1
______________________________ 1
Chairman Phil Mendelson 2
3
4
A BILL 5
6
_______ 7
8
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 9
10
_________________ 11
12
To amend Chapter 48 of Title 47 of the District of Columbia Official Code to add additional 13
definitions for the terms “eligible” and “MFI” and to repeal the definition of “qualified 14
project”; to specify the total value of credits available for the Department of Housing and 15
Community Development to award; to prohibit the amount of a credit from exceeding 9% 16
of the project’s qualified basis; to require that each tax credit be awarded on a 17
competitive basis; to prohibit the use of a tax credit against taxes imposed under Title 18
47 unless the owner has filed an affidavit with the Department certifying that the value 19
received by the owner was used to ensure the financial feasibility of the project; to limit 20
current recapture provisions to low-income housing tax credits awarded before October 1, 21
2024; and to provide the Department authority to recapture credits held by the project or 22
owner or impose a fine on the owner for non-compliance pursuant to § 47-4807 on 23
credits awarded on or after October 1, 2024. 24
25
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 26
act may be cited as the “District of Columbia Low-Income Housing Tax Credit Amendment Act 27
of 2023”. 28
Sec. 2. Chapter 48 of Title 47 of the District of Columbia Official Code is amended as 29
follows: 30
(a) Section 47-4801 is amended as follows: 31
(1) A new paragraph (5A) is added to read as follows: 32
“(5A) “Eligible project” means a rental housing development in the District that 33
includes: 34
“(A) More than 5 housing units; and 35 2
“(B) Units that will be affordable to tenants at an income level no greater 36
than 80% of MFI.”. 37
(2) A new paragraph (6A) is added to read as follows: 38
“(6A) “MFI” means the median family income for a household in the Washington 39
Metropolitan Statistical Area as set forth in the periodic calculation provided by the U.S. 40
Department of Housing and Urban Development (“HUD”), adjusted for family size, without 41
regard to any adjustments made by HUD for the purposes of the programs it administers.”. 42
(3) Paragraph (8) is repealed. 43
(b) Section 47-4802 is amended as follows: 44
(1) Subsection (d) is amended to read as follows: 45
“(d) The Department may award District of Columbia low-income housing tax credits to 46
eligible projects in accordance with § 47-4803.”. 47
(2) A new subsection (e) is added to read as follows: 48
“(e) The total credits available for the Department to award are as follows: 49
“(1) In Fiscal Year 2024, $7,800,000; 50
“(2) In Fiscal Year 2025, $8,400,000; 51
“(3) In Fiscal Year 2026, $8,820,000; 52
“(4) In Fiscal Year 2027, $9,261,000; and 53
“(5) In each subsequent fiscal year, 105% of the total credits available for award 54
in the prior fiscal year.”. 55
(c) Section 47-4803 is amended as follows: 56
(1) Subsection (a) is amended to read as follows: 57 3
“(a)(1) An owner of an eligible project may be awarded a District of Columbia low-58
income housing tax credit with respect to that eligible project. The amount of the credit shall not 59
exceed 9% of the project’s qualified basis, as determined in accordance with paragraph (3) of 60
this subsection. 61
“(2) Each District of Columbia low-income housing tax credit shall be awarded 62
on a competitive basis. 63
“(3) The qualified basis of a project shall be determined pursuant to the standards 64
set forth in section 42(c) of the Internal Revenue Code of 1986, approved October 22, 1986 (100 65
Stat. 2189; 26 U.S.C. § 42(c)).”. 66
(2) Subsection (b)(1) is amended to read as follows: 67
“(b)(1) If an owner of a project that was awarded or otherwise granted a District of 68
Columbia low-income housing tax credit transfers, sells, or assigns the credit to another 69
taxpayer, pursuant to § 47-4806, the District of Columbia low-income housing tax credit shall 70
not be taken, pursuant to subsection (c) of this section, against taxes imposed under this 71
title unless the owner has filed with the Department, in a form determined by the Department, an 72
affidavit certifying that the value received by the owner of the eligible project was used to ensure 73
financial feasibility of the eligible project.”. 74
(3) Subsection (d)(2) is amended as follows: 75
(A) Strike the phrase “An owner of a qualified project” and insert the 76
phrase “An owner” in its place. 77
(B) Strike the phrase “The owner of a qualified project” and insert the 78
phrase “The owner” in its place. 79
(4) Subsection (f)(1) is amended as follows: 80 4
(A) Strike the phrase “qualified project” and insert the phrase “eligible 81
project” in its place. 82
(B) Strike the phrase “qualified District of Columbia project” and insert 83
the phrase “eligible project” in its place. 84
(d) Section 47-4804 is amended as follows: 85
(1) Subsection (a) is amended as follows: 86
(A) Strike the phrase “The owner of a qualified project eligible for the” 87
and insert the phrase “An owner of a project that claims a” in its place. 88
(B) Strike the phrase “eligibility statement” and insert the word 89
“statement” in its place. 90
(C) Strike the phrase “with respect to the qualified project” and insert the 91
phrase “with respect to the project” in its place. 92
(D) Strike the phrase “with respect to such qualified project” and insert the 93
phrase “with respect to the project” in its place. 94
(2) Subsection (b) is amended as follows: 95
(A) The existing text is designated as paragraph (1). 96
(B) A new paragraph (2) is added to read as follows: 97
“(2) This subsection shall apply to District of Columbia low-income housing tax 98
credits awarded before October 1, 2024.”. 99
(3) A new subsection (c) is added to read as follows: 100
“(c)(1) If a project that claims a District of Columbia low-income tax credit, or the owner 101
of such a project, is found to be non-compliant pursuant to § 47-4807, the Department may 102
recapture credits held by the project or owner or impose a fine on the owner. 103 5
“(2) This subsection shall apply to District of Columbia low-income housing tax 104
credits awarded on or after October 1, 2024.”. 105
(e) Section 47-4806(a) is amended as follows: 106
(1) Paragraph (1) is amended by striking the phrase “qualified project” and 107
inserting the word “project” in its place. 108
(2) Paragraph (2) is amended by striking the phrase “qualified project” both times 109
it appears and inserting the word “project” in its place. 110
(f) Section 47-4808 is amended by striking the phrase “a qualified District of Columbia 111
project” and inserting the phrase “a project” in its place. 112
(g) Section 47-4810 is amended by striking the phrase “qualified project” and inserting 113
the word “project” in its place. 114
Sec. 3. Fiscal impact statement. 115
The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal 116
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 117
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 118
Sec. 4. Effective date. 119
This act shall take effect following approval by the Mayor (or in the event of veto by 120
the Mayor, action by the Council to override the veto), a 30-day period of congressional review 121
as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 122
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 123
Columbia Register. 124
125