D.C. Mun. Regs. tit. 10, r. 10-B5909

Current through Register Vol. 71, No. 44, November 1, 2024

Rule 10-B5909 - TAX ABATEMENTS FOR NEW, VERY MIXED-INCOME HOUSING PROJECTS IN ELIGIBLE AREA # 3

5909.1

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: one hundred (100%) percent of the difference between the residential real property tax imposed on the project by D.C. Official Code § 47-811 immediately before and immediately after development or a dollar amount based on negotiations with DMED which results in approximately one hundred (100%) 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:

(a) Five (5%) percent of the housing units in the eligible real property shall be affordable to, and occupied by, low-income households for twenty (20) years after the certificate of occupancy for the eligible real property is issued as certified by the owner annually in a written statement to DMED;

(b) An additional ten (10%) percent of the housing units in the eligible real property shall be affordable to, and occupied by, households with household incomes of sixty (60%) percent or less of the area median income for twenty (20) years after the certificate of occupancy for the eligible real property is issued, as certified by the owner annually in a written statement to DMED;

(c) An additional five (5%) percent of the housing units in the eligible real property shall be affordable to, and occupied by, extremely low-income households for twenty (20) years after the certificate of occupancy for the eligible real property is issued, as certified by the owner annually in a written statement to DMED;

(d) The dwelling units occupied by low-income households, the sixty (60%) percent-of-area-median-income households and the extremely low-income households shall be equivalent in size and quality to other dwelling units in the development as certified by the owner, at the time of the request for certification pursuant to section 5903.3 of this chapter, that the units are comparable in size and the materials used in all units are of comparable quality;

(e) The variety of the sizes of dwelling units occupied by low-income households, the sixty (60%) percent-of-area-median-income households and the extremely low-income households shall be reasonably similar to the variety of sizes of dwelling units in the eligible property as a whole as certified by the owner;

(f) The tax abatement for an eligible real property allowed by this section shall expire at the end of the tenth (10th) year after the tax abatement was first reflected in a real property tax bill issued pursuant to section 5903.10 of this chapter; and

(g) 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 ten (10) dwelling units, the abatement shall not be allowed, such disallowance to become effective during the first six (6) month period following the date on which such property first contained less than ten (10) dwelling units.

5909.2

If, during one (1) of the last ten (10) years of the twenty (20) year period of affordability required by subsection 5909.1(a) of this chapter 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 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 tenant to no longer meet the income qualification requirements for that unit shall not constitute a breach or default and, in such event, the property shall remain eligible for tax abatement.

5909.3

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-B5909

Final Rulemaking published at 50 DCR 553 (January 17, 2003)