District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0549 Compare Versions

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

Old	New	Differences
1	1	COUNCIL OF THE DISTRICT OF COLUMBIA
2	2	The John A. Wilson Building
3	3	1350 Pennsylvania Avenue, nw
4	4	Washington, D.C. 20004
5	5
6	6	1
7	7
8	8	Statement of Introduction
9	9	Unlocking Housing at Metro Property Tax Exemption Amendment Act of 2023
10	10	October 25, 2023
11	11	Today, I am introducing the Unlocking Housing at Metro Property Tax Exemption Amendment
12	12	Act of 2023, along with Councilmembers Brianne K. Nadeau, Vincent C. Gray, and Brooke
13	13	Pinto. This legislation would accelerate development of much-needed mixed-use residential
14	14	projects at District Metro stations that currently do not generate any tax revenues and where
15	15	pursuing transit-oriented development through joint development agreements is currently
16	16	financially infeasible.
17	17	A common feature of thriving urban areas, transit-oriented development (TOD) features
18	18	compact, high-density, mixed-use areas within walking distance of a central transit stop in a
19	19	public transportation system. TOD projects maximize residential, business, and leisure space and
20	20	create more walkable, vibrant, exciting communities. People living in TOD zones in the District
21	21	drive less, more frequently bike, walk, and use public transportation more, energizing
22	22	neighborhoods and advancing sustainable transit goals.
23	23	1
24	24	Since WMATA’s inception, District
25	25	leaders and residents have recognized the potential of integrating transit hubs with housing,
26	26	retail, and other amenities, and have worked with WMATA to invest in the blocks around Metro
27	27	stations.
28	28	WMATA is a national leader in TOD, having already delivered 55 buildings at 30 stations
29	29	throughout the region. Since 1975, WMATA has built TOD projects in the District at the
30	30	Farragut North, Gallery Place/Chinatown, Tenleytown, Columbia Heights, Navy Yard, Rhode
31	31	Island Avenue, Fort Totten, Georgia Avenue/Petworth, Minnesota Avenue, Metro Center,
32	32	McPherson Square, Shaw/Howard University, U Street-Cardozo, and Van Ness/UDC stations.
33	33	2
34	34
35	35	The projects that WMATA advanced at these stations brought in even more private and public
36	36	investment in the neighborhoods surrounding these Metro stops, attracting new stores, arts and
37	37	entertainment venues, medical providers, restaurants, and additional businesses that provide
38	38	essential services, all of which also create new jobs. WMATA’s TOD projects throughout the
39	39	DMV region have yielded 17 million square feet of mixed-used development, generated 5
40	40	million new annual Metro trips, and raised $194 million in new annual state and local taxes.
41	41	3
42	42
43	43
44	44	1
45	45	The analysis of transit-oriented development (TOD) in Washington, D.C. and Baltimore metropolitan areas, 2014.
46	46	Arefeh Nasri, Lei Zhan
47	47	2
48	48	Washington Metropolitan Area Transit Authority 10-Year Strategic Plan for Joint Development
49	49	3
50	50	Ibid.
51	51	Christina Henderson Committee Member
52	52	Councilmember, At-Large Hospital and Health Equity
53	53	Chairperson, Committee on Health Judiciary and Public Safety
54	54	Transportation and the Environment
55	55	COUNCIL OF THE DISTRICT OF COLUMBIA
56	56	The John A. Wilson Building
57	57	1350 Pennsylvania Avenue, nw
58	58	Washington, D.C. 20004
59	59
60	60	2
61	61	WMATA has plans for TODs at additional Metro stations in the District, including at the
62	62	Anacostia, Congress Heights, Brookland, Deanwood, Fort Totten, and Friendship Heights
63	63	stations. However, there are challenges to developing these sites, including working around the
64	64	existing transit facilities and infrastructure such as the rail tracks and traction power sub-stations
65	65	as well as needs for roadway improvements, utilities relocation, replacing commuter parking,
66	66	and reconfiguring bus loops. Preliminary feasibility analysis identified that projects at Congress
67	67	Heights, Deanwood and Brookland could yield from $1M up to $14M per site in net property
68	68	taxes to the District over 30 years after accounting for the upfront infrastructure costs, but may
69	69	not be feasible in the near-term without any public assistance. At Fort Totten and Friendship
70	70	Heights initial infrastructure cost estimates exceed the property tax revenues generated by
71	71	development over 30 years and may require other assistance to support project feasibility. These
72	72	forecasts impact WMATA’s ability to unlock the full potential of its property for housing at
73	73	these sites. The properties also do not generate any tax revenues for the District as they have no
74	74	private uses or development, and represent a missed opportunity to invest in residents.
75	75	The District’s regional neighbors have provided mechanisms to WMATA to reduce cost burdens
76	76	and achieve higher density at Metro stations. For example, in 2020, the Montgomery County
77	77	Council passed the More Housing at Metrorail Stations Act, which provides a tax abatement that
78	78	lowers the cost of developing high-rise buildings, thereby increasing density, allowing WMATA
79	79	and its partners to produce more market-rate and affordable housing units, and expediting
80	80	development. The stability of the abatement convinced WMATA and its joint development
81	81	partners to commit to building even more housing at Metro stations than it otherwise could have.
82	82	To realize the transit-oriented development potential at the remaining Metro stations in the
83	83	District, this bill would waive property taxes for 20 years on qualifying developments at Metro
84	84	stations. To qualify, WMATA must enter into a joint development agreement that provides that
85	85	at least half of a development must be housing, and 75% of the project overall must consist of
86	86	new construction or substantially rehabilitated structures. The exemption would be available
87	87	beginning on January 1, 2024.
88	88	I look forward to working with my Council colleagues and the public to advance this legislation
89	89	and to build on the District’s strong transit-oriented development record for the benefit of current
90	90	and future residents.
91	91	1
92	92	_____________________________ _____________________________ 1
93	93	Councilmember Brianne K. Nadeau Councilmember Christina Henderson 2
94	94	3
95	95	4
96	96	_____________________________ _____________________________ 5
97	97	Councilmember Brooke Pinto Councilmember Vincent C. Gray 6
98	98	7
99	99	8
100	100	9
101	101	10
102	102	A BILL 11
103	103	12
104	104	_______________ 13
105	105	14
106	106	15
107	107	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 16
108	108	17
109	109	_______________________ 18
110	110	19
111	111	To amend section 47-1002 of the District of Columbia Official Code to exempt from real 20
112	112	property taxation qualifying improvements located on land subject to a Joint 21
113	113	Development Agreement with the Washington Metropolitan Transit Authority in the 22
114	114	District. 23
115	115	24
116	116	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 25
117	117	act may be cited as the “Unlocking Housing at Metro Property Tax Exemption Amendment Act 26
118	118	of 2023”. 27
119	119	Sec. 2. Section 47-1002 of the District of Columbia Official Code is amended as follows: 28
120	120	(a) Paragraph (32)(B) is amended by striking the phrase “; and” and inserting a semicolon 29
121	121	in its place. 30
122	122	(b) Paragraph (33) is amended by striking the period and inserting the phrase “; and” in 31
123	123	its place. 32
124	124	(c) A new paragraph (34) is added to read as follows: 33 2
125	125	“(34)(A) Subject to the provisions of subparagraph (B) of this paragraph, a 34
126	126	qualifying development located on land subject to a Joint Development Agreement with the 35
127	127	Washington Metropolitan Area Transit Authority (“WMATA”). 36
128	128	“(B) The real property tax exemption granted by subparagraph (A) of this 37
129	129	paragraph shall apply only: 38
130	130	“(i) For 20 consecutive real property tax years beginning on the 39
131	131	date that a certificate of occupancy for a qualifying development is issued; and 40
132	132	“(ii) To a qualifying development constructed after January 1, 41
133	133	2024. 42
134	134	“(C) The real property tax exemption granted by subparagraph (A) of this 43
135	135	paragraph shall be in addition to, and not in lieu of, any other tax relief or assistance from any 44
136	136	other source applicable to the qualifying development. 45
137	137	“(D) Nothing in this paragraph shall prevent or restrict WMATA from 46
138	138	utilizing any other tax, development, or other economic incentives available to Joint 47
139	139	Development Agreement partners or the qualifying development, including other tax, 48
140	140	development, or other economic incentives shall set forth in Chapter 38 of this chapter. 49
141	141	“(E) Nothing in this paragraph shall be construed to limit WMATA or 50
142	142	Joint Development Agreement partners from appealing or contesting a real estate tax assessment 51
143	143	of a qualifying development. 52
144	144	“(F) For the purposes of this paragraph, the term: 53
145	145	“(i) “Joint Development Agreement” means a contract between 54
146	146	WMATA and a third party to sell or ground lease WMATA property for a qualifying 55
147	147	development; and 56 3
148	148	“(ii) “Qualifying development” means a real property development 57
149	149	in which: 58
150	150	“(I) Improvements are made to real property subject to a 59
151	151	Joint Development Agreement with WMATA in the District; 60
152	152	“(II) At least 50% of the improvements include the 61
153	153	construction of multifamily apartment buildings; provided, that all multifamily apartment 62
154	154	buildings located on the property shall be subject to the requirements of Chapter 10 of Title 11-C 63
155	155	of the District of Columbia Municipal Regulations; and 64
156	156	“(III) At least 75% of the improvements consist of 65
157	157	buildings that are newly constructed or substantially rehabilitated.”. 66
158	158	Sec. 3. Fiscal impact statement. 67
159	159	The Council adopts the fiscal impact statement in the committee report as the fiscal 68
160	160	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 69
161	161	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 70
162	162	Sec. 4. Effective date. 71
163	163	This act shall take effect following approval by the Mayor (or in the event of veto by the 72
164	164	Mayor, action by the Council to override the veto), a 30-day period of congressional review as 73
165	165	provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 74
166	166	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 75
167	167	Columbia Register. 76