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Councilmember Christina Henderson Councilmember Brooke Pinto 2
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A BILL 4
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 8
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To establish incentives to transform the Central Business District into a place to live, work, and 12
play, to provide childcare incentives to support a return to in-person work in the Central 13
Business District, to support innovative and effective strategies to promote public safety 14
in commercial corridors across the District, and to promote the equitable and resilient 15
recovery of the entire District of Columbia. 16
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 18
act may be cited as the “Rediscover Equitable Central Occupancy Vitality and Encourage 19
Resilient Yield (RECOVERY) Amendment Act of 2023”. 20
Sec. 2. Chapter 8 of Title 47 of the District of Columbia Official Code is amended as 21
follows: 22
(a) Section 47-860.03(b) is amended to read as follows: 23
“(b) The amount of tax abatements the Mayor may approve or certify under 24
section 47- 860.02 and restore upon subsection (a)(2) of this section shall be capped at the 25
following amounts, subject to availability of funding: 26
“(1) For Fiscal years 2024, 2025, 2026, 2027 and 2028 $5 million per 27
year; and 28
“(2) For each succeeding fiscal year after Fiscal Year 2028, an amount 29
equal to 104% of the prior year’s cap.” 30
(b) New sections (c) and (d) are added to read as follows: 31
“(c) Any property which receives a tax abatement from the Mayor under D.C. Code 32 2
section 47-860.02 et seq. during the period under subsection (b)(1) above shall be then 33
exempted, either in whole or in part based on a determination by the Mayor, from real property 34
taxation per D.C. Code section 47-811 for a period of twenty (20) years starting in Fiscal Year 35
2029. 36
“(d) Any property which meets the eligible requirements of D.C. Code section 47-860.02 37
et seq. and subsection (c) above and builds 10% of the units to be family sized shall be exempt 38
from taxes imposed by sections 47-903 and 42-1103. 39
Sec. 3. Section 2032 of the Deputy Mayor for Planning and Economic Development 40
Limited Grant-Making Authority Act of 2012, effective September 12, 2012 (D.C. Law 41
19-168; D.C. Official Code § 1-328.04), is amended as follows: 42
(a) Subsection (k)(3) is amended to read as follows: 43
“(3) To the Golden Triangle BID in the amount of $4 million annually for Fiscal 44
years 2024, 2025, 2026, 2027 and 2028 for the growth and improvement of the innovation 45
district.” 46
(b) A new subsection (dd) is added to read as follows: 47
“(dd)(1)(A) There is established as a nonlapsing fund the Safe Commercial Corridors 48
Fund (“Fund”), which shall be used solely for the purposes set forth in sub-subsection (2) of this 49
section, and administered by the Deputy Mayor for Planning and Economic Development. 50
(B) All funds deposited into the Fund shall not revert to the unrestricted fund 51
balance of the General Fund of the District at the end of a fiscal year, or at any other time, but 52
shall be continually available for the uses and purposes set forth in sub-subsection (2) of this 53
section without regard to the fiscal year limitation, subject to authorization by Congress. 54 3
(C) Any funds that are transferred through intra-District funding and are not 55
expended in any fiscal year shall revert to the Fund and be available for use in the subsequent 56
fiscal year. 57
(D) The Fund shall be distributed to eligible organizations, as qualified pursuant 58
to this sub-subsection, solely for the purpose of making the area served by the organization 59
("commercial district") and the surrounding area safer for residents, workers, and visitors 60
through the creation or augmentation of a Safe Commercial Corridors Program, as described in 61
sub-subsection (2) of this subsection. 62
(E) Eligible organizations: 63
(i) Serve the District’s residents, workers, business owners, property 64
owners, and visitors of commercial corridors in the District; 65
(ii) Engage in the maintenance of public and commercial spaces in the 66
District of Columbia; 67
(iii) Shall provide a “Clean Hands” certificate to verify it is in good 68
financial standing with the Government of the District of Columbia; and 69
(iv) Shall submit a Safe Commercial Corridors Program Plan to DMPED 70
as described in sub-subsection 4 of this subsection. 71
(2)(A) A Safe Commercial Corridors Program shall promote public safety and 72
health within the commercial district and surrounding area through various activities, as outlined 73
by the grant recipient and approved by DMPED. 74
(B) Activities may include relationship-building with residents, workers, 75
businesses, and regular visitors; connecting residents, workers, visitors, and businesses with 76
resources through District government agencies and direct service providers; providing safe 77 4
passage for individuals who request accompaniment walking to transit or their vehicle; assisting 78
business owners with improvements to their security and safety systems and protocols; 79
responding to substance use disorders and implementing harm reduction strategies; 80
implementing de-escalation techniques; deterring crime; liaising with residents, workers, 81
businesses, visitors, District public safety and health agencies, direct service providers in the 82
community, and others as appropriate; providing culturally competent services and 83
programming; and implementing other innovative strategies to promote public safety. 84
(C) Organizations receiving funds pursuant to this subsection are 85
encouraged to coordinate with other organizations receiving funds pursuant to this subsection to 86
share results and lessons learned from implementation of the Safe Commercial Corridors 87
Program and other public safety efforts implemented by the organization. 88
(3) A grant awarded pursuant to paragraph (1) of this subsection may be used to 89
pay for the costs of: 90
(A) Salary and fringe benefits for staff; and 91
(B) Equipment, training, training materials, uniforms, first aid and other 92
medical materials and equipment; and 93
(C) Other materials and equipment for purposes of implementing the Safe 94
Commercial Corridors Program; 95
(4) An organization seeking a grant under paragraph (1) of this subsection shall 96
submit to the Deputy Mayor an application, in a form proscribed to the Deputy Mayor. The 97
application shall include: 98
(A) A description of the public safety and health problems faced in the 99
commercial district and surrounding area; 100
(B) A description of how the applicant proposes to spend the grant funds 101 5
to address the public safety and health problems identified in the application and to promote 102
improvements in public safety and health in the commercial district and surrounding area; and 103
(C) Any additional information requested by the Deputy Mayor. 104
(5) An organization receiving a grant pursuant to this sub-section shall submit a 105
report by the end of each fiscal year in which funds are received evaluating the success of its 106
Safe Commercial Corridors Program, including a detailed description of the program activities, 107
any training or support provided to program staff, a summary of the number and types of 108
interactions between program staff and residents, visitors, businesses, and other individuals, and 109
any other data or information as required by DMPED. 110
Sec. 4. Rediscover Equitable Central Occupancy Vitality and Encourage Resilient Yield 111
(RECOVERY). 112
Chapter 10 of Title 47 of the District of Columbia Official Code is amended as follows: 113
(a) The table of contents is amended by adding a new section designated to read as 114
follows: 115
“47-1099.14 Rediscover Equitable Central Occupancy Vitality and Encourage Resilient 116
Yield (RECOVERY).” 117
(b) A new section 47-1099.14 is added to read as follows: 118
“(a) Real property tax imposed by section 47-811 shall be abated and real property shall 119
be exempt from tax imposed by sections 47-903 and 42-1103; provided that: 120
“(1) The real property is designated and certified as eligible to receive a tax 121
abatement and a tax exemption by the Deputy Mayor pursuant to subsection (d) of this section; 122
“(2) The real property is located within: 123
“(A) The Downtown Business Improvement District, as defined in section 124
2-1215.51(b); or 125 6
“(B) The Golden Triangle Business Improvement District, as defined in 126
section 2-1215.52(b); 127
“(3) With respect to real property abated from tax imposed by section 47-811, for 128
the duration of the period set forth in subsection (b)(2)(A) of this section and with respect to real 129
property exempted from tax imposed by sections 47-903 and 42-1103, at the applicable time, 130
there is a change in use resulting in the development or redevelopment, of: 131
“(A) One or more establishments in the hotel sector, provided, that any 132
establishment shall enter into a project labor agreement; 133
“(B) One or more establishments in the retail sector, provided, that any 134
establishment shall enter into an agreement with the Deputy Mayor requiring such economic 135
inclusion requirements for the operations of the establishment that the Deputy Mayor may 136
require; 137
“(C) One or more establishments in the restaurant sector; or 138
“(D) One or more establishments in the sports, entertainment, education, 139
and culture sector, provided, that the establishments shall occupy at least 50% of the gross floor 140
area of the development. 141
“(b) In addition to the requirements of subsection (a) of this section, real property tax 142
imposed by section 47-811 shall: 143
“(1) Be abated if the developer: 144
“(A) Files a covenant in the land records of the District, binding 145
the developer and all of its successors in interest with respect to the property, covenanting to 146
comply with the applicable requirements of subsection (a)(3) of this section; 147
“(B) Enters into an agreement with the District that requires the 148
developer to, at a minimum, contract with certified business enterprises for at least 35% of the 149 7
contract dollar volume of the construction and operations of the project, in accordance with 150
section 2-218.46; 151
“(C) Enters into a First Source Agreement for the operations of 152
the project; 153
“(D) Enters into an agreement with the Deputy Mayor requiring 154
such economic inclusion requirements for the construction and operations of the project as the 155
Deputy Mayor may require; and 156
“(E) The developer enters into an agreement with the Deputy 157
Mayor setting forth the requirements of this subsection and such other terms and conditions as 158
the Deputy Mayor considers appropriate. 159
“(2)(A) Begin in the tax year immediately following the tax year during which the 160
certificate of occupancy was issued for the use counting toward satisfying the requirements of 161
subsection (a)(3) of this section and shall continue until the 30
th
tax year after the tax year during 162
which such certificate was issued. 163
“(B) Be in the amount of 100% of the real property’s tax liability during 164
each property tax year in which the tax abatement is in effect; provided, that for a real property 165
that is eligible only under subsection (a)(3)(B), (a)(3)(C), or (a)(3)(D) of this section, the amount 166
shall be the pro rata share of the gross floor area occupied by the eligible use. 167
“(C) Tax abatements provided by sections (a)(3)(A)-(D) above shall be 168
eligible for the funds provided in D.C. Code section 47-850.03(b). 169
“(c) The Deputy Mayor: 170
“(1) May through a competitive process, designate real property to be eligible to 171
receive a tax abatement and a tax exemption under this section. 172
“(2) Shall certify to the Office of Tax and Revenue the eligibility of a real 173 8
property for an abatement provided by this section. The certification shall include: 174
“(A) A description of the real property by street address, square, suffix, 175
and lot; 176
“(B) A statement that the conditions of subsection (a) of this section have 177
been satisfied; 178
“(C) The date of the certificate of occupancy was issued for the use 179
counting toward satisfying the requirements of subsection (a)(3) of this section; 180
“(D) For real property tax imposed by section 47-811: 181
“(i) The date the tax abatement begins and ends under subsection 182
(b)(2)(A); and 183
“(ii) The amount of abatement allocated to the property pursuant to 184
subsection (b) of this section; and 185
“(E) Any other information that the Deputy Mayor considers necessary or 186
appropriate. 187
“(3)(A) If at any time the Deputy Mayor determines that the real property has 188
become ineligible for the abatement provided by this section, the Deputy Mayor shall notify the 189
Office of Tax and Revenue and shall specify the date that the property became ineligible. 190
“(B) The entire property shall be ineligible for the abatement on the first 191
day of the tax year following the date when the ineligibility occurred. 192
“(e) The tax abatement provided by this section shall be in addition to, and not in lieu of, 193
any other tax relief or assistance from any other source. 194
“(f) The requirements of the First Source Act shall not apply to the construction or 195
development of a project developed on real property designated by the Deputy Mayor pursuant 196
to subsection (b) of this section. 197 9
“(g) For the purposes of this section, the term: 198
“(1) “CBE Act” means the Small and Certified Business Enterprise Development 199
and Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 200
2-218.01 et seq.). 201
“(2) “Certified business enterprise” means a business enterprise or joint venture 202
certified pursuant to the CBE Act. 203
“(3) “Deputy Mayor” means the Deputy Mayor for Planning and Economic 204
Development. 205
“(4) “Developer” means the owner of the use developed or redeveloped on real 206
property eligible for a tax abatement under this section. 207
“(5) “Family sized” means a rental unit with 3 or more bedrooms. 208
“(6) “First Source Act” means the First Source Employment Agreement Act of 209
1984, effective June 29, 1984 (D.C. Law 5-93; D.C. Official Code § 2-219.01 et seq.). 210
“(7) “First Source Agreement” means an agreement with the District governing 211
certain obligations of the Developer pursuant to section 4 of the First Source Act (D.C. Official 212
Code § 2-219.03), and Mayor's Order 83-265, dated November 9, 1983, regarding job creation 213
and employment. 214
“(8) “Hotel” has the meaning set forth in Section 199.1ofTitle 14 of the DCMR. 215
“(9) “Median Family Income” has the meaning set forth in section 101(5) of the 216
Inclusionary Zoning Implementation Amendment Act of 2006, effective September 23, 2017 217
(D.C. Law 16-275; D.C. Official Code § 6-1041.01(5)). 218
“(10) “Restaurant” means full-service restaurants, including limited-service 219
restaurants, fast food restaurants, and food service providers such as cafes, delicatessens, coffee 220
shops, supermarkets, grocery stores, and cafeterias. 221 10
“(11) “Retail” means an establishment that is engaged in direct onsite sales of 222
general merchandise goods to consumers. 223
“(12) “Sports, entertainment, education, and culture sector” means an 224
establishment that is open to the public for entertainment, leisure, education, or cultural 225
purposes, including bars, entertainment venues, nightlife establishments, theatres, sports, 226
recreation, public, private, or charter schools serving the pre-kindergarten through 12th grade, 227
colleges, universities, and post-graduate schools, entertainment venues, art galleries, and cultural 228
institutions.”. 229
Sec. 5. Rediscover Equitable Central Occupancy Vitality and Encourage Resilient Yield 230
(RECOVERY) Retail Grant Program. 231
(a) The Deputy Mayor for Planning and Economic Development Limited Grant-Making 232
Authority Act of 2012 is amended by adding a section (ee) to read as follows: 233
“(a)(1) Notwithstanding the Grant Administration Act of 2013, effective December 2013 234
(D.C. Law 20-61; D.C. Official Code § 1-328.11 et seq.), the Mayor, in the sole discretion of the 235
Mayor, may issue a two-year grant program to an eligible business in accordance with this 236
section and regulations issued pursuant to this section; provided that: 237
“(A) The eligible business is located in: 238
“(i) The Downtown Business Improvement District, as defined in section 239
2-1215.51(b); or 240
“(ii) The Golden Triangle Business Improvement District, as defined in 241
section 2-1215.52(b); 242
“(B) The eligible business demonstrates, to the satisfaction of the Mayor, that it is 243
opening or expanding in a retail or commercial space that has been vacant at least 6 months prior 244
to applying; 245 11
“(c) The eligible business submits a grant application in the form and with the 246
information required by the Mayor; and 247
“(D) A grant is equivalent to the sales and use tax paid by the eligible business 248
annually, provided, that at least 20% of the total grant funds disbursed are set aside for one or 249
more eligible businesses that is: 250
“(i) Also, or is eligible to be, a resident-owned business and a small 251
business enterprise as those terms are defined, respectively, in section 2302(15) and (16); and 252
“(ii)(I) At least 51% owned by a woman or a majority of women; or 253
“(II) Is, or eligible to be, a disadvantaged business enterprise, as 254
that term is defined in section 2302(5). 255
“(2) An eligible business awarded a grant pursuant to this section may use the 256
grant funds for activities and costs related to sustaining and growing the business, such as staff 257
costs, capital improvements, marketing, inventory and supplies, and utilities; provided, that no 258
amount of the grant shall be used for executive salaries or bonuses. 259
“(b)(1) The Mayor may award a two year grant to a lessor of property that leases to an 260
eligible business location if it is for a child care center, urgent care center, or supermarket; 261
provided, that the lessor shall only qualify after demonstrating to the Mayor, in a form acceptable 262
to the Mayor, rental income limited to the property leased to the eligible business and that the 263
lessor has abated rent payments or otherwise provided a benefit, including a tenant improvement 264
allowance, to the eligible business in an amount equal in value to at least twice the amount of the 265
grant. 266
“(2)(A) If, during the 18 months following receipt of an award pursuant to this 267
subsection, a lessor who receives an award pursuant to this subsection terminates a lease 268
agreement with an eligible business, the lessor shall notify the Mayor of the termination of the 269 12
lease agreement. 270
“(B) The lessor shall provide evidence that the termination was with the 271
consent of the eligible business, in a form determined by the Mayor. 272
“(c) The Mayor may award one or more grants to a third-party grant-managing entity for 273
the purpose of administering the program pursuant to this section and making subgrants on 274
behalf of the Mayor in accordance with the requirements of this section or regulations issued 275
pursuant to this section. 276
“(d) The Mayor, pursuant to section 105 of the District of Columbia Administrative 277
Procedure Act, approved October 21, 1968 (82 Stat. 1206; D.C. Official Code 2-505), may issue 278
regulations to implement the provisions of this section. 279
“(c)(1) The Mayor and any third-party entity chosen pursuant to subsection (c) of this 280
section, shall maintain a list of all grants awarded pursuant to this section, identifying for each 281
award the grant recipient, the date of the award, intended use of the award, and the award 282
amount. 283
“(2) The list shall be published in the D.C. Register every six-months. 284
“(f) For purposes of this section, the term “eligible business” means a business enterprise 285
eligible for certification under section 2331.” 286
Sec. 6. Employer Provided Child Care Tax Credit. 287
“(a) For purposes of this section: 288
“(1) “Eligible child” or “eligible children” shall have the same meaning as section 47-289
1806.15(a)(3). 290
“(2) Child care center” means an establishment licensed pursuant to section 7-2034 that 291
provides care and other services, supervision, and guidance to eligible children on a regular 292 13
basis, regardless of its designated name. “Child care center” does not include a public or private 293
elementary or secondary school engaged in legally required educational and related functions or 294
a pre-kindergarten education program licensed pursuant to the Pre-k Act of 2008. 295
“(3) “Child care investment” means the amount paid or incurred by a business on: 296
(i) Planning, site preparation, construction, renovation or acquisition of facilities in a 297
qualifying area for the purpose of establishing a child care center, to be used primarily by the 298
children of employees who are employed by the business within a qualifying area; or 299
(ii) Subsidies to employees who are employed by the business in a qualifying area for 300
child care to be provided at a child care center within a qualifying area. 301
“(4) “Qualifying area” means located within the Downtown Business Improvement 302
District, as defined in section 2-1215.51(b) or within the Golden Triangle Business Improvement 303
District, as defined in section 2-1215.52(b). 304
“(b) There shall be allowed a credit for any business against the tax imposed under 305
sections 47-1807.01 et seq. in an amount spent by such business, as a child care investment, 306
equal to ten percent of such amount paid or incurred by the business during such income year. 307
“(c) The amount of credit allowed to any business under this section shall not exceed the 308
amount of tax due from such business under sections 47-1807.01 et seq. and 47-1808.01 et seq., 309
with respect to such income year. 310
“(d) Any tax credit not used in the income year during which the investment was made 311
may be carried forward for the five immediately succeeding income years until the full credit has 312
been allowed.” 313
Sec. 7. Fiscal Impact Statement. 314 14
The Council adopts the fiscal impact statement in the committee report as the fiscal 315
impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, 316
approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)). 317
Sec. 8. Effective Date. 318
This act shall take effect following approval by the Mayor (or in the event of veto by the 319
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 320
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 321
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and the publication in the District 322
of Columbia Register. 323 2
section 47-860.02 et seq. during the period under subsection (b)(1) above shall be then 33
exempted, either in whole or in part based on a determination by the Mayor, from real property 34
taxation per D.C. Code section 47-811 for a period of twenty (20) years starting in Fiscal Year 35
2029. 36
“(d) Any property which meets the eligible requirements of D.C. Code section 47-860.02 37
et seq. and subsection (c) above and builds 10% of the units to be family sized shall be exempt 38
from taxes imposed by sections 47-903 and 42-1103. 39
Sec. 3. Section 2032 of the Deputy Mayor for Planning and Economic Development 40
Limited Grant-Making Authority Act of 2012, effective September 12, 2012 (D.C. Law 41
19-168; D.C. Official Code § 1-328.04), is amended as follows: 42
(a) Subsection (k)(3) is amended to read as follows: 43
“(3) To the Golden Triangle BID in the amount of $4 million annually for Fiscal 44
years 2024, 2025, 2026, 2027 and 2028 for the growth and improvement of the innovation 45
district.” 46
(b) A new subsection (dd) is added to read as follows: 47
“(dd)(1)(A) There is established as a nonlapsing fund the Safe Commercial Corridors 48
Fund (“Fund”), which shall be used solely for the purposes set forth in sub-subsection (2) of this 49
section, and administered by the Deputy Mayor for Planning and Economic Development. 50
(B) All funds deposited into the Fund shall not revert to the unrestricted fund 51
balance of the General Fund of the District at the end of a fiscal year, or at any other time, but 52
shall be continually available for the uses and purposes set forth in sub-subsection (2) of this 53
section without regard to the fiscal year limitation, subject to authorization by Congress. 54 3
(C) Any funds that are transferred through intra-District funding and are not 55
expended in any fiscal year shall revert to the Fund and be available for use in the subsequent 56
fiscal year. 57
(D) The Fund shall be distributed to eligible organizations, as qualified pursuant 58
to this sub-subsection, solely for the purpose of making the area served by the organization 59
("commercial district") and the surrounding area safer for residents, workers, and visitors 60
through the creation or augmentation of a Safe Commercial Corridors Program, as described in 61
sub-subsection (2) of this subsection. 62
(E) Eligible organizations: 63
(i) Serve the District’s residents, workers, business owners, property 64
owners, and visitors of commercial corridors in the District; 65
(ii) Engage in the maintenance of public and commercial spaces in the 66
District of Columbia; 67
(iii) Shall provide a “Clean Hands” certificate to verify it is in good 68
financial standing with the Government of the District of Columbia; and 69
(iv) Shall submit a Safe Commercial Corridors Program Plan to DMPED 70
as described in sub-subsection 4 of this subsection. 71
(2)(A) A Safe Commercial Corridors Program shall promote public safety and 72
health within the commercial district and surrounding area through various activities, as outlined 73
by the grant recipient and approved by DMPED. 74
(B) Activities may include relationship-building with residents, workers, 75
businesses, and regular visitors; connecting residents, workers, visitors, and businesses with 76
resources through District government agencies and direct service providers; providing safe 77 4
passage for individuals who request accompaniment walking to transit or their vehicle; assisting 78
business owners with improvements to their security and safety systems and protocols; 79
responding to substance use disorders and implementing harm reduction strategies; 80
implementing de-escalation techniques; deterring crime; liaising with residents, workers, 81
businesses, visitors, District public safety and health agencies, direct service providers in the 82
community, and others as appropriate; providing culturally competent services and 83
programming; and implementing other innovative strategies to promote public safety. 84
(C) Organizations receiving funds pursuant to this subsection are 85
encouraged to coordinate with other organizations receiving funds pursuant to this subsection to 86
share results and lessons learned from implementation of the Safe Commercial Corridors 87
Program and other public safety efforts implemented by the organization. 88
(3) A grant awarded pursuant to paragraph (1) of this subsection may be used to 89
pay for the costs of: 90
(A) Salary and fringe benefits for staff; and 91
(B) Equipment, training, training materials, uniforms, first aid and other 92
medical materials and equipment; and 93
(C) Other materials and equipment for purposes of implementing the Safe 94
Commercial Corridors Program; 95
(4) An organization seeking a grant under paragraph (1) of this subsection shall 96
submit to the Deputy Mayor an application, in a form proscribed to the Deputy Mayor. The 97
application shall include: 98
(A) A description of the public safety and health problems faced in the 99
commercial district and surrounding area; 100
(B) A description of how the applicant proposes to spend the grant funds 101 5
to address the public safety and health problems identified in the application and to promote 102
improvements in public safety and health in the commercial district and surrounding area; and 103
(C) Any additional information requested by the Deputy Mayor. 104
(5) An organization receiving a grant pursuant to this sub-section shall submit a 105
report by the end of each fiscal year in which funds are received evaluating the success of its 106
Safe Commercial Corridors Program, including a detailed description of the program activities, 107
any training or support provided to program staff, a summary of the number and types of 108
interactions between program staff and residents, visitors, businesses, and other individuals, and 109
any other data or information as required by DMPED. 110
Sec. 4. Rediscover Equitable Central Occupancy Vitality and Encourage Resilient Yield 111
(RECOVERY). 112
Chapter 10 of Title 47 of the District of Columbia Official Code is amended as follows: 113
(a) The table of contents is amended by adding a new section designated to read as 114
follows: 115
“47-1099.14 Rediscover Equitable Central Occupancy Vitality and Encourage Resilient 116
Yield (RECOVERY).” 117
(b) A new section 47-1099.14 is added to read as follows: 118
“(a) Real property tax imposed by section 47-811 shall be abated and real property shall 119
be exempt from tax imposed by sections 47-903 and 42-1103; provided that: 120
“(1) The real property is designated and certified as eligible to receive a tax 121
abatement and a tax exemption by the Deputy Mayor pursuant to subsection (d) of this section; 122
“(2) The real property is located within: 123
“(A) The Downtown Business Improvement District, as defined in section 124
2-1215.51(b); or 125 6
“(B) The Golden Triangle Business Improvement District, as defined in 126
section 2-1215.52(b); 127
“(3) With respect to real property abated from tax imposed by section 47-811, for 128
the duration of the period set forth in subsection (b)(2)(A) of this section and with respect to real 129
property exempted from tax imposed by sections 47-903 and 42-1103, at the applicable time, 130
there is a change in use resulting in the development or redevelopment, of: 131
“(A) One or more establishments in the hotel sector, provided, that any 132
establishment shall enter into a project labor agreement; 133
“(B) One or more establishments in the retail sector, provided, that any 134
establishment shall enter into an agreement with the Deputy Mayor requiring such economic 135
inclusion requirements for the operations of the establishment that the Deputy Mayor may 136
require; 137
“(C) One or more establishments in the restaurant sector; or 138
“(D) One or more establishments in the sports, entertainment, education, 139
and culture sector, provided, that the establishments shall occupy at least 50% of the gross floor 140
area of the development. 141
“(b) In addition to the requirements of subsection (a) of this section, real property tax 142
imposed by section 47-811 shall: 143
“(1) Be abated if the developer: 144
“(A) Files a covenant in the land records of the District, binding 145
the developer and all of its successors in interest with respect to the property, covenanting to 146
comply with the applicable requirements of subsection (a)(3) of this section; 147
“(B) Enters into an agreement with the District that requires the 148
developer to, at a minimum, contract with certified business enterprises for at least 35% of the 149 7
contract dollar volume of the construction and operations of the project, in accordance with 150
section 2-218.46; 151
“(C) Enters into a First Source Agreement for the operations of 152
the project; 153
“(D) Enters into an agreement with the Deputy Mayor requiring 154
such economic inclusion requirements for the construction and operations of the project as the 155
Deputy Mayor may require; and 156
“(E) The developer enters into an agreement with the Deputy 157
Mayor setting forth the requirements of this subsection and such other terms and conditions as 158
the Deputy Mayor considers appropriate. 159
“(2)(A) Begin in the tax year immediately following the tax year during which the 160
certificate of occupancy was issued for the use counting toward satisfying the requirements of 161
subsection (a)(3) of this section and shall continue until the 30
th
tax year after the tax year during 162
which such certificate was issued. 163
“(B) Be in the amount of 100% of the real property’s tax liability during 164
each property tax year in which the tax abatement is in effect; provided, that for a real property 165
that is eligible only under subsection (a)(3)(B), (a)(3)(C), or (a)(3)(D) of this section, the amount 166
shall be the pro rata share of the gross floor area occupied by the eligible use. 167
“(C) Tax abatements provided by sections (a)(3)(A)-(D) above shall be 168
eligible for the funds provided in D.C. Code section 47-850.03(b). 169
“(c) The Deputy Mayor: 170
“(1) May through a competitive process, designate real property to be eligible to 171
receive a tax abatement and a tax exemption under this section. 172
“(2) Shall certify to the Office of Tax and Revenue the eligibility of a real 173 8
property for an abatement provided by this section. The certification shall include: 174
“(A) A description of the real property by street address, square, suffix, 175
and lot; 176
“(B) A statement that the conditions of subsection (a) of this section have 177
been satisfied; 178
“(C) The date of the certificate of occupancy was issued for the use 179
counting toward satisfying the requirements of subsection (a)(3) of this section; 180
“(D) For real property tax imposed by section 47-811: 181
“(i) The date the tax abatement begins and ends under subsection 182
(b)(2)(A); and 183
“(ii) The amount of abatement allocated to the property pursuant to 184
subsection (b) of this section; and 185
“(E) Any other information that the Deputy Mayor considers necessary or 186
appropriate. 187
“(3)(A) If at any time the Deputy Mayor determines that the real property has 188
become ineligible for the abatement provided by this section, the Deputy Mayor shall notify the 189
Office of Tax and Revenue and shall specify the date that the property became ineligible. 190
“(B) The entire property shall be ineligible for the abatement on the first 191
day of the tax year following the date when the ineligibility occurred. 192
“(e) The tax abatement provided by this section shall be in addition to, and not in lieu of, 193
any other tax relief or assistance from any other source. 194
“(f) The requirements of the First Source Act shall not apply to the construction or 195
development of a project developed on real property designated by the Deputy Mayor pursuant 196
to subsection (b) of this section. 197 9
“(g) For the purposes of this section, the term: 198
“(1) “CBE Act” means the Small and Certified Business Enterprise Development 199
and Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 200
2-218.01 et seq.). 201
“(2) “Certified business enterprise” means a business enterprise or joint venture 202
certified pursuant to the CBE Act. 203
“(3) “Deputy Mayor” means the Deputy Mayor for Planning and Economic 204
Development. 205
“(4) “Developer” means the owner of the use developed or redeveloped on real 206
property eligible for a tax abatement under this section. 207
“(5) “Family sized” means a rental unit with 3 or more bedrooms. 208
“(6) “First Source Act” means the First Source Employment Agreement Act of 209
1984, effective June 29, 1984 (D.C. Law 5-93; D.C. Official Code § 2-219.01 et seq.). 210
“(7) “First Source Agreement” means an agreement with the District governing 211
certain obligations of the Developer pursuant to section 4 of the First Source Act (D.C. Official 212
Code § 2-219.03), and Mayor's Order 83-265, dated November 9, 1983, regarding job creation 213
and employment. 214
“(8) “Hotel” has the meaning set forth in Section 199.1ofTitle 14 of the DCMR. 215
“(9) “Median Family Income” has the meaning set forth in section 101(5) of the 216
Inclusionary Zoning Implementation Amendment Act of 2006, effective September 23, 2017 217
(D.C. Law 16-275; D.C. Official Code § 6-1041.01(5)). 218
“(10) “Restaurant” means full-service restaurants, including limited-service 219
restaurants, fast food restaurants, and food service providers such as cafes, delicatessens, coffee 220
shops, supermarkets, grocery stores, and cafeterias. 221 10
“(11) “Retail” means an establishment that is engaged in direct onsite sales of 222
general merchandise goods to consumers. 223
“(12) “Sports, entertainment, education, and culture sector” means an 224
establishment that is open to the public for entertainment, leisure, education, or cultural 225
purposes, including bars, entertainment venues, nightlife establishments, theatres, sports, 226
recreation, public, private, or charter schools serving the pre-kindergarten through 12th grade, 227
colleges, universities, and post-graduate schools, entertainment venues, art galleries, and cultural 228
institutions.”. 229
Sec. 5. Rediscover Equitable Central Occupancy Vitality and Encourage Resilient Yield 230
(RECOVERY) Retail Grant Program. 231
(a) The Deputy Mayor for Planning and Economic Development Limited Grant-Making 232
Authority Act of 2012 is amended by adding a section (ee) to read as follows: 233
“(a)(1) Notwithstanding the Grant Administration Act of 2013, effective December 2013 234
(D.C. Law 20-61; D.C. Official Code § 1-328.11 et seq.), the Mayor, in the sole discretion of the 235
Mayor, may issue a two-year grant program to an eligible business in accordance with this 236
section and regulations issued pursuant to this section; provided that: 237
“(A) The eligible business is located in: 238
“(i) The Downtown Business Improvement District, as defined in section 239
2-1215.51(b); or 240
“(ii) The Golden Triangle Business Improvement District, as defined in 241
section 2-1215.52(b); 242
“(B) The eligible business demonstrates, to the satisfaction of the Mayor, that it is 243
opening or expanding in a retail or commercial space that has been vacant at least 6 months prior 244
to applying; 245 11
“(c) The eligible business submits a grant application in the form and with the 246
information required by the Mayor; and 247
“(D) A grant is equivalent to the sales and use tax paid by the eligible business 248
annually, provided, that at least 20% of the total grant funds disbursed are set aside for one or 249
more eligible businesses that is: 250
“(i) Also, or is eligible to be, a resident-owned business and a small 251
business enterprise as those terms are defined, respectively, in section 2302(15) and (16); and 252
“(ii)(I) At least 51% owned by a woman or a majority of women; or 253
“(II) Is, or eligible to be, a disadvantaged business enterprise, as 254
that term is defined in section 2302(5). 255
“(2) An eligible business awarded a grant pursuant to this section may use the 256
grant funds for activities and costs related to sustaining and growing the business, such as staff 257
costs, capital improvements, marketing, inventory and supplies, and utilities; provided, that no 258
amount of the grant shall be used for executive salaries or bonuses. 259
“(b)(1) The Mayor may award a two year grant to a lessor of property that leases to an 260
eligible business location if it is for a child care center, urgent care center, or supermarket; 261
provided, that the lessor shall only qualify after demonstrating to the Mayor, in a form acceptable 262
to the Mayor, rental income limited to the property leased to the eligible business and that the 263
lessor has abated rent payments or otherwise provided a benefit, including a tenant improvement 264
allowance, to the eligible business in an amount equal in value to at least twice the amount of the 265
grant. 266
“(2)(A) If, during the 18 months following receipt of an award pursuant to this 267
subsection, a lessor who receives an award pursuant to this subsection terminates a lease 268
agreement with an eligible business, the lessor shall notify the Mayor of the termination of the 269 12
lease agreement. 270
“(B) The lessor shall provide evidence that the termination was with the 271
consent of the eligible business, in a form determined by the Mayor. 272
“(c) The Mayor may award one or more grants to a third-party grant-managing entity for 273
the purpose of administering the program pursuant to this section and making subgrants on 274
behalf of the Mayor in accordance with the requirements of this section or regulations issued 275
pursuant to this section. 276
“(d) The Mayor, pursuant to section 105 of the District of Columbia Administrative 277
Procedure Act, approved October 21, 1968 (82 Stat. 1206; D.C. Official Code 2-505), may issue 278
regulations to implement the provisions of this section. 279
“(c)(1) The Mayor and any third-party entity chosen pursuant to subsection (c) of this 280
section, shall maintain a list of all grants awarded pursuant to this section, identifying for each 281
award the grant recipient, the date of the award, intended use of the award, and the award 282
amount. 283
“(2) The list shall be published in the D.C. Register every six-months. 284
“(f) For purposes of this section, the term “eligible business” means a business enterprise 285
eligible for certification under section 2331.” 286
Sec. 6. Employer Provided Child Care Tax Credit. 287
“(a) For purposes of this section: 288
“(1) “Eligible child” or “eligible children” shall have the same meaning as section 47-289
1806.15(a)(3). 290
“(2) Child care center” means an establishment licensed pursuant to section 7-2034 that 291
provides care and other services, supervision, and guidance to eligible children on a regular 292 13
basis, regardless of its designated name. “Child care center” does not include a public or private 293
elementary or secondary school engaged in legally required educational and related functions or 294
a pre-kindergarten education program licensed pursuant to the Pre-k Act of 2008. 295
“(3) “Child care investment” means the amount paid or incurred by a business on: 296
(i) Planning, site preparation, construction, renovation or acquisition of facilities in a 297
qualifying area for the purpose of establishing a child care center, to be used primarily by the 298
children of employees who are employed by the business within a qualifying area; or 299
(ii) Subsidies to employees who are employed by the business in a qualifying area for 300
child care to be provided at a child care center within a qualifying area. 301
“(4) “Qualifying area” means located within the Downtown Business Improvement 302
District, as defined in section 2-1215.51(b) or within the Golden Triangle Business Improvement 303
District, as defined in section 2-1215.52(b). 304
“(b) There shall be allowed a credit for any business against the tax imposed under 305
sections 47-1807.01 et seq. in an amount spent by such business, as a child care investment, 306
equal to ten percent of such amount paid or incurred by the business during such income year. 307
“(c) The amount of credit allowed to any business under this section shall not exceed the 308
amount of tax due from such business under sections 47-1807.01 et seq. and 47-1808.01 et seq., 309
with respect to such income year. 310
“(d) Any tax credit not used in the income year during which the investment was made 311
may be carried forward for the five immediately succeeding income years until the full credit has 312
been allowed.” 313
Sec. 7. Fiscal Impact Statement. 314 14
The Council adopts the fiscal impact statement in the committee report as the fiscal 315
impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, 316
approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)). 317
Sec. 8. Effective Date. 318
This act shall take effect following approval by the Mayor (or in the event of veto by the 319
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 320
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 321
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and the publication in the District 322
of Columbia Register. 323