2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 46 - Special Tax Incentives › § 47–4673. New Howard University hospital and redevelopment real property tax abatement

§ 47–4673. New Howard University hospital and redevelopment real property tax abatement.
(a) For the purposes of this section, the term:
(1) "CBE Act" means [subchapter IX-A of Chapter 2 of Title 2].
(2) "Certified Business Enterprise" means a business enterprise or joint venture certified pursuant to the CBE Act.
(3) "First Source Agreement" means an agreement with the District governing certain obligations of the Developer pursuant to [§ 2-219.03] and Mayor's Order 83-265, dated November 9, 1983, regarding job creation and employment generated as a result of the construction on the Redevelopment Property.
(4) "New Hospital" means the teaching and research hospital constructed by the New Hospital Developer as further described in subsection (e)(4) of this section.
(5) "New Hospital Developer" means Howard University, or its successor approved by the Mayor.
(6) "New Hospital Operator" means Howard University, or other entity managing the day to day operations of the New Hospital.
(7) "New Hospital Property" has the meaning set forth in subsection (e)(4) of this section.
(8) "Project" means the redevelopment of the real property and the buildings located on the Redevelopment Property into a mixed-use project, integrated with the surrounding neighborhoods, that includes varied uses, such as residential, including a significant component of affordable and workforce housing, market and neighborhood-serving retail, hospitality, and office uses.
(9) "Redevelopment Property" means the real property known for tax and assessment purposes as Lots 033, 829, 830, and 831 in Square 3065, Lot 11 in Square 3074, Lot 807 in Square 3075, Lot 52 in Square 3072, Lots 26 and 30 in Square 3078, and Lot 73 in Square 3080 and any improvements on that real property.
(10) "Redevelopment Property Developer" means Howard University or its successor, or an affiliate or assignee of Howard University.".
(b) The approval of a successor to Howard University as the New Hospital Developer shall not be unreasonably withheld, conditioned, or delayed.
(c) Subject to subsections (d) and (e) of this section, the tax imposed on the Redevelopment Property by Chapter 8 of this title shall be abated for 20 real property tax years.
(d) The abatement provided in subsection (c) of this section shall:
(1) Begin:
(A) The earlier of October 1, 2024, or the opening of the New Hospital; and
(B) At the election of the Redevelopment Property Developer, upon:
(i) The date of issuance of the temporary certificate of occupancy of each phase of the Project for that portion of the Redevelopment Property on which the phase is located; or
(ii) The date of transfer for development of each phase referenced in sub-subparagraph (i) of this subparagraph;
(2) Not exceed $11.25 million in any tax year or $225 million in total; and
(3) Not remain in effect later than the end of tax year 2050.
(4) At the Redevelopment Property Developer's election, be subject to monetization at any time before October 1, 2024.
(e) For the Redevelopment Property to receive the abatement described in this section:
(1) The New Hospital Developer and the Redevelopment Property Developer shall execute a First Source Agreement with the Department of Employment Services for the construction and operation of the New Hospital on the New Hospital Property and the Project on the Redevelopment Property.
(2) The New Hospital Developer and Redevelopment Property Developer shall execute a Certified Business Enterprise agreement with the Department of Small and Local Business Development requiring the New Hospital Developer and the Redevelopment Property Developer to, at a minimum, contract for at least 35% of the contract dollar volume of the construction and operation of the New Hospital on the New Hospital Property and the construction and operation of the Project on Redevelopment Property with business enterprises or joint ventures certified pursuant to the CBE Act.
[(3)] The New Hospital Developer shall construct a new, state-of-the-art, full-service, teaching and research hospital on or adjacent to the Georgia Avenue, N.W., campus of Howard University with a level 1 trauma center and an academic affiliation with the Howard College of Medicine and its graduate medical education program.
[(4)] The New Hospital Developer shall open the New Hospital by October 1, 2028, and the New Hospital Operator shall operate the New Hospital on an ongoing basis for at least until the end of the time period of the tax abatement provided by this section.
[(5)] The New Hospital Operator shall endeavor in good faith to operate the existing Howard University Hospital located on the Redevelopment Property on a continuous basis until the New Hospital is open on the New Hospital Property.
(f)(1) The District shall provide funding to support the operational and start-up support for 6 years for the New Hospital Developer or New Hospital Operator to operate, starting on or before October 1, 2021, centers of excellence approved by the Department of Health for sickle cell disease, women's health, substance use and co-occurring disorders, trauma care and violence prevention, and oral health. The New Hospital Developer or New Hospital Operator shall continue to operate such centers of excellence, and maintain the conditions necessary for their approval as centers of excellence by the Department of Health, until at least the end of the time period of the tax abatement provided by this section; provided, that the foregoing requirement shall not apply during a fiscal year between and including Fiscal Year 2021 and Fiscal Year 2025 when the District does not include in its operating budget at least $3 million in the fiscal year to support the centers of excellence; provided further, that the Mayor and the New Hospital may mutually agree to modify the centers of excellence required by this paragraph.
(1A) The District shall provide funding to support the operations of the New Hospital to Howard University. The District shall provide $5 million in each fiscal year from Fiscal Year 2028 through Fiscal Year 2032, totaling $25 million.
(2) The Redevelopment Property Developer shall submit a detailed redevelopment plan for the Redevelopment Property to the Mayor by October 1, 2021, and provide an updated redevelopment plan to the Mayor at least once every 6 months thereafter until the Redevelopment Property is fully redeveloped.
(g)(1) The Mayor shall certify annually to the Office of Tax and Revenue the Redevelopment Property's eligibility for the abatement provided pursuant to this section. The Mayor's certification shall include:
(A) A description of the Redevelopment Property by square, suffix, and lot, and the date the abatement begins and ends;
(B) The date the issuance of the temporary certificate of occupancy or transfer referred to in subsection (d)(1)(B) of this section occurred;
(C) A statement that the conditions specified in subsection (e) of this section have been satisfied; and
(D) Any other information that the Mayor considers necessary or appropriate.
(2) If at any time the Mayor determines that the Redevelopment Property, or any portion of the Redevelopment Property, has become ineligible for the abatement provided by this section, the Mayor shall notify the Office of Tax and Revenue and specify the date that the ineligibility began. The Redevelopment Property, or portion of the Redevelopment Property, shall be ineligible for the abatement on the first day of the tax year following the date when ineligibility occurred.
(h) The exemption provided by this section shall be in addition to, and not in lieu of, any other tax relief or assistance applicable to the Redevelopment Property or Redevelopment Development Developer from any other source permitted under the law.
(i) Notwithstanding any other provision of law, the Mayor is authorized to take such actions as are appropriate to execute this section.
(j)(1) There is established as a special fund the Howard University Hospital Centers of Excellence Fund ("Fund"), which shall be administered by the Department of Health in accordance with paragraph (3) of this subsection.
(2) The following funds shall be deposited into the Fund:
(A) Funds appropriated in Fiscal Year 2022 or later for the purpose of providing operational and start-up support to the centers of excellence described in subsection (f) of this section; and
(B) Funds appropriated in Fiscal Year 2021 for the purposes of providing operational and start-up support to the centers of excellence described in subsection (f) of this section that remain unspent at the end of Fiscal Year 2021.
(3) Money in the Fund shall be used to provide operational and start-up support to the centers of excellence described in subsection (f) of this section. Such support may be provided through non-competitive grants or other means.
(4)(A) The money deposited into the Fund, but not expended in a fiscal year shall not revert to the unassigned fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.
(B) Subject to authorization in an approved budget and financial plan, money in the Fund shall be continually available without regard to fiscal year limitation.
(Dec. 23, 2020, D.C. Law 23-163, § 2(b), 67 DCR 13263; Nov. 13, 2021, D.C. Law 24-45, § 5052, 68 DCR 010163; Sept. 6, 2023, D.C. Law 25-50, § 7052, 70 DCR 10366.)
Emergency Legislation
For temporary (90 days) amendment of this section, see § 5052 of Fiscal Year 2022 Budget Support Emergency Act of 2021 (D.C. Act 24-159, Aug. 23, 2021, 68 DCR 008602).