D.C. Mun. Regs. tit. 10, r. 10-B6602

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

Rule 10-B6602 - REQUIREMENTS FOR TAX ABATEMENT; EXEMPTIONS FROM CERTAIN LAWS

6602.1

For real property to be eligible for a tax abatement under this chapter, the following requirements must be satisfied:

(a) The parcel is located in an eligible area;

(b) There is a change in use of the parcel, as indicated by the certificate of occupancy for the development, resulting in the creation of at least ten (10) housing units;

(c) The development must meet the following affordability criteria:

(1) At least ten percent (10%) of the housing units developed on the parcel shall be affordable to, and set aside for, households earning sixty percent (60%) or less of the median family income for a period of at least twenty (20) years; or

(2) At least eighteen percent (18%) of the housing units developed on the parcel shall be affordable to, and set aside for, households earning eighty percent (80%) or less of the median family income for a period of at least twenty (20) years.

(d) The affordable housing units required by paragraph (c) shall be designed and administered in accordance with the requirements of the Inclusionary Zoning Program for the term of the tax abatement;

(e) The owner shall file a covenant in the land records, as described in §§6606 of this chapter;

(f) The owner, or its designee or assignee, shall enter into an agreement with the District that requires the owner, or its designee or assignee, to, at a minimum, contract with certified business enterprises for at least thirty-five percent (35%) of the contract dollar volume of the construction and operations of the development, in accordance with Section 2346 of the Small and Certified Business Enterprise Development and Assistance Act (CBE Act), approved October 20, 2005 (D.C. Law 16-33; D.C. Official Code §§ 2-218.46);

(g) The owner, or its designee or assignee, shall enter into a First Source Agreement for the operation of the development; and

(h) The owner and development shall satisfy the other requirements of this chapter, as applicable.

6602.2

Housing units included in the development as part of the Inclusionary Zoning Program or other affordable housing units included in the development pursuant to Zoning Commission requirements shall be counted towards the affordability requirement of §§6602.1(c) of this chapter if they meet or exceed the affordability requirements of §§6602.1(c) of this chapter.

6602.3

Each real property for which the Office of the Deputy Mayor for Planning and Economic Development (DMPED) has approved a tax abatement under D.C. Official Code §§ 47-860.02(a) shall be:

(a) Exempt from the requirement to enter into a First Source Agreement for the construction and development phases of the development; and

(b) Exempt from the requirements of the Tenant Opportunity to Purchase Act (TOPA) of 1980, effective September 10, 1980 (D.C. Law 3-86; D.C. Official Code §§43-3404.01 et seq.), for the first sale within ten (10) years after the certificate of occupancy has been issued for the real property.

D.C. Mun. Regs. tit. 10, r. 10-B6602

Final Rulemaking published at 71 DCR 3248 (3/22/2024)