8 | | - | A RESOLUTION |
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| 4 | + | ___________________________ 1 |
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| 5 | + | Councilmember Robert C. White, Jr. 2 |
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| 6 | + | 3 |
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| 7 | + | 4 |
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| 8 | + | A PROPOSED RESOLUTION 5 |
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| 9 | + | ________ 6 |
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| 10 | + | 7 |
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| 11 | + | IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 8 |
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| 12 | + | ______________________ 9 |
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| 13 | + | 10 |
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| 14 | + | 11 |
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| 15 | + | To declare the existence of an emergency, due to congressional review, regarding the need to 12 |
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| 16 | + | provide financial relief and other assistance to the current owners of the condominium 13 |
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| 17 | + | units at the River East at Grandview Condominiums. 14 |
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| 18 | + | 15 |
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| 19 | + | RESOLVED, BY THE COUNCIL DISTRICT OF COLUMBIA, That this resolution 16 |
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| 20 | + | may be cited as the “Relief for River East at Grandview Condominium Owners Congressional 17 |
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| 21 | + | Review Emergency Declaration Resolution of 2024”. 18 |
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| 22 | + | Sec. 2. (a) In 2011, the Department of Housing and Community Development 19 |
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| 23 | + | (“DHCD”) provided a loan to Stanton View Development LLC (“Stanton View”) to cover 20 |
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| 24 | + | predevelopment and acquisition costs for a Ward 8 property at 1260 to 1272 Talbert Street, 21 |
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| 25 | + | S.E., Washington, DC 20020, at which Stanton View planned to develop 46 for -sale affordable 22 |
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| 26 | + | housing units. 23 |
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| 27 | + | (b) In 2014, Stanton View transferred the property to Rivereast at Anacostia LLC for 24 |
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| 28 | + | development, who decided instead to develop rental units and who received a Housing 25 |
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| 29 | + | Production Trust Fund (“HPTF”) loan from DHCD, with the support of the Council, to do so. 26 |
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| 30 | + | (c) By the end of 2016, Stanton View and DHCD agreed to convert the property back 27 |
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| 31 | + | to the originally proposed ownership units, and the project was finished and just about ready 28 |
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| 32 | + | for move-in. 29 |
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| 33 | + | 2 |
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10 | | - | 25-532 |
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| 35 | + | (d) From July 2017 to February 2019, 46 households purchased homes at 1262 Talbert 30 |
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| 36 | + | Street, S.E., in a building that has been called several different but similar names: River East at 31 |
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| 37 | + | Grandview, Grandview Estate, Grandview Estates, Grandview Estates II, Gardenview, River 32 |
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| 38 | + | East, RiverEast, River East at Anacostia, River East at Anacostia Metro Station, River East at 33 |
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| 39 | + | Grandview, and, simply, Talbert Street (“River East at Grandview”). 34 |
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| 40 | + | (e) Many of the 46 households were led by Black women becoming homeowners for 35 |
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| 41 | + | the first time using the District’s Home Purchase Assistance Program (“HPAP”), and the 36 |
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| 42 | + | newly formed community included retirees, recent graduates, young couples, veterans, parents, 37 |
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| 43 | + | and parents-to-be. 38 |
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| 44 | + | (f) By August 2021, the community faced an insurmountable obstacle: An engineering 39 |
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| 45 | + | firm hired by the Condominium Association gave an emergency recommendation to fully 40 |
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| 46 | + | evacuate the building within 2 weeks due to serious structural concerns within the brand- new 41 |
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| 47 | + | building into which many had just poured their savings, hearts, and future plans. 42 |
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| 48 | + | (g) Since the evacuation almost 3 years ago, River East at Grandview owners have 43 |
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| 49 | + | worked diligently to untangle the tremendous financial, legal, and emotional web into which 44 |
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| 50 | + | they were thrown. 45 |
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| 51 | + | (h) Owners have described horrific experiences stemming from this tragic outcome, 46 |
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| 52 | + | including diminished mental health, persistent frustration, immense stress, distrust and 47 |
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| 53 | + | disappointment, and fear over their next steps. 48 |
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| 54 | + | (i) The District has provided some support, including immediate cash assistance and 49 |
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| 55 | + | case management to find rental units at the time of the evacuation, as well as ongoing rental 50 |
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| 56 | + | support that the Executive said will end in June 2024. 51 |
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| 57 | + | 3 |
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12 | | - | IN THE COUNCIL OF THE DISTRICT OF COLUMBIA |
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| 59 | + | (j) However, River East at Grandview owners remain responsible for their first trust 52 |
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| 60 | + | mortgages, despite being unable to move back into a building that has been deemed unlivable 53 |
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| 61 | + | and worth $0 in value. 54 |
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| 62 | + | (k) For years, owners – represented by the River East at Grandview Condominium 55 |
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| 63 | + | Association – engaged with the Executive to attempt to find common ground on a solution, 56 |
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| 64 | + | while groups of owners also sought relief and accountability through the courts. 57 |
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| 65 | + | (l) By the fall of 2023, there was still no resolution, and the owners continued to suffer 58 |
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| 66 | + | in a state of limbo. 59 |
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| 67 | + | (m) In November 2023, the Committee of the Whole and the Committee on Housing 60 |
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| 68 | + | held a joint roundtable to hear from the River East at Grandview owners, the Department of 61 |
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| 69 | + | Buildings (“DOB”), and DHCD over what went wrong and how to determine and implement 62 |
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| 70 | + | next steps. 63 |
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| 71 | + | (n) Later that month, DHCD, DOB, the Department of Insurance, Securities, and 64 |
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| 72 | + | Banking (“DISB”), representatives from Chairman Mendelson’s and Housing Committee 65 |
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| 73 | + | Chairperson Councilmember Robert White’s offices, and River East at Grandview 66 |
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| 74 | + | Condominium Association board members met to discuss a path forward. 67 |
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| 75 | + | (o) At the November meeting, DOB representatives confirmed the inhabitability of the 68 |
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| 76 | + | building, indicating it is unlikely that any part is salvageable and the ultimate outcome may be 69 |
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| 77 | + | complete demolition. 70 |
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| 78 | + | (p) At the same meeting, DHCD confirmed that owners would not be able to leave with 71 |
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| 79 | + | equity in their purchase because the building has no value. 72 |
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| 80 | + | (q) From December 2023 through March 2024, owners continued to engage with 73 |
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| 81 | + | 4 |
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14 | | - | June 25, 2024 |
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| 83 | + | DHCD, as DHCD sought to produce a relief proposal in time for implementation ahead of the 74 |
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| 84 | + | rental assistance cut-off in June. 75 |
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| 85 | + | (r) On March 8, 2024, DHCD held a meeting with River East at Grandview owners to 76 |
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| 86 | + | introduce them to the Neighborhood Assistance Corporation of America (“NACA”) and 77 |
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| 87 | + | discuss the potential for partnership with NACA in securing new homeownership opportunities 78 |
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| 88 | + | for owners. 79 |
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| 89 | + | (s) Founded in 1988 by Bruce Marks and Reverend Graylan Hagler, who was also co -80 |
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| 90 | + | chair of DC’s recent Black Homeownership Strike Force, NACA seeks to provide affordable 81 |
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| 91 | + | homeownership opportunities to communities who have systematically been kept out of the 82 |
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| 92 | + | real estate market through reducing barriers to ownership. 83 |
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| 93 | + | (t) Since the March 8 |
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| 94 | + | th |
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| 95 | + | meeting, NACA counselors ha ve completed individual housing 84 |
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| 96 | + | counseling sessions with a majority of the River East at Grandview owners. 85 |
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| 97 | + | (u) The counseling sessions, and the feedback from owners, have highlighted the 86 |
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| 98 | + | critical need for deep financial assistance for many River East at Grandview owners to 87 |
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| 99 | + | successfully compete in today’s housing market and to finally move on from this dilemma. 88 |
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| 100 | + | (v) The Mayor and the Council strongly support the provision of new homeownership 89 |
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| 101 | + | and mortgage opportunities for the River East at Grandview owners, including the elimination 90 |
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| 102 | + | of their existing River East at Grandview mortgages, any future obligations associated with the 91 |
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| 103 | + | River East at Grandview mortgages, and any negative impact of the River East at Grandview 92 |
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| 104 | + | mortgages on obtaining new mortgages. 93 |
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| 105 | + | (w) On April 2, 2024, the Council passed the “Relief for River East at Grandview 94 |
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| 106 | + | Condominium Owners Emergency Amendment Act of 2024” to immediately ensure that River 95 |
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| 107 | + | 5 |
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16 | | - | |
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17 | | - | To declare the existence of an emergency regarding the need to provide financial relief and |
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18 | | - | other assistance to the current owners of the condominium units at the River East at |
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19 | | - | Grandview Condominiums. |
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20 | | - | |
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21 | | - | RESOLVED, BY THE COUNCIL DISTRICT OF COLUMBIA, That this resolution |
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22 | | - | may be cited as the “Relief for River East at Grandview Condominium Owners Congressional |
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23 | | - | Review Emergency Declaration Resolution of 2024”. |
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24 | | - | |
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25 | | - | Sec. 2. (a) On April 2, 2024, the Council passed the Relief for River East at Grandview |
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26 | | - | Condominium Owners Emergency Amendment Act of 2024 to immediately ensure that River |
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27 | | - | East at Grandview owners could access stable housing before their rental supports expired and |
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28 | | - | to begin to provide an overdue solution to 46 households who have endured ongoing |
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29 | | - | uncertainty and stress since the devastating loss of their River East at Grandview homes almost |
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30 | | - | 3 years ago. |
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31 | | - | (b) The Relief for River East at Grandview Condominium Owners Emergency |
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32 | | - | Amendment Act of 2024 legislation also included a provision separate from the River East at |
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33 | | - | Grandview matter, which provides funding authority to complete the Skyland Town Center |
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34 | | - | development. |
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35 | | - | (c) The Relief for River East at Grandview Condominium Owners Emergency |
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36 | | - | Amendment Act of 2024 will expire on July 14, 2024. |
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37 | | - | (d) On May 7, 2024, the Council passed the Relief for River East at Grandview |
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38 | | - | Condominium Owners Temporary Amendment Act of 2024, which is currently undergoing |
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39 | | - | Congressional review and is not projected to become law until August 1, 2024. This |
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40 | | - | emergency legislation is therefore necessary to prevent a gap in the law between the expiration |
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41 | | - | of the emergency act and the effective date of the temporary act. |
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42 | | - | |
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43 | | - | Sec. 3. The Council determines that the circumstances enumerated in section 2 |
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44 | | - | constitute emergency circumstances making it necessary that the Relief for River East at |
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45 | | - | Grandview Condominium Owners Congressional Review Emergency Act of 2024 be adopted |
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46 | | - | after a single reading. |
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47 | | - | |
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48 | | - | Sec. 4. This resolution shall take effect immediately. |
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| 109 | + | East at Grandview owners could access stable housing before their rental supports expired and 96 |
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| 110 | + | to begin to provide an overdue solution to 46 households who have endured ongoing 97 |
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| 111 | + | uncertainty and stress since the devastating loss of their River East at Grandview homes almost 98 |
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| 112 | + | 3 years ago. 99 |
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| 113 | + | (x) The “Relief for River East at Grandview Condominium Owners Emergency 100 |
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| 114 | + | Amendment Act of 2024” legislation also included a provision separate from the River East at 101 |
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| 115 | + | Grandview matter, which provides funding authority to complete the Skyland Town Center 102 |
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| 116 | + | development. 103 |
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| 117 | + | (y) The “Relief for River East at Grandview Condominium Owners Emergency 104 |
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| 118 | + | Amendment Act of 2024” will expire on July 14, 2024. 105 |
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| 119 | + | (z) On May 7, 2024, the Council passed the “Relief for River East at Grandview 106 |
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| 120 | + | Condominium Owners Temporary Amendment Act of 2024,” which is currently undergoing 107 |
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| 121 | + | Congressional review and is not projected to become law until August 1, 2024. This 108 |
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| 122 | + | emergency legislation is therefore necessary to prevent a gap in the law between the expiration 109 |
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| 123 | + | of the emergency act and the effective date of the temporary act. 110 |
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| 124 | + | Sec. 3. The Council of the District of Columbia determines that the circumstances 111 |
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| 125 | + | enumerated in section 2 constitute emergency circumstances making it necessary that the 112 |
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| 126 | + | Relief for River East at Grandview Condominium Owners Congressional Review Emergency 113 |
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| 127 | + | Act of 2024 be adopted after a single reading. 114 |
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| 128 | + | Sec. 4. This resolution shall take effect immediately. 115 |
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