District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-1003 Compare Versions

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

Old	New	Differences
1	1
2	2	OFFICE OF CHAIRMAN PHIL MENDELSON
3	3	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
4	4
5	5	Statement of Introduction
6	6
7	7	“Vacant to Vibrant Amendment Act of 2024”
8	8
9	9	As of September 6, 2024, data from the Department of Buildings indicates that there are
10	10	roughly 2,852 vacant properties and 345 blighted properties in the District. Many of these
11	11	properties have been vacant or blighted for years, negatively impacting the neighborhoods and
12	12	communities in which they are located.
13	13
14	14	Over the years, the Committee of the Whole has worked with the Department of Buildings
15	15	(and its predecessor agency, the Department of Consumer and Regulatory Affairs) to increase staff
16	16	resources and enhance enforcement efforts. While these efforts have produced results, they are
17	17	undermined by gaps and deficiencies in the law. As such, in the summer of 2023, my office
18	18	assembled a diverse group of stakeholders, including ANC Commissioners, Business
19	19	Improvement District representatives, researchers, and District agencies, to examine the District’s
20	20	current vacant and blighted property law and develop legislation to address deficiencies and gaps
21	21	in the law. The group, known as the Vacant and Blighted Property Working Group, examined
22	22	everything from the causes of vacancy and blight to the tax sale process. In doing so, they found
23	23	that:
24	24
25	25	• Many properties become vacant or blighted due to the death of a homeowner, personal or
26	26	economic hardship, or foreclosure;
27	27	• The District does not have interventions aimed at preventing vacancy or blight;
28	28	• Some current definitions in the law are ill-defined, and some exemptions lack appropriate
29	29	timeframes;
30	30	• Current tax rates for Class 3 and Class 4 are overly burdensome to many property owners;
31	31	• The District lacks a holistic plan to address vacant and blighted properties;
32	32	• The District lacks effective mechanisms to acquire vacant and blighted properties in order
33	33	to get the properties back into productive use; and
34	34	• The District has no specific incentives for the redevelopment or rehabilitation of vacant
35	35	and blighted properties.
36	36
37	37	To address these deficiencies and gaps, the Working Group developed the “Vacant to Vibrant
38	38	Amendment Act of 2024,” which would, among other things:
39	39
40	40	• Create a “tangled title” information sheet that funeral service providers must give
41	41	decedents;
42	42	• Expand the single-family home rehabilitation program;
43	43	• Codify a real property tax payment plan for low-income and senior residents; • Revise definitions and reconfigure exemption timeframes;
44	44	• Increase penalties for failure to register, particularly in instances where a property owner
45	45	repeatedly fails to register a property or properties;
46	46	• Establish a vacant property receivership process modeled off of the City of Baltimore’s that
47	47	would enable the District to acquire and sell certain properties to non-profits and
48	48	developers for redevelopment or rehabilitation;
49	49	• Require the Mayor to submit a holistic vacant and blighted building plan to the Council
50	50	every three years;
51	51	• Restructure Class 3 and Class 4 tax rates so that the tax rate increases each year over a
52	52	period of four years, allowing some relief to struggling property owners;
53	53	• Establish a new tax sale process for Class 3 and 4 properties that would allow the District
54	54	to foreclose on Class 3 and Class 4 properties eligible for tax sale and auction property for
55	55	the redevelopment or rehabilitation; and
56	56	• Create a vacant and blighted home revitalization tax credit program and a tax abatement
57	57	for the redevelopment of vacant and blighted commercial properties.
58	58
59	59	The theory behind this bill is that vacant properties become a nuisance as well as being a drag
60	60	on their neighborhoods, but this is not immediate. Thus, this bill adopts measures to prevent
61	61	vacancies, recognizes that short-term vacancies are usually not a problem, incentivizes property
62	62	owners to minimize the duration of vacancies, and creates tools for the government to transition
63	63	longer-term vacancies back into productive use. Taken together, the proposals in this bill will
64	64	ensure that the District will be better positioned to prevent vacancy and blight, address violations
65	65	of the law, and get vacant and blighted properties back into productive use.
66	66
67	67	If you have any questions about this legislation, please contact Blaine Stum, Senior Policy
68	68	Advisor for the Committee of the Whole, at bstum@dccouncil.gov.
69	69
70	70
71	71
72	72
73	73
74	74	Chairman Phil Mendelson
75	75	1
76	76
77	77	_____________________________ 1
78	78	Councilmember Anita Bonds Chairman Phil Mendelson 2
79	79	3
80	80	4
81	81	5
82	82	Councilmember Brianne K. Nadeau Councilmember Charles Allen 6
83	83	7
84	84	8
85	85	9
86	86	Councilmember Robert C. White, Jr. Councilmember Brooke Pinto 10
87	87	11
88	88	12
89	89	13
90	90	Councilmember Janese Lewis George Councilmember Matthew Frumin 14
91	91	15
92	92	16
93	93	17
94	94	Councilmember Zachary Parker 18
95	95	19
96	96	20
97	97	A BILL 21
98	98	22
99	99	23
100	100	24
101	101	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 25
102	102	26
103	103	27
104	104	28
105	105	29
106	106	To require the Department of Aging and Community Living to create a tangled title information 30
107	107	sheet and to require funeral service providers to give the information sheet to survivors of 31
108	108	a deceased District resident; to amend Title 18 of the District of Columbia Official Code 32
109	109	to allow for the creation of an electronic will registry; to establish a single family home 33
110	110	rehabilitation program; to amend Chapter 8 of Title 47 of District of Columbia Official 34
111	111	Code to establish payment plans for the payment of delinquent real property taxes; to 35
112	112	amend Title 29 of the District of Columbia Official Code to require all commercial 36
113	113	registered agents to accept service of process by electronic mail; to amend Subchapter II 37
114	114	of Chapter 31A of Title 42 and Chapter 12 of Title 47 of the District of Columbia Official 38
115	115	Code to conform the notice process provisions in Subchapter I and amendments to Title 39
116	116	29; to amend An Act To provide for the abatement of nuisances in the District of 40
117	117	Columbia by the Commissioners of said District, and for other purposes, to amend 41
118	118	definitions, factors for establishing vacancy or blight, and exemptions from registration, 42
119	119	to require the submission of vacant building maintenance plans, and to allow the Mayor 43
120	120	to petition the Superior Court of the District of Columbia for vacant property receivership 44
121	121	actions; to amend the Construction Codes Approval and Amendments Act of 1986 to 45
122	122	require the Department of Buildings to establish an expedited permit review process for 46
123	123	2
124	124
125	125	certain construction and building permits for Class 3 and 4 properties; to amend Section 47
126	126	47-812 of the District of Columbia Official Code to establish new tax rates for Class 3 48
127	127	and 4 properties; to amend Chapter 13A of Title 47 of the District of Columbia Official 49
128	128	Code to establish a new process for tax sales of Class 3 and 4 properties; and to amend 50
129	129	Title 47 of the District of Columbia Official Code to establish a tax credit for the 51
130	130	renovation or rehabilitation of Class 3 or 4 properties and to establish a tax abatement for 52
131	131	the renovation or rehabilitation of Class 3 or 4 properties that are used for commercial 53
132	132	purposes. 54
133	133	55
134	134	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 56
135	135	act may be cited as the “Vacant to Vibrant to Amendment Act of 2024”. 57
136	136	TABLE OF CONTENTS 58
137	137	TITLE I. PREVENTION OF VACANT AND BLIGHTED PROPERTIES. ......................... 2 59
138	138	SUBTITLE A. TANGLED TITLE INFORMATION SHEET. ........................................... 2 60
139	139	SUBTITLE B. ELECTRONIC WILL REGISTRY. ............................................................ 3 61
140	140	SUBTITLE C. SINGLE FAMILY HOME REHABILITATION PROGRAM................. 5 62
141	141	SUBTITLE D. REAL PROPERTY TAX PAYMENT PLANS............................................ 7 63
142	142	TITLE II. SERVICE OF PROCESS REFORMS................................................................... 16 64
143	143	TITLE III. VACANT AND BLIGHTED PROPERTY REGISTRATION 65
144	144	IMPROVEMENTS..................................................................................................................... 18 66
145	145	TITLE IV. VACANT AND BLIGHTED PROPERTY INCENTIVES AND TAXES........... 46 67
146	146	SUBTITLE A. EXPEDITED PERMIT REVIEW FOR VACANT AND BLIGHTED 68
147	147	PROPERTIES........................................................................................................................ 46 69
148	148	SUBTITLE B. VACANT AND BLIGHTED PROPERTY TAX RATES.......................... 47 70
149	149	SUBTITLE C. TAX SALE PROCEDURE FOR VACANT AND BLIGHTED 71
150	150	PROPERTIES........................................................................................................................ 48 72
151	151	SUBTITLE D. VACANT AND BLIGHTED HOME REVITALIZATION TAX 73
152	152	CREDIT.................................................................................................................................. 56 74
153	153	3
154	154
155	155	SUBTITLE E. TAX ABATEMENT FOR THE REDEVELOPMENT OF VACANT AND 75
156	156	BLIGHTED COMMERCIAL PROPERTIES.................................................................... 59 76
157	157	TITLE V. FISCAL IMPACT STATEMENT; EFFECTIVE DATE....................................... 65 77
158	158	TITLE I. PREVENTION OF VACANT AND BLIGHTED PROPERTIES. 78
159	159	SUBTITLE A. TANGLED TITLE INFORMATION SHEET . 79
160	160	Section 102. Definitions. 80
161	161	For purposes of this section, the term: 81
162	162	(1) “Department” means the Department of Aging and Community Living. 82
163	163	(2) “Funeral services establishment” shall have the meaning as § 3–402(11). 83
164	164	(3) “Survivor of the deceased” means a spouse, child, or companion of the 84
165	165	deceased with whom funeral services are being arranged. 85
166	166	Sec. 103. Tangled Title disclosure. 86
167	167	(a) Within 180 days of the effective date of the Vacant to Vibrant Amendment Act of 87
168	168	2024, the Department shall, in consultation with the Department of Housing and Community 88
169	169	Development and the Superior Court of the District of Columbia, create and make publicly 89
170	170	available a tangled title information sheet detailing the steps necessary for an heir or heirs, after 90
171	171	the death of a title property owner, to legally transfer the property to avoid a tangled title. The 91
172	172	information sheet shall also include information on legal service providers who offer low-cost or 92
173	173	no-cost services for probate, estate, and trust administration. 93
174	174	(b) No later than five days after the final disposition of the deceased, a funeral service 94
175	175	establishment shall provide the tangled title information sheet made available by the Department 95
176	176	to survivors of the deceased. 96
177	177	97
178	178	4
179	179
180	180	SUBTITLE B. ELECTRONIC WILL REGISTRY. 98
181	181	Sec. 104. Title 18 of the District of Columbia Official Code is amended as follows: 99
182	182	(a) The table of contents is amended by adding a new chapter 10 to read as follows: 100
183	183	“Chapter 10. Register of wills. 101
184	184	“§ 18-1001. Electronic register of wills.”. 102
185	185	(b) A new chapter 10 is added to read as follows: 103
186	186	“§ 18-1001. Electronic register of wills. 104
187	187	“(a) An electronic will that meets the requirements of the Uniform Electronic Wills Act 105
188	188	(D.C. Official Code § 18-901 et seq.) may be deposited by a testator, or by the testator’s agent, 106
189	189	with the Register of Wills to be safely kept until delivered or disposed of as hereinafter provided. 107
190	190	“(b)(1) The will shall be deposited electronically and in a manner which would track any 108
191	191	viewing or modification after deposit of the will. 109
192	192	“(2) The will is not to be delivered or opened except as provided in this section. 110
193	193	“(3) Upon payment of the required fee, the Register of Wills shall give a receipt to 111
194	194	the testator or testator’s agent. 112
195	195	“(c) The Register of Wills shall retain a permanent copy of an electronic will and a copy 113
196	196	of any other document associated with the will, in paper, photographic, magnetic, mechanical, 114
197	197	electronic, digital, or any other medium if the copy is maintained in a manner that: 115
198	198	“(1) Is clear and legible; 116
199	199	“(2) Accurately reproduces the original document in its entirety, including any 117
200	200	attachments to the document; 118
201	201	“(3) Is capable of producing a clear and legible hard copy of the original 119
202	202	document; and 120
203	203	5
204	204
205	205	“(4) Preserves evidence of any signature contained on the document. 121
206	206	“(d) During the lifetime of the testator, a deposited will may be delivered only to the 122
207	207	testator, or to a person authorized by the testator in writing to receive it. 123
208	208	“(e)(1) The will shall be opened by the Register of Wills after being informed of the death 124
209	209	of the testator. 125
210	210	“(2) The Register of Wills shall notify the personal representative named in the 126
211	211	will that the will is on deposit with the Register of Wills. 127
212	212	“(3) The will shall be retained by the Register of Wills as a deposited will until 128
213	213	offered for probate. 129
214	214	“(4) If the proper venue for the probate of the will is in another court, the will 130
215	215	shall be transmitted to such Court; provided, that before such transmission a true copy thereof 131
216	216	shall be made and retained in the Court in which the will was deposited. 132
217	217	“(f) The Register of Wills shall develop procedures for a testator or testator’s agent to 133
218	218	withdraw and/or replace a registered will during the lifetime of the testator.”. 134
219	219	SUBTITLE C. SINGLE FAMILY HOME REHABILITATION PROGRAM. 135
220	220	Sec. 106. Definitions. 136
221	221	(a) For purposes of this section, the term: 137
222	222	(1) “Department” means the Department of Housing and Community 138
223	223	Development. 139
224	224	(2) “Eligible homeowner” means an owner (or owners) who: 140
225	225	(A) Own a single-family residential property; 141
226	226	(B) Whose household income is 120% of median family income or less; 142
227	227	6
228	228
229	229	(C) Has resided in the single-family residential property as a primary 143
230	230	residence for at least 3 years; 144
231	231	(D) Is current on all mortgage payments for the last 12 months; 145
232	232	(E) Is current on all District and federal taxes; and 146
233	233	(E) Possesses current homeowners insurance. 147
234	234	(3) “Median family income” means the median family income for a household in 148
235	235	the Washington Metropolitan Statistical Area as set forth in the periodic calculation provided by 149
236	236	the United States Department of Housing and Urban Development, adjusted for family size 150
237	237	without regard to any adjustments made by the United States Department of Housing and Urban 151
238	238	Development for the purposes of the programs it administers. 152
239	239	(4) “Single-family residential property” shall have the same meaning as § 47–153
240	240	803(6). 154
241	241	Sec. 107. Single-family home rehabilitation program. 155
242	242	(b) The Department may offer grants of up to $60,000 to an eligible homeowner to pay 156
243	243	for the following: 157
244	244	(1) Accessibility modifications to adjust physical barriers within the property for a 158
245	245	person with limited mobility or other physical impairments; 159
246	246	(2) Repairs or replacement of the roof; or 160
247	247	(3) Repairs to the foundation, structurally significant damaged wood or other 161
248	248	materials; or 162
249	249	(4) Significant repairs to electrical, plumbing or heating and cooling systems. 163
250	250	(c)(1) The Department shall work with qualifying applicants to develop a scope of work, 164
251	251	select a licensed and certified contractor, and manage the construction. 165
252	252	7
253	253
254	254	(2) Any payments to contractors shall be made by the Department on behalf of the 166
255	255	eligible homeowner. 167
256	256	(d) The Mayor may issue rules to implement the provisions of this section in accordance 168
257	257	with subchapter I of Chapter 5 of Title 2. 169
258	258	SUBTITLE D. REAL PROPERTY TAX PAYMENT PLANS. 170
259	259	Sec. 108. Title 47 is amended as follows: 171
260	260	(a) Chapter 8 is amended as follows: 172
261	261	(1) The table of contents is amended by adding a new section designation to read 173
262	262	as follows: 174
263	263	“47-870. Real property tax payment plans.”. 175
264	264	(2) A new section 47-870 is added to read as follows: 176
265	265	“§ 47-870. Real property tax payment plans. 177
266	266	“(a) For purposes of this section, the term: 178
267	267	“(1) “Eligible homeowner” means an owner (or owners): 179
268	268	“(A) Who receives the homestead deduction pursuant to § 47-850; and 180
269	269	“(i) Can demonstrate hardship; or 181
270	270	“(ii) Is 65 years of age or older. 182
271	271	“(2) “Tax liabilities” means both property real property taxes which are 183
272	272	delinquent and real property taxes which are currently due but not yet delinquent. Tax Liabilities 184
273	273	do not include: 185
274	274	“(A) Amounts, which may have been previously sold at a tax sale; 186
275	275	“(B) Business improvement district (BID) taxes; 187
276	276	“(C) Tax Increment Financing (TIF) payments; 188
277	277	8
278	278
279	279	“(D) Payments In Lieu of Taxes (PILOTs); 189
280	280	“(E) Southeast Water and Sewer (SEWS) assessments; 190
281	281	“(F) Special Energy Assessment assessments; or 191
282	282	“(G) Amounts certified by external agencies pursuant to § 47-1340. 192
283	283	“(b) Real property tax payment plans with eligible homeowners are authorized for all 193
284	284	amounts due on real property tax liabilities subject to the following terms and conditions: 194
285	285	“(1) Eligibility for a real property tax payment plan shall require a showing of 195
286	286	financial hardship or inability to pay based on individual circumstances. 196
287	287	“(2) Real property tax payment plans shall be computed on a 12-month basis. Tax 197
288	288	Liabilities are to be paid in equal installments over that 12-month period; 198
289	289	“(A) No down payment shall be required; 199
290	290	“(B) Payments shall be made by direct ACH debit from the eligible 200
291	291	homeowner’s bank account to the District. If there are insufficient funds for the debit, the eligible 201
292	292	homeowner shall also be liable for a fee imposed by the District for the dishonored payment; 202
293	293	“(C) An eligible homeowner cannot have more than one payment plan 203
294	294	active at a time; 204
295	295	“(D) An eligible homeowner cannot apply for a payment plan for periods 205
296	296	covered under a payment plan that he or she previously defaulted on; 206
297	297	“(E) If there is a reclassification of a property, a homestead or 207
298	298	senior/disabled audit, or the granting of tax relief applications during the term of a payment plan, 208
299	299	the existing payment plan shall terminate, and the eligible homeowner can reapply for the same 209
300	300	periods; and 210
301	301	9
302	302
303	303	“(F) Property will not be sold at a tax sale during the time a payment plan 211
304	304	is active. 212
305	305	“(3) While enrolled in a payment plan, an eligible homeowner shall remain 213
306	306	current on real property taxes that come due. 214
307	307	“(4)(A) An eligible homeowner may be declared in material breach of a real 215
308	308	property payment plan if he or she fails to make the required payments; provided, that a material 216
309	309	breach may not be declared earlier than the sixty-fifth day from the agreed upon due date and the 217
310	310	forty-fifth day from the mailing of a notice of risk of material breach. 218
311	311	“(B) An eligible homeowner who has been declared in material breach of a 219
312	312	payment plan may have his or her payment plan reinstated if he or she pays a lump sum equal to 220
313	313	as much as twice the regular monthly payment due together with the missed payments as well as 221
314	314	any payments currently due. 222
315	315	“(5) An eligible homeowner may be declared in default if he or she has failed to 223
316	316	cure a material breach within 45 days of the date the eligible homeowner is declared in material 224
317	317	breach. If an eligible homeowner is declared in default of a payment plan, such plan shall be null 225
318	318	and void. 226
319	319	“(c) Requests for property tax payment plans entered into pursuant to this section shall 227
320	320	made online at MyTaxDC.gov. A payment plan agreement confirmation shall be provided to the 228
321	321	eligible homeowner and shall contain the following: 229
322	322	“(1) The monthly payment amount; 230
323	323	“(2) The past due date; 231
324	324	“(3) The length of the plan, including the number of payments; 232
325	325	“(4) The total amount agreed due under the plan; 233
326	326	10
327	327
328	328	“(5) A statement of the delinquent tax periods covered by the plan as well as an 234
329	329	itemized statement of the amounts due for each period specifying the amount due for principal, 235
330	330	interest, penalties, and any other charges or fees; 236
331	331	“(6) A statement that the eligible homeowner is required to remain current on real 237
332	332	property taxes during the length of the agreement, as well as an explanation of how current 238
333	333	payments should be tendered in order to avoid misapplication of payments to delinquent taxes. 239
334	334	“(7) A brief explanation of how payments will be applied to the delinquency; 240
335	335	“(8) A brief explanation of the consequences of breach and default on the payment 241
336	336	plan; and 242
337	337	“(9) A statement that payments are to be remitted to the District electronically by 243
338	338	direct debit, and that the payments will be withdrawn from the eligible homeowner’s account on 244
339	339	the monthly payment due date. If there are insufficient funds for the debit, the eligible 245
340	340	homeowner shall also be liable for a fee imposed by the District for the dishonored payment. 246
341	341	“(d)(1) If an eligible homeowner fails to make a required payment within 20 days of an 247
342	342	agreed-upon payment due date, a notice of risk of material breach shall be sent to the eligible 248
343	343	homeowner. The notice shall include a statement that the eligible homeowner is at risk of 249
344	344	material breach, the entire amount required to cure the missed payment(s) as well as any 250
345	345	payments currently due, and a brief description of the consequences of a material breach. 251
346	346	“(2) If an eligible homeowner is declared in material breach of a payment plan, a 252
347	347	notice of material breach shall be sent to the eligible homeowner that includes a clear statement 253
348	348	that he or she has been declared in material breach, the date on which the material breach was 254
349	349	declared, the entire amount required to cure the missed payments as well as any payments 255
350	350	11
351	351
352	352	currently due and lump sum payments that may be required, and a clear statement that failure to 256
353	353	make the required payment will result in default.”. 257
354	354	(b) Section 47-1341 is amended as follows: 258
355	355	(1) Subsection (a)(2) is amended to read as follows: 259
356	356	“(2) The notice required pursuant to paragraph (1) of this subsection shall be in 260
357	357	substantively the following form and may include a payment coupon or enclosed bill: 261
358	358	“THIS IS A NOTICE OF DELINQUENCY FAILURE TO PAY TAXES WILL HAVE SERIOUS 262
359	359	CONSEQUENCES WHICH MAY INCLUDE LOSS OF TITLE TO THE PROPERTY 263
360	360	“Subject Property: [Identify by taxation square, suffix, and lot number, or parcel and lot number, 264
361	361	and by premises address, the real property to be sold] 265
362	362	“TO AVOID TAX SALE YOU MUST PAY $ [Amount Subject to Sale] by May 31, 20__. 266
363	363	“The amount that you must pay to avoid the tax sale may be less than the total amount owed on 267
364	364	the real property account. This amount may include fees or fines due to other DC agencies that 268
365	365	have been certified to the Office of Tax and Revenue to be included in a tax sale pursuant to D.C. 269
366	366	Code § 47-1340. 270
367	367	“According to the Mayor’s tax roll, you own or may have an interest in the real property listed 271
368	368	above. Notice is given that unless you pay the amount stated above or fall within one of the 272
369	369	limited exemptions from the tax sale, the Office of Tax and Revenue may sell this real property 273
370	370	at tax sale. 274
371	371	“If the property is sold at tax sale, the purchaser may have the right to file a lawsuit to foreclose 275
372	372	on the property. You must act now to avoid additional costs and significant expenses, as well as 276
373	373	potential loss of title to the property. 277
374	374	12
375	375
376	376	“Payment to the “DC Treasurer” may be made online at MyTaxDC.gov or at a mailed (with 278
377	377	payment coupon from tax bill) to the Office of Tax and Revenue, DC Government Real Property 279
378	378	Taxes, P.O. Box 718095, Philadelphia, PA 19171-8095 (please write your square, suffix and lot 280
379	379	numbers on the check). You should keep a copy of your proof of payment in case there is a later 281
380	380	dispute about the payment. 282
381	381	“If payment is not made before May 31, 20__, the amount listed on this notice may no longer be 283
382	382	accurate. In that case, you must contact the Office of Tax and Revenue at ______ to obtain an 284
383	383	updated payoff amount. 285
384	384	“YOU MAY BE ELIGIBLE FOR ASSISTANCE, INCLUDING A HARDSHIP 286
385	385	FORBEARANCE, A REAL PROPERTY TAX PAYMENT PLAN, OR FREE LEGAL 287
386	386	SERVICES. PLEASE SEE THE NEXT PAGE FOR ADDITIONAL INFORMATION. 288
387	387	“Should you have additional questions, please call the Customer Service Center for the Office of 289
388	388	Tax and Revenue at (202) 727-4TAX (4829). 290
389	389	“RESOURCES FOR REAL PROPERTY TAXPAYERS IN THE DISTRICT OF COLUMBIA 291
390	390	“Real Property Tax Ombudsman. Homeowners and other interested parties may be eligible for 292
391	391	assistance from the Real Property Tax Ombudsman. If you need assistance with a tax sale or 293
392	392	related property tax matters, contact the Real Property Tax Ombudsman at ___________. 294
393	393	“Classification Disputes. If your real property is classified as vacant or blighted and you believe 295
394	394	this classification is incorrect, contact the Vacant Building Enforcement Unit of the Department 296
395	395	of Buildings at ______ for information on how to appeal the property classification. 297
396	396	“Hardship Forbearance. You may be eligible to defer, or postpone, payment of the past due 298
397	397	amount. For information on how to apply for this deferral, please contact the Office of Tax and 299
398	398	Revenue at ___________. 300
399	399	13
400	400
401	401	“Senior Citizen and Low-Income Tax Relief. Senior citizens and low-income households may 301
402	402	have additional rights to defer property taxes. If you think you may be eligible for this tax relief, 302
403	403	please contact the Office of Tax and Revenue at _______ for more information. 303
404	404	“Additional Legal Services. Free and reduced-cost legal services may be available to low- and 304
405	405	moderate-income households. You can get a list of service providers from the Real Property Tax 305
406	406	Ombudsman (above). 306
407	407	“Housing Counseling Services. The U.S. Department of Housing and Urban Development 307
408	408	(“HUD”) sponsors housing counseling agencies throughout the country that can provide advice 308
409	409	on buying a home, renting, defaults, foreclosures, and credit issues. You can get a list of HUD-309
410	410	approved housing counseling agencies from the Real Property Tax Ombudsman (above).”. 310
411	411	(2) Subsection (b-1)(2) is amended to read as follows: 311
412	412	“(2) The notice required pursuant to paragraph (1) of this subsection shall be in 312
413	413	substantively the following form, and may include a payment coupon or enclosed bill: 313
414	414	“THIS IS A NOTICE OF DELINQUENCY. FAILURE TO PAY TAXES IMMEDIATELY MAY 314
415	415	HAVE SERIOUS CONSEQUENCES WHICH MAY INCLUDE LOSS OF TITLE TO THE 315
416	416	PROPERTY 316
417	417	“Subject Property: [Identify by taxation square, suffix, and lot number, or parcel and lot number, 317
418	418	and by premises address, the real property to be sold] 318
419	419	“TO AVOID TAX SALE YOU MUST PAY $[Amount Subject to Sale] by [Last Business Day 319
420	420	before tax sale] 320
421	421	“The amount that you must pay to avoid the tax sale may be less than the total amount owed on 321
422	422	the real property account. This amount may include fees or fines due to other DC agencies that 322
423	423	14
424	424
425	425	have been certified to the Office of Tax and Revenue to be included in a tax sale pursuant to D.C. 323
426	426	Code § 47-1340. 324
427	427	“According to the Mayor’s tax roll, you own or may have an interest in the real property listed 325
428	428	above. Notice is given that unless you pay the amount stated above or fall within one of the 326
429	429	limited exemptions from the tax sale, the Office of Tax and Revenue may sell this real property 327
430	430	at tax sale. 328
431	431	“If the property is sold at tax sale, the purchaser may have the right to file a lawsuit to foreclose 329
432	432	on the property. You must act now to avoid additional costs and significant expenses, as well as 330
433	433	potential loss of title to the property. 331
434	434	“Payment to the “DC Treasurer” may be made online at MyTaxDC.gov or at a mailed (with 332
435	435	payment coupon from tax bill) to the Office of Tax and Revenue, DC Government Real Property 333
436	436	Taxes, P.O. Box 718095, Philadelphia, PA 19171-8095 (please write your square, suffix and lot 334
437	437	numbers on the check). You should keep a copy of your proof of payment in case there is a later 335
438	438	dispute about the payment. 336
439	439	“If payment is made less than 10 calendar days before [the last business day before tax sale], you 337
440	440	must provide a copy of the receipt directly to the Office of Tax and Revenue in order to ensure 338
441	441	that your property is removed from the tax sale. 339
442	442	“You may FAX the receipt to (202) 478-5995; EMAIL the receipt to [email address]; or HAND-340
443	443	DELIVER a copy of the paid receipt to a Tax Sale Unit representative in the Customer Service 341
444	444	Center located at 1101 4th Street, SW, Suite 270W, Washington, DC 20024. 342
445	445	“Do not mail your paid receipt. 343
446	446	15
447	447
448	448	“YOU MAY BE ELIGIBLE FOR ASSISTANCE, INCLUDING A HARDSHIP 344
449	449	FORBEARANCE, A REAL PROPERTY TAX PAYMENT PLAN, OR FREE LEGAL 345
450	450	SERVICES. PLEASE SEE THE NEXT PAGE FOR ADDITIONAL INFORMATION. 346
451	451	“Should you have additional questions, please call the Customer Service Center for the Office of 347
452	452	Tax and Revenue at (202) 727-4TAX (4829). 348
453	453	“RESOURCES FOR REAL PROPERTY TAXPAYERS IN THE DISTRICT OF COLUMBIA 349
454	454	“Real Property Tax Ombudsman. Homeowners and other interested parties may be eligible for 350
455	455	assistance from the Real Property Tax Ombudsman. If you need assistance with a tax sale or 351
456	456	related property tax matters, contact the Real Property Tax Ombudsman at ___________. 352
457	457	“Classification Disputes. If your real property is classified as vacant or blighted and you believe 353
458	458	this classification is incorrect, contact the Vacant Building Enforcement Unit of the Department 354
459	459	of Buildings at _______ for information on how to appeal the property classification. 355
460	460	“Hardship Forbearance. You may be eligible to defer, or postpone, payment of the past due 356
461	461	amount. For information on how to apply for this deferral, please contact the Office of Tax and 357
462	462	Revenue at ___________. 358
463	463	“Senior Citizen and Low-Income Tax Relief. Senior citizens and low-income households may 359
464	464	have additional rights to defer property taxes. If you think you may be eligible for this tax relief, 360
465	465	please contact the Office of Tax and Revenue at _______ for more information. 361
466	466	“Additional Legal Services. Free and reduced-cost legal services may be available to low- and 362
467	467	moderate-income households. You can get a list of service providers from the Real Property Tax 363
468	468	Ombudsman (above). 364
469	469	“Housing Counseling Services. The U.S. Department of Housing and Urban Development 365
470	470	(“HUD”) sponsors housing counseling agencies throughout the country that can provide advice 366
471	471	16
472	472
473	473	on buying a home, renting, defaults, foreclosures, and credit issues. You can get a list of HUD-367
474	474	approved housing counseling agencies from the Real Property Tax Ombudsman (above).”. 368
475	475	TITLE II. SERVICE OF PROCESS REFORMS. 369
476	476	Sec. 201. Title 29 of the District of Columbia Official Code is amended as follows: 370
477	477	(a) Section 29-104.03 is amended as follows: 371
478	478	(1) Paragraph (1) is amended by striking the word “and” at the end. 372
479	479	(2) Paragraph (2) is amended by striking the period at the end and inserting the 373
480	480	phrase “; and” in its place. 374
481	481	(3) A new paragraph (3) is added to read as follows: 375
482	482	“(3) Electronic mailing address.”. 376
483	483	(b) Section 29-104.04 is amended as follows: 377
484	484	(1) Subsection (a)(2)(A) is amended by striking the word “address” and inserting 378
485	485	the word “address(es)” in its place. 379
486	486	(2) Subsection (a)(2)(B) is amended by striking the phrase “address of the 380
487	487	business office of that person.” and inserting the phrase “physical or electronic mailing address 381
488	488	of the business office of that person, pursuant to § 29-104.03.” in its place. 382
489	489	(c) Section 29-104.05 is amended as follows: 383
490	490	(1) Subsection (a)(3) is amended by striking the word “address” and inserting the 384
491	491	word “address(es)” in its place. 385
492	492	(2) Subsection (b) is amended to read as follows: 386
493	493	“(b) A commercial registered agent listing statement shall include the information 387
494	494	regarding acceptance by the agent of service of process in a form other than a written record as 388
495	495	provided for in § 29-104.12(e), including but not limited to, electronic mail.” 389
496	496	17
497	497
498	498	(d) Section 29-104.12(e) is amended to read as follows: 390
499	499	“(e) Service of process, notice, or demand on a registered agent and a commercial 391
500	500	registered agent shall be in a written record. Service may be made on a commercial registered 392
501	501	agent by electronic mail or other forms, and subject to such requirements, as the agent has stated 393
502	502	in its listing under § 29-104.05 that it will accept; provided, that commercial registered agents 394
503	503	may not require service by physical mail as a condition for accepting service by electronic 395
504	504	mail.”. 396
505	505	Sec. 202. Sec. 47-1203 of the District of Columbia Official Code is amended as follows: 397
506	506	(a) Subsection (a) is amended as follows: 398
507	507	(1) Paragraph (1) is amended as follows: 399
508	508	(A) Subparagraph (A) is amended to read as follows: 400
509	509	“(A) When mailed by first class mail to the owner’s mailing address as updated in the 401
510	510	real property tax records of the Office of Tax and Revenue.”. 402
511	511	(B) Subparagraph (D) is amended by striking the period semicolon at the 403
512	512	end and inserting the phrase “; or” in its place. 404
513	513	(C) Subparagraph (E) is struck. 405
514	514	(D) Subparagraph (F) is redesignated as subparagraph (E). 406
515	515	(2) Paragraph (2) is amended to read as follows: 407
516	516	“(2) Any notice to a corporation shall, for the purposes of §§ 47-1201 to 47-1206, 408
517	517	be deemed to have been served on such corporation if served on its agent registered pursuant to 409
518	518	Subchapter IV of Chapter 1 of Title 29, or on the president, secretary, treasurer, general manager, 410
519	519	or any principal officer of such corporation in a manner hereinbefore provided for the service of 411
520	520	notices on natural persons holding property in their own right; and notices to a foreign 412
521	521	18
522	522
523	523	corporation shall, for the purposes of §§ 47-1201 to 47-1206, be deemed to have been served if 413
524	524	served personally on any agent of such corporation, or if left with any person of suitable age and 414
525	525	discretion residing at the usual residence or employed at the usual place of business of such agent 415
526	526	in the District of Columbia.”. 416
527	527	(3) Paragraph (3) is struck. 417
528	528	(b) Subsection (b)(1) is amended to read as follows: 418
529	529	“(b)(1) All special assessments authorized to be levied by the District of Columbia for 419
530	530	public improvements, with the exception of assessments levied in condemnation proceedings, 420
531	531	may be paid without interest within 30 days from the date of service of notice. Interest of 1.5% 421
532	532	for each month or part thereof shall be charged on all unpaid amounts from the expiration of 30 422
533	533	days from the date of service. If any such assessment or any part thereof shall remain unpaid 423
534	534	after the expiration of 1 year from date of service of notice, the property against which said 424
535	535	assessment was levied may be sold for such assessment or unpaid portion thereof with interest 425
536	536	and penalties thereon at the next ensuing annual tax sale conducted under Chapter 13A of this 426
537	537	title, in the same manner and under the same conditions as property sold for delinquent general 427
538	538	taxes, if said assessment with interest and penalties thereon shall not have been paid in full prior 428
539	539	to said sale.”. 429
540	540	TITLE III. VACANT AND BLIGHTED PROPERTY REGISTRATION 430
541	541	IMPROVEMENTS . 431
542	542	Sec. 301. An Act To provide for the abatement of nuisances in the District of Columbia 432
543	543	by the Commissioners of said District, and for other purposes, approved April 14, 1906 (34 Stat. 433
544	544	114; D.C. Official Code § 42-3131.01 et seq.), is amended as follows: 434
545	545	(a) The table of contents for Chapter 31A, Subchapter II is amended as follows: 435
546	546	19
547	547
548	548	(1) Strike the section designation “42–3131.05a. Notice by mail.” and insert the 436
549	549	section designation “42–3131.05a. Notice.” in its place. 437
550	550	(2) A new section designation 42–3131.05b is added to read as follows: 438
551	551	“42–3131.05b. Determination of vacancy and blight.”. 439
552	552	(3) Strike the section designation “42–3131.06. Registration of vacant buildings.” 440
553	553	and insert the section designation “42–3131.06. Registration of vacant buildings; renewal.” in its 441
554	554	place. 442
555	555	(4) A new section designation 42–3131.06a is added to read as follows: 443
556	556	“42–3131.06a. Exemptions.”. 444
557	557	(5) Strike the section designation “42–3131.07. Registration and renewal 445
558	558	procedure.” and insert the section designation “42–3131.07. Registration and renewal procedure. 446
559	559	[Repealed].” in its place. 447
560	560	(6) Strike the section designation “42–3131.12. Vacant building maintenance 448
561	561	standard.” and insert the section designation “42–3131.12. Vacant building maintenance standard 449
562	562	and plan.” in its place. 450
563	563	(7) Strike the section designation “42.3131.16. Transmission of list by Mayor.” 451
564	564	and insert the section designation “42.3131.16. Transmission of list by Mayor; reconciliation of 452
565	565	information.” in its place. 453
566	566	(8) Strike the section designation “42–3131.17. Transmission of list of blighted 454
567	567	vacant buildings by Mayor.” and insert the section designation “42–3131.17. Transmission of list 455
568	568	of blighted vacant buildings by Mayor. [Repealed].” in its place. 456
569	569	20
570	570
571	571	(9) Strike the section designation “42–3131.18. Publication of list by the 457
572	572	Department of Buildings.” and insert the section designation “42–3131.18. Publication of vacant 458
573	573	and blighted vacant building information by the Department.” in its place. 459
574	574	(10) Strike the section designation “42–3131.19. Vacant and blighted vacant 460
575	575	buildings belonging to foreign governments.” and insert the section designation “42–3131.19. 461
576	576	Vacant and blighted vacant buildings belonging to foreign governments. [Repealed].” in its 462
577	577	place. 463
578	578	(11) A new section designation 42–3131.20 is added to read as follows: 464
579	579	“42–3131.20. Vacant and blighted vacant building receivership.” 465
580	580	(12) A new section designation 42-3131.21 is added to read as follows: 466
581	581	“42.3131.21. Vacant and blighted building report and plan.” 467
582	582	(13) A new section designation 42–3131.22 is added to read as follows: 468
583	583	“42–3131.22. Rules.” 469
584	584	(b) Section 5 (D.C. Official Code § 42–3131.05) is amended to read as follows: 470
585	585	“(1) “Blighted vacant building” means any vacant building that is in such a condition as 471
586	586	to pose a danger to the health, safety, and general welfare of the community. 472
587	587	“(2) “Commercial unit” means a building, or a part of a building, zoned for commercial 473
588	588	purposes under the zoning regulations of the District of Columbia. 474
589	589	“(3) “Dwelling unit” means a room, or group of rooms forming a single unit, designed, or 475
590	590	intended to be used, for living and sleeping, whether or not designed or intended for the 476
591	591	preparation and eating of meals or to be under the exclusive control of the occupant. The term 477
592	592	“dwelling unit” shall not include a room, or group of rooms forming a single unit, in a hotel or 478
593	593	motel licensed in the District of Columbia, actively operating as a hotel or motel. 479
594	594	21
595	595
596	596	“(4) “Fit for occupancy” means ready for immediate occupancy by a tenant without more 480
597	597	than minor cosmetic changes. 481
598	598	“(5) “Multifamily residential building” means a building containing two or more 482
599	599	dwelling units. 483
600	600	“(6) “Occupied” means: 484
601	601	“(A) For purposes of a dwelling unit, the use of one’s residence in improved real 485
602	602	property on a regular basis; or 486
603	603	“(B) For purposes of a commercial unit, use consistent with zoning regulations, 487
604	604	for which there is a current valid certificate of occupancy, and (i) paid utility receipts for the 488
605	605	specified period, executed lease agreements, or sales tax return, or (ii) other evidence of use of 489
606	606	the building that the Mayor may require by rule. 490
607	607	“(7) “Owner” means one or more persons or entities with an interest in real property in 491
608	608	the District of Columbia that appears in the real property tax records of the Office of Tax and 492
609	609	Revenue, and a tax sale purchaser under § 47-1353(b) or the purchaser’s assignee, as applicable, 493
610	610	except where the owner of record is challenging or appealing the vacant status of the real 494
611	611	property for the same period. 495
612	612	“(8) “Owner of record” means the person or persons named in the public record as the 496
613	613	title holder of the property. 497
614	614	“(9) “Real property” shall have the same meaning as § 47-802(1). 498
615	615	“(10) “Related owners” or “related ownership” exists when a deduction for a loss from 499
616	616	the sale or exchange of properties between taxpayers would be disallowed under section 267 of 500
617	617	the Internal Revenue Code of 1986, approved August 16, 1954 (68A Stat. 78; 26 U.S.C. § 267); 501
618	618	22
619	619
620	620	provided, that the exclusion under section 267(a)(1) for a loss in a distribution in a complete 502
621	621	liquidation shall not apply. 503
622	622	“(11) “Relative” means a spouse, domestic partner, sibling, parent, grandparent, child, 504
623	623	grandchild, or the sibling's child, spouse, or domestic partner. 505
624	624	“(12) “Vacant building” means any real property improved by a building that is not 506
625	625	lawfully occupied on a regular and habitual basis by the owner, a tenant, or other person having 507
626	626	the permission of the owner; provided, that in the case of residential buildings, the Mayor 508
627	627	determines that there is no resident for which an intent to return and lawfully occupy the building 509
628	628	can be shown.”. 510
629	629	(b) Section 5a (D.C. Official Code § 42–3131.5a) is amended to read as follows: 511
630	630	“Sec. 5a. Notice. 512
631	631	“(a) Notice shall be deemed to be served properly on the date when mailed by first class 513
632	632	mail to the owner of record of the vacant building at the owner’s mailing address as updated in 514
633	633	the real property tax records of the Office of Tax and Revenue. 515
634	634	“(b)(1) In addition to the notice requirement of subsection (a) of this section, the Mayor 516
635	635	shall cause notice to be posted on the premises; provided, that the official notice shall be mailed 517
636	636	pursuant to subsection (a) of this section. 518
637	637	“(2) Unless the vacant property is eligible for an exemption pursuant to § 42–519
638	638	3131.06a of this chapter, the notice shall not be posted by difficult-to-remove adhesive. 520
639	639	“(c) A courtesy copy of the notice provided pursuant to subsection (a) of this section shall 521
640	640	be mailed or electronically mailed to the Advisory Neighborhood Commission in which the 522
641	641	vacant building is located. The courtesy copy required by this subsection shall not be construed 523
642	642	23
643	643
644	644	to satisfy, nor be construed as necessary to satisfy, the notice requirement of subsection (a) of this 524
645	645	section.”. 525
646	646	(c) A new Section 5b (D.C. Official Code § 42–3131.05b) is added to read as follows: 526
647	647	“Sec. 5b. Determination of vacancy and blight. 527
648	648	“(a) When making a determination that a building is vacant, the Mayor shall consider the 528
649	649	following: 529
650	650	“(1) Neighbor complaints; 530
651	651	“(2) Advisory Neighborhood Commission certification; 531
652	652	“(3) Accumulated mail, fliers, or newspapers; 532
653	653	“(4) Past due utility notices, disconnected utilities, or utilities not in use; 533
654	654	“(5) Presence of overgrown vegetation, dead or diseased trees, or noxious weeds; 534
655	655	“(6) Absence of furnishings or personal items consistent with habitation; 535
656	656	“(7) The building is open to casual entry or trespass; and 536
657	657	“(8) Any other criteria the Mayor deems relevant. 537
658	658	“(b) When making a determination that a vacant building is a blighted vacant building, 538
659	659	the Mayor shall consider the following: 539
660	660	“(1) The incidence of illegal activity, as documented by police reports; 540
661	661	“(2) Whether the vacant building is the subject of a condemnation proceeding 541
662	662	before the Board of Condemnation and Insanitary Buildings; 542
663	663	“(3) Referrals to the Department of Buildings from other District agencies; 543
664	664	“(4) One or more windows, doors, or other means of entry are missing or boarded 544
665	665	up; 545
666	666	24
667	667
668	668	“(5) Collapsing, missing or deteriorating walls, roof, stairs, porches, balconies, 546
669	669	chimneys, and other building elements; 547
670	670	“(6) Siding or exterior walls that are seriously damaged, missing, or deteriorating; 548
671	671	“(7) Trash and debris are improperly stored or accumulated on the premises; 549
672	672	“(8) The building shows visible signs of vandalism such as graffiti; 550
673	673	“(9) The presence of mold, algae, abandoned or wild animals, or insect or pest 551
674	674	infestation; 552
675	675	“(10) Any other criteria the Mayor deems relevant. 553
676	676	“(c) For purposes of this section, the term “Advisory Neighborhood Commission 554
677	677	certification” means a resolution approved by a majority vote of an Advisory Neighborhood 555
678	678	Commission in which the building is located requesting that the Mayor classify a building as 556
679	679	vacant or blighted vacant.”. 557
680	680	(d) Section 6 (D.C. Official Code § 42–3131.06) is amended to read as follows: 558
681	681	“Sec. 6. Registration of vacant buildings; renewal. 559
682	682	“(a) Except as provided in § 42–3131.06a of this chapter, the owner of a vacant building 560
683	683	shall, within 180 days after it becomes vacant, register the building and pay the registration fee. 561
684	684	The Mayor may extend the time for good cause. 562
685	685	“(b)(1) Each application for the registration of a vacant building shall be in a form 563
686	686	prescribed by the Mayor and shall contain the following information: 564
687	687	“(A) The street address of the vacant building; 565
688	688	“(B) The date on which the building became vacant; 566
689	689	“(C) The name, street address, telephone number, and electronic mail 567
690	690	address of the owner of record; except as provided in subsection (f) of this section; 568
691	691	25
692	692
693	693	“(D) The name, address, telephone number, and electronic mail address of 569
694	694	a person based in the District who is responsible for the security and maintenance of the 570
695	695	property, if other than the owner of record; 571
696	696	“(E) A signed vacant building maintenance plan required pursuant to § 42–572
697	697	3131.12 of this chapter. 573
698	698	“(2) If at any time the information provided pursuant to paragraph (1) of this 574
699	699	subsection is no longer valid, the owner shall file a new registration within ten days containing 575
700	700	current information. There shall be no additional fee to provide current information pursuant to 576
701	701	this paragraph. 577
702	702	“(c) At the time of application for the initial registration or renewal of registration of a 578
703	703	vacant building, the owner shall arrange with the Mayor for the inspection of the building. On 579
704	704	receiving an application for the initial registration or renewal of registration of a vacant building, 580
705	705	the Mayor shall thereafter inspect the building. The Mayor shall approve the initial registration or 581
706	706	the renewal of registration for one year if: 582
707	707	“(1) The application for registration contains all of the information required 583
708	708	pursuant to subsection (a) of this section. 584
709	709	“(2) The building has been maintained in accordance with the requirements of § 585
710	710	42–3131.12; and 586
711	711	“(3) The vacancy of the building will not: 587
712	712	“(A) Be detrimental to the public health, safety, and welfare; 588
713	713	“(B) Unreasonably interfere with the reasonable and lawful use and 589
714	714	enjoyment of the other premises within the neighborhood; and 590
715	715	26
716	716
717	717	“(C) Pose a hazard to police officers or firefighters entering the building in 591
718	718	an emergency. 592
719	719	“(4) The building complies with the fire, building, and housing codes of the 593
720	720	District of Columbia; 594
721	721	“(5) The continuance of any maintenance work or condition of occupancy is not 595
722	722	dangerous to life or property; 596
723	723	“(6) No false statements or misrepresentations have been made upon the 597
724	724	registration application; 598
725	725	“(7) Orders on a building have been complied with and the building complies 599
726	726	with any applicable occupancy requirements; 600
727	727	“(8) An adequate water supply or facilities for firefighting purposes is furnished 601
728	728	as required in the fire code; and 602
729	729	“(9) The Mayor is permitted to inspect the building before initial registration, 603
730	730	during the registration period, and before a renewal of registration. 604
731	731	“(d) If the owner of a vacant building fails to comply with the provisions of subsection 605
732	732	(c) of this section, both initially and throughout the registration period, the Mayor may deny or 606
733	733	revoke the owner’s registration and may subject the owner to the penalties provided in § 42–607
734	734	3131.10. 608
735	735	“(e)(1) After the initial designation of a property as vacant or blighted, the Mayor shall 609
736	736	not be required to perform additional inspections or surveys to sustain that classification. 610
737	737	“(2) After the Mayor has made a final determination that a building is a vacant 611
738	738	building or a blighted vacant building, that final determination shall remain in effect until the 612
739	739	owner submits information to the Mayor sufficient to warrant a change to that classification. 613
740	740	27
741	741
742	742	“(f)(1)(A) Except as provided in subparagraph (B) of this paragraph, no person except the 614
743	743	owner of record or an authorized agent of the owner of record, with proof of authorization from 615
744	744	the owner of record, may register a building as vacant. 616
745	745	“(B) The Mayor, upon a showing that the owner of record is physically 617
746	746	unable to register the property, may allow a relative of the owner of record to register the 618
747	747	building as vacant; provided, that the relative can show proof of being a relative and, to the 619
748	748	satisfaction of the Mayor, that the owner of record is physically unable to register the property. 620
749	749	“(2) This subsection shall not in any way limit the Mayor's authority to register as 621
750	750	vacant or blighted any property whose owner fails to register it as required by this chapter.”. 622
751	751	(e) A new section 6a (D.C. Official Code § 42–3131.06a) is added to read as follows: 623
752	752	“Sec. 6a. Exemptions. 624
753	753	“(a) A vacant or blighted vacant building shall not be subject to the registration 625
754	754	requirements of § 42–3131.06 if it is: 626
755	755	“(1) Owned by the government of the United States or its instrumentalities; or 627
756	756	“(2) Authorized as exempt from real estate taxes by the United States Department 628
757	757	of State's Office of Foreign Missions on the basis of its use for diplomatic or consular purposes 629
758	758	or for the official business of an international organization. 630
759	759	“(b) A vacant building shall not be subject to the increased real property tax rates for 631
760	760	vacant buildings in § 47-812(b-10) if it is: 632
761	761	“(1) Exempted by the Mayor in extraordinary circumstances and upon a showing 633
762	762	of substantial economic or personal hardship as determined in subsection (c) of this section; 634
763	763	“(2) In compliance with the requirements of § 42–3131.12 and applicable 635
764	764	property maintenance code standards for the District of Columbia and the owner or his or her 636
765	765	28
766	766
767	767	agent has been actively seeking in good faith to rent or sell the building; provided, that an 637
768	768	exemption under § 42-3131.06a(b)(2) shall only be available for a period not to exceed: 638
769	769	“(A) Half a tax year from the initial listing, offer, or advertisement of sale 639
770	770	in the case of single-family residential buildings; 640
771	771	“(B) Two tax years from the initial listing, offer, or advertisement of sale 641
772	772	for multifamily residential buildings; or 642
773	773	“(C) Two tax years from the initial listing, offer, or advertisement of rent 643
774	774	or sale for commercial buildings; 644
775	775	“(3) For a period not to exceed 3 tax years, the subject of a probate proceeding or 645
776	776	the title is the subject of litigation (not including a foreclosure of the right of redemption action 646
777	777	brought under Chapter 13A of Title 47 [§ 47-1330 et seq.]). The tax year in which the exemption 647
778	778	under § 42-3131.06a(b)(3) starts is determined by the filing date of the applicable probate 648
779	779	proceeding and/or litigation; 649
780	780	“(4) For a period not to exceed 2 tax years, the subject of a pending application 650
781	781	for a necessary approval for development before the Board of Zoning Adjustment, the Zoning 651
782	782	Commission for the District of Columbia, the Commission on Fine Arts, the Historic 652
783	783	Preservation Review Board, the Mayor’s Agent for Historic Preservation, the Department of 653
784	784	Public Works, or the National Capital Planning Commission; or 654
785	785	“(5) For a period not to exceed half a tax year, the owner of the property or his or 655
786	786	her agent has an active building permit application that is being reviewed and processed by the 656
787	787	District, and the owner is actively seeking in good faith to obtain a building permit for the 657
788	788	purposes of making the building fit for occupancy; or 658
789	789	29
790	790
791	791	“(6) For a period not to exceed 3 tax years, under active construction or 659
792	792	undergoing active rehabilitation, renovation, or repair, and there is a valid active building permit 660
793	793	to make the building fit for occupancy. During the half tax year in which the exemption is 661
794	794	requested, the building must be under active construction or undergoing active rehabilitation, 662
795	795	renovation, or repair under a valid active building permit. The term “active construction” means 663
796	796	the conducting of activities that contribute directly to the completion of improvements 664
797	797	contemplated or shown on active permits. 665
798	798	“(c)(1) To qualify for an exemption for substantial economic or personal hardship 666
799	799	pursuant to subsection (b)(1) of this section, an owner must demonstrate: 667
800	800	“(A) He or she was a debtor in an individual bankruptcy action within the 668
801	801	last 12 months; 669
802	802	“(B) He or she experienced a significant medical event that prevented him 670
803	803	or her from engaging in normal work or business activities for at least a period of 30 days; 671
804	804	“(C) He or she was involuntarily terminated from employment and was 672
805	805	unemployed for at least 60 days within the last 12 months; 673
806	806	“(D) He or she is: 674
807	807	“(i) 60 years of age or older and is receiving social security 675
808	808	disability insurance; 676
809	809	“(ii) 65 years of age or older and has a household income that does 677
810	810	not exceed 120% of the median family income and has experienced medical, personal, or 678
811	811	financial hardship in the past 180 days; 679
812	812	30
813	813
814	814	“(E) He or she was impacted by a fire at the property that was not the 680
815	815	result of criminal activity or negligence as identified by a Fire and Emergency Medical Services 681
816	816	investigation; or 682
817	817	“(F) He or she was impacted by a natural disaster at the property. 683
818	818	“(2) The exemption may be granted for a period not to exceed one tax year from 684
819	819	the required registration date, subject to renewal on the basis of continuing extraordinary 685
820	820	circumstances and substantial undue economic hardship. The Mayor may withdraw the 686
821	821	exemption at any time. 687
822	822	“(d)(1) The cumulative time period for exemption from registration and fee requirements 688
823	823	for a vacant building under the same, substantially similar, or related ownership shall not exceed 689
824	824	3 tax years. 690
825	825	“(2) The limitations set forth in paragraph (1) of this subsection shall not apply to 691
826	826	vacant buildings that benefit from an exemption under subsection (a) of this section. 692
827	827	“(e) The total cumulative time for exemptions granted under subsection (b) of this section 693
828	828	to any property shall not exceed 5 tax years in any 12-year period, excluding exemptions granted 694
829	829	under subsection (a) of this section.”. 695
830	830	(f) Sec. 7 (D.C. Official Code § 42–3131.07) is repealed. 696
831	831	(g) Sec. 9 (D.C. Official Code § 42–3131.09) is amended to read as follows: 697
832	832	“(a) Except as provided in § 42–3131.06a(a), the owner of a building shall register the 698
833	833	building and pay registration fees within 180 days after it becomes a vacant or blighted vacant 699
834	834	building. 700
835	835	“(b) Fees for registration and renewal shall be as follows: 701
836	836	“(1) The initial registration fee shall be $350. 702
837	837	31
838	838
839	839	“(2) The renewal registration fee shall be $500. 703
840	840	“(c) The Mayor may increase the fees in subsection (b) of this section through rules 704
841	841	issued pursuant to § 42–3131.21.”. 705
842	842	(h) Section 10 (D.C. Official Code § 42–3131.10) is amended to read as follows: 706
843	843	“(a)(1) The failure of the owner of a vacant or blighted vacant building to register and 707
844	844	pay all required fees under § 42-3131.06(a) or § 42-3131.09 after notice of the designation of the 708
845	845	owner’s building as vacant or blighted vacant, the determination of delinquency of registration or 709
846	846	fee payment, the denial or revocation of registration, the filing by an owner of any false or 710
847	847	misleading registration-related information, or the refusal of the owner of a vacant or blighted 711
848	848	vacant building to permit the Mayor to inspect the building shall be subject to a civil penalty of 712
849	849	up to $1,000 for the first violation, $2,500 for the second violation, and $5,000 for the third and 713
850	850	subsequent violations. 714
851	851	“(2) The Director of the Department of Buildings shall provide the Office of the 715
852	852	Attorney General with a list of all owners who fail to register and pay the required fee after 716
853	853	notice. 717
854	854	“(b) If the owner of a vacant building fails to maintain the building in compliance with 718
855	855	the requirements of § 42–3131.12 or, having obtained a vacant property registration, 719
856	856	subsequently fails to comply with the other registration requirements under § 42–3131.06, the 720
857	857	Mayor, in addition to issuing civil penalties pursuant to subsection (a) of this section, may: 721
858	858	“(1) Charge the owner with failure to comply and enforce all applicable penalties 722
859	859	under this chapter; and 723
860	860	32
861	861
862	862	“(2) Take other action as required by the Construction Codes or Construction 724
863	863	Codes Supplement of the District of Columbia to bring the building into compliance with those 725
864	864	codes. 726
865	865	“(c) Criminal prosecutions under § 42-3131.05 through § 42-3131.15 shall be brought in 727
866	866	the name of the District of Columbia by the Attorney General for the District of Columbia.”. 728
867	867	(i) Section 11(b) (D.C. Official Code § 42–3131.11(b) is amended by striking the phrase 729
868	868	“Department of Consumer and Regulatory Affairs” and inserting the phrase “Department of 730
869	869	Buildings” in its place. 731
870	870	(j) Section 12 (D.C. Official Code § 42–3131.12) is amended to read as follows: 732
871	871	“Sec. 12. Vacant building maintenance standard and plan. 733
872	872	“(a) The owner of a vacant building shall comply with the following maintenance 734
873	873	requirements: 735
874	874	“(1) The exterior of the building shall be maintained free of graffiti, tagging, or 736
875	875	similar markings; 737
876	876	“(2) Exterior walls shall be free of holes, breaks, and loose or rotting materials; 738
877	877	“(3) The interior of the building, and the property on which the building is 739
878	878	located, shall be free from debris, rubbish, and garbage; 740
879	879	“(4) Exposed metal and wood surfaces on the exterior of the building and any 741
880	880	accessory or appurtenant structures shall be protected from the elements and against decay or 742
881	881	rust; 743
882	882	“(5) The cornices, belt courses, corbels, terra cotta trim, wall facings, and similar 744
883	883	decorative features shall be safe, anchored, and in good repair; 745
884	884	33
885	885
886	886	“(6) All balconies, canopies, marquees, signs, metal awnings, stairways, fire 746
887	887	escapes, standpipes, exhaust ducts, and similar features shall be in good repair, anchored, safe 747
888	888	and sound; 748
889	889	“(7) Doors, windows, areaways, and other openings shall be weather-tight and 749
890	890	secured against entry by birds, vermin, and trespassers, and missing or broken doors, windows, 750
891	891	and other openings shall be covered with 1/2 inch CDX plywood that is painted in accordance 751
892	892	with the predominant tone of the building and is weather protected, tightly fitted to the opening, 752
893	893	and secured by screws or bolts; 753
894	894	“(8) The roof and flashing shall be sound and tight, not admit moisture, and 754
895	895	drained to prevent dampness or deterioration in the walls or interior; 755
896	896	“(9) The building storm drainage system shall be adequately sized and installed in 756
897	897	an approved manner and functional; 757
898	898	“(10) The structural members shall be free of deterioration and capable of safely 758
899	899	bearing imposed dead and live loads; 759
900	900	“(11) The foundation walls shall be plumb, free from open cracks and breaks, and 760
901	901	vermin-proof; 761
902	902	“(12) Chimneys, cooling towers, smokestacks, and similar appurtenances shall be 762
903	903	structurally safe, sound, and in good repair; 763
904	904	“(13) Openings in sidewalks shall be safe for pedestrian travel; 764
905	905	“(14) The property on which the building is located shall be free from excessive 765
906	906	vegetation and debris; and 766
907	907	“(15) The property on which the building is located, as well as any accessory or 767
908	908	appurtenant structures, shall be free from safety, health, or fire hazards. 768
909	909	34
910	910
911	911	“(b) The owner of a vacant property or his or her agent shall submit a vacant property 769
912	912	maintenance plan with the registration form required pursuant to § 42–3131.06. The plan shall 770
913	913	include the following: 771
914	914	“(1) The name, address, and contact information (telephone number and 772
915	915	electronic mail address where applicable) of the person submitting the plan; 773
916	916	“(2) Contact information for the person designated to manage and maintain the 774
917	917	property; 775
918	918	“(3) A copy of a letter or notice to properties immediately adjacent to the vacant 776
919	919	building advising residents of the name and contact information of the person designated to 777
920	920	manage and maintain the property; 778
921	921	“(4) A plan for actively monitoring, maintaining, and securing the property for the 779
922	922	anticipated or expected period of vacancy that demonstrates how the property will be maintained 780
923	923	in accordance with subsection (a) of this section; 781
924	924	“(5) Any other information deemed necessary by the Mayor for purposes of 782
925	925	effectuating this section.”. 783
926	926	(k) Section 15 (D.C. Official Code § 42-3131.15) is amended to read as follows: 784
927	927	“(a) Within 15 days after the designation of an owner’s building as a vacant building, the 785
928	928	determination of delinquency of registration or fee payment, the denial or revocation of 786
929	929	registration, or the designation of a vacant building as a blighted vacant building, the owner may 787
930	930	petition the Mayor for reconsideration by filing the form prescribed by the Mayor. 788
931	931	“(b) Within 60 days after receiving a petition pursuant to subsection (a) of this section, 789
932	932	the Mayor shall issue a notice of final determination to the owner of the vacant building. The 790
933	933	35
934	934
935	935	petition shall be deemed denied, and it shall have the same effect of the issuance of a notice of 791
936	936	final determination, if the Mayor does not act upon the petition within 60 days. 792
937	937	“(c) Within 15 days after the date of the notice of final determination under subsection (b) 793
938	938	of this section, or within 15 days after the expiration of the time period under subsection (b) of 794
939	939	this section, an owner may file an appeal with the Real Property Tax Appeals Commission for the 795
940	940	District of Columbia on the form prescribed by the Mayor; provided, that the notice of final 796
941	941	determination or passive appeal under subsection (b) of this section shall be a prerequisite to 797
942	942	filing an appeal with the Real Property Tax Appeals Commission for the District of Columbia. 798
943	943	The Real Property Tax Appeals Commission may not extend the time to file an appeal. 799
944	944	“(d) After receiving a notice of appeal from an owner as required under subsection (c) of 800
945	945	this section, the Real Property Tax Appeals Commission for the District of Columbia shall 801
946	946	provide by mail or electronic mail to the Advisory Neighborhood Commission in which the 802
947	947	vacant building is located, at least 15 days before any scheduled hearing on the appeal, the 803
948	948	following information related to the building at issue: 804
949	949	“(1) The name of the owner of the building, and the address of the building, 805
950	950	including square, suffix and lot numbers; 806
951	951	“(2) The determination under review; and 807
952	952	“(3) The date, time, and location of the hearing. 808
953	953	“(e) The District, through the Office of the Attorney General, may appeal a decision of 809
954	954	the Real Property Tax Appeals Commission to the Superior Court of the District of Columbia 810
955	955	within 90 days after the receipt of a written decision.”. 811
956	956	(l) Section 16 (D.C. Official Code § 42-3131.16) is amended to read as follows: 812
957	957	36
958	958
959	959	“(a) No less than once a week, the Mayor shall transmit to the Office of Tax and Revenue 813
960	960	a list of buildings: 814
961	961	“(1) Registered as vacant or blighted vacant; 815
962	962	“(2) Designated as vacant or blighted vacant; and 816
963	963	“(3) For which the time period to issue a notice of final determination under § 42-817
964	964	3131.15(b) has expired or a notice of final determination has been issued under § 42-3131.15 and 818
965	965	administrative appeals have been exhausted or expired. 819
966	966	“(b) The list shall be in the form and medium prescribed by the Office of Tax and 820
967	967	Revenue. 821
968	968	“(c) Buildings shall remain on the list required by this section until a change in 822
969	969	classification is approved. 823
970	970	“(d) The Mayor and the Office of Tax and Revenue shall develop a procedure to reconcile 824
971	971	any material differences between information retained by the Department of Buildings regarding 825
972	972	buildings registered as vacant or designated as blighted vacant, and buildings taxed as Class 3 or 826
973	973	4, on at least a monthly basis.”. 827
974	974	(m) Section 17 (D.C. Official Code § 42-3131.17) is repealed. 828
975	975	(n) Section 18 (D.C. Official Code § 42-3131.18) is amended to read as follows: 829
976	976	“Sec. 18. Publication of vacant and blighted vacant building information by the 830
977	977	Department. 831
978	978	“(a) The Department of Buildings shall maintain, on a publicly available website, a 832
979	979	database or list of vacant and blighted buildings. The database or list shall, at a minimum, 833
980	980	contain the following information: 834
981	981	37
982	982
983	983	“(1) The address of the building, including the square, suffix, and lot number of 835
984	984	the property on which the building is located; 836
985	985	“(2) The Advisory Neighborhood Commission and Ward in which the building is 837
986	986	located; 838
987	987	“(3) The date on which the building was determined to be a vacant or blighted 839
988	988	vacant building or registered as a vacant or blighted vacant building pursuant to § 42-3131.06; 840
989	989	“(4) The type of exemption the building has received, the date on which the 841
990	990	building received an exemption, and the number of half tax years the building has been exempt, 842
991	991	if applicable; 843
992	992	“(5) The number of months the building has been registered vacant or designated 844
993	993	as blighted vacant; 845
994	994	“(6) The last date on which the property was inspected by the Department; and 846
995	995	“(7) The current tax classification of the property.”. 847
996	996	(o) Sec. 19 (D.C. Official Code § 42-3131.19) is repealed. 848
997	997	(p) A new section 20 (D.C. Official Code § 42-3131.20) is added to read as follows: 849
998	998	“Sec. 20. Vacant and blighted vacant building receivership. 850
999	999	“(a) The Mayor may petition the Superior Court of the District of Columbia for the 851
1000	1000	appointment of a receiver to rehabilitate, demolish, or sell a vacant or blighted vacant building, 852
1001	1001	upon the occurrence of any of the following, each of which is deemed a nuisance per se: 853
1002	1002	“(1) The vacant building has been registered as vacant for at least 12 months, 854
1003	1003	excluding any exemptions provided pursuant to § 42–3131.6a, and at least one notice of 855
1004	1004	infraction for which a final order has been issued by the Office of Administrative Hearings has 856
1005	1005	not been abated by the owner 30 days after the issuance of the final order; 857
1006	1006	38
1007	1007
1008	1008	“(2) The vacant building has been registered as vacant for at least 36 months, 858
1009	1009	excluding any exemptions provided pursuant to § 42–3131.6a; 859
1010	1010	“(3) The blighted vacant building has been designated as blighted vacant for at 860
1011	1011	least 12 months, excluding any exemptions provided pursuant to § 42–3131.6a; or 861
1012	1012	“(4) The vacant or blighted vacant building is subject to a condemnation order by 862
1013	1013	the Board for the Condemnation of Insanitary Buildings pursuant to § 6-903. 863
1014	1014	“(b) The Mayor shall give notice to the owner of the building no less than 90 days prior 864
1015	1015	to the filing of a petition. 865
1016	1016	“(c) The petition for appointment of a receiver shall include: 866
1017	1017	“(1) A copy of the registration form or designation form; 867
1018	1018	“(2) A copy of the final order from the Office of Administrative Hearings, if 868
1019	1019	applicable; and 869
1020	1020	“(3) A verified pleading that identifies and states the qualifications of the 870
1021	1021	proposed receiver. 871
1022	1022	“(c) The petition for the appointment of a receiver shall name as respondents: 872
1023	1023	“(1) The owner of the property; 873
1024	1024	“(2) Any lien holder of record; and 874
1025	1025	“(3)(A) The plaintiff in a proceeding to foreclose the right of redemption. 875
1026	1026	“(B) Failure to name the plaintiff shall not prevent the action from going 876
1027	1027	forward but shall prevent the receiver’s lien for expenses incurred from rehabilitating, 877
1028	1028	demolishing, or selling the building from having priority over the plaintiff’s lien interest. 878
1029	1029	“(d)(1) After filing a petition and before a receiver is appointed, the Mayor shall 879
1030	1030	give notice of pendency and nature of the proceedings by certified mail to the last known 880
1031	1031	39
1032	1032
1033	1033	addresses of all judgment creditors and lien holders with a recorded interest in the property. This 881
1034	1034	notice is not required for respondents named under subsection (c) of this section. 882
1035	1035	“(2) Within 30 days after the date on which the notice was mailed, a judgment 883
1036	1036	creditor or lien holder with a recorded interest in the property may apply to intervene in the 884
1037	1037	proceeding and to be appointed a receiver. A creditor or lien holder whose interest is not recorded 885
1038	1038	does not have standing to intervene in the proceeding and is not eligible to be appointed a 886
1039	1039	receiver. 887
1040	1040	“(3) Failure to give notice to any judgment creditors or lien holders as required by 888
1041	1041	this subsection shall not prevent the action from going forward but shall prevent the receiver’s 889
1042	1042	lien for expenses incurred from rehabilitating, demolishing, or selling the building from having 890
1043	1043	priority over that person’s lien interest. 891
1044	1044	“(e)(1) Instead of appointing a receiver to rehabilitate, demolish, or sell the building, the 892
1045	1045	Court may permit an owner, mortgagee, or other person with an interest in the property to 893
1046	1046	rehabilitate or demolish it, if the person: 894
1047	1047	“(A) Demonstrates the ability to complete the rehabilitation or demolition 895
1048	1048	within a reasonable time; 896
1049	1049	“(B) Agrees to comply with a specified schedule for rehabilitation or 897
1050	1050	demolition of the building; and 898
1051	1051	“(C) Posts bond, in an amount determined by the court, as security for the 899
1052	1052	performance of the required work in compliance with a specified schedule. 900
1053	1053	“(2)(A) The Mayor may apply to the court for immediate revocation of a person’s 901
1054	1054	appointment pursuant to this subsection if the person appointed is not proceeding with due 902
1055	1055	diligence or in compliance with the specified schedule. 903
1056	1056	40
1057	1057
1058	1058	“(B) In the event that the court revokes the person’s appointment and 904
1059	1059	appoints a receiver, the bond posted under subparagraph (C) of paragraph (1) of this subsection 905
1060	1060	shall be applied to the subsequently appointed receiver’s expenses for rehabilitating, 906
1061	1061	demolishing, or selling the building. 907
1062	1062	“(f)(1) If no qualified person with an ownership interest requests an appointment to 908
1063	1063	rehabilitate or demolish the property, or if an appointee is dismissed, the court shall appoint a 909
1064	1064	receiver of the property for the purposes of rehabilitating and managing the property, 910
1065	1065	demolishing the property, or selling it to a qualified bidder. 911
1066	1066	“(2) On the appointment of a receiver to rehabilitate, demolish, or sell the 912
1067	1067	property, all parties are divested from any authority to act in furtherance of those goals. 913
1068	1068	“(3) A receiver appointed to rehabilitate, demolish, or sell a vacant building has 914
1069	1069	no duty to, and is not personally liable for failing to, maintain the property or protect the property 915
1070	1070	from casualty or loss. 916
1071	1071	“(g) A receiver appointed to rehabilitate or demolish a vacant building, in addition to all 917
1072	1072	necessary and customary powers, has the right of possession with authority to: 918
1073	1073	“(1) Contract for necessary labor and supplies for rehabilitation or demolition. 919
1074	1074	“(2) Borrow money for rehabilitation or demolition from an approved lending 920
1075	1075	institution or through a government agency or program, using the receiver’s lien against the 921
1076	1076	property as security; 922
1077	1077	“(3) Manage the property for a period of up to 2 years and apply the rent received 923
1078	1078	to current operating expenses and to repayment of outstanding rehabilitation expenses; and 924
1079	1079	“(4) Foreclose on the receiver’s lien or accept a deed in lieu of foreclosure. 925
1080	1080	41
1081	1081
1082	1082	“(h)(1) A receiver appointed to sell a vacant building, in addition to all necessary and 926
1083	1083	customary powers, may sell the property to the high bidder at public auction. 927
1084	1084	“(2) The receiver must post a notice of a public auction 60 days prior to the date 928
1085	1085	on which the auction will be held. The notice must contain: 929
1086	1086	“(A) The address of each building for sale at the public auction; 930
1087	1087	“(B) A description of each building for sale at the public auction, including 931
1088	1088	the size and type of the building; and 932
1089	1089	“(C) Any other information deemed necessary by the receiver. 933
1090	1090	“(3) The minimum bid required to purchase a building at a public auction shall be 934
1091	1091	$5,000. 935
1092	1092	“(4) Before any sale, applicants to bid in a public auction or the proposed buyer in 936
1093	1093	a private sale must demonstrate that: 937
1094	1094	“(A) The applicants or proposed buyer have financial resources available 938
1095	1095	to rehabilitate the property; 939
1096	1096	“(B) The applicants or proposed buyer have experience rehabilitating 940
1097	1097	properties or have a contract or agreement with a person or organization that has experience 941
1098	1098	rehabilitating properties; and 942
1099	1099	“(C) The applicants or proposed buyers do not have any outstanding 943
1100	1100	property maintenance violations in the District, if applicable. 944
1101	1101	“(5) The receiver may charge a reasonable fee to applicants in connection with an 945
1102	1102	application to bid at a public auction or in connection with the solicitation of offers for a private 946
1103	1103	sale. 947
1104	1104	42
1105	1105
1106	1106	“(6) After deducting the expenses of the sale, the amount of outstanding taxes and 948
1107	1107	other government assessments, and the amount of the receiver’s lien, the receiver must apply the 949
1108	1108	remaining proceeds of the sale, first to the petitioner’s costs and expenses, and then to the liens 950
1109	1109	against the property in order of priority. 951
1110	1110	“(i)(1) Any costs or fees incurred by the receiver for purposes of rehabilitating, 952
1111	1111	demolishing, or selling a building pursuant to this subsection shall be a lien against the property. 953
1112	1112	The receiver’s lien shall have priority over all other liens and encumbrances, except taxes or 954
1113	1113	other government assessments. The receiver must allow the Mayor’s costs and expenses, 955
1114	1114	including reasonable attorney’s fees, to be paid to the extent that proceeds of a sale permit. 956
1115	1115	“(2) A receiver may foreclose on the lien by a sale of the building at a public 957
1116	1116	auction. After deducting the expenses of the sale, the receiver must apply the proceeds of the sale 958
1117	1117	to the liens against the building, in order of priority. In lieu of foreclosure, and only if the 959
1118	1118	receiver has rehabilitated the building, an owner may pay the receiver’s costs, fees, including 960
1119	1119	attorney’s fees, and expenses or may transfer all ownership in the property to either the receiver 961
1120	1120	or an agreed-on third party for an amount agreed to by all parties to the receivership as being the 962
1121	1121	property’s fair market value. 963
1122	1122	“(j) Following court ratification of a sale made pursuant to subsection (h) of this section, 964
1123	1123	the receiver must sign a deed conveying title to the buyer, free and clear of all liens, judgments 965
1124	1124	and other encumbrances. On court ratification of the sale, any secured interest of a lien or 966
1125	1125	judgment creditor automatically attaches to the proceeds from the sale to the extent that those 967
1126	1126	proceeds are available. 968
1127	1127	“(k) Upon sale of the property, the receiver must: 969
1128	1128	“(1) File with the court a final accounting; and 970
1129	1129	43
1130	1130
1131	1131	“(2) At the same time, file a motion with the court to dismiss the action. 971
1132	1132	“(l) The Mayor may contract with a nonprofit or for-profit organization to act as a 972
1133	1133	receiver pursuant to this section; provided, that any organization acting as a receiver must: 973
1134	1134	“(1) Not be delinquent on any fees, fines, taxes, or financial penalties owed to the 974
1135	1135	District; and 975
1136	1136	“(2) Have demonstrated experience with the management or sale of residential or 976
1137	1137	commercial properties; or 977
1138	1138	“(3) If the receiver will rehabilitate or demolish properties, have demonstrated 978
1139	1139	experience in the rehabilitation or demolition of residential or commercial properties.”. 979
1140	1140	(q) A new section 21 (D.C. Official Code § 42-3131.21) is added to read as follows: 980
1141	1141	“Sec. 21. Vacant and Blighted Building Report and Plan. 981
1142	1142	“(a) By January 1, 2026, the Mayor shall submit a report to the Council containing the 982
1143	1143	following information: 983
1144	1144	“(1) A description of predictive statistical models that could be used to identify 984
1145	1145	properties at risk of becoming vacant or blighted, as well as the data sources and information 985
1146	1146	technology infrastructure necessary to effectively implement these models; 986
1147	1147	“(2) A detailed description of proactive measures utilized by other jurisdictions in 987
1148	1148	the United States to enforce vacant and blighted property registration ordinances; and 988
1149	1149	“(3) An analysis and determination of the feasibility of utilizing proactive 989
1150	1150	measures to enforce the District’s laws regarding registration and maintenance of vacant and 990
1151	1151	blighted buildings. 991
1152	1152	44
1153	1153
1154	1154	“(b) By January 1, 2027, and every three years thereafter, the Mayor shall submit a 992
1155	1155	vacant and blighted property rehabilitation strategic plan to the Council. In developing the 993
1156	1156	strategic plan, the Mayor shall: 994
1157	1157	“(1) Analyze the extent and nature of interagency collaboration among District 995
1158	1158	agencies with respect to: 996
1159	1159	“(A) Enforcing legal requirements related to vacant and blighted buildings 997
1160	1160	in the District; and 998
1161	1161	“(B) Incentivizing the successful redevelopment or rehabilitation of vacant 999
1162	1162	and blighted buildings; 1000
1163	1163	“(2) Review the use and effectiveness of existing incentives in the District that 1001
1164	1164	support the redevelopment or rehabilitation of vacant and blighted buildings; 1002
1165	1165	“(3) Review best practices for preventing vacancy and blight, and best practices 1003
1166	1166	for redeveloping or rehabilitating vacant and blighted buildings; 1004
1167	1167	“(4) Develop and refine performance metrics that measure the effectiveness of the 1005
1168	1168	District’s programs, interventions, and incentives regarding vacant and blighted properties; and 1006
1169	1169	“(5) Consult with stakeholders, including the following: 1007
1170	1170	“(A) Advisory Neighborhood Commissions; 1008
1171	1171	“(B) Organizations with significant experience redeveloping or 1009
1172	1172	rehabilitating vacant or blighted buildings; and 1010
1173	1173	“(C) Organizations or individuals with policy or research expertise on: 1011
1174	1174	“(i) Implementing strategic code enforcement programs; 1012
1175	1175	“(ii) Development incentives; and 1013
1176	1176	“(iii) Developing performance measures.”. 1014
1177	1177	45
1178	1178
1179	1179	(r) A new section 22 (D.C. Official Code § 42-3131.22) is added to read as follows: 1015
1180	1180	“Sec. 22. Rules. 1016
1181	1181	“The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to 1017
1182	1182	implement the provisions of this chapter. The proposed rules shall be submitted to the Council 1018
1183	1183	for a 45-day period of review, excluding days of Council recess. If the Council does not approve 1019
1184	1184	or disapprove of the proposed rules, by resolution, within the 45-day review period, the proposed 1020
1185	1185	rules shall be deemed approved.”. 1021
1186	1186	Sec. 302. Section 47-825.01a(e)(1)(B) of the District of Columbia Official Code is 1022
1187	1187	amended to read as follows: 1023
1188	1188	“(B)(i) If an owner is aggrieved by a notice of final determination issued 1024
1189	1189	pursuant to §42-3131.15 or the time period to issue a notice of final determination under that 1025
1190	1190	section has expired, the owner may file an appeal on the determination of vacancy with the 1026
1191	1191	Commission within 15 days after the date of the notice or expiration. The Commission may not 1027
1192	1192	extend the time to file an appeal. Notwithstanding any other provision of this section, the 1028
1193	1193	Commission shall render a decision on the appeal within 120 days after the filing. 1029
1194	1194	“(ii) An appeal to the Commission under this subparagraph shall be 1030
1195	1195	on the same terms and under the same conditions, to the extent reasonable, as if the appeal were 1031
1196	1196	brought under subparagraph (A) of this paragraph; except, that no worksheet shall be required to 1032
1197	1197	be mailed, the Department of Buildings shall be the responsible agency, and any supplemental 1033
1198	1198	filing shall be provided to the Commission and the Department of Buildings. 1034
1199	1199	“(iii) A response from the Department of Buildings shall be 1035
1200	1200	available for inspection at least 7 days before the scheduled hearing. 1036
1201	1201	46
1202	1202
1203	1203	“(iv) The Department of Buildings shall have the authority, as 1037
1204	1204	provided to OTR under subsection (f) of this section, to make redeterminations of vacancy and 1038
1205	1205	blight and any reclassifications that may be necessary. 1039
1206	1206	“(v) The Department of Buildings shall be entitled to a rehearing to 1040
1207	1207	establish the proper status, vacant or blight, and tax classification of the real property under the 1041
1208	1208	same conditions and to the same extent under paragraph (6) of this subsection; provided, that 1042
1209	1209	paragraph (6)(D) of this subsection shall not apply.”. 1043
1210	1210	TITLE IV. VACANT AND BLIGHTED PROPERTY INCENTIVES AND TAXES. 1044
1211	1211	SUBTITLE A. EXPEDITED PERMIT REVIEW FOR VACANT AND BLIGHTED 1045
1212	1212	PROPERTIES. 1046
1213	1213	Sec. 401. (a) The Construction Codes Approval and Amendments Act of 1986, effective 1047
1214	1214	March 21, 1987 (D.C. Law 6-216; D.C. Official Code § 6-1401 et seq.), is amended by adding a 1048
1215	1215	new section 10e to read as follows: 1049
1216	1216	“Sec. 10e. Expedited permit review for vacant and blighted vacant properties. 1050
1217	1217	“(a) No later than 180 days after the effective date of the Vacant to Vibrant Amendment 1051
1218	1218	Act of 2024, the Department shall establish an expedited permit review process for permits 1052
1219	1219	described in subsection (b) of this section; provided, that the expedited permit review process 1053
1220	1220	shall only apply to permits for Class 3 and Class 4 properties. 1054
1221	1221	“(b) The following permits shall be eligible for an expedited permit review process 1055
1222	1222	established pursuant to subsection (a) of this section: 1056
1223	1223	“(1) A demolition permit; 1057
1224	1224	“(2) A raze permit; 1058
1225	1225	“(3) An addition, alteration, and repair permit; 1059
1226	1226	47
1227	1227
1228	1228	“(4) An alteration and repair permit; 1060
1229	1229	“(5) A sheeting and shoring permit; 1061
1230	1230	“(6) A new building permit; and 1062
1231	1231	“(7) Trade permits. 1063
1232	1232	“(c) The Department shall not charge additional fees beyond the standard permit fees for 1064
1233	1233	eligible applicants to utilize the expedited permit review process established pursuant subsection 1065
1234	1234	(a) of this section.”. 1066
1235	1235	SUBTITLE B. VACANT AND BLIGHTED PROPERTY TAX RATES. 1067
1236	1236	Sec. 402. Section 47-812 of the District of Columbia Official Code is amended by 1068
1237	1237	adding a new subsection (b-13) to read as follows: 1069
1238	1238	“(b-13)(1) Notwithstanding the provisions of subsection (a) of this section, the sum of 1070
1239	1239	real property tax rates and special property tax rates for taxable Class 3 properties in the District 1071
1240	1240	of Columbia for the tax year beginning October 1, 2025, and each tax year thereafter, shall be as 1072
1241	1241	follows: 1073
1242	1242	“(A) For the first year in which the property is registered as vacant, the tax 1074
1243	1243	rate shall be the applicable tax rate for a Class 1A, Class 1B, or Class 2 property. 1075
1244	1244	“(B) For the second year in which the property is registered as vacant, the 1076
1245	1245	tax rate shall be $3 for each $100 of assessed value. 1077
1246	1246	“(C) For the third year in which the property is registered as vacant, the 1078
1247	1247	tax rate shall be $4 for each $100 of assessed value. 1079
1248	1248	“(D) For the fourth year, and any subsequent years, in which the property 1080
1249	1249	is registered as vacant, the tax rate shall be $5 for each $100 of assessed value. 1081
1250	1250	48
1251	1251
1252	1252	“(2) Notwithstanding the provisions of subsection (a) of this section, the sum of 1082
1253	1253	the real property tax rates and special real property tax rates for taxable Class 4 Properties in the 1083
1254	1254	District of Columbia for the tax year beginning October 1, 2025, and each year thereafter, shall 1084
1255	1255	be as follows: 1085
1256	1256	“(A) For the first year in which the property is designated as blighted 1086
1257	1257	vacant, the tax rate shall be the tax rate for a Class 1A, Class 1B, or Class 2 property. 1087
1258	1258	“(B) For the second year in which the property is designated as blighted 1088
1259	1259	vacant, the tax rate shall be $6 for each $100 of assessed value. 1089
1260	1260	“(C) For the third year in which the property is designated as blighted 1090
1261	1261	vacant, the tax rate shall be $8 for each $100 of assessed value. 1091
1262	1262	“(D) For the fourth year, and any subsequent years, in which the property 1092
1263	1263	is designated as blighted vacant, the tax rate shall be $10 for each $100 of assessed value.”. 1093
1264	1264	SUBTITLE C. TAX SALE PROCEDURE FOR VACANT AND BLIGHTED 1094
1265	1265	PROPERTIES. 1095
1266	1266	Sec. 403. Chapter 13A of Title 47 of the District of Columbia Official Code is amended 1096
1267	1267	as follows: 1097
1268	1268	(a) The table of contents is amended by adding the following at the end: 1098
1269	1269	“Subchapter V. Procedures for Class 3 and 4 Properties. 1099
1270	1270	“§ 47-1390. Eligibility to foreclose on a Class 3 or 4 Property. 1100
1271	1271	“§ 47-1391. Pre-foreclosure action notice; publication requirements. 1101
1272	1272	“§ 47-1392. Parties. 1102
1273	1273	“§ 47-1393. Complaint form; notice to certain persons. 1103
1274	1274	“§ 47-1394. Foreclosure proceedings; right of redemption. 1104
1275	1275	49
1276	1276
1277	1277	“§ 47-1395. Tax sale notice; bidder qualifications; excess; tax deed.”. 1105
1278	1278	(b) Section 47-1330 is amended as follows: 1106
1279	1279	(1) New paragraphs (1A) and (1B) are added to read as follows: 1107
1280	1280	“(1A) “Class 3 property” shall have the same meaning as § 47–813(c-9)(4)(A). 1108
1281	1281	“(1B) “Class 4 property” shall have the same meaning as § 47–813(c-9)(5)(A).”. 1109
1282	1282	(c) Section 47-1332 is amended as follows: 1110
1283	1283	(1) Subsection (c) is amended to read as follows: 1111
1284	1284	“(c) The Mayor shall not sell any real property if: 1112
1285	1285	“(1) A forbearance authorization has been approved in writing by the Mayor for 1113
1286	1286	the applicable tax sale; 1114
1287	1287	“(2) The owner enters into a payment plan pursuant to § 47-870 prior to the date 1115
1288	1288	of the tax sale; 1116
1289	1289	“(3) For an improved Class 1A or 1B Property, the tax amount to be sold is less 1117
1290	1290	than $7,500; 1118
1291	1291	“(4) The real property is a Class 1A or 1B Property that is receiving a homestead 1119
1292	1292	deduction, with respect to which there is an outstanding non-void certificate of sale; provided, 1120
1293	1293	that no real property shall be excluded from sale solely pursuant to this paragraph if the non-void 1121
1294	1294	certificate of sale has been outstanding for 3 years or more; or 1122
1295	1295	“(5) For a Class 3 or Class 4 property, the owner has been delinquent for less than 1123
1296	1296	one year.”. 1124
1297	1297	(2) Subsection (e)(3)(A) is amended to read as follows: 1125
1298	1298	“(3)(A) The Mayor shall approve an application if the real property receives a 1126
1299	1299	homestead deduction and the tax amount to be sold is less than or equal to $12,500.”. 1127
1300	1300	50
1301	1301
1302	1302	(d) New sections 47-1390 through 47-1396 are added to read as follows: 1128
1303	1303	“Sec. 47-1390. Eligibility to foreclose on a Class 3 or 4 Property. 1129
1304	1304	“After the expiration of one year from the date of delinquency, the Mayor may file a 1130
1305	1305	complaint with the Superior Court to foreclose on a tax certificate or certificates for a Class 3 or 1131
1306	1306	4 property.”. 1132
1307	1307	“Sec. 47-1391. Pre-foreclosure action notice; publication requirements. 1133
1308	1308	“(a)(1) No less than 90 days prior to the filing of a complaint with the Court pursuant to § 1134
1309	1309	47-1393, the Mayor shall send written notice to the owner of record of the property at such 1135
1310	1310	owner’s mailing address as updated in OTR’s real property records.. 1136
1311	1311	(A) The notice shall inform the owner of the intent to file a complaint to 1137
1312	1312	foreclose on the tax certificate or certificates. The notice shall also contain the amount due as of 1138
1313	1313	the day of the notice, and state that the owner may pay the amount due, together with any 1139
1314	1314	additional interest, which may be owed prior to the filing date to halt any foreclosure action. 1140
1315	1315	“(2) The written notice pursuant to paragraph (1) of this subsection shall be sent 1141
1316	1316	by first class mail. 1142
1317	1317	“(b) At any time after 60 days from the mailing of the notice required in subsection (a) of 1143
1318	1318	this section, the Mayor shall cause to be advertised once in not less than 2 newspapers of general 1144
1319	1319	circulation in the District that are published once every 2 weeks, notice that the listed properties 1145
1320	1320	will subject to foreclosure proceedings due to delinquent real property taxes. 1146
1321	1321	“Sec. 47-1392. Parties. 1147
1322	1322	“(a) The plaintiff in an action to foreclose a Class 3 or 4 property pursuant to § 47-1394 1148
1323	1323	shall be the District. 1149
1324	1324	51
1325	1325
1326	1326	“(b) The defendants in an action to foreclose a Class 3 or 4 Property pursuant to § 47-1150
1327	1327	1394 shall be: 1151
1328	1328	“(1) The record owner of the real property; 1152
1329	1329	“(2) If the real property is encumbered by a recorded life tenancy, the record life 1153
1330	1330	tenant and record remaindermen; 1154
1331	1331	“(3) If the real property is subject to a recorded estate for life or a recorded lease 1155
1332	1332	or ground rent for a term (with renewals) that is at least 30 years, the record owner of the fee 1156
1333	1333	simple title and the owner of the possessory interest as disclosed by a search performed in 1157
1334	1334	accordance with generally accepted standards of title examination of the records of the Recorder 1158
1335	1335	of Deeds; 1159
1336	1336	“(4) Any mortgagee of the real property, or any assignee of the mortgage of 1160
1337	1337	record, named as such in an unreleased mortgage recorded in the records of the Recorder of 1161
1338	1338	Deeds; 1162
1339	1339	“(5) The trustee of record under a deed of trust recorded against the real property 1163
1340	1340	and a holder of a beneficial interest in a deed of trust who files notice of the interest, which 1164
1341	1341	notice includes identification of the deed of trust, the book and page or roll and frame where the 1165
1342	1342	deed of trust is recorded, and the current address at which the holder may be served with a 1166
1343	1343	summons. 1167
1344	1344	“(c) If the identity of an owner cannot be ascertained, the unknown owner of the real 1168
1345	1345	property may be included may be included as a defendant by the designation: “Unknown owner 1169
1346	1346	of real property (insert a description of the real property in substantially the same form as the 1170
1347	1347	description that appears on the certificate of sale along with the street address, if any), the 1171
1348	1348	52
1349	1349
1350	1350	unknown owner’s heirs, devisees, and personal representatives and their or any of their heirs, 1172
1351	1351	devisees, executors, administrators, grantees, assigns, or successors in right, title and interest.” 1173
1352	1352	“Sec. 47-1393. Complaint form; notice to certain persons. 1174
1353	1353	“(a) A complaint filed to foreclose on a tax certificate or certificates for a Class 3 or 4 1175
1354	1354	Property shall, for each property listed in the complaint, contain: 1176
1355	1355	“(1) A description of the real property, by premises address, taxation square, 1177
1356	1356	suffix, and lot number, or parcel and lot number; 1178
1357	1357	“(2) The name(s) of the owner or owners of the property; 1179
1358	1358	“(3) A statement of the amount of taxes owed, including interest and penalties; 1180
1359	1359	and 1181
1360	1360	“(4) A request that the Court pass a judgment to foreclose on right of redemption. 1182
1361	1361	“(b) For each property listed in a complaint filed pursuant to subsection (a) of this 1183
1362	1362	section, a copy of the written notice provided to the owner pursuant to § 47-1391(a) shall be 1184
1363	1363	attached. 1185
1364	1364	“(c)(1) Upon filing a complaint with Superior Court pursuant to subsection (a) of this 1186
1365	1365	section, the Mayor shall send written notice of the action to all persons having a recorded 1187
1366	1366	interest, recorded claim, or recorded lien, including a recorded judgment, who have not been 1188
1367	1367	made a defendant in the action. 1189
1368	1368	“(2) The written notice required under paragraph (1) of this subsection shall be 1190
1369	1369	sent by first class mail and shall include as an attachment thereto a copy of the summons and 1191
1370	1370	complaint. 1192
1371	1371	53
1372	1372
1373	1373	“(d) The Mayor shall file a statement that the notice provisions of subsection (c) of this 1193
1374	1374	section have been complied with, or an affidavit stating that the address of the holder of the 1194
1375	1375	subordinate interest is not reasonably ascertainable. 1195
1376	1376	“Sec. 47-1394. Foreclosure proceedings; right of redemption. 1196
1377	1377	“(a)(1) Any defendant listed under § 47-1392(b) may file an answer and defense to the 1197
1378	1378	complaint within 30 after service of the notice and complaint. The answer may object to the 1198
1379	1379	proposed foreclosure upon one or more of the following grounds only: 1199
1380	1380	“(A) The real property is exempt from taxation or assessment pursuant to 1200
1381	1381	§ 47–1002; or 1201
1382	1382	“(B) The delinquent taxes or assessments identified in the tax certificate or 1202
1383	1383	certificates were in fact paid; 1203
1384	1384	“(2) If an answer and defense is filed by any defendant or other interested person, 1204
1385	1385	the matter shall be heard in a summary manner without other pleading, and the court shall 1205
1386	1386	pronounce judgment. 1206
1387	1387	“(b) Real property subject to a foreclosure proceeding pursuant to this section may be 1207
1388	1388	redeemed at any time before the close of business before a judgment is entered, by payment, as 1208
1389	1389	prescribed by the Mayor, of the total amount of delinquent taxes, inclusive of interest and 1209
1390	1390	penalties. 1210
1391	1391	“(c) In the event that no answer by any person having a right to answer pursuant to 1211
1392	1392	subsection (a) of this section is provided, the Court determines that the issue raised by the answer 1212
1393	1393	of the defendant is without merit, or there is a failure to redeem pursuant to subsection (b) of this 1213
1394	1394	section, the Court shall order the District to sell the property at a public auction to satisfy the 1214
1395	1395	amount of lien, fees, and costs. 1215
1396	1396	54
1397	1397
1398	1398	“(d) The Court shall tax as a part of the taxable costs all legal fees and charges 1216
1399	1399	necessarily paid or incurred in procuring searches relative to the title of the real property, 1217
1400	1400	prosecuting the foreclosure action, providing for a court-ordered sale (including advertising and 1218
1401	1401	auctioneer fees) and securing and maintaining a guardian ad litem. 1219
1402	1402	“(e) The District shall not be required to plead or prove various steps, proceedings, and 1220
1403	1403	notices for the assessment and levy of taxes or assessments against the real property and all such 1221
1404	1404	taxes and assessment shall be presumed to be valid. A defendant alleging any jurisdictional 1222
1405	1405	defect or invalidity in the tax or assessment, because said real property was not liable to taxation 1223
1406	1406	or assessment, must particularly specify in the defendant’s answer such jurisdictional defect or 1224
1407	1407	invalidity and must affirmatively establish such defense. 1225
1408	1408	“(f) A guardian ad litem shall be appointed to serve for all persons known or unknown 1226
1409	1409	who have or may have an interest in the real property subject to a foreclosure action and who are 1227
1410	1410	or may be minors or individuals adjudicated incompetent at the date of filing such a list. 1228
1411	1411	“Sec. 47-1395. Tax sale notice; bidder qualifications; excess; tax deed. 1229
1412	1412	“(a) No less than 90 days after a judgment is entered by the Court, the Mayor shall 1230
1413	1413	publicly notice any Class 3 and 4 Properties that will be sold at a tax sale as follows: 1231
1414	1414	“(1) In not less than 2 newspapers of general circulation in the District that are 1232
1415	1415	published once every 2 weeks, a public notice stating the listed real property will be sold at 1233
1416	1416	public auction and at the place named in the public notice; and 1234
1417	1417	“(2) A list of real property in the public notice on the Office of Tax and Revenue’s 1235
1418	1418	website. 1236
1419	1419	“(b) The list in the public notice shall contain the following: 1237
1420	1420	55
1421	1421
1422	1422	“(1) A description of the real property, by premises address, taxation square, 1238
1423	1423	suffix, and lot number, or parcel and lot number; 1239
1424	1424	“(2) The name of the person who last appears on the Mayor’s tax roll as the owner 1240
1425	1425	of the real property; 1241
1426	1426	“(3) The minimum bid required to purchase the property at tax sale. 1242
1427	1427	“(c) Before any sale, applicants to bid in a public auction must demonstrate that: 1243
1428	1428	“(1) The applicants or proposed buyer have financial resources available to 1244
1429	1429	rehabilitate the property; 1245
1430	1430	“(2) The applicants or proposed buyer have experience rehabilitating properties or 1246
1431	1431	have a contract or agreement with a person or organization that has experience rehabilitating 1247
1432	1432	properties; 1248
1433	1433	“(3) The applicants or proposed buyer do not have any unresolved notices of 1249
1434	1434	infraction related to property maintenance violations in the District, if applicable; and 1250
1435	1435	“(4) The applicant is current on all taxes and liabilities owed to the District. 1251
1436	1436	“(d) Real property sold at tax sale pursuant to this section shall be sold “as is.” There is 1252
1437	1437	no guarantee or warranty of any kind, express or implied, relative to: Title, eligibility to build 1253
1438	1438	upon or subdivide the property; zoning classification; size; location; fitness for any use or 1254
1439	1439	purpose; or any other feature or condition of a foreclosed property sold pursuant to this section. 1255
1440	1440	“(e) If the highest bid for a property sold pursuant to this section exceeds the minimum 1256
1441	1441	bid due upon the whole property, the excess must be refunded, following payment of any 1257
1442	1442	recorded liens, to the owner of the record of the property. In the event that no claim for the 1258
1443	1443	excess is received by the Mayor within three years after the date of the sale, the Chief Financial 1259
1444	1444	Officer shall deposit the excess in the General Fund of the District of Columbia. 1260
1445	1445	56
1446	1446
1447	1447	“(f) The Mayor shall issue a deed for any property purchased by a bidder at a tax sale 1261
1448	1448	held pursuant to this section. The deed shall be prima facie evidence of a good and perfect title in 1262
1449	1449	fee simple to the real property.”. 1263
1450	1450	SUBTITLE D. VACANT AND BLIGHTED HOME REVITALIZATION TAX 1264
1451	1451	CREDIT. 1265
1452	1452	Sec. 404. Title 47 of the District of Columbia Official Code is amended as follows: 1266
1453	1453	(a) The table of contents is amended by adding a new chapter designation to read as 1267
1454	1454	follows: 1268
1455	1455	“19. Vacant and Blighted Property Rehabilitation Credit.” 1269
1456	1456	(b) A new chapter 19 is added to read as follows: 1270
1457	1457	“CHAPTER 19. VACANT AND BLIGHTED PROPERTY REHABILITATION 1271
1458	1458	CREDIT. 1272
1459	1459	“47-1819.01. Definitions. 1273
1460	1460	“47-1819.02. Credit Established. 1274
1461	1461	“47-1819.03. Annual Cap. 1275
1462	1462	“47-1819.04. Application and Mayoral Certification. 1276
1463	1463	“Sec. 47-1819.01. Definitions. 1277
1464	1464	“For purposes of sections § 47–1806.17a through 47-1806.17g, the term: 1278
1465	1465	“(1) “Area median family income” means the median family income for the 1279
1466	1466	Washington Metropolitan Statistical Area as set forth by the United States Department of 1280
1467	1467	Housing and Urban Development, adjusted for household size. 1281
1468	1468	“(2) “Class 3 property” shall have the same meaning as § 47–813(c-9)(4)(A). 1282
1469	1469	“(3) “Class 4 property” shall have the same meaning as § 47–813(c-9)(5)(A). 1283
1470	1470	57
1471	1471
1472	1472	“(4) “Eligible development costs” means amounts paid or incurred by an eligible 1284
1473	1473	taxpayer after December 31, 2025 for the acquisition of eligible property, construction, 1285
1474	1474	substantial rehabilitation, demolition of structures, or environmental remediation. 1286
1475	1475	“(5) “Eligible property” means a Class 3 or Class 4 property that is: 1287
1476	1476	“(A) A house comprised of 4 or fewer residential units or a condominium 1288
1477	1477	unit; and 1289
1478	1478	“(B) Located in a qualifying census tract as determined by the Mayor as of 1290
1479	1479	the date of the application pursuant to § 47–1819.04. 1291
1480	1480	“(6) “Eligible taxpayer” means a taxpayer certified by the Mayor pursuant § 47–1292
1481	1481	1819.04(b) as eligible to claim the credit established under this chapter. 1293
1482	1482	“(7) “Qualifying census tract” means a census tract which has: 1294
1483	1483	“(A) A median family income which does not exceed 120% of the median 1295
1484	1484	family income of the District; 1296
1485	1485	“(B) A poverty rate that is not less than 130% of the poverty rate of the 1297
1486	1486	District; and 1298
1487	1487	“(C) A median value for owner-occupied homes that does not exceed the 1299
1488	1488	median value for all owner-occupied homes in the District. 1300
1489	1489	“(8) “Qualified homeowner” means an individual whose family income is 120% 1301
1490	1490	or less of the area median family income as of the date that a binding contract is entered into 1302
1491	1491	between that individual and an eligible taxpayer for the sale of the eligible property. 1303
1492	1492	“(9) “Substantial rehabilitation” means amounts paid or incurred for rehabilitation 1304
1493	1493	of an eligible property if such amounts exceed $150,000 multiplied by the difference between the 1305
1494	1494	Consumer Price Index for the preceding tax year and the Consumer Price Index for the tax year 1306
1495	1495	58
1496	1496
1497	1497	2024 divided by the Consumer Price Index for tax year 2024. For the purposes of this paragraph, 1307
1498	1498	the Consumer Price Index for any real property tax year is the average of the Consumer Price 1308
1499	1499	Index for the Washington-Baltimore Metropolitan Statistical Area for all urban consumers 1309
1500	1500	published by the Department of Labor, or any successor index, as of the close of the 12-month 1310
1501	1501	period ending on September 30 of such tax year. 1311
1502	1502	“Sec. 47-1819.02. Credit established. 1312
1503	1503	(a) For tax years beginning after December 31, 2025, there is established a District of 1313
1504	1504	Columbia vacant and blighted home revitalization tax credit that may be claimed against taxes 1314
1505	1505	imposed under this subtitle. 1315
1506	1506	(b) The amount of the credit shall be 75% of the eligible development costs as certified 1316
1507	1507	by the Mayor to the Chief Financial Officer pursuant to § 47–1819.04(b). 1317
1508	1508	(c) The credit may exceed the tax liability under this chapter, including any minimum tax 1318
1509	1509	due under §§ 47-1807.02(b) or 47-1808.03(b), for that taxable year and shall be refundable to the 1319
1510	1510	eligible taxpayer, including an organization exempt under § 47–1802.01(a)(3) from taxation 1320
1511	1511	under this subtitle. 1321
1512	1512	(d) The credit may only be allowed if it: 1322
1513	1513	(1) Has been approved and certified by the Mayor to the Chief Financial Officer 1323
1514	1514	pursuant to § 47–1819.04: 1324
1515	1515	(2) Is claimed by an eligible taxpayer in the taxable year in which the substantial 1325
1516	1516	rehabilitation of the eligible property is completed; and 1326
1517	1517	(3) Is claimed in the manner and form prescribed by the Chief Financial Officer. 1327
1518	1518	“Sec. 47-1819.03. Annual Cap. 1328
1519	1519	59
1520	1520
1521	1521	“The Mayor may approve up to $2,500,000 in credits under this subchapter each fiscal 1329
1522	1522	year. 1330
1523	1523	“Sec. 47-1809.04. Application and Mayoral certification. 1331
1524	1524	(a) Before a taxpayer may claim a credit pursuant this subchapter, the taxpayer must 1332
1525	1525	apply to the Mayor requesting approval. 1333
1526	1526	(b) If a taxpayer’s application is approved in accordance with this subchapter, the Mayor 1334
1527	1527	shall certify to the Chief Financial Officer the following on before December 1 of the calendar 1335
1528	1528	year following the end of the fiscal year in which the credit was approved: 1336
1529	1529	(1) The name and taxpayer identification number of the eligible taxpayer; 1337
1530	1530	(2) The address of the eligible property (including square and lot); 1338
1531	1531	(3) That the eligible taxpayer’s application in accordance with this section was 1339
1532	1532	approved; 1340
1533	1533	(4) The date the substantial rehabilitation was completed; 1341
1534	1534	(5) That the eligible taxpayer sold the property to a qualifying homeowner; 1342
1535	1535	(6) The total amount of the eligible development costs incurred by the eligible 1343
1536	1536	taxpayer; 1344
1537	1537	(7) The total amount of the credit approved for the eligible taxpayer; and 1345
1538	1538	(8) Any other information requested by the Chief Financial Officer.”. 1346
1539	1539	SUBTITLE E. TAX ABATEMENT FOR THE REDEVELOPMENT OF VACANT 1347
1540	1540	AND BLIGHTED COMMERCIAL PROPERTIES. 1348
1541	1541	Sec. 405. Title 47 of the District of Columbia Official Code is amended as follows: 1349
1542	1542	(a) Section 47-813 is amended as follows: 1350
1543	1543	(1) Subsection (c-9)(4) is amended to read as follows: 1351
1544	1544	60
1545	1545
1546	1546	“(c-9)(4)(A) Class 3 property shall be comprised of all improved real property that 1352
1547	1547	appears as vacant on the list compiled under § 42-3131.16. 1353
1548	1548	“(B) The Office of Tax and Revenue may request the Mayor to inspect the 1354
1549	1549	improved real property to determine whether the property is correctly designated or registered as 1355
1550	1550	vacant on the list compiled under § 42-3131.16.”. 1356
1551	1551	(2) Subsection (c-9)(5) is amended to read as follows: 1357
1552	1552	“(c-9)(5)(A) Class 4 Property shall be comprised of all improved real property that 1358
1553	1553	appears as blighted vacant on the list compiled under § 42-3131.16. 1359
1554	1554	“(B) The Office of Tax and Revenue may request the Mayor to inspect the 1360
1555	1555	improved real property to determine whether the property is correctly designated as blighted 1361
1556	1556	vacant on the list compiled under § 42-3131.16.”. 1362
1557	1557	(c) By adding new sections 47-861.01 through 47-861.04 to read as follows: 1363
1558	1558	“Sec. 47-861.01. Tax abatements for the redevelopment of vacant and blighted 1364
1559	1559	commercial properties – Definitions. 1365
1560	1560	“For purposes of §§ 47-861.01 through 47-861.04, the term: 1366
1561	1561	“(1) “Class 3 property” shall have the same meaning as § 47–813(c-9)(4)(A). 1367
1562	1562	“(2) “Class 4 property” shall have the same meaning as § 47–813(c-9)(5)(A). 1368
1563	1563	“(3) “Eligible development costs” means amounts paid or incurred for 1369
1564	1564	construction, substantial rehabilitation, demolition of structures, or environmental remediation of 1370
1565	1565	an eligible property. Eligible development costs shall not include land acquisition costs. 1371
1566	1566	“(4) “Eligible property” means a Class 3 or Class 4 property that: 1372
1567	1567	“(A) Shall be redeveloped to be used for commercial purposes as defined 1373
1568	1568	in paragraph 5 of this section; and 1374
1569	1569	61
1570	1570
1571	1571	“(B) Has been registered as a Class 3 or Class 4 property for at least 12 1375
1572	1572	months without any exemptions pursuant to § 42–3131.06a. 1376
1573	1573	“(5) “Used for commercial purposes” means use of real property primarily for 1377
1574	1574	conducting any trade, business, or profession, whether for profit or not, including providing 1378
1575	1575	goods or services or operating as a hotel or inn. 1379
1576	1576	“(6) “OTR” means the Office of Tax and Revenue. 1380
1577	1577	“Sec. 47-861.02. Tax abatements for the redevelopment of vacant and blighted 1381
1578	1578	commercial properties – Requirements. 1382
1579	1579	“(a) Subject to § 47-861.03, the Mayor may approve an abatement of the tax otherwise 1383
1580	1580	imposed under this chapter, in an amount calculated pursuant to § 47-861.03(a), for an eligible 1384
1581	1581	property if: 1385
1582	1582	“(1) Eligible development costs exceed $1.5 million. 1386
1583	1583	“(2) The property owner, or its designee or assignee, demonstrates to the 1387
1584	1584	satisfaction of the Mayor that the abatement shall materially assist the redevelopment project and 1388
1585	1585	the redevelopment project would not go forward without the abatement. 1389
1586	1586	“(3) The property owner, or its designee or assignee, enters into an agreement 1390
1587	1587	with the District that requires the owner, or its designee or assignee, to, at a minimum, contract 1391
1588	1588	with certified business enterprises for at least 35% of the contract dollar volume of the 1392
1589	1589	construction of the project, in accordance with § 2-218.46. 1393
1590	1590	“(4) The property owner, or its designee or assignee, executes a First Source 1394
1591	1591	Agreement for the construction and operation of the project. 1395
1592	1592	“(5) The property owner, or its designee or assignee, requests a letter from the 1396
1593	1593	Mayor stating that the proposed redevelopment project is eligible for the tax abatement, setting 1397
1594	1594	62
1595	1595
1596	1596	forth the expected amount of the abatement, as determined pursuant to § 47-861.03(a), and 1398
1597	1597	reserving that amount for the project. 1399
1598	1598	“(6) The Mayor transmits to the owner the eligibility and reservation letter 1400
1599	1599	requested under paragraph (4) of this section, subject to such conditions as may be imposed by 1401
1600	1600	the Mayor and subject to the adjustment of the abatement amount based on the certifications 1402
1601	1601	provided for in § 47-860.03(a) and the abatement cap set forth in § 47-861.03(b). 1403
1602	1602	“(b) The Mayor shall, as nearly as practicable, review requests for eligibility and 1404
1603	1603	reservation letters in the order in which each completed request is received. 1405
1604	1604	“(c) The Mayor shall transmit to OTR a copy of each eligibility and reservation letter 1406
1605	1605	transmitted by the Mayor to an owner pursuant to subsection (a)(5) of this section. 1407
1606	1606	“(d) An abatement of the tax otherwise imposed under this chapter shall not be provided 1408
1607	1607	for a property for which an eligibility and reservation letter was transmitted by the Mayor 1409
1608	1608	pursuant to subsection (a)(5) of this section if the project which was the basis upon which the 1410
1609	1609	eligibility and reservation letter was issued has not received a certificate of occupancy within 24 1411
1610	1610	months after the date the eligibility and reservation letter was transmitted; provided, that the 1412
1611	1611	Mayor may extend the 24-month period for up to 8 months as deemed necessary. 1413
1612	1612	“(e)(1) After the completion of a project for which an eligibility and reservation letter was 1414
1613	1613	issued, the Mayor shall, if the conditions set forth in this section and the eligibility and 1415
1614	1614	reservation letter have been met, and subject to the abatement cap set forth in § 47-860.03(b), 1416
1615	1615	issue the property owner a certification of tax abatement, subject to such conditions as the Mayor 1417
1616	1616	may impose. The Mayor shall provide a copy of the certification letter to OTR. The certification 1418
1617	1617	shall identify: 1419
1618	1618	63
1619	1619
1620	1620	“(A) The property to which the certification applies by square and lot, or 1420
1621	1621	parcel or reservation number; 1421
1622	1622	“(B) The full legal name of the property owner, including taxpayer 1422
1623	1623	identification number; 1423
1624	1624	“(C) The tax to which the certification applies; 1424
1625	1625	“(D) The portion of the property that is eligible; 1425
1626	1626	“(E) The commencement date of the abatement; 1426
1627	1627	“(F) Any other information OTR shall require to administer the abatement. 1427
1628	1628	“(2) The Mayor shall notify the property owner and OTR if any property or owner 1428
1629	1629	certified under paragraph (1) of this subsection becomes ineligible for the abatement. The notice 1429
1630	1630	shall be written, shall identify the ineligible property, the date that the property became 1430
1631	1631	ineligible, and any other information required by OTR to terminate the abatement. 1431
1632	1632	“Sec. 47-861.03. Tax abatements for the redevelopment of vacant and blighted 1432
1633	1633	commercial properties – Abatement period, abatement amount, and caps. 1433
1634	1634	“(a) For each property for which a certification of abatement was issued under § 47-1434
1635	1635	860.02(e), the real property tax imposed on the property under this chapter shall be abated as 1435
1636	1636	follows: 1436
1637	1637	“(1) Half of the otherwise applicable tax in each of the first six tax years 1437
1638	1638	following the tax year during which a certification of tax abatement is issued pursuant to § 47-1438
1639	1639	860.02(e); 1439
1640	1640	“(2) Two-thirds of the applicable tax in each of the seventh and eighth tax years 1440
1641	1641	following the tax year during which a certification of tax abatement is issued pursuant to § 47-1441
1642	1642	860.02(e); and 1442
1643	1643	64
1644	1644
1645	1645	“(3) Three-quarters of the applicable tax in each of the ninth and tenth tax years 1443
1646	1646	following the tax year during which a certification of tax abatement is issued pursuant to § 47-1444
1647	1647	860.02(e). 1445
1648	1648	“(b) The total amount of tax abatements the Mayor may approve or certify under § 47-1446
1649	1649	860.02 in each fiscal year, including amounts certified in prior years, shall be capped at the 1447
1650	1650	following amounts, subject to the availability of funding: 1448
1651	1651	“(1) For fiscal years 2027, 2028, and 2029, up to $3 million; and 1449
1652	1652	“(2) For each succeeding fiscal year after Fiscal Year 2029, up to $6 million. 1450
1653	1653	“(c) (1) Prior to the preparation by OTR of tax bills for each half-year installment of tax, 1451
1654	1654	the Mayor shall certify to OTR, by a date and in a form and medium prescribed by OTR, each 1452
1655	1655	property eligible to receive a real property tax abatement pursuant to a certification issued 1453
1656	1656	pursuant to § 47-860.02(e), and the portion of the tax to be abated under subsection (a) of this 1454
1657	1657	section for each such property with respect to such half-year installment bill. 1455
1658	1658	“(2) The certification required by paragraph (1) of this subsection shall be 1456
1659	1659	accompanied by a statement from the Mayor specifying the total amount of the tax abatement 1457
1660	1660	under subsection (b) of this section for the semiannual period of the certification that is available 1458
1661	1661	to abate the taxes of the properties identified pursuant to paragraph (1) of this subsection. 1459
1662	1662	“(d) If the amount of tax to be abated for any semiannual billing period for all properties 1460
1663	1663	certified under subsection (c)(1) of this section exceeds the total dollar amount of tax abatements 1461
1664	1664	available as certified under subsection (c)(2) of this section, the available dollar amount shall be 1462
1665	1665	allocated pro rata among all properties certified under subsection (c)(1) of this section. 1463
1666	1666	“Sec. 47-861.04. Tax abatements for the redevelopment of vacant and blighted 1464
1667	1667	commercial properties – Rules. 1465
1668	1668	65
1669	1669
1670	1670	“The Mayor shall, pursuant to Subchapter I of Chapter 5 of Title 2, issue rules to 1466
1671	1671	implement §§ 47-861.01 through 47-861.03.”. 1467
1672	1672	TITLE V. FISCAL IMPACT STATEMENT; EFFECTIVE DATE. 1468
1673	1673	Sec. 501. Fiscal impact statement. 1469
1674	1674	The Council adopts the fiscal impact statement in the committee report as the fiscal 1470
1675	1675	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 1471
1676	1676	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 1472
1677	1677	Sec. 502. Effective date. 1473
1678	1678	This act shall take effect following approval by the Mayor (or in the event of veto by the 1474
1679	1679	Mayor, action by the Council to override the veto), a 30-day period of congressional review as 1475
1680	1680	provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 1476
1681	1681	24, 1973, (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 1477
1682	1682	Columbia Register. 1478