D.C. Code § 47-860a: Workforce housing opportunity tax abatement.

*NOTE: This section was created by emergency legislation that will expire on November 11, 2026.*

(a)

Real property tax imposed by § 47-811 on real property certified as eligible pursuant to subsection (f) of this section shall be abated each year during the period set forth in subsection (e) of this section, by the amount certified by the Mayor for that year; provided, that:

(1)

The developer provides a fiscal analysis prepared by a third-party showing the amount of abatement required for the feasibility of the project;

(2)

The real property is developed with at least 30 housing units;

(3)

For the duration of the period set forth in subsection (e) of this section, at least 20% of the housing units developed or redeveloped on the real property are maintained as affordable to households earning 80% or less of the median family income and at least 20% of the housing units are maintained as affordable to households earning 80% to 100% of the median family income;

(4)

The developer files a covenant in the land records of the District, binding on the developer and all of its successors in interest with respect to the property, covenanting to comply with the requirements of paragraph (3) of this subsection;

(5)

The developer enters into an agreement with the District that requires the developer to, at a minimum, contract with certified business enterprises for at least 35% of the contract dollar volume of the construction and operations of the project, in accordance with § 2-218.46;

(6)

The developer enters into a First Source Agreement for the construction, development, and operations of the project; and

(7)

The developer enters into an agreement with the Mayor setting forth the requirements of this subsection and such other terms and conditions as the Mayor considers appropriate.

(b)

The total amount of the tax abatements certified by the Mayor pursuant to this subsection (the "maximum fiscal year abatement amount") shall not exceed:

(1)

$4 million in Fiscal Year 2029;

(2)

$5 million in Fiscal Year 2030;

(3)

$6 million in Fiscal Year 2031; and

(4)

In Fiscal Year 2032 and each subsequent fiscal year, an amount equal to 105% of the prior year's maximum fiscal year abatement amount.

(c)

The amount of the tax abatement certified by the Mayor for an individual abatement shall be no greater than the amount needed for the feasibility of the project, as demonstrated by an independent financial analysis, and shall not exceed the total amount of residential taxes due for any year during the term of the abatement.

(d)

A tax abatement certified by the Mayor under this section shall begin on the first day of the tax year immediately following the tax year when the certificate of occupancy was issued for the final housing unit counted toward satisfying the affordability requirement of subsection (a)(3) of this section; provided, that a tax abatement provided pursuant to this section shall not begin before October 1, 2028.

(e)

A tax abatement certified by the Mayor under this section shall continue until the end of the 10th tax year after the tax year during which the abatement begins pursuant to subsection (d) of this section; except, that the tax abatement provided for by this section may continue until the end of the 20th tax year after the tax year during which the abatement begins pursuant to subsection (d) of this section if the Mayor determines that the abatement is necessary for the feasibility of the project;

(f)

(1)

The Mayor may, through a competitive process, certify to the Office of Tax and Revenue a real property's eligibility to receive the tax abatement provided by this section; provided, that the Mayor shall prioritize real property that is sold, conveyed, leased, or disposed of by the District pursuant to [subchapter I of Chapter 8 of Title 10].

(2)

The Mayor's certification shall include:

(A)

A description of the real property certified to receive the tax abatement by street address, square, suffix, and lot;

(B)

The date the tax abatement begins and ends under subsection (e) of this section;

(C)

The annual amount of tax abatement allocated to the property pursuant to subsection (b) of this section;

(D)

A statement that the conditions specified in subsection (a) of this section have been satisfied; and

(E)

Any other information that the Mayor considers necessary or appropriate.

(3)

If at any time the Mayor determines that the real property has become ineligible for the abatement provided by this section, the Mayor shall notify the Office of Tax and Revenue and shall specify the date that the property became ineligible. The real property shall be ineligible for the abatement on the first day of the tax year following the date when the ineligibility occurred.

(g)

The tax abatement provided by this section shall be in addition to, not in lieu of, any other tax relief or assistance from any other source.

(h)

For the purposes of this section, the term:

(1)

"Certified business enterprise" means a local business enterprise certified pursuant to Part D of Subchapter IX-A of Chapter 2 of Title 2.

(2)

"Developer" means the owner of housing units on real property eligible for a tax abatement under this section.

(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.

(4)

"Median family income" has the meaning set forth in § 6-1041.01(5).

(i)

The Mayor, pursuant to [subchapter I of Chapter 5 of Title 2], may issue rules to implement this section.