D.C. Code § 47-861.06: Compact agency joint development tax abatements.

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

(a)

The real property tax imposed by § 47-811 on real property certified as eligible pursuant to subsection (e) of this section may be abated each year during the period of years determined by the Mayor pursuant to subsection (c) of this section, by the amount determined by the Mayor for that year; provided, that:

(1)

The real property is:

(A)

A property that:

(i)

Is currently, or was previously, owned by a Compact Agency and is currently, or was previously, subject to a joint development agreement with a Compact Agency; and

(ii)

Is located at an eligible Compact Agency joint development site;

(2)

The third-party owner or ground lessee of the real property enters into an agreement with the District that:

(A)

Requires the developer to, at a minimum:

(i)

Contract with certified business enterprises for at least 35% of the contract dollar volume of the construction and development of the private development components of the project, in accordance with § 2-218.46;

(ii)

Enter into a First Source Agreement for the construction and development of the private development components of the project;

(iii)

For the duration of the period set forth in subsection (c) of this section, maintain at least 10% of the housing units developed or redeveloped on the real property as affordable to households earning on average 60% or less of the median family income; and

(iv)

For the duration of the period set forth in subsection (c) of this section, ensure that at least 10% of the housing units offered for sale must be affordable to households earning on average 80% or less of the median family income; and

(B)

Sets forth such other terms and conditions as the Mayor considers appropriate;

(3)

The project to be developed on the real property is one of special merit as determined by the Mayor; and

(4)

The owner or ground lessee demonstrates to the satisfaction of the Mayor:

(A)

That a tax abatement is necessary for the project to be financially feasible;

(B)

The amount of the tax abatement necessary for the project to be financially feasible; and

(C)

An ability to complete the project in a timely manner.

(b)

The tax abatement provided for by this section shall last for up to 20 consecutive real property tax years beginning in the tax year commencing after the tax year in which the certificate of occupancy was issued for the development on the property.

(c)

The number of years and annual amount of the tax abatement provided under this section shall be the number and amount, as determined in the sole discretion of the Mayor, subject to subsection (b) of this section, necessary for the project to be financially feasible and to be timely initiated and continued to completion by the owner or ground lessee of the real property.

(d)

If, 5 years after the District and the owner or ground lessee enter into the agreement required by subsection (a)(2) of this section, the owner or ground lessee has not made substantial progress in developing the project, as determined by the Mayor, the Mayor may terminate the agreement and rescind the project's eligibility for a tax abatement under this section.

(e)

(1)

The Mayor shall certify to the Office of Tax and Revenue a real property's eligibility for the abatement provided by this section. The Mayor's certification shall include:

(A)

A description of the real property by street address, square, suffix, and lot;

(B)

The date the certificate of occupancy was issued;

(C)

The date the tax abatement begins and ends under subsections (b) and (c) of this section;

(D)

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

(E)

The annual amount of the abatement as determined by the Mayor pursuant to subsection (c) of this section; and

(F)

Any other information that the Mayor considers necessary or appropriate.

(2)

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 property shall be ineligible for the abatement on the first day of the tax year following the date when the ineligibility occurred.

(f)

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)

"Compact Agency" means the Washington Metropolitan Area Transit Authority.

(3)

"Developer" means the owner or ground lessee of real property eligible for a tax abatement under this section.

(4)

"Eligible Compact Agency joint development site" means a site located on property currently or previously owned by a Compact Agency and within 1,750 feet of a Metrorail station.

(5)

"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.

(6)

"Joint development agreement" means a contract between a Compact Agency and a third party to sell or ground lease Compact Agency property for development.

(7)

"Private development components" means construction and development aspects of a project that are not transit-related infrastructure delivered in coordination with WMATA.

(8)

"Special merit" means, with respect to a project under this section, providing significant benefits to the District or to the community in which the project is located by virtue of:

(A)

Providing a significant number of housing units or a substantial square footage of neighborhood-serving or regional retail;

(B)

Historical designation of the site on or building in which the project is located;

(C)

Complexity of the development; or

(D)

Social or other benefits having a high priority in the District or the community within which the project is to be located.

(g)

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