Subject to the requirements of section 5903 of this chapter, an abatement of the real property tax imposed pursuant to D.C. Official Code § 47-811 for an eligible property in Eligible Area # 3 shall be allowed in an amount computed as follows: seventy-five (75%) percent of the difference between the residential real property tax imposed on the project by D.C. Official Code § 47-811 before and after development or a dollar amount based on negotiations with DMED which results in approximately seventy-five (75%) percent of the difference between the residential real property tax imposed on the project pursuant to D.C. Official Code § 47-811 immediately before and immediately after development; provided that, in either event:
If, during one (1) of the last ten (10) years of the twenty (20) year period of affordability required by subsection 5908.1(a) of this chapter, five (5%) percent of the housing units are not affordable to, and occupied by, low-income households, the owner of the property shall be assessed a penalty of $ 10,000 per year for each unit which should be, but is not, affordable to low-income households unless such non-compliance results from a casualty to or condemnation of to the property; provided that, DMED may waive the penalty upon a showing of good cause, including the inability of the owner to sell or lease such units to low-income households based on factors outside the control of the owner and notwithstanding the commercially reasonable, but unsuccessful, efforts of the owner to market the unit(s). Notwithstanding the foregoing, the change in a qualified tenant's income during such tenant's occupancy which caused such tenants to no longer meet the income qualification requirements for such unit shall not constitute a breach or default and, in such event, the property shall remain eligible for tax abatement.
DMED may require an owner to demonstrate that the rents and tenant income for eligible real property are consistent with the requirements for tax abatement set forth in Title VI of the Act. If the requirements are not met, after notice by DMED to the owner and a public hearing if requested by the owner, the abatement shall not be allowed and the owner shall remit all taxes owed for the period of non-compliance.
D.C. Mun. Regs. tit. 10, r. 10-B5908