OFFICE OF CHAIRMAN PHIL MENDELSON
C O U N C I L OF T H E D I S T R I C T OF C O L U M B I A
Statement of Introduction
“Vacant to Vibrant Amendment Act of 2024”
As of September 6, 2024, data from the Department of Buildings indicates that there are
roughly 2,852 vacant properties and 345 blighted properties in the District. Many of these
properties have been vacant or blighted for years, negatively impacting the neighborhoods and
communities in which they are located.
Over the years, the Committee of the Whole has worked with the Department of Buildings
(and its predecessor agency, the Department of Consumer and Regulatory Affairs) to increase staff
resources and enhance enforcement efforts. While these efforts have produced results, they are
undermined by gaps and deficiencies in the law. As such, in the summer of 2023, my office
assembled a diverse group of stakeholders, including ANC Commissioners, Business
Improvement District representatives, researchers, and District agencies, to examine the District’s
current vacant and blighted property law and develop legislation to address deficiencies and gaps
in the law. The group, known as the Vacant and Blighted Property Working Group, examined
everything from the causes of vacancy and blight to the tax sale process. In doing so, they found
that:
• Many properties become vacant or blighted due to the death of a homeowner, personal or
economic hardship, or foreclosure;
• The District does not have interventions aimed at preventing vacancy or blight;
• Some current definitions in the law are ill-defined, and some exemptions lack appropriate
timeframes;
• Current tax rates for Class 3 and Class 4 are overly burdensome to many property owners;
• The District lacks a holistic plan to address vacant and blighted properties;
• The District lacks effective mechanisms to acquire vacant and blighted properties in order
to get the properties back into productive use; and
• The District has no specific incentives for the redevelopment or rehabilitation of vacant
and blighted properties.
To address these deficiencies and gaps, the Working Group developed the “Vacant to Vibrant
Amendment Act of 2024,” which would, among other things:
• Create a “tangled title” information sheet that funeral service providers must give
decedents;
• Expand the single-family home rehabilitation program;
• Codify a real property tax payment plan for low-income and senior residents; • Revise definitions and reconfigure exemption timeframes;
• Increase penalties for failure to register, particularly in instances where a property owner
repeatedly fails to register a property or properties;
• Establish a vacant property receivership process modeled off of the City of Baltimore’s that
would enable the District to acquire and sell certain properties to non-profits and
developers for redevelopment or rehabilitation;
• Require the Mayor to submit a holistic vacant and blighted building plan to the Council
every three years;
• Restructure Class 3 and Class 4 tax rates so that the tax rate increases each year over a
period of four years, allowing some relief to struggling property owners;
• Establish a new tax sale process for Class 3 and 4 properties that would allow the District
to foreclose on Class 3 and Class 4 properties eligible for tax sale and auction property for
the redevelopment or rehabilitation; and
• Create a vacant and blighted home revitalization tax credit program and a tax abatement
for the redevelopment of vacant and blighted commercial properties.
The theory behind this bill is that vacant properties become a nuisance as well as being a drag
on their neighborhoods, but this is not immediate. Thus, this bill adopts measures to prevent
vacancies, recognizes that short-term vacancies are usually not a problem, incentivizes property
owners to minimize the duration of vacancies, and creates tools for the government to transition
longer-term vacancies back into productive use. Taken together, the proposals in this bill will
ensure that the District will be better positioned to prevent vacancy and blight, address violations
of the law, and get vacant and blighted properties back into productive use.
If you have any questions about this legislation, please contact Blaine Stum, Senior Policy
Advisor for the Committee of the Whole, at bstum@dccouncil.gov.
Chairman Phil Mendelson
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Councilmember Anita Bonds Chairman Phil Mendelson 2
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Councilmember Brianne K. Nadeau Councilmember Charles Allen 6
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Councilmember Robert C. White, Jr. Councilmember Brooke Pinto 10
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Councilmember Janese Lewis George Councilmember Matthew Frumin 14
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Councilmember Zachary Parker 18
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A BILL 21
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 25
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To require the Department of Aging and Community Living to create a tangled title information 30
sheet and to require funeral service providers to give the information sheet to survivors of 31
a deceased District resident; to amend Title 18 of the District of Columbia Official Code 32
to allow for the creation of an electronic will registry; to establish a single family home 33
rehabilitation program; to amend Chapter 8 of Title 47 of District of Columbia Official 34
Code to establish payment plans for the payment of delinquent real property taxes; to 35
amend Title 29 of the District of Columbia Official Code to require all commercial 36
registered agents to accept service of process by electronic mail; to amend Subchapter II 37
of Chapter 31A of Title 42 and Chapter 12 of Title 47 of the District of Columbia Official 38
Code to conform the notice process provisions in Subchapter I and amendments to Title 39
29; to amend An Act To provide for the abatement of nuisances in the District of 40
Columbia by the Commissioners of said District, and for other purposes, to amend 41
definitions, factors for establishing vacancy or blight, and exemptions from registration, 42
to require the submission of vacant building maintenance plans, and to allow the Mayor 43
to petition the Superior Court of the District of Columbia for vacant property receivership 44
actions; to amend the Construction Codes Approval and Amendments Act of 1986 to 45
require the Department of Buildings to establish an expedited permit review process for 46
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certain construction and building permits for Class 3 and 4 properties; to amend Section 47
47-812 of the District of Columbia Official Code to establish new tax rates for Class 3 48
and 4 properties; to amend Chapter 13A of Title 47 of the District of Columbia Official 49
Code to establish a new process for tax sales of Class 3 and 4 properties; and to amend 50
Title 47 of the District of Columbia Official Code to establish a tax credit for the 51
renovation or rehabilitation of Class 3 or 4 properties and to establish a tax abatement for 52
the renovation or rehabilitation of Class 3 or 4 properties that are used for commercial 53
purposes. 54
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 56
act may be cited as the “Vacant to Vibrant to Amendment Act of 2024”. 57
TABLE OF CONTENTS 58
TITLE I. PREVENTION OF VACANT AND BLIGHTED PROPERTIES. ......................... 2 59
SUBTITLE A. TANGLED TITLE INFORMATION SHEET. ........................................... 2 60
SUBTITLE B. ELECTRONIC WILL REGISTRY. ............................................................ 3 61
SUBTITLE C. SINGLE FAMILY HOME REHABILITATION PROGRAM................. 5 62
SUBTITLE D. REAL PROPERTY TAX PAYMENT PLANS............................................ 7 63
TITLE II. SERVICE OF PROCESS REFORMS................................................................... 16 64
TITLE III. VACANT AND BLIGHTED PROPERTY REGISTRATION 65
IMPROVEMENTS..................................................................................................................... 18 66
TITLE IV. VACANT AND BLIGHTED PROPERTY INCENTIVES AND TAXES........... 46 67
SUBTITLE A. EXPEDITED PERMIT REVIEW FOR VACANT AND BLIGHTED 68
PROPERTIES........................................................................................................................ 46 69
SUBTITLE B. VACANT AND BLIGHTED PROPERTY TAX RATES.......................... 47 70
SUBTITLE C. TAX SALE PROCEDURE FOR VACANT AND BLIGHTED 71
PROPERTIES........................................................................................................................ 48 72
SUBTITLE D. VACANT AND BLIGHTED HOME REVITALIZATION TAX 73
CREDIT.................................................................................................................................. 56 74
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SUBTITLE E. TAX ABATEMENT FOR THE REDEVELOPMENT OF VACANT AND 75
BLIGHTED COMMERCIAL PROPERTIES.................................................................... 59 76
TITLE V. FISCAL IMPACT STATEMENT; EFFECTIVE DATE....................................... 65 77
TITLE I. PREVENTION OF VACANT AND BLIGHTED PROPERTIES. 78
SUBTITLE A. TANGLED TITLE INFORMATION SHEET . 79
Section 102. Definitions. 80
For purposes of this section, the term: 81
(1) “Department” means the Department of Aging and Community Living. 82
(2) “Funeral services establishment” shall have the meaning as § 3–402(11). 83
(3) “Survivor of the deceased” means a spouse, child, or companion of the 84
deceased with whom funeral services are being arranged. 85
Sec. 103. Tangled Title disclosure. 86
(a) Within 180 days of the effective date of the Vacant to Vibrant Amendment Act of 87
2024, the Department shall, in consultation with the Department of Housing and Community 88
Development and the Superior Court of the District of Columbia, create and make publicly 89
available a tangled title information sheet detailing the steps necessary for an heir or heirs, after 90
the death of a title property owner, to legally transfer the property to avoid a tangled title. The 91
information sheet shall also include information on legal service providers who offer low-cost or 92
no-cost services for probate, estate, and trust administration. 93
(b) No later than five days after the final disposition of the deceased, a funeral service 94
establishment shall provide the tangled title information sheet made available by the Department 95
to survivors of the deceased. 96
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SUBTITLE B. ELECTRONIC WILL REGISTRY. 98
Sec. 104. Title 18 of the District of Columbia Official Code is amended as follows: 99
(a) The table of contents is amended by adding a new chapter 10 to read as follows: 100
“Chapter 10. Register of wills. 101
“§ 18-1001. Electronic register of wills.”. 102
(b) A new chapter 10 is added to read as follows: 103
Ҥ 18-1001. Electronic register of wills. 104
“(a) An electronic will that meets the requirements of the Uniform Electronic Wills Act 105
(D.C. Official Code § 18-901 et seq.) may be deposited by a testator, or by the testator’s agent, 106
with the Register of Wills to be safely kept until delivered or disposed of as hereinafter provided. 107
“(b)(1) The will shall be deposited electronically and in a manner which would track any 108
viewing or modification after deposit of the will. 109
“(2) The will is not to be delivered or opened except as provided in this section. 110
“(3) Upon payment of the required fee, the Register of Wills shall give a receipt to 111
the testator or testator’s agent. 112
“(c) The Register of Wills shall retain a permanent copy of an electronic will and a copy 113
of any other document associated with the will, in paper, photographic, magnetic, mechanical, 114
electronic, digital, or any other medium if the copy is maintained in a manner that: 115
“(1) Is clear and legible; 116
“(2) Accurately reproduces the original document in its entirety, including any 117
attachments to the document; 118
“(3) Is capable of producing a clear and legible hard copy of the original 119
document; and 120
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“(4) Preserves evidence of any signature contained on the document. 121
“(d) During the lifetime of the testator, a deposited will may be delivered only to the 122
testator, or to a person authorized by the testator in writing to receive it. 123
“(e)(1) The will shall be opened by the Register of Wills after being informed of the death 124
of the testator. 125
“(2) The Register of Wills shall notify the personal representative named in the 126
will that the will is on deposit with the Register of Wills. 127
“(3) The will shall be retained by the Register of Wills as a deposited will until 128
offered for probate. 129
“(4) If the proper venue for the probate of the will is in another court, the will 130
shall be transmitted to such Court; provided, that before such transmission a true copy thereof 131
shall be made and retained in the Court in which the will was deposited. 132
“(f) The Register of Wills shall develop procedures for a testator or testator’s agent to 133
withdraw and/or replace a registered will during the lifetime of the testator.”. 134
SUBTITLE C. SINGLE FAMILY HOME REHABILITATION PROGRAM. 135
Sec. 106. Definitions. 136
(a) For purposes of this section, the term: 137
(1) “Department” means the Department of Housing and Community 138
Development. 139
(2) “Eligible homeowner” means an owner (or owners) who: 140
(A) Own a single-family residential property; 141
(B) Whose household income is 120% of median family income or less; 142
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(C) Has resided in the single-family residential property as a primary 143
residence for at least 3 years; 144
(D) Is current on all mortgage payments for the last 12 months; 145
(E) Is current on all District and federal taxes; and 146
(E) Possesses current homeowners insurance. 147
(3) “Median family income” means the median family income for a household in 148
the Washington Metropolitan Statistical Area as set forth in the periodic calculation provided by 149
the United States Department of Housing and Urban Development, adjusted for family size 150
without regard to any adjustments made by the United States Department of Housing and Urban 151
Development for the purposes of the programs it administers. 152
(4) “Single-family residential property” shall have the same meaning as § 47–153
803(6). 154
Sec. 107. Single-family home rehabilitation program. 155
(b) The Department may offer grants of up to $60,000 to an eligible homeowner to pay 156
for the following: 157
(1) Accessibility modifications to adjust physical barriers within the property for a 158
person with limited mobility or other physical impairments; 159
(2) Repairs or replacement of the roof; or 160
(3) Repairs to the foundation, structurally significant damaged wood or other 161
materials; or 162
(4) Significant repairs to electrical, plumbing or heating and cooling systems. 163
(c)(1) The Department shall work with qualifying applicants to develop a scope of work, 164
select a licensed and certified contractor, and manage the construction. 165
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(2) Any payments to contractors shall be made by the Department on behalf of the 166
eligible homeowner. 167
(d) The Mayor may issue rules to implement the provisions of this section in accordance 168
with subchapter I of Chapter 5 of Title 2. 169
SUBTITLE D. REAL PROPERTY TAX PAYMENT PLANS. 170
Sec. 108. Title 47 is amended as follows: 171
(a) Chapter 8 is amended as follows: 172
(1) The table of contents is amended by adding a new section designation to read 173
as follows: 174
“47-870. Real property tax payment plans.”. 175
(2) A new section 47-870 is added to read as follows: 176
Ҥ 47-870. Real property tax payment plans. 177
“(a) For purposes of this section, the term: 178
“(1) “Eligible homeowner” means an owner (or owners): 179
“(A) Who receives the homestead deduction pursuant to § 47-850; and 180
“(i) Can demonstrate hardship; or 181
“(ii) Is 65 years of age or older. 182
“(2) “Tax liabilities” means both property real property taxes which are 183
delinquent and real property taxes which are currently due but not yet delinquent. Tax Liabilities 184
do not include: 185
“(A) Amounts, which may have been previously sold at a tax sale; 186
“(B) Business improvement district (BID) taxes; 187
“(C) Tax Increment Financing (TIF) payments; 188
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“(D) Payments In Lieu of Taxes (PILOTs); 189
“(E) Southeast Water and Sewer (SEWS) assessments; 190
“(F) Special Energy Assessment assessments; or 191
“(G) Amounts certified by external agencies pursuant to § 47-1340. 192
“(b) Real property tax payment plans with eligible homeowners are authorized for all 193
amounts due on real property tax liabilities subject to the following terms and conditions: 194
“(1) Eligibility for a real property tax payment plan shall require a showing of 195
financial hardship or inability to pay based on individual circumstances. 196
“(2) Real property tax payment plans shall be computed on a 12-month basis. Tax 197
Liabilities are to be paid in equal installments over that 12-month period; 198
“(A) No down payment shall be required; 199
“(B) Payments shall be made by direct ACH debit from the eligible 200
homeowner’s bank account to the District. If there are insufficient funds for the debit, the eligible 201
homeowner shall also be liable for a fee imposed by the District for the dishonored payment; 202
“(C) An eligible homeowner cannot have more than one payment plan 203
active at a time; 204
“(D) An eligible homeowner cannot apply for a payment plan for periods 205
covered under a payment plan that he or she previously defaulted on; 206
“(E) If there is a reclassification of a property, a homestead or 207
senior/disabled audit, or the granting of tax relief applications during the term of a payment plan, 208
the existing payment plan shall terminate, and the eligible homeowner can reapply for the same 209
periods; and 210
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“(F) Property will not be sold at a tax sale during the time a payment plan 211
is active. 212
“(3) While enrolled in a payment plan, an eligible homeowner shall remain 213
current on real property taxes that come due. 214
“(4)(A) An eligible homeowner may be declared in material breach of a real 215
property payment plan if he or she fails to make the required payments; provided, that a material 216
breach may not be declared earlier than the sixty-fifth day from the agreed upon due date and the 217
forty-fifth day from the mailing of a notice of risk of material breach. 218
“(B) An eligible homeowner who has been declared in material breach of a 219
payment plan may have his or her payment plan reinstated if he or she pays a lump sum equal to 220
as much as twice the regular monthly payment due together with the missed payments as well as 221
any payments currently due. 222
“(5) An eligible homeowner may be declared in default if he or she has failed to 223
cure a material breach within 45 days of the date the eligible homeowner is declared in material 224
breach. If an eligible homeowner is declared in default of a payment plan, such plan shall be null 225
and void. 226
“(c) Requests for property tax payment plans entered into pursuant to this section shall 227
made online at MyTaxDC.gov. A payment plan agreement confirmation shall be provided to the 228
eligible homeowner and shall contain the following: 229
“(1) The monthly payment amount; 230
“(2) The past due date; 231
“(3) The length of the plan, including the number of payments; 232
“(4) The total amount agreed due under the plan; 233
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“(5) A statement of the delinquent tax periods covered by the plan as well as an 234
itemized statement of the amounts due for each period specifying the amount due for principal, 235
interest, penalties, and any other charges or fees; 236
“(6) A statement that the eligible homeowner is required to remain current on real 237
property taxes during the length of the agreement, as well as an explanation of how current 238
payments should be tendered in order to avoid misapplication of payments to delinquent taxes. 239
“(7) A brief explanation of how payments will be applied to the delinquency; 240
“(8) A brief explanation of the consequences of breach and default on the payment 241
plan; and 242
“(9) A statement that payments are to be remitted to the District electronically by 243
direct debit, and that the payments will be withdrawn from the eligible homeowner’s account on 244
the monthly payment due date. If there are insufficient funds for the debit, the eligible 245
homeowner shall also be liable for a fee imposed by the District for the dishonored payment. 246
“(d)(1) If an eligible homeowner fails to make a required payment within 20 days of an 247
agreed-upon payment due date, a notice of risk of material breach shall be sent to the eligible 248
homeowner. The notice shall include a statement that the eligible homeowner is at risk of 249
material breach, the entire amount required to cure the missed payment(s) as well as any 250
payments currently due, and a brief description of the consequences of a material breach. 251
“(2) If an eligible homeowner is declared in material breach of a payment plan, a 252
notice of material breach shall be sent to the eligible homeowner that includes a clear statement 253
that he or she has been declared in material breach, the date on which the material breach was 254
declared, the entire amount required to cure the missed payments as well as any payments 255
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currently due and lump sum payments that may be required, and a clear statement that failure to 256
make the required payment will result in default.”. 257
(b) Section 47-1341 is amended as follows: 258
(1) Subsection (a)(2) is amended to read as follows: 259
“(2) The notice required pursuant to paragraph (1) of this subsection shall be in 260
substantively the following form and may include a payment coupon or enclosed bill: 261
“THIS IS A NOTICE OF DELINQUENCY FAILURE TO PAY TAXES WILL HAVE SERIOUS 262
CONSEQUENCES WHICH MAY INCLUDE LOSS OF TITLE TO THE PROPERTY 263
“Subject Property: [Identify by taxation square, suffix, and lot number, or parcel and lot number, 264
and by premises address, the real property to be sold] 265
“TO AVOID TAX SALE YOU MUST PAY $ [Amount Subject to Sale] by May 31, 20__. 266
“The amount that you must pay to avoid the tax sale may be less than the total amount owed on 267
the real property account. This amount may include fees or fines due to other DC agencies that 268
have been certified to the Office of Tax and Revenue to be included in a tax sale pursuant to D.C. 269
Code § 47-1340. 270
“According to the Mayor’s tax roll, you own or may have an interest in the real property listed 271
above. Notice is given that unless you pay the amount stated above or fall within one of the 272
limited exemptions from the tax sale, the Office of Tax and Revenue may sell this real property 273
at tax sale. 274
“If the property is sold at tax sale, the purchaser may have the right to file a lawsuit to foreclose 275
on the property. You must act now to avoid additional costs and significant expenses, as well as 276
potential loss of title to the property. 277
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“Payment to the “DC Treasurer” may be made online at MyTaxDC.gov or at a mailed (with 278
payment coupon from tax bill) to the Office of Tax and Revenue, DC Government Real Property 279
Taxes, P.O. Box 718095, Philadelphia, PA 19171-8095 (please write your square, suffix and lot 280
numbers on the check). You should keep a copy of your proof of payment in case there is a later 281
dispute about the payment. 282
“If payment is not made before May 31, 20__, the amount listed on this notice may no longer be 283
accurate. In that case, you must contact the Office of Tax and Revenue at ______ to obtain an 284
updated payoff amount. 285
“YOU MAY BE ELIGIBLE FOR ASSISTANCE, INCLUDING A HARDSHIP 286
FORBEARANCE, A REAL PROPERTY TAX PAYMENT PLAN, OR FREE LEGAL 287
SERVICES. PLEASE SEE THE NEXT PAGE FOR ADDITIONAL INFORMATION. 288
“Should you have additional questions, please call the Customer Service Center for the Office of 289
Tax and Revenue at (202) 727-4TAX (4829). 290
“RESOURCES FOR REAL PROPERTY TAXPAYERS IN THE DISTRICT OF COLUMBIA 291
“Real Property Tax Ombudsman. Homeowners and other interested parties may be eligible for 292
assistance from the Real Property Tax Ombudsman. If you need assistance with a tax sale or 293
related property tax matters, contact the Real Property Tax Ombudsman at ___________. 294
“Classification Disputes. If your real property is classified as vacant or blighted and you believe 295
this classification is incorrect, contact the Vacant Building Enforcement Unit of the Department 296
of Buildings at ______ for information on how to appeal the property classification. 297
“Hardship Forbearance. You may be eligible to defer, or postpone, payment of the past due 298
amount. For information on how to apply for this deferral, please contact the Office of Tax and 299
Revenue at ___________. 300
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“Senior Citizen and Low-Income Tax Relief. Senior citizens and low-income households may 301
have additional rights to defer property taxes. If you think you may be eligible for this tax relief, 302
please contact the Office of Tax and Revenue at _______ for more information. 303
“Additional Legal Services. Free and reduced-cost legal services may be available to low- and 304
moderate-income households. You can get a list of service providers from the Real Property Tax 305
Ombudsman (above). 306
“Housing Counseling Services. The U.S. Department of Housing and Urban Development 307
(“HUD”) sponsors housing counseling agencies throughout the country that can provide advice 308
on buying a home, renting, defaults, foreclosures, and credit issues. You can get a list of HUD-309
approved housing counseling agencies from the Real Property Tax Ombudsman (above).”. 310
(2) Subsection (b-1)(2) is amended to read as follows: 311
“(2) The notice required pursuant to paragraph (1) of this subsection shall be in 312
substantively the following form, and may include a payment coupon or enclosed bill: 313
“THIS IS A NOTICE OF DELINQUENCY. FAILURE TO PAY TAXES IMMEDIATELY MAY 314
HAVE SERIOUS CONSEQUENCES WHICH MAY INCLUDE LOSS OF TITLE TO THE 315
PROPERTY 316
“Subject Property: [Identify by taxation square, suffix, and lot number, or parcel and lot number, 317
and by premises address, the real property to be sold] 318
“TO AVOID TAX SALE YOU MUST PAY $[Amount Subject to Sale] by [Last Business Day 319
before tax sale] 320
“The amount that you must pay to avoid the tax sale may be less than the total amount owed on 321
the real property account. This amount may include fees or fines due to other DC agencies that 322
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have been certified to the Office of Tax and Revenue to be included in a tax sale pursuant to D.C. 323
Code § 47-1340. 324
“According to the Mayor’s tax roll, you own or may have an interest in the real property listed 325
above. Notice is given that unless you pay the amount stated above or fall within one of the 326
limited exemptions from the tax sale, the Office of Tax and Revenue may sell this real property 327
at tax sale. 328
“If the property is sold at tax sale, the purchaser may have the right to file a lawsuit to foreclose 329
on the property. You must act now to avoid additional costs and significant expenses, as well as 330
potential loss of title to the property. 331
“Payment to the “DC Treasurer” may be made online at MyTaxDC.gov or at a mailed (with 332
payment coupon from tax bill) to the Office of Tax and Revenue, DC Government Real Property 333
Taxes, P.O. Box 718095, Philadelphia, PA 19171-8095 (please write your square, suffix and lot 334
numbers on the check). You should keep a copy of your proof of payment in case there is a later 335
dispute about the payment. 336
“If payment is made less than 10 calendar days before [the last business day before tax sale], you 337
must provide a copy of the receipt directly to the Office of Tax and Revenue in order to ensure 338
that your property is removed from the tax sale. 339
“You may FAX the receipt to (202) 478-5995; EMAIL the receipt to [email address]; or HAND-340
DELIVER a copy of the paid receipt to a Tax Sale Unit representative in the Customer Service 341
Center located at 1101 4th Street, SW, Suite 270W, Washington, DC 20024. 342
“Do not mail your paid receipt. 343
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“YOU MAY BE ELIGIBLE FOR ASSISTANCE, INCLUDING A HARDSHIP 344
FORBEARANCE, A REAL PROPERTY TAX PAYMENT PLAN, OR FREE LEGAL 345
SERVICES. PLEASE SEE THE NEXT PAGE FOR ADDITIONAL INFORMATION. 346
“Should you have additional questions, please call the Customer Service Center for the Office of 347
Tax and Revenue at (202) 727-4TAX (4829). 348
“RESOURCES FOR REAL PROPERTY TAXPAYERS IN THE DISTRICT OF COLUMBIA 349
“Real Property Tax Ombudsman. Homeowners and other interested parties may be eligible for 350
assistance from the Real Property Tax Ombudsman. If you need assistance with a tax sale or 351
related property tax matters, contact the Real Property Tax Ombudsman at ___________. 352
“Classification Disputes. If your real property is classified as vacant or blighted and you believe 353
this classification is incorrect, contact the Vacant Building Enforcement Unit of the Department 354
of Buildings at _______ for information on how to appeal the property classification. 355
“Hardship Forbearance. You may be eligible to defer, or postpone, payment of the past due 356
amount. For information on how to apply for this deferral, please contact the Office of Tax and 357
Revenue at ___________. 358
“Senior Citizen and Low-Income Tax Relief. Senior citizens and low-income households may 359
have additional rights to defer property taxes. If you think you may be eligible for this tax relief, 360
please contact the Office of Tax and Revenue at _______ for more information. 361
“Additional Legal Services. Free and reduced-cost legal services may be available to low- and 362
moderate-income households. You can get a list of service providers from the Real Property Tax 363
Ombudsman (above). 364
“Housing Counseling Services. The U.S. Department of Housing and Urban Development 365
(“HUD”) sponsors housing counseling agencies throughout the country that can provide advice 366
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on buying a home, renting, defaults, foreclosures, and credit issues. You can get a list of HUD-367
approved housing counseling agencies from the Real Property Tax Ombudsman (above).”. 368
TITLE II. SERVICE OF PROCESS REFORMS. 369
Sec. 201. Title 29 of the District of Columbia Official Code is amended as follows: 370
(a) Section 29-104.03 is amended as follows: 371
(1) Paragraph (1) is amended by striking the word “and” at the end. 372
(2) Paragraph (2) is amended by striking the period at the end and inserting the 373
phrase “; and” in its place. 374
(3) A new paragraph (3) is added to read as follows: 375
“(3) Electronic mailing address.”. 376
(b) Section 29-104.04 is amended as follows: 377
(1) Subsection (a)(2)(A) is amended by striking the word “address” and inserting 378
the word “address(es)” in its place. 379
(2) Subsection (a)(2)(B) is amended by striking the phrase “address of the 380
business office of that person.” and inserting the phrase “physical or electronic mailing address 381
of the business office of that person, pursuant to § 29-104.03.” in its place. 382
(c) Section 29-104.05 is amended as follows: 383
(1) Subsection (a)(3) is amended by striking the word “address” and inserting the 384
word “address(es)” in its place. 385
(2) Subsection (b) is amended to read as follows: 386
“(b) A commercial registered agent listing statement shall include the information 387
regarding acceptance by the agent of service of process in a form other than a written record as 388
provided for in § 29-104.12(e), including but not limited to, electronic mail.” 389
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(d) Section 29-104.12(e) is amended to read as follows: 390
“(e) Service of process, notice, or demand on a registered agent and a commercial 391
registered agent shall be in a written record. Service may be made on a commercial registered 392
agent by electronic mail or other forms, and subject to such requirements, as the agent has stated 393
in its listing under § 29-104.05 that it will accept; provided, that commercial registered agents 394
may not require service by physical mail as a condition for accepting service by electronic 395
mail.”. 396
Sec. 202. Sec. 47-1203 of the District of Columbia Official Code is amended as follows: 397
(a) Subsection (a) is amended as follows: 398
(1) Paragraph (1) is amended as follows: 399
(A) Subparagraph (A) is amended to read as follows: 400
“(A) When mailed by first class mail to the owner’s mailing address as updated in the 401
real property tax records of the Office of Tax and Revenue.”. 402
(B) Subparagraph (D) is amended by striking the period semicolon at the 403
end and inserting the phrase “; or” in its place. 404
(C) Subparagraph (E) is struck. 405
(D) Subparagraph (F) is redesignated as subparagraph (E). 406
(2) Paragraph (2) is amended to read as follows: 407
“(2) Any notice to a corporation shall, for the purposes of §§ 47-1201 to 47-1206, 408
be deemed to have been served on such corporation if served on its agent registered pursuant to 409
Subchapter IV of Chapter 1 of Title 29, or on the president, secretary, treasurer, general manager, 410
or any principal officer of such corporation in a manner hereinbefore provided for the service of 411
notices on natural persons holding property in their own right; and notices to a foreign 412
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corporation shall, for the purposes of §§ 47-1201 to 47-1206, be deemed to have been served if 413
served personally on any agent of such corporation, or if left with any person of suitable age and 414
discretion residing at the usual residence or employed at the usual place of business of such agent 415
in the District of Columbia.”. 416
(3) Paragraph (3) is struck. 417
(b) Subsection (b)(1) is amended to read as follows: 418
“(b)(1) All special assessments authorized to be levied by the District of Columbia for 419
public improvements, with the exception of assessments levied in condemnation proceedings, 420
may be paid without interest within 30 days from the date of service of notice. Interest of 1.5% 421
for each month or part thereof shall be charged on all unpaid amounts from the expiration of 30 422
days from the date of service. If any such assessment or any part thereof shall remain unpaid 423
after the expiration of 1 year from date of service of notice, the property against which said 424
assessment was levied may be sold for such assessment or unpaid portion thereof with interest 425
and penalties thereon at the next ensuing annual tax sale conducted under Chapter 13A of this 426
title, in the same manner and under the same conditions as property sold for delinquent general 427
taxes, if said assessment with interest and penalties thereon shall not have been paid in full prior 428
to said sale.”. 429
TITLE III. VACANT AND BLIGHTED PROPERTY REGISTRATION 430
IMPROVEMENTS . 431
Sec. 301. An Act To provide for the abatement of nuisances in the District of Columbia 432
by the Commissioners of said District, and for other purposes, approved April 14, 1906 (34 Stat. 433
114; D.C. Official Code § 42-3131.01 et seq.), is amended as follows: 434
(a) The table of contents for Chapter 31A, Subchapter II is amended as follows: 435
19
(1) Strike the section designation “42–3131.05a. Notice by mail.” and insert the 436
section designation “42–3131.05a. Notice.” in its place. 437
(2) A new section designation 42–3131.05b is added to read as follows: 438
“42–3131.05b. Determination of vacancy and blight.”. 439
(3) Strike the section designation “42–3131.06. Registration of vacant buildings.” 440
and insert the section designation “42–3131.06. Registration of vacant buildings; renewal.” in its 441
place. 442
(4) A new section designation 42–3131.06a is added to read as follows: 443
“42–3131.06a. Exemptions.”. 444
(5) Strike the section designation “42–3131.07. Registration and renewal 445
procedure.” and insert the section designation “42–3131.07. Registration and renewal procedure. 446
[Repealed].” in its place. 447
(6) Strike the section designation “42–3131.12. Vacant building maintenance 448
standard.” and insert the section designation “42–3131.12. Vacant building maintenance standard 449
and plan.” in its place. 450
(7) Strike the section designation “42.3131.16. Transmission of list by Mayor.” 451
and insert the section designation “42.3131.16. Transmission of list by Mayor; reconciliation of 452
information.” in its place. 453
(8) Strike the section designation “42–3131.17. Transmission of list of blighted 454
vacant buildings by Mayor.” and insert the section designation “42–3131.17. Transmission of list 455
of blighted vacant buildings by Mayor. [Repealed].” in its place. 456
20
(9) Strike the section designation “42–3131.18. Publication of list by the 457
Department of Buildings.” and insert the section designation “42–3131.18. Publication of vacant 458
and blighted vacant building information by the Department.” in its place. 459
(10) Strike the section designation “42–3131.19. Vacant and blighted vacant 460
buildings belonging to foreign governments.” and insert the section designation “42–3131.19. 461
Vacant and blighted vacant buildings belonging to foreign governments. [Repealed].” in its 462
place. 463
(11) A new section designation 42–3131.20 is added to read as follows: 464
“42–3131.20. Vacant and blighted vacant building receivership.” 465
(12) A new section designation 42-3131.21 is added to read as follows: 466
“42.3131.21. Vacant and blighted building report and plan.” 467
(13) A new section designation 42–3131.22 is added to read as follows: 468
“42–3131.22. Rules.” 469
(b) Section 5 (D.C. Official Code § 42–3131.05) is amended to read as follows: 470
“(1) “Blighted vacant building” means any vacant building that is in such a condition as 471
to pose a danger to the health, safety, and general welfare of the community. 472
“(2) “Commercial unit” means a building, or a part of a building, zoned for commercial 473
purposes under the zoning regulations of the District of Columbia. 474
“(3) “Dwelling unit” means a room, or group of rooms forming a single unit, designed, or 475
intended to be used, for living and sleeping, whether or not designed or intended for the 476
preparation and eating of meals or to be under the exclusive control of the occupant. The term 477
“dwelling unit” shall not include a room, or group of rooms forming a single unit, in a hotel or 478
motel licensed in the District of Columbia, actively operating as a hotel or motel. 479
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“(4) “Fit for occupancy” means ready for immediate occupancy by a tenant without more 480
than minor cosmetic changes. 481
“(5) “Multifamily residential building” means a building containing two or more 482
dwelling units. 483
“(6) “Occupied” means: 484
“(A) For purposes of a dwelling unit, the use of one’s residence in improved real 485
property on a regular basis; or 486
“(B) For purposes of a commercial unit, use consistent with zoning regulations, 487
for which there is a current valid certificate of occupancy, and (i) paid utility receipts for the 488
specified period, executed lease agreements, or sales tax return, or (ii) other evidence of use of 489
the building that the Mayor may require by rule. 490
“(7) “Owner” means one or more persons or entities with an interest in real property in 491
the District of Columbia that appears in the real property tax records of the Office of Tax and 492
Revenue, and a tax sale purchaser under § 47-1353(b) or the purchaser’s assignee, as applicable, 493
except where the owner of record is challenging or appealing the vacant status of the real 494
property for the same period. 495
“(8) “Owner of record” means the person or persons named in the public record as the 496
title holder of the property. 497
“(9) “Real property” shall have the same meaning as § 47-802(1). 498
“(10) “Related owners” or “related ownership” exists when a deduction for a loss from 499
the sale or exchange of properties between taxpayers would be disallowed under section 267 of 500
the Internal Revenue Code of 1986, approved August 16, 1954 (68A Stat. 78; 26 U.S.C. § 267); 501
22
provided, that the exclusion under section 267(a)(1) for a loss in a distribution in a complete 502
liquidation shall not apply. 503
“(11) “Relative” means a spouse, domestic partner, sibling, parent, grandparent, child, 504
grandchild, or the sibling's child, spouse, or domestic partner. 505
“(12) “Vacant building” means any real property improved by a building that is not 506
lawfully occupied on a regular and habitual basis by the owner, a tenant, or other person having 507
the permission of the owner; provided, that in the case of residential buildings, the Mayor 508
determines that there is no resident for which an intent to return and lawfully occupy the building 509
can be shown.”. 510
(b) Section 5a (D.C. Official Code § 42–3131.5a) is amended to read as follows: 511
“Sec. 5a. Notice. 512
“(a) Notice shall be deemed to be served properly on the date when mailed by first class 513
mail to the owner of record of the vacant building at the owner’s mailing address as updated in 514
the real property tax records of the Office of Tax and Revenue. 515
“(b)(1) In addition to the notice requirement of subsection (a) of this section, the Mayor 516
shall cause notice to be posted on the premises; provided, that the official notice shall be mailed 517
pursuant to subsection (a) of this section. 518
“(2) Unless the vacant property is eligible for an exemption pursuant to § 42–519
3131.06a of this chapter, the notice shall not be posted by difficult-to-remove adhesive. 520
“(c) A courtesy copy of the notice provided pursuant to subsection (a) of this section shall 521
be mailed or electronically mailed to the Advisory Neighborhood Commission in which the 522
vacant building is located. The courtesy copy required by this subsection shall not be construed 523
23
to satisfy, nor be construed as necessary to satisfy, the notice requirement of subsection (a) of this 524
section.”. 525
(c) A new Section 5b (D.C. Official Code § 42–3131.05b) is added to read as follows: 526
“Sec. 5b. Determination of vacancy and blight. 527
“(a) When making a determination that a building is vacant, the Mayor shall consider the 528
following: 529
“(1) Neighbor complaints; 530
“(2) Advisory Neighborhood Commission certification; 531
“(3) Accumulated mail, fliers, or newspapers; 532
“(4) Past due utility notices, disconnected utilities, or utilities not in use; 533
“(5) Presence of overgrown vegetation, dead or diseased trees, or noxious weeds; 534
“(6) Absence of furnishings or personal items consistent with habitation; 535
“(7) The building is open to casual entry or trespass; and 536
“(8) Any other criteria the Mayor deems relevant. 537
“(b) When making a determination that a vacant building is a blighted vacant building, 538
the Mayor shall consider the following: 539
“(1) The incidence of illegal activity, as documented by police reports; 540
“(2) Whether the vacant building is the subject of a condemnation proceeding 541
before the Board of Condemnation and Insanitary Buildings; 542
“(3) Referrals to the Department of Buildings from other District agencies; 543
“(4) One or more windows, doors, or other means of entry are missing or boarded 544
up; 545
24
“(5) Collapsing, missing or deteriorating walls, roof, stairs, porches, balconies, 546
chimneys, and other building elements; 547
“(6) Siding or exterior walls that are seriously damaged, missing, or deteriorating; 548
“(7) Trash and debris are improperly stored or accumulated on the premises; 549
“(8) The building shows visible signs of vandalism such as graffiti; 550
“(9) The presence of mold, algae, abandoned or wild animals, or insect or pest 551
infestation; 552
“(10) Any other criteria the Mayor deems relevant. 553
“(c) For purposes of this section, the term “Advisory Neighborhood Commission 554
certification” means a resolution approved by a majority vote of an Advisory Neighborhood 555
Commission in which the building is located requesting that the Mayor classify a building as 556
vacant or blighted vacant.”. 557
(d) Section 6 (D.C. Official Code § 42–3131.06) is amended to read as follows: 558
“Sec. 6. Registration of vacant buildings; renewal. 559
“(a) Except as provided in § 42–3131.06a of this chapter, the owner of a vacant building 560
shall, within 180 days after it becomes vacant, register the building and pay the registration fee. 561
The Mayor may extend the time for good cause. 562
“(b)(1) Each application for the registration of a vacant building shall be in a form 563
prescribed by the Mayor and shall contain the following information: 564
“(A) The street address of the vacant building; 565
“(B) The date on which the building became vacant; 566
“(C) The name, street address, telephone number, and electronic mail 567
address of the owner of record; except as provided in subsection (f) of this section; 568
25
“(D) The name, address, telephone number, and electronic mail address of 569
a person based in the District who is responsible for the security and maintenance of the 570
property, if other than the owner of record; 571
“(E) A signed vacant building maintenance plan required pursuant to § 42–572
3131.12 of this chapter. 573
“(2) If at any time the information provided pursuant to paragraph (1) of this 574
subsection is no longer valid, the owner shall file a new registration within ten days containing 575
current information. There shall be no additional fee to provide current information pursuant to 576
this paragraph. 577
“(c) At the time of application for the initial registration or renewal of registration of a 578
vacant building, the owner shall arrange with the Mayor for the inspection of the building. On 579
receiving an application for the initial registration or renewal of registration of a vacant building, 580
the Mayor shall thereafter inspect the building. The Mayor shall approve the initial registration or 581
the renewal of registration for one year if: 582
“(1) The application for registration contains all of the information required 583
pursuant to subsection (a) of this section. 584
“(2) The building has been maintained in accordance with the requirements of § 585
42–3131.12; and 586
“(3) The vacancy of the building will not: 587
“(A) Be detrimental to the public health, safety, and welfare; 588
“(B) Unreasonably interfere with the reasonable and lawful use and 589
enjoyment of the other premises within the neighborhood; and 590
26
“(C) Pose a hazard to police officers or firefighters entering the building in 591
an emergency. 592
“(4) The building complies with the fire, building, and housing codes of the 593
District of Columbia; 594
“(5) The continuance of any maintenance work or condition of occupancy is not 595
dangerous to life or property; 596
“(6) No false statements or misrepresentations have been made upon the 597
registration application; 598
“(7) Orders on a building have been complied with and the building complies 599
with any applicable occupancy requirements; 600
“(8) An adequate water supply or facilities for firefighting purposes is furnished 601
as required in the fire code; and 602
“(9) The Mayor is permitted to inspect the building before initial registration, 603
during the registration period, and before a renewal of registration. 604
“(d) If the owner of a vacant building fails to comply with the provisions of subsection 605
(c) of this section, both initially and throughout the registration period, the Mayor may deny or 606
revoke the owner’s registration and may subject the owner to the penalties provided in § 42–607
3131.10. 608
“(e)(1) After the initial designation of a property as vacant or blighted, the Mayor shall 609
not be required to perform additional inspections or surveys to sustain that classification. 610
“(2) After the Mayor has made a final determination that a building is a vacant 611
building or a blighted vacant building, that final determination shall remain in effect until the 612
owner submits information to the Mayor sufficient to warrant a change to that classification. 613
27
“(f)(1)(A) Except as provided in subparagraph (B) of this paragraph, no person except the 614
owner of record or an authorized agent of the owner of record, with proof of authorization from 615
the owner of record, may register a building as vacant. 616
“(B) The Mayor, upon a showing that the owner of record is physically 617
unable to register the property, may allow a relative of the owner of record to register the 618
building as vacant; provided, that the relative can show proof of being a relative and, to the 619
satisfaction of the Mayor, that the owner of record is physically unable to register the property. 620
“(2) This subsection shall not in any way limit the Mayor's authority to register as 621
vacant or blighted any property whose owner fails to register it as required by this chapter.”. 622
(e) A new section 6a (D.C. Official Code § 42–3131.06a) is added to read as follows: 623
“Sec. 6a. Exemptions. 624
“(a) A vacant or blighted vacant building shall not be subject to the registration 625
requirements of § 42–3131.06 if it is: 626
“(1) Owned by the government of the United States or its instrumentalities; or 627
“(2) Authorized as exempt from real estate taxes by the United States Department 628
of State's Office of Foreign Missions on the basis of its use for diplomatic or consular purposes 629
or for the official business of an international organization. 630
“(b) A vacant building shall not be subject to the increased real property tax rates for 631
vacant buildings in § 47-812(b-10) if it is: 632
“(1) Exempted by the Mayor in extraordinary circumstances and upon a showing 633
of substantial economic or personal hardship as determined in subsection (c) of this section; 634
“(2) In compliance with the requirements of § 42–3131.12 and applicable 635
property maintenance code standards for the District of Columbia and the owner or his or her 636
28
agent has been actively seeking in good faith to rent or sell the building; provided, that an 637
exemption under § 42-3131.06a(b)(2) shall only be available for a period not to exceed: 638
“(A) Half a tax year from the initial listing, offer, or advertisement of sale 639
in the case of single-family residential buildings; 640
“(B) Two tax years from the initial listing, offer, or advertisement of sale 641
for multifamily residential buildings; or 642
“(C) Two tax years from the initial listing, offer, or advertisement of rent 643
or sale for commercial buildings; 644
“(3) For a period not to exceed 3 tax years, the subject of a probate proceeding or 645
the title is the subject of litigation (not including a foreclosure of the right of redemption action 646
brought under Chapter 13A of Title 47 [§ 47-1330 et seq.]). The tax year in which the exemption 647
under § 42-3131.06a(b)(3) starts is determined by the filing date of the applicable probate 648
proceeding and/or litigation; 649
“(4) For a period not to exceed 2 tax years, the subject of a pending application 650
for a necessary approval for development before the Board of Zoning Adjustment, the Zoning 651
Commission for the District of Columbia, the Commission on Fine Arts, the Historic 652
Preservation Review Board, the Mayor’s Agent for Historic Preservation, the Department of 653
Public Works, or the National Capital Planning Commission; or 654
“(5) For a period not to exceed half a tax year, the owner of the property or his or 655
her agent has an active building permit application that is being reviewed and processed by the 656
District, and the owner is actively seeking in good faith to obtain a building permit for the 657
purposes of making the building fit for occupancy; or 658
29
“(6) For a period not to exceed 3 tax years, under active construction or 659
undergoing active rehabilitation, renovation, or repair, and there is a valid active building permit 660
to make the building fit for occupancy. During the half tax year in which the exemption is 661
requested, the building must be under active construction or undergoing active rehabilitation, 662
renovation, or repair under a valid active building permit. The term “active construction” means 663
the conducting of activities that contribute directly to the completion of improvements 664
contemplated or shown on active permits. 665
“(c)(1) To qualify for an exemption for substantial economic or personal hardship 666
pursuant to subsection (b)(1) of this section, an owner must demonstrate: 667
“(A) He or she was a debtor in an individual bankruptcy action within the 668
last 12 months; 669
“(B) He or she experienced a significant medical event that prevented him 670
or her from engaging in normal work or business activities for at least a period of 30 days; 671
“(C) He or she was involuntarily terminated from employment and was 672
unemployed for at least 60 days within the last 12 months; 673
“(D) He or she is: 674
“(i) 60 years of age or older and is receiving social security 675
disability insurance; 676
“(ii) 65 years of age or older and has a household income that does 677
not exceed 120% of the median family income and has experienced medical, personal, or 678
financial hardship in the past 180 days; 679
30
“(E) He or she was impacted by a fire at the property that was not the 680
result of criminal activity or negligence as identified by a Fire and Emergency Medical Services 681
investigation; or 682
“(F) He or she was impacted by a natural disaster at the property. 683
“(2) The exemption may be granted for a period not to exceed one tax year from 684
the required registration date, subject to renewal on the basis of continuing extraordinary 685
circumstances and substantial undue economic hardship. The Mayor may withdraw the 686
exemption at any time. 687
“(d)(1) The cumulative time period for exemption from registration and fee requirements 688
for a vacant building under the same, substantially similar, or related ownership shall not exceed 689
3 tax years. 690
“(2) The limitations set forth in paragraph (1) of this subsection shall not apply to 691
vacant buildings that benefit from an exemption under subsection (a) of this section. 692
“(e) The total cumulative time for exemptions granted under subsection (b) of this section 693
to any property shall not exceed 5 tax years in any 12-year period, excluding exemptions granted 694
under subsection (a) of this section.”. 695
(f) Sec. 7 (D.C. Official Code § 42–3131.07) is repealed. 696
(g) Sec. 9 (D.C. Official Code § 42–3131.09) is amended to read as follows: 697
“(a) Except as provided in § 42–3131.06a(a), the owner of a building shall register the 698
building and pay registration fees within 180 days after it becomes a vacant or blighted vacant 699
building. 700
“(b) Fees for registration and renewal shall be as follows: 701
“(1) The initial registration fee shall be $350. 702
31
“(2) The renewal registration fee shall be $500. 703
“(c) The Mayor may increase the fees in subsection (b) of this section through rules 704
issued pursuant to § 42–3131.21.”. 705
(h) Section 10 (D.C. Official Code § 42–3131.10) is amended to read as follows: 706
“(a)(1) The failure of the owner of a vacant or blighted vacant building to register and 707
pay all required fees under § 42-3131.06(a) or § 42-3131.09 after notice of the designation of the 708
owner’s building as vacant or blighted vacant, the determination of delinquency of registration or 709
fee payment, the denial or revocation of registration, the filing by an owner of any false or 710
misleading registration-related information, or the refusal of the owner of a vacant or blighted 711
vacant building to permit the Mayor to inspect the building shall be subject to a civil penalty of 712
up to $1,000 for the first violation, $2,500 for the second violation, and $5,000 for the third and 713
subsequent violations. 714
“(2) The Director of the Department of Buildings shall provide the Office of the 715
Attorney General with a list of all owners who fail to register and pay the required fee after 716
notice. 717
“(b) If the owner of a vacant building fails to maintain the building in compliance with 718
the requirements of § 42–3131.12 or, having obtained a vacant property registration, 719
subsequently fails to comply with the other registration requirements under § 42–3131.06, the 720
Mayor, in addition to issuing civil penalties pursuant to subsection (a) of this section, may: 721
“(1) Charge the owner with failure to comply and enforce all applicable penalties 722
under this chapter; and 723
32
“(2) Take other action as required by the Construction Codes or Construction 724
Codes Supplement of the District of Columbia to bring the building into compliance with those 725
codes. 726
“(c) Criminal prosecutions under § 42-3131.05 through § 42-3131.15 shall be brought in 727
the name of the District of Columbia by the Attorney General for the District of Columbia.”. 728
(i) Section 11(b) (D.C. Official Code § 42–3131.11(b) is amended by striking the phrase 729
“Department of Consumer and Regulatory Affairs” and inserting the phrase “Department of 730
Buildings” in its place. 731
(j) Section 12 (D.C. Official Code § 42–3131.12) is amended to read as follows: 732
“Sec. 12. Vacant building maintenance standard and plan. 733
“(a) The owner of a vacant building shall comply with the following maintenance 734
requirements: 735
“(1) The exterior of the building shall be maintained free of graffiti, tagging, or 736
similar markings; 737
“(2) Exterior walls shall be free of holes, breaks, and loose or rotting materials; 738
“(3) The interior of the building, and the property on which the building is 739
located, shall be free from debris, rubbish, and garbage; 740
“(4) Exposed metal and wood surfaces on the exterior of the building and any 741
accessory or appurtenant structures shall be protected from the elements and against decay or 742
rust; 743
“(5) The cornices, belt courses, corbels, terra cotta trim, wall facings, and similar 744
decorative features shall be safe, anchored, and in good repair; 745
33
“(6) All balconies, canopies, marquees, signs, metal awnings, stairways, fire 746
escapes, standpipes, exhaust ducts, and similar features shall be in good repair, anchored, safe 747
and sound; 748
“(7) Doors, windows, areaways, and other openings shall be weather-tight and 749
secured against entry by birds, vermin, and trespassers, and missing or broken doors, windows, 750
and other openings shall be covered with 1/2 inch CDX plywood that is painted in accordance 751
with the predominant tone of the building and is weather protected, tightly fitted to the opening, 752
and secured by screws or bolts; 753
“(8) The roof and flashing shall be sound and tight, not admit moisture, and 754
drained to prevent dampness or deterioration in the walls or interior; 755
“(9) The building storm drainage system shall be adequately sized and installed in 756
an approved manner and functional; 757
“(10) The structural members shall be free of deterioration and capable of safely 758
bearing imposed dead and live loads; 759
“(11) The foundation walls shall be plumb, free from open cracks and breaks, and 760
vermin-proof; 761
“(12) Chimneys, cooling towers, smokestacks, and similar appurtenances shall be 762
structurally safe, sound, and in good repair; 763
“(13) Openings in sidewalks shall be safe for pedestrian travel; 764
“(14) The property on which the building is located shall be free from excessive 765
vegetation and debris; and 766
“(15) The property on which the building is located, as well as any accessory or 767
appurtenant structures, shall be free from safety, health, or fire hazards. 768
34
“(b) The owner of a vacant property or his or her agent shall submit a vacant property 769
maintenance plan with the registration form required pursuant to § 42–3131.06. The plan shall 770
include the following: 771
“(1) The name, address, and contact information (telephone number and 772
electronic mail address where applicable) of the person submitting the plan; 773
“(2) Contact information for the person designated to manage and maintain the 774
property; 775
“(3) A copy of a letter or notice to properties immediately adjacent to the vacant 776
building advising residents of the name and contact information of the person designated to 777
manage and maintain the property; 778
“(4) A plan for actively monitoring, maintaining, and securing the property for the 779
anticipated or expected period of vacancy that demonstrates how the property will be maintained 780
in accordance with subsection (a) of this section; 781
“(5) Any other information deemed necessary by the Mayor for purposes of 782
effectuating this section.”. 783
(k) Section 15 (D.C. Official Code § 42-3131.15) is amended to read as follows: 784
“(a) Within 15 days after the designation of an owner’s building as a vacant building, the 785
determination of delinquency of registration or fee payment, the denial or revocation of 786
registration, or the designation of a vacant building as a blighted vacant building, the owner may 787
petition the Mayor for reconsideration by filing the form prescribed by the Mayor. 788
“(b) Within 60 days after receiving a petition pursuant to subsection (a) of this section, 789
the Mayor shall issue a notice of final determination to the owner of the vacant building. The 790
35
petition shall be deemed denied, and it shall have the same effect of the issuance of a notice of 791
final determination, if the Mayor does not act upon the petition within 60 days. 792
“(c) Within 15 days after the date of the notice of final determination under subsection (b) 793
of this section, or within 15 days after the expiration of the time period under subsection (b) of 794
this section, an owner may file an appeal with the Real Property Tax Appeals Commission for the 795
District of Columbia on the form prescribed by the Mayor; provided, that the notice of final 796
determination or passive appeal under subsection (b) of this section shall be a prerequisite to 797
filing an appeal with the Real Property Tax Appeals Commission for the District of Columbia. 798
The Real Property Tax Appeals Commission may not extend the time to file an appeal. 799
“(d) After receiving a notice of appeal from an owner as required under subsection (c) of 800
this section, the Real Property Tax Appeals Commission for the District of Columbia shall 801
provide by mail or electronic mail to the Advisory Neighborhood Commission in which the 802
vacant building is located, at least 15 days before any scheduled hearing on the appeal, the 803
following information related to the building at issue: 804
“(1) The name of the owner of the building, and the address of the building, 805
including square, suffix and lot numbers; 806
“(2) The determination under review; and 807
“(3) The date, time, and location of the hearing. 808
“(e) The District, through the Office of the Attorney General, may appeal a decision of 809
the Real Property Tax Appeals Commission to the Superior Court of the District of Columbia 810
within 90 days after the receipt of a written decision.”. 811
(l) Section 16 (D.C. Official Code § 42-3131.16) is amended to read as follows: 812
36
“(a) No less than once a week, the Mayor shall transmit to the Office of Tax and Revenue 813
a list of buildings: 814
“(1) Registered as vacant or blighted vacant; 815
“(2) Designated as vacant or blighted vacant; and 816
“(3) For which the time period to issue a notice of final determination under § 42-817
3131.15(b) has expired or a notice of final determination has been issued under § 42-3131.15 and 818
administrative appeals have been exhausted or expired. 819
“(b) The list shall be in the form and medium prescribed by the Office of Tax and 820
Revenue. 821
“(c) Buildings shall remain on the list required by this section until a change in 822
classification is approved. 823
“(d) The Mayor and the Office of Tax and Revenue shall develop a procedure to reconcile 824
any material differences between information retained by the Department of Buildings regarding 825
buildings registered as vacant or designated as blighted vacant, and buildings taxed as Class 3 or 826
4, on at least a monthly basis.”. 827
(m) Section 17 (D.C. Official Code § 42-3131.17) is repealed. 828
(n) Section 18 (D.C. Official Code § 42-3131.18) is amended to read as follows: 829
“Sec. 18. Publication of vacant and blighted vacant building information by the 830
Department. 831
“(a) The Department of Buildings shall maintain, on a publicly available website, a 832
database or list of vacant and blighted buildings. The database or list shall, at a minimum, 833
contain the following information: 834
37
“(1) The address of the building, including the square, suffix, and lot number of 835
the property on which the building is located; 836
“(2) The Advisory Neighborhood Commission and Ward in which the building is 837
located; 838
“(3) The date on which the building was determined to be a vacant or blighted 839
vacant building or registered as a vacant or blighted vacant building pursuant to § 42-3131.06; 840
“(4) The type of exemption the building has received, the date on which the 841
building received an exemption, and the number of half tax years the building has been exempt, 842
if applicable; 843
“(5) The number of months the building has been registered vacant or designated 844
as blighted vacant; 845
“(6) The last date on which the property was inspected by the Department; and 846
“(7) The current tax classification of the property.”. 847
(o) Sec. 19 (D.C. Official Code § 42-3131.19) is repealed. 848
(p) A new section 20 (D.C. Official Code § 42-3131.20) is added to read as follows: 849
“Sec. 20. Vacant and blighted vacant building receivership. 850
“(a) The Mayor may petition the Superior Court of the District of Columbia for the 851
appointment of a receiver to rehabilitate, demolish, or sell a vacant or blighted vacant building, 852
upon the occurrence of any of the following, each of which is deemed a nuisance per se: 853
“(1) The vacant building has been registered as vacant for at least 12 months, 854
excluding any exemptions provided pursuant to § 42–3131.6a, and at least one notice of 855
infraction for which a final order has been issued by the Office of Administrative Hearings has 856
not been abated by the owner 30 days after the issuance of the final order; 857
38
“(2) The vacant building has been registered as vacant for at least 36 months, 858
excluding any exemptions provided pursuant to § 42–3131.6a; 859
“(3) The blighted vacant building has been designated as blighted vacant for at 860
least 12 months, excluding any exemptions provided pursuant to § 42–3131.6a; or 861
“(4) The vacant or blighted vacant building is subject to a condemnation order by 862
the Board for the Condemnation of Insanitary Buildings pursuant to § 6-903. 863
“(b) The Mayor shall give notice to the owner of the building no less than 90 days prior 864
to the filing of a petition. 865
“(c) The petition for appointment of a receiver shall include: 866
“(1) A copy of the registration form or designation form; 867
“(2) A copy of the final order from the Office of Administrative Hearings, if 868
applicable; and 869
“(3) A verified pleading that identifies and states the qualifications of the 870
proposed receiver. 871
“(c) The petition for the appointment of a receiver shall name as respondents: 872
“(1) The owner of the property; 873
“(2) Any lien holder of record; and 874
“(3)(A) The plaintiff in a proceeding to foreclose the right of redemption. 875
“(B) Failure to name the plaintiff shall not prevent the action from going 876
forward but shall prevent the receiver’s lien for expenses incurred from rehabilitating, 877
demolishing, or selling the building from having priority over the plaintiff’s lien interest. 878
“(d)(1) After filing a petition and before a receiver is appointed, the Mayor shall 879
give notice of pendency and nature of the proceedings by certified mail to the last known 880
39
addresses of all judgment creditors and lien holders with a recorded interest in the property. This 881
notice is not required for respondents named under subsection (c) of this section. 882
“(2) Within 30 days after the date on which the notice was mailed, a judgment 883
creditor or lien holder with a recorded interest in the property may apply to intervene in the 884
proceeding and to be appointed a receiver. A creditor or lien holder whose interest is not recorded 885
does not have standing to intervene in the proceeding and is not eligible to be appointed a 886
receiver. 887
“(3) Failure to give notice to any judgment creditors or lien holders as required by 888
this subsection shall not prevent the action from going forward but shall prevent the receiver’s 889
lien for expenses incurred from rehabilitating, demolishing, or selling the building from having 890
priority over that person’s lien interest. 891
“(e)(1) Instead of appointing a receiver to rehabilitate, demolish, or sell the building, the 892
Court may permit an owner, mortgagee, or other person with an interest in the property to 893
rehabilitate or demolish it, if the person: 894
“(A) Demonstrates the ability to complete the rehabilitation or demolition 895
within a reasonable time; 896
“(B) Agrees to comply with a specified schedule for rehabilitation or 897
demolition of the building; and 898
“(C) Posts bond, in an amount determined by the court, as security for the 899
performance of the required work in compliance with a specified schedule. 900
“(2)(A) The Mayor may apply to the court for immediate revocation of a person’s 901
appointment pursuant to this subsection if the person appointed is not proceeding with due 902
diligence or in compliance with the specified schedule. 903
40
“(B) In the event that the court revokes the person’s appointment and 904
appoints a receiver, the bond posted under subparagraph (C) of paragraph (1) of this subsection 905
shall be applied to the subsequently appointed receiver’s expenses for rehabilitating, 906
demolishing, or selling the building. 907
“(f)(1) If no qualified person with an ownership interest requests an appointment to 908
rehabilitate or demolish the property, or if an appointee is dismissed, the court shall appoint a 909
receiver of the property for the purposes of rehabilitating and managing the property, 910
demolishing the property, or selling it to a qualified bidder. 911
“(2) On the appointment of a receiver to rehabilitate, demolish, or sell the 912
property, all parties are divested from any authority to act in furtherance of those goals. 913
“(3) A receiver appointed to rehabilitate, demolish, or sell a vacant building has 914
no duty to, and is not personally liable for failing to, maintain the property or protect the property 915
from casualty or loss. 916
“(g) A receiver appointed to rehabilitate or demolish a vacant building, in addition to all 917
necessary and customary powers, has the right of possession with authority to: 918
“(1) Contract for necessary labor and supplies for rehabilitation or demolition. 919
“(2) Borrow money for rehabilitation or demolition from an approved lending 920
institution or through a government agency or program, using the receiver’s lien against the 921
property as security; 922
“(3) Manage the property for a period of up to 2 years and apply the rent received 923
to current operating expenses and to repayment of outstanding rehabilitation expenses; and 924
“(4) Foreclose on the receiver’s lien or accept a deed in lieu of foreclosure. 925
41
“(h)(1) A receiver appointed to sell a vacant building, in addition to all necessary and 926
customary powers, may sell the property to the high bidder at public auction. 927
“(2) The receiver must post a notice of a public auction 60 days prior to the date 928
on which the auction will be held. The notice must contain: 929
“(A) The address of each building for sale at the public auction; 930
“(B) A description of each building for sale at the public auction, including 931
the size and type of the building; and 932
“(C) Any other information deemed necessary by the receiver. 933
“(3) The minimum bid required to purchase a building at a public auction shall be 934
$5,000. 935
“(4) Before any sale, applicants to bid in a public auction or the proposed buyer in 936
a private sale must demonstrate that: 937
“(A) The applicants or proposed buyer have financial resources available 938
to rehabilitate the property; 939
“(B) The applicants or proposed buyer have experience rehabilitating 940
properties or have a contract or agreement with a person or organization that has experience 941
rehabilitating properties; and 942
“(C) The applicants or proposed buyers do not have any outstanding 943
property maintenance violations in the District, if applicable. 944
“(5) The receiver may charge a reasonable fee to applicants in connection with an 945
application to bid at a public auction or in connection with the solicitation of offers for a private 946
sale. 947
42
“(6) After deducting the expenses of the sale, the amount of outstanding taxes and 948
other government assessments, and the amount of the receiver’s lien, the receiver must apply the 949
remaining proceeds of the sale, first to the petitioner’s costs and expenses, and then to the liens 950
against the property in order of priority. 951
“(i)(1) Any costs or fees incurred by the receiver for purposes of rehabilitating, 952
demolishing, or selling a building pursuant to this subsection shall be a lien against the property. 953
The receiver’s lien shall have priority over all other liens and encumbrances, except taxes or 954
other government assessments. The receiver must allow the Mayor’s costs and expenses, 955
including reasonable attorney’s fees, to be paid to the extent that proceeds of a sale permit. 956
“(2) A receiver may foreclose on the lien by a sale of the building at a public 957
auction. After deducting the expenses of the sale, the receiver must apply the proceeds of the sale 958
to the liens against the building, in order of priority. In lieu of foreclosure, and only if the 959
receiver has rehabilitated the building, an owner may pay the receiver’s costs, fees, including 960
attorney’s fees, and expenses or may transfer all ownership in the property to either the receiver 961
or an agreed-on third party for an amount agreed to by all parties to the receivership as being the 962
property’s fair market value. 963
“(j) Following court ratification of a sale made pursuant to subsection (h) of this section, 964
the receiver must sign a deed conveying title to the buyer, free and clear of all liens, judgments 965
and other encumbrances. On court ratification of the sale, any secured interest of a lien or 966
judgment creditor automatically attaches to the proceeds from the sale to the extent that those 967
proceeds are available. 968
“(k) Upon sale of the property, the receiver must: 969
“(1) File with the court a final accounting; and 970
43
“(2) At the same time, file a motion with the court to dismiss the action. 971
“(l) The Mayor may contract with a nonprofit or for-profit organization to act as a 972
receiver pursuant to this section; provided, that any organization acting as a receiver must: 973
“(1) Not be delinquent on any fees, fines, taxes, or financial penalties owed to the 974
District; and 975
“(2) Have demonstrated experience with the management or sale of residential or 976
commercial properties; or 977
“(3) If the receiver will rehabilitate or demolish properties, have demonstrated 978
experience in the rehabilitation or demolition of residential or commercial properties.”. 979
(q) A new section 21 (D.C. Official Code § 42-3131.21) is added to read as follows: 980
“Sec. 21. Vacant and Blighted Building Report and Plan. 981
“(a) By January 1, 2026, the Mayor shall submit a report to the Council containing the 982
following information: 983
“(1) A description of predictive statistical models that could be used to identify 984
properties at risk of becoming vacant or blighted, as well as the data sources and information 985
technology infrastructure necessary to effectively implement these models; 986
“(2) A detailed description of proactive measures utilized by other jurisdictions in 987
the United States to enforce vacant and blighted property registration ordinances; and 988
“(3) An analysis and determination of the feasibility of utilizing proactive 989
measures to enforce the District’s laws regarding registration and maintenance of vacant and 990
blighted buildings. 991
44
“(b) By January 1, 2027, and every three years thereafter, the Mayor shall submit a 992
vacant and blighted property rehabilitation strategic plan to the Council. In developing the 993
strategic plan, the Mayor shall: 994
“(1) Analyze the extent and nature of interagency collaboration among District 995
agencies with respect to: 996
“(A) Enforcing legal requirements related to vacant and blighted buildings 997
in the District; and 998
“(B) Incentivizing the successful redevelopment or rehabilitation of vacant 999
and blighted buildings; 1000
“(2) Review the use and effectiveness of existing incentives in the District that 1001
support the redevelopment or rehabilitation of vacant and blighted buildings; 1002
“(3) Review best practices for preventing vacancy and blight, and best practices 1003
for redeveloping or rehabilitating vacant and blighted buildings; 1004
“(4) Develop and refine performance metrics that measure the effectiveness of the 1005
District’s programs, interventions, and incentives regarding vacant and blighted properties; and 1006
“(5) Consult with stakeholders, including the following: 1007
“(A) Advisory Neighborhood Commissions; 1008
“(B) Organizations with significant experience redeveloping or 1009
rehabilitating vacant or blighted buildings; and 1010
“(C) Organizations or individuals with policy or research expertise on: 1011
“(i) Implementing strategic code enforcement programs; 1012
“(ii) Development incentives; and 1013
“(iii) Developing performance measures.”. 1014
45
(r) A new section 22 (D.C. Official Code § 42-3131.22) is added to read as follows: 1015
“Sec. 22. Rules. 1016
“The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to 1017
implement the provisions of this chapter. The proposed rules shall be submitted to the Council 1018
for a 45-day period of review, excluding days of Council recess. If the Council does not approve 1019
or disapprove of the proposed rules, by resolution, within the 45-day review period, the proposed 1020
rules shall be deemed approved.”. 1021
Sec. 302. Section 47-825.01a(e)(1)(B) of the District of Columbia Official Code is 1022
amended to read as follows: 1023
“(B)(i) If an owner is aggrieved by a notice of final determination issued 1024
pursuant to §42-3131.15 or the time period to issue a notice of final determination under that 1025
section has expired, the owner may file an appeal on the determination of vacancy with the 1026
Commission within 15 days after the date of the notice or expiration. The Commission may not 1027
extend the time to file an appeal. Notwithstanding any other provision of this section, the 1028
Commission shall render a decision on the appeal within 120 days after the filing. 1029
“(ii) An appeal to the Commission under this subparagraph shall be 1030
on the same terms and under the same conditions, to the extent reasonable, as if the appeal were 1031
brought under subparagraph (A) of this paragraph; except, that no worksheet shall be required to 1032
be mailed, the Department of Buildings shall be the responsible agency, and any supplemental 1033
filing shall be provided to the Commission and the Department of Buildings. 1034
“(iii) A response from the Department of Buildings shall be 1035
available for inspection at least 7 days before the scheduled hearing. 1036
46
“(iv) The Department of Buildings shall have the authority, as 1037
provided to OTR under subsection (f) of this section, to make redeterminations of vacancy and 1038
blight and any reclassifications that may be necessary. 1039
“(v) The Department of Buildings shall be entitled to a rehearing to 1040
establish the proper status, vacant or blight, and tax classification of the real property under the 1041
same conditions and to the same extent under paragraph (6) of this subsection; provided, that 1042
paragraph (6)(D) of this subsection shall not apply.”. 1043
TITLE IV. VACANT AND BLIGHTED PROPERTY INCENTIVES AND TAXES. 1044
SUBTITLE A. EXPEDITED PERMIT REVIEW FOR VACANT AND BLIGHTED 1045
PROPERTIES. 1046
Sec. 401. (a) The Construction Codes Approval and Amendments Act of 1986, effective 1047
March 21, 1987 (D.C. Law 6-216; D.C. Official Code § 6-1401 et seq.), is amended by adding a 1048
new section 10e to read as follows: 1049
“Sec. 10e. Expedited permit review for vacant and blighted vacant properties. 1050
“(a) No later than 180 days after the effective date of the Vacant to Vibrant Amendment 1051
Act of 2024, the Department shall establish an expedited permit review process for permits 1052
described in subsection (b) of this section; provided, that the expedited permit review process 1053
shall only apply to permits for Class 3 and Class 4 properties. 1054
“(b) The following permits shall be eligible for an expedited permit review process 1055
established pursuant to subsection (a) of this section: 1056
“(1) A demolition permit; 1057
“(2) A raze permit; 1058
“(3) An addition, alteration, and repair permit; 1059
47
“(4) An alteration and repair permit; 1060
“(5) A sheeting and shoring permit; 1061
“(6) A new building permit; and 1062
“(7) Trade permits. 1063
“(c) The Department shall not charge additional fees beyond the standard permit fees for 1064
eligible applicants to utilize the expedited permit review process established pursuant subsection 1065
(a) of this section.”. 1066
SUBTITLE B. VACANT AND BLIGHTED PROPERTY TAX RATES. 1067
Sec. 402. Section 47-812 of the District of Columbia Official Code is amended by 1068
adding a new subsection (b-13) to read as follows: 1069
“(b-13)(1) Notwithstanding the provisions of subsection (a) of this section, the sum of 1070
real property tax rates and special property tax rates for taxable Class 3 properties in the District 1071
of Columbia for the tax year beginning October 1, 2025, and each tax year thereafter, shall be as 1072
follows: 1073
“(A) For the first year in which the property is registered as vacant, the tax 1074
rate shall be the applicable tax rate for a Class 1A, Class 1B, or Class 2 property. 1075
“(B) For the second year in which the property is registered as vacant, the 1076
tax rate shall be $3 for each $100 of assessed value. 1077
“(C) For the third year in which the property is registered as vacant, the 1078
tax rate shall be $4 for each $100 of assessed value. 1079
“(D) For the fourth year, and any subsequent years, in which the property 1080
is registered as vacant, the tax rate shall be $5 for each $100 of assessed value. 1081
48
“(2) Notwithstanding the provisions of subsection (a) of this section, the sum of 1082
the real property tax rates and special real property tax rates for taxable Class 4 Properties in the 1083
District of Columbia for the tax year beginning October 1, 2025, and each year thereafter, shall 1084
be as follows: 1085
“(A) For the first year in which the property is designated as blighted 1086
vacant, the tax rate shall be the tax rate for a Class 1A, Class 1B, or Class 2 property. 1087
“(B) For the second year in which the property is designated as blighted 1088
vacant, the tax rate shall be $6 for each $100 of assessed value. 1089
“(C) For the third year in which the property is designated as blighted 1090
vacant, the tax rate shall be $8 for each $100 of assessed value. 1091
“(D) For the fourth year, and any subsequent years, in which the property 1092
is designated as blighted vacant, the tax rate shall be $10 for each $100 of assessed value.”. 1093
SUBTITLE C. TAX SALE PROCEDURE FOR VACANT AND BLIGHTED 1094
PROPERTIES. 1095
Sec. 403. Chapter 13A of Title 47 of the District of Columbia Official Code is amended 1096
as follows: 1097
(a) The table of contents is amended by adding the following at the end: 1098
“Subchapter V. Procedures for Class 3 and 4 Properties. 1099
Ҥ 47-1390. Eligibility to foreclose on a Class 3 or 4 Property. 1100
Ҥ 47-1391. Pre-foreclosure action notice; publication requirements. 1101
Ҥ 47-1392. Parties. 1102
Ҥ 47-1393. Complaint form; notice to certain persons. 1103
Ҥ 47-1394. Foreclosure proceedings; right of redemption. 1104
49
“§ 47-1395. Tax sale notice; bidder qualifications; excess; tax deed.”. 1105
(b) Section 47-1330 is amended as follows: 1106
(1) New paragraphs (1A) and (1B) are added to read as follows: 1107
“(1A) “Class 3 property” shall have the same meaning as § 47–813(c-9)(4)(A). 1108
“(1B) “Class 4 property” shall have the same meaning as § 47–813(c-9)(5)(A).”. 1109
(c) Section 47-1332 is amended as follows: 1110
(1) Subsection (c) is amended to read as follows: 1111
“(c) The Mayor shall not sell any real property if: 1112
“(1) A forbearance authorization has been approved in writing by the Mayor for 1113
the applicable tax sale; 1114
“(2) The owner enters into a payment plan pursuant to § 47-870 prior to the date 1115
of the tax sale; 1116
“(3) For an improved Class 1A or 1B Property, the tax amount to be sold is less 1117
than $7,500; 1118
“(4) The real property is a Class 1A or 1B Property that is receiving a homestead 1119
deduction, with respect to which there is an outstanding non-void certificate of sale; provided, 1120
that no real property shall be excluded from sale solely pursuant to this paragraph if the non-void 1121
certificate of sale has been outstanding for 3 years or more; or 1122
“(5) For a Class 3 or Class 4 property, the owner has been delinquent for less than 1123
one year.”. 1124
(2) Subsection (e)(3)(A) is amended to read as follows: 1125
“(3)(A) The Mayor shall approve an application if the real property receives a 1126
homestead deduction and the tax amount to be sold is less than or equal to $12,500.”. 1127
50
(d) New sections 47-1390 through 47-1396 are added to read as follows: 1128
“Sec. 47-1390. Eligibility to foreclose on a Class 3 or 4 Property. 1129
“After the expiration of one year from the date of delinquency, the Mayor may file a 1130
complaint with the Superior Court to foreclose on a tax certificate or certificates for a Class 3 or 1131
4 property.”. 1132
“Sec. 47-1391. Pre-foreclosure action notice; publication requirements. 1133
“(a)(1) No less than 90 days prior to the filing of a complaint with the Court pursuant to § 1134
47-1393, the Mayor shall send written notice to the owner of record of the property at such 1135
owner’s mailing address as updated in OTR’s real property records.. 1136
(A) The notice shall inform the owner of the intent to file a complaint to 1137
foreclose on the tax certificate or certificates. The notice shall also contain the amount due as of 1138
the day of the notice, and state that the owner may pay the amount due, together with any 1139
additional interest, which may be owed prior to the filing date to halt any foreclosure action. 1140
“(2) The written notice pursuant to paragraph (1) of this subsection shall be sent 1141
by first class mail. 1142
“(b) At any time after 60 days from the mailing of the notice required in subsection (a) of 1143
this section, the Mayor shall cause to be advertised once in not less than 2 newspapers of general 1144
circulation in the District that are published once every 2 weeks, notice that the listed properties 1145
will subject to foreclosure proceedings due to delinquent real property taxes. 1146
“Sec. 47-1392. Parties. 1147
“(a) The plaintiff in an action to foreclose a Class 3 or 4 property pursuant to § 47-1394 1148
shall be the District. 1149
51
“(b) The defendants in an action to foreclose a Class 3 or 4 Property pursuant to § 47-1150
1394 shall be: 1151
“(1) The record owner of the real property; 1152
“(2) If the real property is encumbered by a recorded life tenancy, the record life 1153
tenant and record remaindermen; 1154
“(3) If the real property is subject to a recorded estate for life or a recorded lease 1155
or ground rent for a term (with renewals) that is at least 30 years, the record owner of the fee 1156
simple title and the owner of the possessory interest as disclosed by a search performed in 1157
accordance with generally accepted standards of title examination of the records of the Recorder 1158
of Deeds; 1159
“(4) Any mortgagee of the real property, or any assignee of the mortgage of 1160
record, named as such in an unreleased mortgage recorded in the records of the Recorder of 1161
Deeds; 1162
“(5) The trustee of record under a deed of trust recorded against the real property 1163
and a holder of a beneficial interest in a deed of trust who files notice of the interest, which 1164
notice includes identification of the deed of trust, the book and page or roll and frame where the 1165
deed of trust is recorded, and the current address at which the holder may be served with a 1166
summons. 1167
“(c) If the identity of an owner cannot be ascertained, the unknown owner of the real 1168
property may be included may be included as a defendant by the designation: “Unknown owner 1169
of real property (insert a description of the real property in substantially the same form as the 1170
description that appears on the certificate of sale along with the street address, if any), the 1171
52
unknown owner’s heirs, devisees, and personal representatives and their or any of their heirs, 1172
devisees, executors, administrators, grantees, assigns, or successors in right, title and interest.” 1173
“Sec. 47-1393. Complaint form; notice to certain persons. 1174
“(a) A complaint filed to foreclose on a tax certificate or certificates for a Class 3 or 4 1175
Property shall, for each property listed in the complaint, contain: 1176
“(1) A description of the real property, by premises address, taxation square, 1177
suffix, and lot number, or parcel and lot number; 1178
“(2) The name(s) of the owner or owners of the property; 1179
“(3) A statement of the amount of taxes owed, including interest and penalties; 1180
and 1181
“(4) A request that the Court pass a judgment to foreclose on right of redemption. 1182
“(b) For each property listed in a complaint filed pursuant to subsection (a) of this 1183
section, a copy of the written notice provided to the owner pursuant to § 47-1391(a) shall be 1184
attached. 1185
“(c)(1) Upon filing a complaint with Superior Court pursuant to subsection (a) of this 1186
section, the Mayor shall send written notice of the action to all persons having a recorded 1187
interest, recorded claim, or recorded lien, including a recorded judgment, who have not been 1188
made a defendant in the action. 1189
“(2) The written notice required under paragraph (1) of this subsection shall be 1190
sent by first class mail and shall include as an attachment thereto a copy of the summons and 1191
complaint. 1192
53
“(d) The Mayor shall file a statement that the notice provisions of subsection (c) of this 1193
section have been complied with, or an affidavit stating that the address of the holder of the 1194
subordinate interest is not reasonably ascertainable. 1195
“Sec. 47-1394. Foreclosure proceedings; right of redemption. 1196
“(a)(1) Any defendant listed under § 47-1392(b) may file an answer and defense to the 1197
complaint within 30 after service of the notice and complaint. The answer may object to the 1198
proposed foreclosure upon one or more of the following grounds only: 1199
“(A) The real property is exempt from taxation or assessment pursuant to 1200
§ 47–1002; or 1201
“(B) The delinquent taxes or assessments identified in the tax certificate or 1202
certificates were in fact paid; 1203
“(2) If an answer and defense is filed by any defendant or other interested person, 1204
the matter shall be heard in a summary manner without other pleading, and the court shall 1205
pronounce judgment. 1206
“(b) Real property subject to a foreclosure proceeding pursuant to this section may be 1207
redeemed at any time before the close of business before a judgment is entered, by payment, as 1208
prescribed by the Mayor, of the total amount of delinquent taxes, inclusive of interest and 1209
penalties. 1210
“(c) In the event that no answer by any person having a right to answer pursuant to 1211
subsection (a) of this section is provided, the Court determines that the issue raised by the answer 1212
of the defendant is without merit, or there is a failure to redeem pursuant to subsection (b) of this 1213
section, the Court shall order the District to sell the property at a public auction to satisfy the 1214
amount of lien, fees, and costs. 1215
54
“(d) The Court shall tax as a part of the taxable costs all legal fees and charges 1216
necessarily paid or incurred in procuring searches relative to the title of the real property, 1217
prosecuting the foreclosure action, providing for a court-ordered sale (including advertising and 1218
auctioneer fees) and securing and maintaining a guardian ad litem. 1219
“(e) The District shall not be required to plead or prove various steps, proceedings, and 1220
notices for the assessment and levy of taxes or assessments against the real property and all such 1221
taxes and assessment shall be presumed to be valid. A defendant alleging any jurisdictional 1222
defect or invalidity in the tax or assessment, because said real property was not liable to taxation 1223
or assessment, must particularly specify in the defendant’s answer such jurisdictional defect or 1224
invalidity and must affirmatively establish such defense. 1225
“(f) A guardian ad litem shall be appointed to serve for all persons known or unknown 1226
who have or may have an interest in the real property subject to a foreclosure action and who are 1227
or may be minors or individuals adjudicated incompetent at the date of filing such a list. 1228
“Sec. 47-1395. Tax sale notice; bidder qualifications; excess; tax deed. 1229
“(a) No less than 90 days after a judgment is entered by the Court, the Mayor shall 1230
publicly notice any Class 3 and 4 Properties that will be sold at a tax sale as follows: 1231
“(1) In not less than 2 newspapers of general circulation in the District that are 1232
published once every 2 weeks, a public notice stating the listed real property will be sold at 1233
public auction and at the place named in the public notice; and 1234
“(2) A list of real property in the public notice on the Office of Tax and Revenue’s 1235
website. 1236
“(b) The list in the public notice shall contain the following: 1237
55
“(1) A description of the real property, by premises address, taxation square, 1238
suffix, and lot number, or parcel and lot number; 1239
“(2) The name of the person who last appears on the Mayor’s tax roll as the owner 1240
of the real property; 1241
“(3) The minimum bid required to purchase the property at tax sale. 1242
“(c) Before any sale, applicants to bid in a public auction must demonstrate that: 1243
“(1) The applicants or proposed buyer have financial resources available to 1244
rehabilitate the property; 1245
“(2) The applicants or proposed buyer have experience rehabilitating properties or 1246
have a contract or agreement with a person or organization that has experience rehabilitating 1247
properties; 1248
“(3) The applicants or proposed buyer do not have any unresolved notices of 1249
infraction related to property maintenance violations in the District, if applicable; and 1250
“(4) The applicant is current on all taxes and liabilities owed to the District. 1251
“(d) Real property sold at tax sale pursuant to this section shall be sold “as is.” There is 1252
no guarantee or warranty of any kind, express or implied, relative to: Title, eligibility to build 1253
upon or subdivide the property; zoning classification; size; location; fitness for any use or 1254
purpose; or any other feature or condition of a foreclosed property sold pursuant to this section. 1255
“(e) If the highest bid for a property sold pursuant to this section exceeds the minimum 1256
bid due upon the whole property, the excess must be refunded, following payment of any 1257
recorded liens, to the owner of the record of the property. In the event that no claim for the 1258
excess is received by the Mayor within three years after the date of the sale, the Chief Financial 1259
Officer shall deposit the excess in the General Fund of the District of Columbia. 1260
56
“(f) The Mayor shall issue a deed for any property purchased by a bidder at a tax sale 1261
held pursuant to this section. The deed shall be prima facie evidence of a good and perfect title in 1262
fee simple to the real property.”. 1263
SUBTITLE D. VACANT AND BLIGHTED HOME REVITALIZATION TAX 1264
CREDIT. 1265
Sec. 404. Title 47 of the District of Columbia Official Code is amended as follows: 1266
(a) The table of contents is amended by adding a new chapter designation to read as 1267
follows: 1268
“19. Vacant and Blighted Property Rehabilitation Credit.” 1269
(b) A new chapter 19 is added to read as follows: 1270
“CHAPTER 19. VACANT AND BLIGHTED PROPERTY REHABILITATION 1271
CREDIT. 1272
“47-1819.01. Definitions. 1273
“47-1819.02. Credit Established. 1274
“47-1819.03. Annual Cap. 1275
“47-1819.04. Application and Mayoral Certification. 1276
“Sec. 47-1819.01. Definitions. 1277
“For purposes of sections § 47–1806.17a through 47-1806.17g, the term: 1278
“(1) “Area median family income” means the median family income for the 1279
Washington Metropolitan Statistical Area as set forth by the United States Department of 1280
Housing and Urban Development, adjusted for household size. 1281
“(2) “Class 3 property” shall have the same meaning as § 47–813(c-9)(4)(A). 1282
“(3) “Class 4 property” shall have the same meaning as § 47–813(c-9)(5)(A). 1283
57
“(4) “Eligible development costs” means amounts paid or incurred by an eligible 1284
taxpayer after December 31, 2025 for the acquisition of eligible property, construction, 1285
substantial rehabilitation, demolition of structures, or environmental remediation. 1286
“(5) “Eligible property” means a Class 3 or Class 4 property that is: 1287
“(A) A house comprised of 4 or fewer residential units or a condominium 1288
unit; and 1289
“(B) Located in a qualifying census tract as determined by the Mayor as of 1290
the date of the application pursuant to § 47–1819.04. 1291
“(6) “Eligible taxpayer” means a taxpayer certified by the Mayor pursuant § 47–1292
1819.04(b) as eligible to claim the credit established under this chapter. 1293
“(7) “Qualifying census tract” means a census tract which has: 1294
“(A) A median family income which does not exceed 120% of the median 1295
family income of the District; 1296
“(B) A poverty rate that is not less than 130% of the poverty rate of the 1297
District; and 1298
“(C) A median value for owner-occupied homes that does not exceed the 1299
median value for all owner-occupied homes in the District. 1300
“(8) “Qualified homeowner” means an individual whose family income is 120% 1301
or less of the area median family income as of the date that a binding contract is entered into 1302
between that individual and an eligible taxpayer for the sale of the eligible property. 1303
“(9) “Substantial rehabilitation” means amounts paid or incurred for rehabilitation 1304
of an eligible property if such amounts exceed $150,000 multiplied by the difference between the 1305
Consumer Price Index for the preceding tax year and the Consumer Price Index for the tax year 1306
58
2024 divided by the Consumer Price Index for tax year 2024. For the purposes of this paragraph, 1307
the Consumer Price Index for any real property tax year is the average of the Consumer Price 1308
Index for the Washington-Baltimore Metropolitan Statistical Area for all urban consumers 1309
published by the Department of Labor, or any successor index, as of the close of the 12-month 1310
period ending on September 30 of such tax year. 1311
“Sec. 47-1819.02. Credit established. 1312
(a) For tax years beginning after December 31, 2025, there is established a District of 1313
Columbia vacant and blighted home revitalization tax credit that may be claimed against taxes 1314
imposed under this subtitle. 1315
(b) The amount of the credit shall be 75% of the eligible development costs as certified 1316
by the Mayor to the Chief Financial Officer pursuant to § 47–1819.04(b). 1317
(c) The credit may exceed the tax liability under this chapter, including any minimum tax 1318
due under §§ 47-1807.02(b) or 47-1808.03(b), for that taxable year and shall be refundable to the 1319
eligible taxpayer, including an organization exempt under § 47–1802.01(a)(3) from taxation 1320
under this subtitle. 1321
(d) The credit may only be allowed if it: 1322
(1) Has been approved and certified by the Mayor to the Chief Financial Officer 1323
pursuant to § 47–1819.04: 1324
(2) Is claimed by an eligible taxpayer in the taxable year in which the substantial 1325
rehabilitation of the eligible property is completed; and 1326
(3) Is claimed in the manner and form prescribed by the Chief Financial Officer. 1327
“Sec. 47-1819.03. Annual Cap. 1328
59
“The Mayor may approve up to $2,500,000 in credits under this subchapter each fiscal 1329
year. 1330
“Sec. 47-1809.04. Application and Mayoral certification. 1331
(a) Before a taxpayer may claim a credit pursuant this subchapter, the taxpayer must 1332
apply to the Mayor requesting approval. 1333
(b) If a taxpayer’s application is approved in accordance with this subchapter, the Mayor 1334
shall certify to the Chief Financial Officer the following on before December 1 of the calendar 1335
year following the end of the fiscal year in which the credit was approved: 1336
(1) The name and taxpayer identification number of the eligible taxpayer; 1337
(2) The address of the eligible property (including square and lot); 1338
(3) That the eligible taxpayer’s application in accordance with this section was 1339
approved; 1340
(4) The date the substantial rehabilitation was completed; 1341
(5) That the eligible taxpayer sold the property to a qualifying homeowner; 1342
(6) The total amount of the eligible development costs incurred by the eligible 1343
taxpayer; 1344
(7) The total amount of the credit approved for the eligible taxpayer; and 1345
(8) Any other information requested by the Chief Financial Officer.”. 1346
SUBTITLE E. TAX ABATEMENT FOR THE REDEVELOPMENT OF VACANT 1347
AND BLIGHTED COMMERCIAL PROPERTIES. 1348
Sec. 405. Title 47 of the District of Columbia Official Code is amended as follows: 1349
(a) Section 47-813 is amended as follows: 1350
(1) Subsection (c-9)(4) is amended to read as follows: 1351
60
“(c-9)(4)(A) Class 3 property shall be comprised of all improved real property that 1352
appears as vacant on the list compiled under § 42-3131.16. 1353
“(B) The Office of Tax and Revenue may request the Mayor to inspect the 1354
improved real property to determine whether the property is correctly designated or registered as 1355
vacant on the list compiled under § 42-3131.16.”. 1356
(2) Subsection (c-9)(5) is amended to read as follows: 1357
“(c-9)(5)(A) Class 4 Property shall be comprised of all improved real property that 1358
appears as blighted vacant on the list compiled under § 42-3131.16. 1359
“(B) The Office of Tax and Revenue may request the Mayor to inspect the 1360
improved real property to determine whether the property is correctly designated as blighted 1361
vacant on the list compiled under § 42-3131.16.”. 1362
(c) By adding new sections 47-861.01 through 47-861.04 to read as follows: 1363
“Sec. 47-861.01. Tax abatements for the redevelopment of vacant and blighted 1364
commercial properties – Definitions. 1365
“For purposes of §§ 47-861.01 through 47-861.04, the term: 1366
“(1) “Class 3 property” shall have the same meaning as § 47–813(c-9)(4)(A). 1367
“(2) “Class 4 property” shall have the same meaning as § 47–813(c-9)(5)(A). 1368
“(3) “Eligible development costs” means amounts paid or incurred for 1369
construction, substantial rehabilitation, demolition of structures, or environmental remediation of 1370
an eligible property. Eligible development costs shall not include land acquisition costs. 1371
“(4) “Eligible property” means a Class 3 or Class 4 property that: 1372
“(A) Shall be redeveloped to be used for commercial purposes as defined 1373
in paragraph 5 of this section; and 1374
61
“(B) Has been registered as a Class 3 or Class 4 property for at least 12 1375
months without any exemptions pursuant to § 42–3131.06a. 1376
“(5) “Used for commercial purposes” means use of real property primarily for 1377
conducting any trade, business, or profession, whether for profit or not, including providing 1378
goods or services or operating as a hotel or inn. 1379
“(6) “OTR” means the Office of Tax and Revenue. 1380
“Sec. 47-861.02. Tax abatements for the redevelopment of vacant and blighted 1381
commercial properties – Requirements. 1382
“(a) Subject to § 47-861.03, the Mayor may approve an abatement of the tax otherwise 1383
imposed under this chapter, in an amount calculated pursuant to § 47-861.03(a), for an eligible 1384
property if: 1385
“(1) Eligible development costs exceed $1.5 million. 1386
“(2) The property owner, or its designee or assignee, demonstrates to the 1387
satisfaction of the Mayor that the abatement shall materially assist the redevelopment project and 1388
the redevelopment project would not go forward without the abatement. 1389
“(3) The property owner, or its designee or assignee, enters into an agreement 1390
with the District that requires the owner, or its designee or assignee, to, at a minimum, contract 1391
with certified business enterprises for at least 35% of the contract dollar volume of the 1392
construction of the project, in accordance with § 2-218.46. 1393
“(4) The property owner, or its designee or assignee, executes a First Source 1394
Agreement for the construction and operation of the project. 1395
“(5) The property owner, or its designee or assignee, requests a letter from the 1396
Mayor stating that the proposed redevelopment project is eligible for the tax abatement, setting 1397
62
forth the expected amount of the abatement, as determined pursuant to § 47-861.03(a), and 1398
reserving that amount for the project. 1399
“(6) The Mayor transmits to the owner the eligibility and reservation letter 1400
requested under paragraph (4) of this section, subject to such conditions as may be imposed by 1401
the Mayor and subject to the adjustment of the abatement amount based on the certifications 1402
provided for in § 47-860.03(a) and the abatement cap set forth in § 47-861.03(b). 1403
“(b) The Mayor shall, as nearly as practicable, review requests for eligibility and 1404
reservation letters in the order in which each completed request is received. 1405
“(c) The Mayor shall transmit to OTR a copy of each eligibility and reservation letter 1406
transmitted by the Mayor to an owner pursuant to subsection (a)(5) of this section. 1407
“(d) An abatement of the tax otherwise imposed under this chapter shall not be provided 1408
for a property for which an eligibility and reservation letter was transmitted by the Mayor 1409
pursuant to subsection (a)(5) of this section if the project which was the basis upon which the 1410
eligibility and reservation letter was issued has not received a certificate of occupancy within 24 1411
months after the date the eligibility and reservation letter was transmitted; provided, that the 1412
Mayor may extend the 24-month period for up to 8 months as deemed necessary. 1413
“(e)(1) After the completion of a project for which an eligibility and reservation letter was 1414
issued, the Mayor shall, if the conditions set forth in this section and the eligibility and 1415
reservation letter have been met, and subject to the abatement cap set forth in § 47-860.03(b), 1416
issue the property owner a certification of tax abatement, subject to such conditions as the Mayor 1417
may impose. The Mayor shall provide a copy of the certification letter to OTR. The certification 1418
shall identify: 1419
63
“(A) The property to which the certification applies by square and lot, or 1420
parcel or reservation number; 1421
“(B) The full legal name of the property owner, including taxpayer 1422
identification number; 1423
“(C) The tax to which the certification applies; 1424
“(D) The portion of the property that is eligible; 1425
“(E) The commencement date of the abatement; 1426
“(F) Any other information OTR shall require to administer the abatement. 1427
“(2) The Mayor shall notify the property owner and OTR if any property or owner 1428
certified under paragraph (1) of this subsection becomes ineligible for the abatement. The notice 1429
shall be written, shall identify the ineligible property, the date that the property became 1430
ineligible, and any other information required by OTR to terminate the abatement. 1431
“Sec. 47-861.03. Tax abatements for the redevelopment of vacant and blighted 1432
commercial properties – Abatement period, abatement amount, and caps. 1433
“(a) For each property for which a certification of abatement was issued under § 47-1434
860.02(e), the real property tax imposed on the property under this chapter shall be abated as 1435
follows: 1436
“(1) Half of the otherwise applicable tax in each of the first six tax years 1437
following the tax year during which a certification of tax abatement is issued pursuant to § 47-1438
860.02(e); 1439
“(2) Two-thirds of the applicable tax in each of the seventh and eighth tax years 1440
following the tax year during which a certification of tax abatement is issued pursuant to § 47-1441
860.02(e); and 1442
64
“(3) Three-quarters of the applicable tax in each of the ninth and tenth tax years 1443
following the tax year during which a certification of tax abatement is issued pursuant to § 47-1444
860.02(e). 1445
“(b) The total amount of tax abatements the Mayor may approve or certify under § 47-1446
860.02 in each fiscal year, including amounts certified in prior years, shall be capped at the 1447
following amounts, subject to the availability of funding: 1448
“(1) For fiscal years 2027, 2028, and 2029, up to $3 million; and 1449
“(2) For each succeeding fiscal year after Fiscal Year 2029, up to $6 million. 1450
“(c) (1) Prior to the preparation by OTR of tax bills for each half-year installment of tax, 1451
the Mayor shall certify to OTR, by a date and in a form and medium prescribed by OTR, each 1452
property eligible to receive a real property tax abatement pursuant to a certification issued 1453
pursuant to § 47-860.02(e), and the portion of the tax to be abated under subsection (a) of this 1454
section for each such property with respect to such half-year installment bill. 1455
“(2) The certification required by paragraph (1) of this subsection shall be 1456
accompanied by a statement from the Mayor specifying the total amount of the tax abatement 1457
under subsection (b) of this section for the semiannual period of the certification that is available 1458
to abate the taxes of the properties identified pursuant to paragraph (1) of this subsection. 1459
“(d) If the amount of tax to be abated for any semiannual billing period for all properties 1460
certified under subsection (c)(1) of this section exceeds the total dollar amount of tax abatements 1461
available as certified under subsection (c)(2) of this section, the available dollar amount shall be 1462
allocated pro rata among all properties certified under subsection (c)(1) of this section. 1463
“Sec. 47-861.04. Tax abatements for the redevelopment of vacant and blighted 1464
commercial properties – Rules. 1465
65
“The Mayor shall, pursuant to Subchapter I of Chapter 5 of Title 2, issue rules to 1466
implement §§ 47-861.01 through 47-861.03.”. 1467
TITLE V. FISCAL IMPACT STATEMENT; EFFECTIVE DATE. 1468
Sec. 501. Fiscal impact statement. 1469
The Council adopts the fiscal impact statement in the committee report as the fiscal 1470
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 1471
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 1472
Sec. 502. Effective date. 1473
This act shall take effect following approval by the Mayor (or in the event of veto by the 1474
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 1475
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 1476
24, 1973, (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 1477
Columbia Register. 1478