has been denied exemption from District of Columbia real property taxes pursuant to § 47-1002 and has acquired property to develop more than 10 units of housing for affordable or lower income homeownership households in the District of Columbia and subdivides the acquired property into more than 10 units shall have 2 years from the date of the subdivision of the property to hold the property as exempt from the recordation, transfer, and real property taxes associated with the acquisition and development of the property for low-income or affordable housing.
(2) Recordation, transfer, and real property tax assessments associated with the acquisition of a property under paragraph (1) of this subsection shall not be assessed against a nonprofit organization that acquires property and subdivides it for resale into more than 10 units to low-income home owners when the first low-income home owner purchases a home within 2 years of the subdivision of the real property into lots on the records and cadastral maps of the Office of Tax and Revenue.
(3) Real property owned or acquired by a nonprofit organization shall be exempt from recordation, transfer and real property taxes if the nonprofit organization subdivides the property into more than 10 units of low-income housing and completes the sale of all units of low-income housing on the property within 4 years from the date of acquisition.
(Oct. 8, 1983, D.C. Law 5-31, § 6, 30 DCR 3879; Mar. 16, 1989, D.C. Law 7-205, § 3(b), 36 DCR 457; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Oct. 20, 2005, D.C. Law 16-33, §§ 1182, 1281(c), 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-191, § 5(f), 53 DCR 6794.)
Prior Codifications
1981 Ed., § 47-3505.
Section References
This section is referenced in § 42-1102, § 47-813, § 47-902, § 47-1002, § 47-2853.181, and § 47-3506.
Effect of Amendments
D.C. Law 16-33, § 1182, added subsec. (f).
D.C. Law 16-33, § 1281(c), in subsecs. (b)(1) and (c)(1), substituted “within 36 months” for “within 1 year”; and, in subsec. (d), substituted “third tax year” for “first tax year”.
D.C. Law 16-191, in subsec. (f), validated a previously made technical correction.
Cross References
Deeds, recordation tax, exempt deeds, see § 42-1102.
Real property exempt from taxation, enumerated, see § 47-1002.
Real property transfer tax, exempt transfers, see § 47-902.
Special rules for real estate brokers, salespersons and property managers, licensure requirement exemptions, see § 47-2853.181.
Emergency Legislation
For temporary (90 day) amendment of section, see § 2 of Nonprofit Housing Organizations Tax Exemption Emergency Act of 2004 (D.C. Act 15-732, January 19, 2005, 52 DCR 1962).
For temporary (90 day) amendment of section, see §§ 1182, 1183, 1281(c), 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 day) amendment of section, see § 4 of Finance and Revenue Technical Amendments Emergency Amendment Act of 2006 (D.C. Act 16-260, January 26, 2006, 53 DCR 780).
For temporary (90 day) amendment of section, see § 4 of Finance and Revenue Technical Amendments Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-361, April 26, 2006, 53 DCR 3619).
For temporary (90 day) amendment of section, see § 3(b) of Finance and Revenue Technical Amendments Second Emergency Amendment Act of 2006 (D.C. Act 16-585, December 28, 2006, 54 DCR 340).
Temporary Legislation
Section 2 of D.C. Law 15-345 added subsec. (f) to read as follows:
“(f)(1) Beginning October 1, 2002, any nonprofit organization that has (i) acquired property to develop more than 10 units of housing for affordable or lower income home ownership in the District of Columbia, (ii) subdivided the acquired property into more than 10 units, and (iii) been denied exemption from District of Columbia real property taxes pursuant to § 47-1002 shall have 2 years from the date of the subdivision of the property to hold the property without liability for the recordation, transfer, or real property taxes associated with the acquisition and development of the property.
“(2) Beginning October 1, 2002, no recordation, transfer, or real property taxes associated with the acquisition of properties pursuant to paragraph (1) of this subsection shall be assessed against the nonprofit organization if it is not liable for taxes pursuant to paragraph (1) of this subsection.”
Section 5(b) of D.C. Law 15-345 provided that the act shall expire after 225 days of its having taken effect.
Section 4(a) of D.C. Law 16-102 rewrote subsec. (f) to read as follows:
“(f)(1) Subject to the requirements of paragraphs (2) and (3) of this subsection, any nonprofit organization that has been denied exemption from District of Columbia real property taxes pursuant to § 47-1002 and has acquired property to develop more than 10 units of housing for affordable or lower income homeownership households in the District of Columbia and subdivides the acquired property into more than 10 units shall have 2 years from the date of the subdivision of the property to hold the property as exempt from the recordation, transfer, and real property taxes associated with the acquisition and development of the property for low-income or affordable housing.
“(2) Recordation, transfer, and real property tax assessments associated with the acquisition of a property under paragraph (1) of this subsection shall not be assessed against a nonprofit organization that acquires property and subdivides it for resale into more than 10 units to low-income home owners when the first low-income home owner purchases a home within 2 years of the subdivision of the real property into lots on the records and cadastral maps of the Office of Tax and Revenue.
“(3) Real property owned or acquired by a nonprofit organization shall be exempt from recordation, transfer and real property taxes if the nonprofit organization subdivides the property into more than 10 units of low-income housing and completes the sale of all units of low-income housing on the property within 4 years from the date of acquisition.”
Section 11(b) of D.C. Law 16-102 provided that the act shall expire after 225 days of its having taken effect.
Short Title
Short title of subtitle W of title I of Law 16-33: Section 1181 of D.C. Law 16-33 provided that subtitle W of title I of the act may be cited as the Dupont Commons Low-Income Housing Tax Relief Act of 2005.
Editor's Notes
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.”
Section 1183 of D.C. Law 16-33 provided that § 1182 shall apply to real property exemption applications filed on or after January 1, 2001.