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 › § 47–860.02. Tax abatements for housing in downtown – Requirements

§ 47–860.02. Tax abatements for housing in downtown – Requirements.
(a) Subject to § 47-860.03, the Mayor may approve a tax abatement, in an amount calculated pursuant to § 47-860.03(a), for real property in an eligible area if:
(1) There is a change in use of the real property resulting in the development of at least 10 housing units.
(2)(A) At least 10% of the housing units ("affordable housing units") developed or redeveloped on the real property are affordable to households earning 60% or less of the median family income for a period of at least 20 years; or
(B) At least 18% of the affordable housing units developed or redeveloped on the real property are affordable to households earning 80% or less of the median family income for a period of at least 20 years.
(3) The affordable housing units are designed and administered in accordance with the requirements of the Inclusionary Zoning Program.
(4) The property owner files a covenant in the land records of the District, binding on the owner and all of its successors, covenanting to comply with the requirements of paragraphs (1) and (2) of this subsection.
(5) The property owner, or its designee or assignee, enters into an agreement with the District government that requires the owner, or its designee or assignee, to, at a minimum, contract with certified business enterprises for at least 35% of the contract dollar volume of the construction and operations of the project, in accordance with § 2-218.46.
(6) The property owner, or its designee or assignee, executes a First Source Agreement for the operation of the project.
(7) The property owner, or its designee or assignee, requests a letter from the Mayor stating that the proposed development or redevelopment project is eligible for the tax abatement, setting forth the expected amount of the abatement, as determined pursuant to § 47-860.03(a), and reserving that amount for the project.
(8) The Mayor transmits to the owner the eligibility and reservation letter requested under paragraph (7) of this subsection, subject to such conditions as may be imposed by the Mayor and subject to the adjustment of the abatement amount based on the certifications provided for in § 47-860.03(a), the abatement cap set forth in § 47-860.03(b), and subsection (d) of this section.
(b) The Mayor shall, as nearly as practicable, review requests for eligibility and reservation letters in the order in which each completed request is received.
(c) The Mayor shall transmit to the Office of Tax and Revenue a copy of each eligibility and reservation letter transmitted by the Mayor to an owner pursuant to subsection (a)(8) of this section.
(d) A tax abatement shall not be provided for a property for which an eligibility and reservation letter was transmitted by the Mayor pursuant to subsection (a)(8) of this section if the project based upon which the eligibility and reservation letter was issued has not received a certificate of occupancy within 18 months after the date the eligibility and reservation letter was transmitted; provided, that the Mayor may, in the Mayor's sole discretion, extend the 18-month period for up to 6 months if the project's construction has reached grade within the 18-month period, as certified by the project architect and the Mayor.
(e) After the completion of a project for which an eligibility and reservation letter was issued, the Mayor shall, if the conditions set forth in this section and the eligibility and reservation letter have been met, and subject to the abatement cap set forth in § 47-860.03(b), issue to the property owner a certification of tax abatement, subject to such conditions as the Mayor may impose. The certification of tax abatement shall set forth the annual dollar amount of the tax abatement and the time period for which the tax abatement is awarded. The Mayor shall transmit a copy of the certification of tax abatement to the Office of Tax and Revenue.
(Sept. 21, 2022, D.C. Law 24-167, § 7082(b), 69 DCR 009223; Sept. 6, 2023, D.C. Law 25-50, § 2062(b), 70 DCR 10366.)
Emergency Legislation
For temporary (90 days) creation of this section, see § 47-860.02 of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).