District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0289 Compare Versions

Only one version of the bill is available at this time.

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3	3	______________________________ 1
4	4	Chairman Phil Mendelson 2
5	5	3
6	6	4
7	7	A BILL 5
8	8	6
9	9	_______ 7
10	10	8
11	11	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 9
12	12	10
13	13	_________________ 11
14	14	12
15	15	To amend Chapter 48 of Title 47 of the District of Columbia Official Code to add additional 13
16	16	definitions for the terms “eligible” and “MFI” and to repeal the definition of “qualified 14
17	17	project”; to specify the total value of credits available for the Department of Housing and 15
18	18	Community Development to award; to prohibit the amount of a credit from exceeding 9% 16
19	19	of the project’s qualified basis; to require that each tax credit be awarded on a 17
20	20	competitive basis; to prohibit the use of a tax credit against taxes imposed under Title 18
21	21	47 unless the owner has filed an affidavit with the Department certifying that the value 19
22	22	received by the owner was used to ensure the financial feasibility of the project; to limit 20
23	23	current recapture provisions to low-income housing tax credits awarded before October 1, 21
24	24	2024; and to provide the Department authority to recapture credits held by the project or 22
25	25	owner or impose a fine on the owner for non-compliance pursuant to § 47-4807 on 23
26	26	credits awarded on or after October 1, 2024. 24
27	27	25
28	28	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 26
29	29	act may be cited as the “District of Columbia Low-Income Housing Tax Credit Amendment Act 27
30	30	of 2023”. 28
31	31	Sec. 2. Chapter 48 of Title 47 of the District of Columbia Official Code is amended as 29
32	32	follows: 30
33	33	(a) Section 47-4801 is amended as follows: 31
34	34	(1) A new paragraph (5A) is added to read as follows: 32
35	35	“(5A) “Eligible project” means a rental housing development in the District that 33
36	36	includes: 34
37	37	“(A) More than 5 housing units; and 35 2
38	38
39	39	“(B) Units that will be affordable to tenants at an income level no greater 36
40	40	than 80% of MFI.”. 37
41	41	(2) A new paragraph (6A) is added to read as follows: 38
42	42	“(6A) “MFI” means the median family income for a household in the Washington 39
43	43	Metropolitan Statistical Area as set forth in the periodic calculation provided by the U.S. 40
44	44	Department of Housing and Urban Development (“HUD”), adjusted for family size, without 41
45	45	regard to any adjustments made by HUD for the purposes of the programs it administers.”. 42
46	46	(3) Paragraph (8) is repealed. 43
47	47	(b) Section 47-4802 is amended as follows: 44
48	48	(1) Subsection (d) is amended to read as follows: 45
49	49	“(d) The Department may award District of Columbia low-income housing tax credits to 46
50	50	eligible projects in accordance with § 47-4803.”. 47
51	51	(2) A new subsection (e) is added to read as follows: 48
52	52	“(e) The total credits available for the Department to award are as follows: 49
53	53	“(1) In Fiscal Year 2024, $7,800,000; 50
54	54	“(2) In Fiscal Year 2025, $8,400,000; 51
55	55	“(3) In Fiscal Year 2026, $8,820,000; 52
56	56	“(4) In Fiscal Year 2027, $9,261,000; and 53
57	57	“(5) In each subsequent fiscal year, 105% of the total credits available for award 54
58	58	in the prior fiscal year.”. 55
59	59	(c) Section 47-4803 is amended as follows: 56
60	60	(1) Subsection (a) is amended to read as follows: 57 3
61	61
62	62	“(a)(1) An owner of an eligible project may be awarded a District of Columbia low-58
63	63	income housing tax credit with respect to that eligible project. The amount of the credit shall not 59
64	64	exceed 9% of the project’s qualified basis, as determined in accordance with paragraph (3) of 60
65	65	this subsection. 61
66	66	“(2) Each District of Columbia low-income housing tax credit shall be awarded 62
67	67	on a competitive basis. 63
68	68	“(3) The qualified basis of a project shall be determined pursuant to the standards 64
69	69	set forth in section 42(c) of the Internal Revenue Code of 1986, approved October 22, 1986 (100 65
70	70	Stat. 2189; 26 U.S.C. § 42(c)).”. 66
71	71	(2) Subsection (b)(1) is amended to read as follows: 67
72	72	“(b)(1) If an owner of a project that was awarded or otherwise granted a District of 68
73	73	Columbia low-income housing tax credit transfers, sells, or assigns the credit to another 69
74	74	taxpayer, pursuant to § 47-4806, the District of Columbia low-income housing tax credit shall 70
75	75	not be taken, pursuant to subsection (c) of this section, against taxes imposed under this 71
76	76	title unless the owner has filed with the Department, in a form determined by the Department, an 72
77	77	affidavit certifying that the value received by the owner of the eligible project was used to ensure 73
78	78	financial feasibility of the eligible project.”. 74
79	79	(3) Subsection (d)(2) is amended as follows: 75
80	80	(A) Strike the phrase “An owner of a qualified project” and insert the 76
81	81	phrase “An owner” in its place. 77
82	82	(B) Strike the phrase “The owner of a qualified project” and insert the 78
83	83	phrase “The owner” in its place. 79
84	84	(4) Subsection (f)(1) is amended as follows: 80 4
85	85
86	86	(A) Strike the phrase “qualified project” and insert the phrase “eligible 81
87	87	project” in its place. 82
88	88	(B) Strike the phrase “qualified District of Columbia project” and insert 83
89	89	the phrase “eligible project” in its place. 84
90	90	(d) Section 47-4804 is amended as follows: 85
91	91	(1) Subsection (a) is amended as follows: 86
92	92	(A) Strike the phrase “The owner of a qualified project eligible for the” 87
93	93	and insert the phrase “An owner of a project that claims a” in its place. 88
94	94	(B) Strike the phrase “eligibility statement” and insert the word 89
95	95	“statement” in its place. 90
96	96	(C) Strike the phrase “with respect to the qualified project” and insert the 91
97	97	phrase “with respect to the project” in its place. 92
98	98	(D) Strike the phrase “with respect to such qualified project” and insert the 93
99	99	phrase “with respect to the project” in its place. 94
100	100	(2) Subsection (b) is amended as follows: 95
101	101	(A) The existing text is designated as paragraph (1). 96
102	102	(B) A new paragraph (2) is added to read as follows: 97
103	103	“(2) This subsection shall apply to District of Columbia low-income housing tax 98
104	104	credits awarded before October 1, 2024.”. 99
105	105	(3) A new subsection (c) is added to read as follows: 100
106	106	“(c)(1) If a project that claims a District of Columbia low-income tax credit, or the owner 101
107	107	of such a project, is found to be non-compliant pursuant to § 47-4807, the Department may 102
108	108	recapture credits held by the project or owner or impose a fine on the owner. 103 5
109	109
110	110	“(2) This subsection shall apply to District of Columbia low-income housing tax 104
111	111	credits awarded on or after October 1, 2024.”. 105
112	112	(e) Section 47-4806(a) is amended as follows: 106
113	113	(1) Paragraph (1) is amended by striking the phrase “qualified project” and 107
114	114	inserting the word “project” in its place. 108
115	115	(2) Paragraph (2) is amended by striking the phrase “qualified project” both times 109
116	116	it appears and inserting the word “project” in its place. 110
117	117	(f) Section 47-4808 is amended by striking the phrase “a qualified District of Columbia 111
118	118	project” and inserting the phrase “a project” in its place. 112
119	119	(g) Section 47-4810 is amended by striking the phrase “qualified project” and inserting 113
120	120	the word “project” in its place. 114
121	121	Sec. 3. Fiscal impact statement. 115
122	122	The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal 116
123	123	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 117
124	124	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 118
125	125	Sec. 4. Effective date. 119
126	126	This act shall take effect following approval by the Mayor (or in the event of veto by 120
127	127	the Mayor, action by the Council to override the veto), a 30-day period of congressional review 121
128	128	as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 122
129	129	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 123
130	130	Columbia Register. 124
131	131	125