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