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 › § 47–857.07. Tax abatements for new residential developments — Tax abatement for new, mixed-income housing projects in higher-cost and other qualified areas throughout the District of Columbia

§ 47–857.07. Tax abatements for new residential developments — Tax abatement for new, 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: 75% 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 75% 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) The dwelling units occupied by low-income households and 60%-of-area-median-income households shall be equivalent in size and quality to other dwelling units in the development.
(4) The variety of the sizes of dwelling units occupied by low-income households and 60%-of-area-median-income households shall be reasonably similar to the variety of sizes of dwelling units in the eligible property as a whole.
(5) 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.
(6) 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.
(d)(1) For the purposes of this subsection, the term:
(A) “4100 Georgia Avenue Developer” means:
(i) The person (or any successor in interest) who will develop or has developed the 4100 Georgia Avenue Project; and
(ii) Any subsequent owner or assignee of or successor in interest of the 4100 Georgia Avenue Project.
(B) “4100 Georgia Avenue Project” means the project constructed on Lots 35 and 803 (and any subsequent subdivision or division of those lots) and the alley in between them in Square 2910, consisting of affordable housing. The term “4100 Georgia Avenue Project” shall not include the portion of the project used for commercial purposes.
(C) “Affordable housing” means a housing unit which is rented to a household whose income does not exceed 60% of the area median income.
(2)(A) Notwithstanding the provisions of § 47-857.02, beginning on the date that a certificate of occupancy for the 4100 Georgia Avenue Project is issued, there shall be allowed an abatement of all of the real property tax imposed by § 47-811 on the 4100 Georgia Avenue Project if:
(i) The certificate of occupancy for the building shall have been issued on or before May 28, 2009; and
(ii) The building satisfies the provisions of § 47-857.06(a)(2), (3), and (4).
(B) If the conditions of subparagraph (A)(i) and (ii) of this paragraph are satisfied, the Mayor shall issue to the 4100 Georgia Avenue Developer a certification letter stating that the 4100 Georgia Avenue Project is eligible for the abatement and that the Mayor has reserved the abatement for the 4100 Georgia Avenue Project in the allocated amount. A copy of the certification letter shall be sent to the Director of the Real Property Tax Administration of the Office of Tax and Revenue.
(C)(i) All of the housing units in the 4100 Georgia Avenue Project shall be affordable housing. If all of the housing units in the 4100 Georgia Avenue Project are not affordable housing, the abatement provided by this subsection shall terminate as of the beginning of the real property tax year in which all of the housing units in the 4100 Georgia Avenue Project are not affordable housing. If the abatement shall terminate, the tax, plus interest from the termination date, shall be due and payable 30 days after the date of the billing therefor.
(ii)(I) The Georgia Avenue Developer shall provide a certification of an independent certified public accounting firm to the Mayor and the Director of the Real Property Tax Administration of the Office of Tax and Revenue on or before October 1 of each year that all of the housing units in the 4100 Georgia Avenue Project are affordable housing:
(aa) As of October 1 of the preceding year; and
(bb) For the entire calendar year for the preceding year.
(II) If the Georgia Avenue Developer does not file timely the certification required by sub-sub-subparagraph (I) of this sub-subparagraph, the abatement provided by this subsection shall terminate as of October 1 of the preceding year and the tax, plus interest from the termination date, shall be due and payable 30 days after the date of billing therefor; provided, that the Director of the Real Property Tax Administration of the Office of Tax and Revenue may, in his discretion, grant an extension for such period as he considers reasonable.
(3) For each deadline set forth in paragraph (2)(A) and (B) of this subsection, one 6-month extension may be granted at the discretion of the Mayor.
(4) The abatement allowed by this subsection shall be included in and subject to the annual $3.5 million abatement limit set forth in § 47-857.09(c).
(5) The abatement allowed by this subsection shall expire 40 years after the tax abatement takes effect.
(Apr. 19, 2002, D.C. Law 14-114, § 601(b), 49 DCR 1468; Mar. 6, 2007, D.C. Law 16-226, § 2(c), 53 DCR 10238.)
Section References
This section is referenced in § 47-857.02 and § 47-857.09.
Effect of Amendments
D.C. Law 16-226 added subsec. (d).
Emergency Legislation
For temporary (90 day) amendment of section, see § 2(a) of Square 2910 Residential Development Stimulus Emergency Act of 2006 (D.C. Act 16-471, July 31, 2006, 53 DCR 6778).
For temporary (90 day) enactment, see § 3 of Square 2910 Residential Development Stimulus Emergency Act of 2006 (D.C. Act 16-471, July 31, 2006, 53 DCR 6778).
For temporary (90 day) amendment of section, see § 2(a) of Square 2910 Residential Development Stimulus Congressional Review Emergency Act of 2006 (D.C. Act 16-521, October 27, 2006, 53 DCR 9117).
For temporary (90 day) enactment, see § 3 of Square 2910 Residential Development Stimulus Congressional Review Emergency Act of 2006 (D.C. Act 16-521, October 27, 2006, 53 DCR 9117).
For temporary (90 day) amendment of section, see § 2(c) of Square 2910 Residential Development Stimulus Second Congressional Review Emergency Act of 2006 (D.C. Act 16-669, December 28, 2006, 54 DCR 1146).
Temporary Legislation
Section 2(a) of D.C. Law 16-201 added subsec. (d) to read as follows:
“(d)(1) Notwithstanding the provisions of § 47-857.02, there shall be allowed an exemption from all of the real property tax imposed by § 47-811 on the property in eligible area #4 owned by the 4100 Georgia Avenue developer and the Mayor shall issue to the 4100 Georgia Avenue developer certification letters stating that the property and buildings are eligible for the exemption and that the Mayor has reserved the exemption for the property and buildings in the allocated amounts; provided, that, with respect to the 4100 Georgia Avenue project:
“(A) The first level of concrete shall be laid by December 31, 2007;
“(B) A certificate of occupancy for the building shall have been issued within 36 months after the first level of concrete has been laid for the building; and
“(C) The building satisfies the provisions of § 47-857.06(a)(2), (3), and (4).
“(2) For each deadline set forth in paragraph (1) of this subsection, one 6-month extension may be granted at the discretion of the Mayor.
“(3) The tax exemption allowed by this subsection shall be included in and subject to the annual $3.5 million abatement limit set forth in § 47-857. 09(c).
“(4) The tax exemption allowed by this subsection for eligible area #4 shall expire when the tax exemption allowed for eligible area #4 has cumulatively amounted to $3.3 million.
“(5) For the purposes of this subsection, the term:
“(A) ‘4100 Georgia Avenue developer’ means the person (or any successor in interest) who will develop or has developed a residential property on Lots 35 and 803 (and any subsequent subdivision or division of those lots) and the alley between them in Square 2910, and any subsequent owner or assignee of or successor in interest to the 4100 Georgia Avenue project. The term ”4100 Georgia Avenue developer“ shall not include any owner or operator of the first-floor commercial space, if such first-floor commercial space is sold as a condominium to an entity or person other than the 4100 Georgia Avenue developer.
“(B) ‘4100 Georgia Avenue project’ means the project constructed on Lots 35 and 803 (and any subsequent subdivision or division of those lots) and the alley between them in Square 2910, consisting of affordable housing and first-floor retail space.”
Section 3 of D.C. Law 16-201 added provisions to read as follows:
“Sec. 3. Financial imposition exemption for the 4100 Georgia Avenue, N.W., project.
“(a) Notwithstanding any other provisions of law, no fees shall be charged to the 4100 Georgia Avenue developer or any other owners or developers of the 4100 Georgia Avenue project for any permits related to the construction of the 4100 Georgia Avenue project, including private space or public permit fees or building permit fees (involving vault space rental).
“(b) For the purposes of this section, the term:
“(1) ‘4100 Georgia Avenue developer’ means the person (or any successor in interest) who will develop or has developed a residential property on Lots 35 and 803 (and any subsequent subdivision or division of those lots) and the alley between them in Square 2910.
“(2) ‘4100 Georgia Avenue project’ means the project constructed on Lots 35 and 803 (and any subsequent subdivision or division of those lots) and the alley between them in Square 2910, consisting of affordable housing and first-floor retail space.”
Section 6(b) of D.C. Law 16-201 provided that the act shall expire after 225 days of its having taken effect.
Editor's Notes
Financial imposition exemption for the 4100 Georgia Avenue, N.W. project: Section 3 of D.C. Law 16-226 provided:
“(a) For the purposes of this section, the term:
“(A) ‘4100 Georgia Avenue Developer’ means:
“(i) The person (or any successor in interest) who will develop or has developed the 4100 Georgia Avenue Project; and
“(ii) Any subsequent owner or assignee of or successor in interest of the 4100 Georgia Avenue Project.
“(B) ‘4100 Georgia Avenue Project’ means the project constructed on Lots 35 and 803 (and any subsequent subdivision or division of those lots) and the alley in between them in Square 2910, consisting of affordable housing and first-floor retail space.
“(b) Notwithstanding any other provision of law, no fees shall be charged to the 4100 Georgia Avenue Developer for any permits related to the construction of the 4100 Georgia Avenue Project, including private space or public permit fees or building permit fees (involving vault space rental). The exemption provided by this subsection shall not include condominium registration application fees or condominium conversion fees.”
Delegation of Authority
Delegation of Authority to the Deputy Mayor for Planning and Economic Development—Authority to Issue a Certification Letter Stating that the 4100 Georgia Avenue Project is Eligible for a Property Tax Abatement, see Mayor’s Order 2009-145, August 13, 2009 ( 56 DCR 7274).