District Of Columbia 2025-2026 Regular Session

District Of Columbia Council Bill B26-0053 Compare Versions

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44 _____________________________ 1
55 Councilmember Robert C. White, Jr. Chairman Phil Mendelson 2
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99 Councilmember Brianne K. Nadeau Councilmember Charles Allen 6
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1111 8
1212 9
1313 Councilmember Christina Henderson Councilmember Janeese Lewis George 10
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1616 13
1717 14
1818 A BILL 15
1919 16
2020 17
2121 18
2222 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 19
2323 20
2424 21
2525 22
2626 23
2727 To require the Department of Aging and Community Living to create a tangled title information 24
2828 sheet and to require funeral service providers to give the information sheet to survivors of 25
2929 a deceased District resident; to amend Title 18 of the District of Columbia Official Code 26
3030 to allow for the creation of an electronic will registry; to establish a single family home 27
3131 rehabilitation program; to amend Chapter 8 of Title 47 of District of Columbia Official 28
3232 Code to establish payment plans for the payment of delinquent real property taxes; to 29
3333 amend Title 29 of the District of Columbia Official Code to require all commercial 30
3434 registered agents to accept service of process by electronic mail; to amend Subchapter II 31
3535 of Chapter 31A of Title 42 and Chapter 12 of Title 47 of the District of Columbia Official 32
3636 Code to conform the notice process provisions in Subchapter I and amendments to Title 33
3737 29; to amend An Act To provide for the abatement of nuisances in the District of 34
3838 Columbia by the Commissioners of said District, and for other purposes, to amend 35
3939 definitions, factors for establishing vacancy or blight, and exemptions from registration, 36
4040 to require the submission of vacant building maintenance plans, and to allow the Mayor 37
4141 to petition the Superior Court of the District of Columbia for vacant property receivership 38
4242 actions; to amend the Construction Codes Approval and Amendments Act of 1986 to 39
4343 require the Department of Buildings to establish an expedited permit review process for 40
4444 certain construction and building permits for Class 3 and 4 properties; to amend Section 41
4545 47-812 of the District of Columbia Official Code to establish new tax rates for Class 3 42
4646 and 4 properties; to amend Chapter 13A of Title 47 of the District of Columbia Official 43
4747 Code to establish a new process for tax sales of Class 3 and 4 properties; and to amend 44
4848 Title 47 of the District of Columbia Official Code to establish a tax credit for the 45
4949 renovation or rehabilitation of Class 3 or 4 properties and to establish a tax abatement for 46
5050 2
5151
5252 the renovation or rehabilitation of Class 3 or 4 properties that are used for commercial 47
5353 purposes. 48
5454 49
5555 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 50
5656 act may be cited as the “Vacant to Vibrant to Amendment Act of 2025”. 51
5757 TABLE OF CONTENTS 52
5858 TITLE I. PREVENTION OF VACANT AND BLIGHTED PROPERTIES. ......................... 2 53
5959 SUBTITLE A. TANGLED TITLE INFORMATION SHEET. ........................................... 2 54
6060 SUBTITLE B. ELECTRONIC WILL REGISTRY. ............................................................ 3 55
6161 SUBTITLE C. SINGLE FAMILY HOME REHABILITATION PROGRAM................. 5 56
6262 SUBTITLE D. REAL PROPERTY TAX PAYMENT PLANS............................................ 7 57
6363 TITLE II. SERVICE OF PROCESS REFORMS................................................................... 16 58
6464 TITLE III. VACANT AND BLIGHTED PROPERTY REGISTRATION 59
6565 IMPROVEMENTS..................................................................................................................... 18 60
6666 TITLE IV. VACANT AND BLIGHTED PROPERTY INCENTIVES AND TAXES........... 46 61
6767 SUBTITLE A. EXPEDITED PERMIT REVIEW FOR VACANT AND BLIGHTED 62
6868 PROPERTIES........................................................................................................................ 46 63
6969 SUBTITLE B. VACANT AND BLIGHTED PROPERTY TAX RATES.......................... 47 64
7070 SUBTITLE C. TAX SALE PROCEDURE FOR VACANT AND BLIGHTED 65
7171 PROPERTIES........................................................................................................................ 48 66
7272 SUBTITLE D. VACANT AND BLIGHTED HOME REVITALIZATION TAX 67
7373 CREDIT.................................................................................................................................. 56 68
7474 SUBTITLE E. TAX ABATEMENT FOR THE REDEVELOPMENT OF VACANT AND 69
7575 BLIGHTED COMMERCIAL PROPERTIES.................................................................... 59 70
7676 TITLE V. FISCAL IMPACT STATEMENT; EFFECTIVE DATE....................................... 65 71
7777 3
7878
7979 TITLE I. PREVENTION OF VACANT AND BLIGHTED PROPERTIES. 72
8080 SUBTITLE A. TANGLED TITLE INFORMATION SHEET . 73
8181 Section 102. Definitions. 74
8282 For purposes of this section, the term: 75
8383 (1) “Department” means the Department of Aging and Community Living. 76
8484 (2) “Funeral services establishment” shall have the meaning as § 3–402(11). 77
8585 (3) “Survivor of the deceased” means a spouse, child, or companion of the 78
8686 deceased with whom funeral services are being arranged. 79
8787 Sec. 103. Tangled Title disclosure. 80
8888 (a) Within 180 days of the effective date of the Vacant to Vibrant Amendment Act of 81
8989 2024, the Department shall, in consultation with the Department of Housing and Community 82
9090 Development and the Superior Court of the District of Columbia, create and make publicly 83
9191 available a tangled title information sheet detailing the steps necessary for an heir or heirs, after 84
9292 the death of a title property owner, to legally transfer the property to avoid a tangled title. The 85
9393 information sheet shall also include information on legal service providers who offer low-cost or 86
9494 no-cost services for probate, estate, and trust administration. 87
9595 (b) No later than five days after the final disposition of the deceased, a funeral service 88
9696 establishment shall provide the tangled title information sheet made available by the Department 89
9797 to survivors of the deceased. 90
9898 91
9999 SUBTITLE B. ELECTRONIC WILL REGISTRY. 92
100100 Sec. 104. Title 18 of the District of Columbia Official Code is amended as follows: 93
101101 (a) The table of contents is amended by adding a new chapter 10 to read as follows: 94
102102 4
103103
104104 “Chapter 10. Register of wills. 95
105105 “§ 18-1001. Electronic register of wills.”. 96
106106 (b) A new chapter 10 is added to read as follows: 97
107107 “§ 18-1001. Electronic register of wills. 98
108108 “(a) An electronic will that meets the requirements of the Uniform Electronic Wills Act 99
109109 (D.C. Official Code § 18-901 et seq.) may be deposited by a testator, or by the testator’s agent, 100
110110 with the Register of Wills to be safely kept until delivered or disposed of as hereinafter provided. 101
111111 “(b)(1) The will shall be deposited electronically and in a manner which would track any 102
112112 viewing or modification after deposit of the will. 103
113113 “(2) The will is not to be delivered or opened except as provided in this section. 104
114114 “(3) Upon payment of the required fee, the Register of Wills shall give a receipt to 105
115115 the testator or testator’s agent. 106
116116 “(c) The Register of Wills shall retain a permanent copy of an electronic will and a copy 107
117117 of any other document associated with the will, in paper, photographic, magnetic, mechanical, 108
118118 electronic, digital, or any other medium if the copy is maintained in a manner that: 109
119119 “(1) Is clear and legible; 110
120120 “(2) Accurately reproduces the original document in its entirety, including any 111
121121 attachments to the document; 112
122122 “(3) Is capable of producing a clear and legible hard copy of the original 113
123123 document; and 114
124124 “(4) Preserves evidence of any signature contained on the document. 115
125125 “(d) During the lifetime of the testator, a deposited will may be delivered only to the 116
126126 testator, or to a person authorized by the testator in writing to receive it. 117
127127 5
128128
129129 “(e)(1) The will shall be opened by the Register of Wills after being informed of the death 118
130130 of the testator. 119
131131 “(2) The Register of Wills shall notify the personal representative named in the 120
132132 will that the will is on deposit with the Register of Wills. 121
133133 “(3) The will shall be retained by the Register of Wills as a deposited will until 122
134134 offered for probate. 123
135135 “(4) If the proper venue for the probate of the will is in another court, the will 124
136136 shall be transmitted to such Court; provided, that before such transmission a true copy thereof 125
137137 shall be made and retained in the Court in which the will was deposited. 126
138138 “(f) The Register of Wills shall develop procedures for a testator or testator’s agent to 127
139139 withdraw and/or replace a registered will during the lifetime of the testator.”. 128
140140 SUBTITLE C. SINGLE FAMILY HOME REHABILITATION PROGRAM. 129
141141 Sec. 106. Definitions. 130
142142 (a) For purposes of this section, the term: 131
143143 (1) “Department” means the Department of Housing and Community 132
144144 Development. 133
145145 (2) “Eligible homeowner” means an owner (or owners) who: 134
146146 (A) Own a single-family residential property; 135
147147 (B) Whose household income is 120% of median family income or less; 136
148148 (C) Has resided in the single-family residential property as a primary 137
149149 residence for at least 3 years; 138
150150 (D) Is current on all mortgage payments for the last 12 months; 139
151151 (E) Is current on all District and federal taxes; and 140
152152 6
153153
154154 (E) Possesses current homeowners insurance. 141
155155 (3) “Median family income” means the median family income for a household in 142
156156 the Washington Metropolitan Statistical Area as set forth in the periodic calculation provided by 143
157157 the United States Department of Housing and Urban Development, adjusted for family size 144
158158 without regard to any adjustments made by the United States Department of Housing and Urban 145
159159 Development for the purposes of the programs it administers. 146
160160 (4) “Single-family residential property” shall have the same meaning as § 47–147
161161 803(6). 148
162162 Sec. 107. Single-family home rehabilitation program. 149
163163 (b) The Department may offer grants of up to $60,000 to an eligible homeowner to pay 150
164164 for the following: 151
165165 (1) Accessibility modifications to adjust physical barriers within the property for a 152
166166 person with limited mobility or other physical impairments; 153
167167 (2) Repairs or replacement of the roof; or 154
168168 (3) Repairs to the foundation, structurally significant damaged wood or other 155
169169 materials; or 156
170170 (4) Significant repairs to electrical, plumbing or heating and cooling systems. 157
171171 (c)(1) The Department shall work with qualifying applicants to develop a scope of work, 158
172172 select a licensed and certified contractor, and manage the construction. 159
173173 (2) Any payments to contractors shall be made by the Department on behalf of the 160
174174 eligible homeowner. 161
175175 (d) The Mayor may issue rules to implement the provisions of this section in accordance 162
176176 with subchapter I of Chapter 5 of Title 2. 163
177177 7
178178
179179 SUBTITLE D. REAL PROPERTY TAX PAYMENT PLANS. 164
180180 Sec. 108. Title 47 is amended as follows: 165
181181 (a) Chapter 8 is amended as follows: 166
182182 (1) The table of contents is amended by adding a new section designation to read 167
183183 as follows: 168
184184 “47-870. Real property tax payment plans.”. 169
185185 (2) A new section 47-870 is added to read as follows: 170
186186 “§ 47-870. Real property tax payment plans. 171
187187 “(a) For purposes of this section, the term: 172
188188 “(1) “Eligible homeowner” means an owner (or owners): 173
189189 “(A) Who receives the homestead deduction pursuant to § 47-850; and 174
190190 “(i) Can demonstrate hardship; or 175
191191 “(ii) Is 65 years of age or older. 176
192192 “(2) “Tax liabilities” means both property real property taxes which are 177
193193 delinquent and real property taxes which are currently due but not yet delinquent. Tax Liabilities 178
194194 do not include: 179
195195 “(A) Amounts, which may have been previously sold at a tax sale; 180
196196 “(B) Business improvement district (BID) taxes; 181
197197 “(C) Tax Increment Financing (TIF) payments; 182
198198 “(D) Payments In Lieu of Taxes (PILOTs); 183
199199 “(E) Southeast Water and Sewer (SEWS) assessments; 184
200200 “(F) Special Energy Assessment assessments; or 185
201201 “(G) Amounts certified by external agencies pursuant to § 47-1340. 186
202202 8
203203
204204 “(b) Real property tax payment plans with eligible homeowners are authorized for all 187
205205 amounts due on real property tax liabilities subject to the following terms and conditions: 188
206206 “(1) Eligibility for a real property tax payment plan shall require a showing of 189
207207 financial hardship or inability to pay based on individual circumstances. 190
208208 “(2) Real property tax payment plans shall be computed on a 12-month basis. Tax 191
209209 Liabilities are to be paid in equal installments over that 12-month period; 192
210210 “(A) No down payment shall be required; 193
211211 “(B) Payments shall be made by direct ACH debit from the eligible 194
212212 homeowner’s bank account to the District. If there are insufficient funds for the debit, the eligible 195
213213 homeowner shall also be liable for a fee imposed by the District for the dishonored payment; 196
214214 “(C) An eligible homeowner cannot have more than one payment plan 197
215215 active at a time; 198
216216 “(D) An eligible homeowner cannot apply for a payment plan for periods 199
217217 covered under a payment plan that he or she previously defaulted on; 200
218218 “(E) If there is a reclassification of a property, a homestead or 201
219219 senior/disabled audit, or the granting of tax relief applications during the term of a payment plan, 202
220220 the existing payment plan shall terminate, and the eligible homeowner can reapply for the same 203
221221 periods; and 204
222222 “(F) Property will not be sold at a tax sale during the time a payment plan 205
223223 is active. 206
224224 “(3) While enrolled in a payment plan, an eligible homeowner shall remain 207
225225 current on real property taxes that come due. 208
226226 9
227227
228228 “(4)(A) An eligible homeowner may be declared in material breach of a real 209
229229 property payment plan if he or she fails to make the required payments; provided, that a material 210
230230 breach may not be declared earlier than the sixty-fifth day from the agreed upon due date and the 211
231231 forty-fifth day from the mailing of a notice of risk of material breach. 212
232232 “(B) An eligible homeowner who has been declared in material breach of a 213
233233 payment plan may have his or her payment plan reinstated if he or she pays a lump sum equal to 214
234234 as much as twice the regular monthly payment due together with the missed payments as well as 215
235235 any payments currently due. 216
236236 “(5) An eligible homeowner may be declared in default if he or she has failed to 217
237237 cure a material breach within 45 days of the date the eligible homeowner is declared in material 218
238238 breach. If an eligible homeowner is declared in default of a payment plan, such plan shall be null 219
239239 and void. 220
240240 “(c) Requests for property tax payment plans entered into pursuant to this section shall 221
241241 made online at MyTaxDC.gov. A payment plan agreement confirmation shall be provided to the 222
242242 eligible homeowner and shall contain the following: 223
243243 “(1) The monthly payment amount; 224
244244 “(2) The past due date; 225
245245 “(3) The length of the plan, including the number of payments; 226
246246 “(4) The total amount agreed due under the plan; 227
247247 “(5) A statement of the delinquent tax periods covered by the plan as well as an 228
248248 itemized statement of the amounts due for each period specifying the amount due for principal, 229
249249 interest, penalties, and any other charges or fees; 230
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251251
252252 “(6) A statement that the eligible homeowner is required to remain current on real 231
253253 property taxes during the length of the agreement, as well as an explanation of how current 232
254254 payments should be tendered in order to avoid misapplication of payments to delinquent taxes. 233
255255 “(7) A brief explanation of how payments will be applied to the delinquency; 234
256256 “(8) A brief explanation of the consequences of breach and default on the payment 235
257257 plan; and 236
258258 “(9) A statement that payments are to be remitted to the District electronically by 237
259259 direct debit, and that the payments will be withdrawn from the eligible homeowner’s account on 238
260260 the monthly payment due date. If there are insufficient funds for the debit, the eligible 239
261261 homeowner shall also be liable for a fee imposed by the District for the dishonored payment. 240
262262 “(d)(1) If an eligible homeowner fails to make a required payment within 20 days of an 241
263263 agreed-upon payment due date, a notice of risk of material breach shall be sent to the eligible 242
264264 homeowner. The notice shall include a statement that the eligible homeowner is at risk of 243
265265 material breach, the entire amount required to cure the missed payment(s) as well as any 244
266266 payments currently due, and a brief description of the consequences of a material breach. 245
267267 “(2) If an eligible homeowner is declared in material breach of a payment plan, a 246
268268 notice of material breach shall be sent to the eligible homeowner that includes a clear statement 247
269269 that he or she has been declared in material breach, the date on which the material breach was 248
270270 declared, the entire amount required to cure the missed payments as well as any payments 249
271271 currently due and lump sum payments that may be required, and a clear statement that failure to 250
272272 make the required payment will result in default.”. 251
273273 (b) Section 47-1341 is amended as follows: 252
274274 (1) Subsection (a)(2) is amended to read as follows: 253
275275 11
276276
277277 “(2) The notice required pursuant to paragraph (1) of this subsection shall be in 254
278278 substantively the following form and may include a payment coupon or enclosed bill: 255
279279 “THIS IS A NOTICE OF DELINQUENCY FAILURE TO PAY TAXES WILL HAVE SERIOUS 256
280280 CONSEQUENCES WHICH MAY INCLUDE LOSS OF TITLE TO THE PROPERTY 257
281281 “Subject Property: [Identify by taxation square, suffix, and lot number, or parcel and lot number, 258
282282 and by premises address, the real property to be sold] 259
283283 “TO AVOID TAX SALE YOU MUST PAY $ [Amount Subject to Sale] by May 31, 20__. 260
284284 “The amount that you must pay to avoid the tax sale may be less than the total amount owed on 261
285285 the real property account. This amount may include fees or fines due to other DC agencies that 262
286286 have been certified to the Office of Tax and Revenue to be included in a tax sale pursuant to D.C. 263
287287 Code § 47-1340. 264
288288 “According to the Mayor’s tax roll, you own or may have an interest in the real property listed 265
289289 above. Notice is given that unless you pay the amount stated above or fall within one of the 266
290290 limited exemptions from the tax sale, the Office of Tax and Revenue may sell this real property 267
291291 at tax sale. 268
292292 “If the property is sold at tax sale, the purchaser may have the right to file a lawsuit to foreclose 269
293293 on the property. You must act now to avoid additional costs and significant expenses, as well as 270
294294 potential loss of title to the property. 271
295295 “Payment to the “DC Treasurer” may be made online at MyTaxDC.gov or at a mailed (with 272
296296 payment coupon from tax bill) to the Office of Tax and Revenue, DC Government Real Property 273
297297 Taxes, P.O. Box 718095, Philadelphia, PA 19171-8095 (please write your square, suffix and lot 274
298298 numbers on the check). You should keep a copy of your proof of payment in case there is a later 275
299299 dispute about the payment. 276
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301301
302302 “If payment is not made before May 31, 20__, the amount listed on this notice may no longer be 277
303303 accurate. In that case, you must contact the Office of Tax and Revenue at ______ to obtain an 278
304304 updated payoff amount. 279
305305 “YOU MAY BE ELIGIBLE FOR ASSISTANCE, INCLUDING A HARDSHIP 280
306306 FORBEARANCE, A REAL PROPERTY TAX PAYMENT PLAN, OR FREE LEGAL 281
307307 SERVICES. PLEASE SEE THE NEXT PAGE FOR ADDITIONAL INFORMATION. 282
308308 “Should you have additional questions, please call the Customer Service Center for the Office of 283
309309 Tax and Revenue at (202) 727-4TAX (4829). 284
310310 “RESOURCES FOR REAL PROPERTY TAXPAYERS IN THE DISTRICT OF COLUMBIA 285
311311 “Real Property Tax Ombudsman. Homeowners and other interested parties may be eligible for 286
312312 assistance from the Real Property Tax Ombudsman. If you need assistance with a tax sale or 287
313313 related property tax matters, contact the Real Property Tax Ombudsman at ___________. 288
314314 “Classification Disputes. If your real property is classified as vacant or blighted and you believe 289
315315 this classification is incorrect, contact the Vacant Building Enforcement Unit of the Department 290
316316 of Buildings at ______ for information on how to appeal the property classification. 291
317317 “Hardship Forbearance. You may be eligible to defer, or postpone, payment of the past due 292
318318 amount. For information on how to apply for this deferral, please contact the Office of Tax and 293
319319 Revenue at ___________. 294
320320 “Senior Citizen and Low-Income Tax Relief. Senior citizens and low-income households may 295
321321 have additional rights to defer property taxes. If you think you may be eligible for this tax relief, 296
322322 please contact the Office of Tax and Revenue at _______ for more information. 297
323323 13
324324
325325 “Additional Legal Services. Free and reduced-cost legal services may be available to low- and 298
326326 moderate-income households. You can get a list of service providers from the Real Property Tax 299
327327 Ombudsman (above). 300
328328 “Housing Counseling Services. The U.S. Department of Housing and Urban Development 301
329329 (“HUD”) sponsors housing counseling agencies throughout the country that can provide advice 302
330330 on buying a home, renting, defaults, foreclosures, and credit issues. You can get a list of HUD-303
331331 approved housing counseling agencies from the Real Property Tax Ombudsman (above).”. 304
332332 (2) Subsection (b-1)(2) is amended to read as follows: 305
333333 “(2) The notice required pursuant to paragraph (1) of this subsection shall be in 306
334334 substantively the following form, and may include a payment coupon or enclosed bill: 307
335335 “THIS IS A NOTICE OF DELINQUENCY. FAILURE TO PAY TAXES IMMEDIATELY MAY 308
336336 HAVE SERIOUS CONSEQUENCES WHICH MAY INCLUDE LOSS OF TITLE TO THE 309
337337 PROPERTY 310
338338 “Subject Property: [Identify by taxation square, suffix, and lot number, or parcel and lot number, 311
339339 and by premises address, the real property to be sold] 312
340340 “TO AVOID TAX SALE YOU MUST PAY $[Amount Subject to Sale] by [Last Business Day 313
341341 before tax sale] 314
342342 “The amount that you must pay to avoid the tax sale may be less than the total amount owed on 315
343343 the real property account. This amount may include fees or fines due to other DC agencies that 316
344344 have been certified to the Office of Tax and Revenue to be included in a tax sale pursuant to D.C. 317
345345 Code § 47-1340. 318
346346 “According to the Mayor’s tax roll, you own or may have an interest in the real property listed 319
347347 above. Notice is given that unless you pay the amount stated above or fall within one of the 320
348348 14
349349
350350 limited exemptions from the tax sale, the Office of Tax and Revenue may sell this real property 321
351351 at tax sale. 322
352352 “If the property is sold at tax sale, the purchaser may have the right to file a lawsuit to foreclose 323
353353 on the property. You must act now to avoid additional costs and significant expenses, as well as 324
354354 potential loss of title to the property. 325
355355 “Payment to the “DC Treasurer” may be made online at MyTaxDC.gov or at a mailed (with 326
356356 payment coupon from tax bill) to the Office of Tax and Revenue, DC Government Real Property 327
357357 Taxes, P.O. Box 718095, Philadelphia, PA 19171-8095 (please write your square, suffix and lot 328
358358 numbers on the check). You should keep a copy of your proof of payment in case there is a later 329
359359 dispute about the payment. 330
360360 “If payment is made less than 10 calendar days before [the last business day before tax sale], you 331
361361 must provide a copy of the receipt directly to the Office of Tax and Revenue in order to ensure 332
362362 that your property is removed from the tax sale. 333
363363 “You may FAX the receipt to (202) 478-5995; EMAIL the receipt to [email address]; or HAND-334
364364 DELIVER a copy of the paid receipt to a Tax Sale Unit representative in the Customer Service 335
365365 Center located at 1101 4th Street, SW, Suite 270W, Washington, DC 20024. 336
366366 “Do not mail your paid receipt. 337
367367 “YOU MAY BE ELIGIBLE FOR ASSISTANCE, INCLUDING A HARDSHIP 338
368368 FORBEARANCE, A REAL PROPERTY TAX PAYMENT PLAN, OR FREE LEGAL 339
369369 SERVICES. PLEASE SEE THE NEXT PAGE FOR ADDITIONAL INFORMATION. 340
370370 “Should you have additional questions, please call the Customer Service Center for the Office of 341
371371 Tax and Revenue at (202) 727-4TAX (4829). 342
372372 “RESOURCES FOR REAL PROPERTY TAXPAYERS IN THE DISTRICT OF COLUMBIA 343
373373 15
374374
375375 “Real Property Tax Ombudsman. Homeowners and other interested parties may be eligible for 344
376376 assistance from the Real Property Tax Ombudsman. If you need assistance with a tax sale or 345
377377 related property tax matters, contact the Real Property Tax Ombudsman at ___________. 346
378378 “Classification Disputes. If your real property is classified as vacant or blighted and you believe 347
379379 this classification is incorrect, contact the Vacant Building Enforcement Unit of the Department 348
380380 of Buildings at _______ for information on how to appeal the property classification. 349
381381 “Hardship Forbearance. You may be eligible to defer, or postpone, payment of the past due 350
382382 amount. For information on how to apply for this deferral, please contact the Office of Tax and 351
383383 Revenue at ___________. 352
384384 “Senior Citizen and Low-Income Tax Relief. Senior citizens and low-income households may 353
385385 have additional rights to defer property taxes. If you think you may be eligible for this tax relief, 354
386386 please contact the Office of Tax and Revenue at _______ for more information. 355
387387 “Additional Legal Services. Free and reduced-cost legal services may be available to low- and 356
388388 moderate-income households. You can get a list of service providers from the Real Property Tax 357
389389 Ombudsman (above). 358
390390 “Housing Counseling Services. The U.S. Department of Housing and Urban Development 359
391391 (“HUD”) sponsors housing counseling agencies throughout the country that can provide advice 360
392392 on buying a home, renting, defaults, foreclosures, and credit issues. You can get a list of HUD-361
393393 approved housing counseling agencies from the Real Property Tax Ombudsman (above).”. 362
394394 TITLE II. SERVICE OF PROCESS REFORMS. 363
395395 Sec. 201. Title 29 of the District of Columbia Official Code is amended as follows: 364
396396 (a) Section 29-104.03 is amended as follows: 365
397397 (1) Paragraph (1) is amended by striking the word “and” at the end. 366
398398 16
399399
400400 (2) Paragraph (2) is amended by striking the period at the end and inserting the 367
401401 phrase “; and” in its place. 368
402402 (3) A new paragraph (3) is added to read as follows: 369
403403 “(3) Electronic mailing address.”. 370
404404 (b) Section 29-104.04 is amended as follows: 371
405405 (1) Subsection (a)(2)(A) is amended by striking the word “address” and inserting 372
406406 the word “address(es)” in its place. 373
407407 (2) Subsection (a)(2)(B) is amended by striking the phrase “address of the 374
408408 business office of that person.” and inserting the phrase “physical or electronic mailing address 375
409409 of the business office of that person, pursuant to § 29-104.03.” in its place. 376
410410 (c) Section 29-104.05 is amended as follows: 377
411411 (1) Subsection (a)(3) is amended by striking the word “address” and inserting the 378
412412 word “address(es)” in its place. 379
413413 (2) Subsection (b) is amended to read as follows: 380
414414 “(b) A commercial registered agent listing statement shall include the information 381
415415 regarding acceptance by the agent of service of process in a form other than a written record as 382
416416 provided for in § 29-104.12(e), including but not limited to, electronic mail.” 383
417417 (d) Section 29-104.12(e) is amended to read as follows: 384
418418 “(e) Service of process, notice, or demand on a registered agent and a commercial 385
419419 registered agent shall be in a written record. Service may be made on a commercial registered 386
420420 agent by electronic mail or other forms, and subject to such requirements, as the agent has stated 387
421421 in its listing under § 29-104.05 that it will accept; provided, that commercial registered agents 388
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423423
424424 may not require service by physical mail as a condition for accepting service by electronic 389
425425 mail.”. 390
426426 Sec. 202. Sec. 47-1203 of the District of Columbia Official Code is amended as follows: 391
427427 (a) Subsection (a) is amended as follows: 392
428428 (1) Paragraph (1) is amended as follows: 393
429429 (A) Subparagraph (A) is amended to read as follows: 394
430430 “(A) When mailed by first class mail to the owner’s mailing address as updated in the 395
431431 real property tax records of the Office of Tax and Revenue.”. 396
432432 (B) Subparagraph (D) is amended by striking the period semicolon at the 397
433433 end and inserting the phrase “; or” in its place. 398
434434 (C) Subparagraph (E) is struck. 399
435435 (D) Subparagraph (F) is redesignated as subparagraph (E). 400
436436 (2) Paragraph (2) is amended to read as follows: 401
437437 “(2) Any notice to a corporation shall, for the purposes of §§ 47-1201 to 47-1206, 402
438438 be deemed to have been served on such corporation if served on its agent registered pursuant to 403
439439 Subchapter IV of Chapter 1 of Title 29, or on the president, secretary, treasurer, general manager, 404
440440 or any principal officer of such corporation in a manner hereinbefore provided for the service of 405
441441 notices on natural persons holding property in their own right; and notices to a foreign 406
442442 corporation shall, for the purposes of §§ 47-1201 to 47-1206, be deemed to have been served if 407
443443 served personally on any agent of such corporation, or if left with any person of suitable age and 408
444444 discretion residing at the usual residence or employed at the usual place of business of such agent 409
445445 in the District of Columbia.”. 410
446446 (3) Paragraph (3) is struck. 411
447447 18
448448
449449 (b) Subsection (b)(1) is amended to read as follows: 412
450450 “(b)(1) All special assessments authorized to be levied by the District of Columbia for 413
451451 public improvements, with the exception of assessments levied in condemnation proceedings, 414
452452 may be paid without interest within 30 days from the date of service of notice. Interest of 1.5% 415
453453 for each month or part thereof shall be charged on all unpaid amounts from the expiration of 30 416
454454 days from the date of service. If any such assessment or any part thereof shall remain unpaid 417
455455 after the expiration of 1 year from date of service of notice, the property against which said 418
456456 assessment was levied may be sold for such assessment or unpaid portion thereof with interest 419
457457 and penalties thereon at the next ensuing annual tax sale conducted under Chapter 13A of this 420
458458 title, in the same manner and under the same conditions as property sold for delinquent general 421
459459 taxes, if said assessment with interest and penalties thereon shall not have been paid in full prior 422
460460 to said sale.”. 423
461461 TITLE III. VACANT AND BLIGHTED PROPERTY REGISTRATION 424
462462 IMPROVEMENTS . 425
463463 Sec. 301. An Act To provide for the abatement of nuisances in the District of Columbia 426
464464 by the Commissioners of said District, and for other purposes, approved April 14, 1906 (34 Stat. 427
465465 114; D.C. Official Code § 42-3131.01 et seq.), is amended as follows: 428
466466 (a) The table of contents for Chapter 31A, Subchapter II is amended as follows: 429
467467 (1) Strike the section designation “42–3131.05a. Notice by mail.” and insert the 430
468468 section designation “42–3131.05a. Notice.” in its place. 431
469469 (2) A new section designation 42–3131.05b is added to read as follows: 432
470470 “42–3131.05b. Determination of vacancy and blight.”. 433
471471 19
472472
473473 (3) Strike the section designation “42–3131.06. Registration of vacant buildings.” 434
474474 and insert the section designation “42–3131.06. Registration of vacant buildings; renewal.” in its 435
475475 place. 436
476476 (4) A new section designation 42–3131.06a is added to read as follows: 437
477477 “42–3131.06a. Exemptions.”. 438
478478 (5) Strike the section designation “42–3131.07. Registration and renewal 439
479479 procedure.” and insert the section designation “42–3131.07. Registration and renewal procedure. 440
480480 [Repealed].” in its place. 441
481481 (6) Strike the section designation “42–3131.12. Vacant building maintenance 442
482482 standard.” and insert the section designation “42–3131.12. Vacant building maintenance standard 443
483483 and plan.” in its place. 444
484484 (7) Strike the section designation “42.3131.16. Transmission of list by Mayor.” 445
485485 and insert the section designation “42.3131.16. Transmission of list by Mayor; reconciliation of 446
486486 information.” in its place. 447
487487 (8) Strike the section designation “42–3131.17. Transmission of list of blighted 448
488488 vacant buildings by Mayor.” and insert the section designation “42–3131.17. Transmission of list 449
489489 of blighted vacant buildings by Mayor. [Repealed].” in its place. 450
490490 (9) Strike the section designation “42–3131.18. Publication of list by the 451
491491 Department of Buildings.” and insert the section designation “42–3131.18. Publication of vacant 452
492492 and blighted vacant building information by the Department.” in its place. 453
493493 (10) Strike the section designation “42–3131.19. Vacant and blighted vacant 454
494494 buildings belonging to foreign governments.” and insert the section designation “42–3131.19. 455
495495 20
496496
497497 Vacant and blighted vacant buildings belonging to foreign governments. [Repealed].” in its 456
498498 place. 457
499499 (11) A new section designation 42–3131.20 is added to read as follows: 458
500500 “42–3131.20. Vacant and blighted vacant building receivership.” 459
501501 (12) A new section designation 42-3131.21 is added to read as follows: 460
502502 “42.3131.21. Vacant and blighted building report and plan.” 461
503503 (13) A new section designation 42–3131.22 is added to read as follows: 462
504504 “42–3131.22. Rules.” 463
505505 (b) Section 5 (D.C. Official Code § 42–3131.05) is amended to read as follows: 464
506506 “(1) “Blighted vacant building” means any vacant building that is in such a condition as 465
507507 to pose a danger to the health, safety, and general welfare of the community. 466
508508 “(2) “Commercial unit” means a building, or a part of a building, zoned for commercial 467
509509 purposes under the zoning regulations of the District of Columbia. 468
510510 “(3) “Dwelling unit” means a room, or group of rooms forming a single unit, designed, or 469
511511 intended to be used, for living and sleeping, whether or not designed or intended for the 470
512512 preparation and eating of meals or to be under the exclusive control of the occupant. The term 471
513513 “dwelling unit” shall not include a room, or group of rooms forming a single unit, in a hotel or 472
514514 motel licensed in the District of Columbia, actively operating as a hotel or motel. 473
515515 “(4) “Fit for occupancy” means ready for immediate occupancy by a tenant without more 474
516516 than minor cosmetic changes. 475
517517 “(5) “Multifamily residential building” means a building containing two or more 476
518518 dwelling units. 477
519519 “(6) “Occupied” means: 478
520520 21
521521
522522 “(A) For purposes of a dwelling unit, the use of one’s residence in improved real 479
523523 property on a regular basis; or 480
524524 “(B) For purposes of a commercial unit, use consistent with zoning regulations, 481
525525 for which there is a current valid certificate of occupancy, and (i) paid utility receipts for the 482
526526 specified period, executed lease agreements, or sales tax return, or (ii) other evidence of use of 483
527527 the building that the Mayor may require by rule. 484
528528 “(7) “Owner” means one or more persons or entities with an interest in real property in 485
529529 the District of Columbia that appears in the real property tax records of the Office of Tax and 486
530530 Revenue, and a tax sale purchaser under § 47-1353(b) or the purchaser’s assignee, as applicable, 487
531531 except where the owner of record is challenging or appealing the vacant status of the real 488
532532 property for the same period. 489
533533 “(8) “Owner of record” means the person or persons named in the public record as the 490
534534 title holder of the property. 491
535535 “(9) “Real property” shall have the same meaning as § 47-802(1). 492
536536 “(10) “Related owners” or “related ownership” exists when a deduction for a loss from 493
537537 the sale or exchange of properties between taxpayers would be disallowed under section 267 of 494
538538 the Internal Revenue Code of 1986, approved August 16, 1954 (68A Stat. 78; 26 U.S.C. § 267); 495
539539 provided, that the exclusion under section 267(a)(1) for a loss in a distribution in a complete 496
540540 liquidation shall not apply. 497
541541 “(11) “Relative” means a spouse, domestic partner, sibling, parent, grandparent, child, 498
542542 grandchild, or the sibling's child, spouse, or domestic partner. 499
543543 “(12) “Vacant building” means any real property improved by a building that is not 500
544544 lawfully occupied on a regular and habitual basis by the owner, a tenant, or other person having 501
545545 22
546546
547547 the permission of the owner; provided, that in the case of residential buildings, the Mayor 502
548548 determines that there is no resident for which an intent to return and lawfully occupy the building 503
549549 can be shown.”. 504
550550 (b) Section 5a (D.C. Official Code § 42–3131.5a) is amended to read as follows: 505
551551 “Sec. 5a. Notice. 506
552552 “(a) Notice shall be deemed to be served properly on the date when mailed by first class 507
553553 mail to the owner of record of the vacant building at the owner’s mailing address as updated in 508
554554 the real property tax records of the Office of Tax and Revenue. 509
555555 “(b)(1) In addition to the notice requirement of subsection (a) of this section, the Mayor 510
556556 shall cause notice to be posted on the premises; provided, that the official notice shall be mailed 511
557557 pursuant to subsection (a) of this section. 512
558558 “(2) Unless the vacant property is eligible for an exemption pursuant to § 42–513
559559 3131.06a of this chapter, the notice shall not be posted by difficult-to-remove adhesive. 514
560560 “(c) A courtesy copy of the notice provided pursuant to subsection (a) of this section shall 515
561561 be mailed or electronically mailed to the Advisory Neighborhood Commission in which the 516
562562 vacant building is located. The courtesy copy required by this subsection shall not be construed 517
563563 to satisfy, nor be construed as necessary to satisfy, the notice requirement of subsection (a) of this 518
564564 section.”. 519
565565 (c) A new Section 5b (D.C. Official Code § 42–3131.05b) is added to read as follows: 520
566566 “Sec. 5b. Determination of vacancy and blight. 521
567567 “(a) When making a determination that a building is vacant, the Mayor shall consider the 522
568568 following: 523
569569 “(1) Neighbor complaints; 524
570570 23
571571
572572 “(2) Advisory Neighborhood Commission certification; 525
573573 “(3) Accumulated mail, fliers, or newspapers; 526
574574 “(4) Past due utility notices, disconnected utilities, or utilities not in use; 527
575575 “(5) Presence of overgrown vegetation, dead or diseased trees, or noxious weeds; 528
576576 “(6) Absence of furnishings or personal items consistent with habitation; 529
577577 “(7) The building is open to casual entry or trespass; and 530
578578 “(8) Any other criteria the Mayor deems relevant. 531
579579 “(b) When making a determination that a vacant building is a blighted vacant building, 532
580580 the Mayor shall consider the following: 533
581581 “(1) The incidence of illegal activity, as documented by police reports; 534
582582 “(2) Whether the vacant building is the subject of a condemnation proceeding 535
583583 before the Board of Condemnation and Insanitary Buildings; 536
584584 “(3) Referrals to the Department of Buildings from other District agencies; 537
585585 “(4) One or more windows, doors, or other means of entry are missing or boarded 538
586586 up; 539
587587 “(5) Collapsing, missing or deteriorating walls, roof, stairs, porches, balconies, 540
588588 chimneys, and other building elements; 541
589589 “(6) Siding or exterior walls that are seriously damaged, missing, or deteriorating; 542
590590 “(7) Trash and debris are improperly stored or accumulated on the premises; 543
591591 “(8) The building shows visible signs of vandalism such as graffiti; 544
592592 “(9) The presence of mold, algae, abandoned or wild animals, or insect or pest 545
593593 infestation; 546
594594 “(10) Any other criteria the Mayor deems relevant. 547
595595 24
596596
597597 “(c) For purposes of this section, the term “Advisory Neighborhood Commission 548
598598 certification” means a resolution approved by a majority vote of an Advisory Neighborhood 549
599599 Commission in which the building is located requesting that the Mayor classify a building as 550
600600 vacant or blighted vacant.”. 551
601601 (d) Section 6 (D.C. Official Code § 42–3131.06) is amended to read as follows: 552
602602 “Sec. 6. Registration of vacant buildings; renewal. 553
603603 “(a) Except as provided in § 42–3131.06a of this chapter, the owner of a vacant building 554
604604 shall, within 180 days after it becomes vacant, register the building and pay the registration fee. 555
605605 The Mayor may extend the time for good cause. 556
606606 “(b)(1) Each application for the registration of a vacant building shall be in a form 557
607607 prescribed by the Mayor and shall contain the following information: 558
608608 “(A) The street address of the vacant building; 559
609609 “(B) The date on which the building became vacant; 560
610610 “(C) The name, street address, telephone number, and electronic mail 561
611611 address of the owner of record; except as provided in subsection (f) of this section; 562
612612 “(D) The name, address, telephone number, and electronic mail address of 563
613613 a person based in the District who is responsible for the security and maintenance of the 564
614614 property, if other than the owner of record; 565
615615 “(E) A signed vacant building maintenance plan required pursuant to § 42–566
616616 3131.12 of this chapter. 567
617617 “(2) If at any time the information provided pursuant to paragraph (1) of this 568
618618 subsection is no longer valid, the owner shall file a new registration within ten days containing 569
619619 25
620620
621621 current information. There shall be no additional fee to provide current information pursuant to 570
622622 this paragraph. 571
623623 “(c) At the time of application for the initial registration or renewal of registration of a 572
624624 vacant building, the owner shall arrange with the Mayor for the inspection of the building. On 573
625625 receiving an application for the initial registration or renewal of registration of a vacant building, 574
626626 the Mayor shall thereafter inspect the building. The Mayor shall approve the initial registration or 575
627627 the renewal of registration for one year if: 576
628628 “(1) The application for registration contains all of the information required 577
629629 pursuant to subsection (a) of this section. 578
630630 “(2) The building has been maintained in accordance with the requirements of § 579
631631 42–3131.12; and 580
632632 “(3) The vacancy of the building will not: 581
633633 “(A) Be detrimental to the public health, safety, and welfare; 582
634634 “(B) Unreasonably interfere with the reasonable and lawful use and 583
635635 enjoyment of the other premises within the neighborhood; and 584
636636 “(C) Pose a hazard to police officers or firefighters entering the building in 585
637637 an emergency. 586
638638 “(4) The building complies with the fire, building, and housing codes of the 587
639639 District of Columbia; 588
640640 “(5) The continuance of any maintenance work or condition of occupancy is not 589
641641 dangerous to life or property; 590
642642 “(6) No false statements or misrepresentations have been made upon the 591
643643 registration application; 592
644644 26
645645
646646 “(7) Orders on a building have been complied with and the building complies 593
647647 with any applicable occupancy requirements; 594
648648 “(8) An adequate water supply or facilities for firefighting purposes is furnished 595
649649 as required in the fire code; and 596
650650 “(9) The Mayor is permitted to inspect the building before initial registration, 597
651651 during the registration period, and before a renewal of registration. 598
652652 “(d) If the owner of a vacant building fails to comply with the provisions of subsection 599
653653 (c) of this section, both initially and throughout the registration period, the Mayor may deny or 600
654654 revoke the owner’s registration and may subject the owner to the penalties provided in § 42–601
655655 3131.10. 602
656656 “(e)(1) After the initial designation of a property as vacant or blighted, the Mayor shall 603
657657 not be required to perform additional inspections or surveys to sustain that classification. 604
658658 “(2) After the Mayor has made a final determination that a building is a vacant 605
659659 building or a blighted vacant building, that final determination shall remain in effect until the 606
660660 owner submits information to the Mayor sufficient to warrant a change to that classification. 607
661661 “(f)(1)(A) Except as provided in subparagraph (B) of this paragraph, no person except the 608
662662 owner of record or an authorized agent of the owner of record, with proof of authorization from 609
663663 the owner of record, may register a building as vacant. 610
664664 “(B) The Mayor, upon a showing that the owner of record is physically 611
665665 unable to register the property, may allow a relative of the owner of record to register the 612
666666 building as vacant; provided, that the relative can show proof of being a relative and, to the 613
667667 satisfaction of the Mayor, that the owner of record is physically unable to register the property. 614
668668 27
669669
670670 “(2) This subsection shall not in any way limit the Mayor's authority to register as 615
671671 vacant or blighted any property whose owner fails to register it as required by this chapter.”. 616
672672 (e) A new section 6a (D.C. Official Code § 42–3131.06a) is added to read as follows: 617
673673 “Sec. 6a. Exemptions. 618
674674 “(a) A vacant or blighted vacant building shall not be subject to the registration 619
675675 requirements of § 42–3131.06 if it is: 620
676676 “(1) Owned by the government of the United States or its instrumentalities; or 621
677677 “(2) Authorized as exempt from real estate taxes by the United States Department 622
678678 of State's Office of Foreign Missions on the basis of its use for diplomatic or consular purposes 623
679679 or for the official business of an international organization. 624
680680 “(b) A vacant building shall not be subject to the increased real property tax rates for 625
681681 vacant buildings in § 47-812(b-10) if it is: 626
682682 “(1) Exempted by the Mayor in extraordinary circumstances and upon a showing 627
683683 of substantial economic or personal hardship as determined in subsection (c) of this section; 628
684684 “(2) In compliance with the requirements of § 42–3131.12 and applicable 629
685685 property maintenance code standards for the District of Columbia and the owner or his or her 630
686686 agent has been actively seeking in good faith to rent or sell the building; provided, that an 631
687687 exemption under § 42-3131.06a(b)(2) shall only be available for a period not to exceed: 632
688688 “(A) Half a tax year from the initial listing, offer, or advertisement of sale 633
689689 in the case of single-family residential buildings; 634
690690 “(B) Two tax years from the initial listing, offer, or advertisement of sale 635
691691 for multifamily residential buildings; or 636
692692 28
693693
694694 “(C) Two tax years from the initial listing, offer, or advertisement of rent 637
695695 or sale for commercial buildings; 638
696696 “(3) For a period not to exceed 3 tax years, the subject of a probate proceeding or 639
697697 the title is the subject of litigation (not including a foreclosure of the right of redemption action 640
698698 brought under Chapter 13A of Title 47 [§ 47-1330 et seq.]). The tax year in which the exemption 641
699699 under § 42-3131.06a(b)(3) starts is determined by the filing date of the applicable probate 642
700700 proceeding and/or litigation; 643
701701 “(4) For a period not to exceed 2 tax years, the subject of a pending application 644
702702 for a necessary approval for development before the Board of Zoning Adjustment, the Zoning 645
703703 Commission for the District of Columbia, the Commission on Fine Arts, the Historic 646
704704 Preservation Review Board, the Mayor’s Agent for Historic Preservation, the Department of 647
705705 Public Works, or the National Capital Planning Commission; or 648
706706 “(5) For a period not to exceed half a tax year, the owner of the property or his or 649
707707 her agent has an active building permit application that is being reviewed and processed by the 650
708708 District, and the owner is actively seeking in good faith to obtain a building permit for the 651
709709 purposes of making the building fit for occupancy; or 652
710710 “(6) For a period not to exceed 3 tax years, under active construction or 653
711711 undergoing active rehabilitation, renovation, or repair, and there is a valid active building permit 654
712712 to make the building fit for occupancy. During the half tax year in which the exemption is 655
713713 requested, the building must be under active construction or undergoing active rehabilitation, 656
714714 renovation, or repair under a valid active building permit. The term “active construction” means 657
715715 the conducting of activities that contribute directly to the completion of improvements 658
716716 contemplated or shown on active permits. 659
717717 29
718718
719719 “(c)(1) To qualify for an exemption for substantial economic or personal hardship 660
720720 pursuant to subsection (b)(1) of this section, an owner must demonstrate: 661
721721 “(A) He or she was a debtor in an individual bankruptcy action within the 662
722722 last 12 months; 663
723723 “(B) He or she experienced a significant medical event that prevented him 664
724724 or her from engaging in normal work or business activities for at least a period of 30 days; 665
725725 “(C) He or she was involuntarily terminated from employment and was 666
726726 unemployed for at least 60 days within the last 12 months; 667
727727 “(D) He or she is: 668
728728 “(i) 60 years of age or older and is receiving social security 669
729729 disability insurance; 670
730730 “(ii) 65 years of age or older and has a household income that does 671
731731 not exceed 120% of the median family income and has experienced medical, personal, or 672
732732 financial hardship in the past 180 days; 673
733733 “(E) He or she was impacted by a fire at the property that was not the 674
734734 result of criminal activity or negligence as identified by a Fire and Emergency Medical Services 675
735735 investigation; or 676
736736 “(F) He or she was impacted by a natural disaster at the property. 677
737737 “(2) The exemption may be granted for a period not to exceed one tax year from 678
738738 the required registration date, subject to renewal on the basis of continuing extraordinary 679
739739 circumstances and substantial undue economic hardship. The Mayor may withdraw the 680
740740 exemption at any time. 681
741741 30
742742
743743 “(d)(1) The cumulative time period for exemption from registration and fee requirements 682
744744 for a vacant building under the same, substantially similar, or related ownership shall not exceed 683
745745 3 tax years. 684
746746 “(2) The limitations set forth in paragraph (1) of this subsection shall not apply to 685
747747 vacant buildings that benefit from an exemption under subsection (a) of this section. 686
748748 “(e) The total cumulative time for exemptions granted under subsection (b) of this section 687
749749 to any property shall not exceed 5 tax years in any 12-year period, excluding exemptions granted 688
750750 under subsection (a) of this section.”. 689
751751 (f) Sec. 7 (D.C. Official Code § 42–3131.07) is repealed. 690
752752 (g) Sec. 9 (D.C. Official Code § 42–3131.09) is amended to read as follows: 691
753753 “(a) Except as provided in § 42–3131.06a(a), the owner of a building shall register the 692
754754 building and pay registration fees within 180 days after it becomes a vacant or blighted vacant 693
755755 building. 694
756756 “(b) Fees for registration and renewal shall be as follows: 695
757757 “(1) The initial registration fee shall be $350. 696
758758 “(2) The renewal registration fee shall be $500. 697
759759 “(c) The Mayor may increase the fees in subsection (b) of this section through rules 698
760760 issued pursuant to § 42–3131.21.”. 699
761761 (h) Section 10 (D.C. Official Code § 42–3131.10) is amended to read as follows: 700
762762 “(a)(1) The failure of the owner of a vacant or blighted vacant building to register and 701
763763 pay all required fees under § 42-3131.06(a) or § 42-3131.09 after notice of the designation of the 702
764764 owner’s building as vacant or blighted vacant, the determination of delinquency of registration or 703
765765 fee payment, the denial or revocation of registration, the filing by an owner of any false or 704
766766 31
767767
768768 misleading registration-related information, or the refusal of the owner of a vacant or blighted 705
769769 vacant building to permit the Mayor to inspect the building shall be subject to a civil penalty of 706
770770 up to $1,000 for the first violation, $2,500 for the second violation, and $5,000 for the third and 707
771771 subsequent violations. 708
772772 “(2) The Director of the Department of Buildings shall provide the Office of the 709
773773 Attorney General with a list of all owners who fail to register and pay the required fee after 710
774774 notice. 711
775775 “(b) If the owner of a vacant building fails to maintain the building in compliance with 712
776776 the requirements of § 42–3131.12 or, having obtained a vacant property registration, 713
777777 subsequently fails to comply with the other registration requirements under § 42–3131.06, the 714
778778 Mayor, in addition to issuing civil penalties pursuant to subsection (a) of this section, may: 715
779779 “(1) Charge the owner with failure to comply and enforce all applicable penalties 716
780780 under this chapter; and 717
781781 “(2) Take other action as required by the Construction Codes or Construction 718
782782 Codes Supplement of the District of Columbia to bring the building into compliance with those 719
783783 codes. 720
784784 “(c) Criminal prosecutions under § 42-3131.05 through § 42-3131.15 shall be brought in 721
785785 the name of the District of Columbia by the Attorney General for the District of Columbia.”. 722
786786 (i) Section 11(b) (D.C. Official Code § 42–3131.11(b) is amended by striking the phrase 723
787787 “Department of Consumer and Regulatory Affairs” and inserting the phrase “Department of 724
788788 Buildings” in its place. 725
789789 (j) Section 12 (D.C. Official Code § 42–3131.12) is amended to read as follows: 726
790790 “Sec. 12. Vacant building maintenance standard and plan. 727
791791 32
792792
793793 “(a) The owner of a vacant building shall comply with the following maintenance 728
794794 requirements: 729
795795 “(1) The exterior of the building shall be maintained free of graffiti, tagging, or 730
796796 similar markings; 731
797797 “(2) Exterior walls shall be free of holes, breaks, and loose or rotting materials; 732
798798 “(3) The interior of the building, and the property on which the building is 733
799799 located, shall be free from debris, rubbish, and garbage; 734
800800 “(4) Exposed metal and wood surfaces on the exterior of the building and any 735
801801 accessory or appurtenant structures shall be protected from the elements and against decay or 736
802802 rust; 737
803803 “(5) The cornices, belt courses, corbels, terra cotta trim, wall facings, and similar 738
804804 decorative features shall be safe, anchored, and in good repair; 739
805805 “(6) All balconies, canopies, marquees, signs, metal awnings, stairways, fire 740
806806 escapes, standpipes, exhaust ducts, and similar features shall be in good repair, anchored, safe 741
807807 and sound; 742
808808 “(7) Doors, windows, areaways, and other openings shall be weather-tight and 743
809809 secured against entry by birds, vermin, and trespassers, and missing or broken doors, windows, 744
810810 and other openings shall be covered with 1/2 inch CDX plywood that is painted in accordance 745
811811 with the predominant tone of the building and is weather protected, tightly fitted to the opening, 746
812812 and secured by screws or bolts; 747
813813 “(8) The roof and flashing shall be sound and tight, not admit moisture, and 748
814814 drained to prevent dampness or deterioration in the walls or interior; 749
815815 33
816816
817817 “(9) The building storm drainage system shall be adequately sized and installed in 750
818818 an approved manner and functional; 751
819819 “(10) The structural members shall be free of deterioration and capable of safely 752
820820 bearing imposed dead and live loads; 753
821821 “(11) The foundation walls shall be plumb, free from open cracks and breaks, and 754
822822 vermin-proof; 755
823823 “(12) Chimneys, cooling towers, smokestacks, and similar appurtenances shall be 756
824824 structurally safe, sound, and in good repair; 757
825825 “(13) Openings in sidewalks shall be safe for pedestrian travel; 758
826826 “(14) The property on which the building is located shall be free from excessive 759
827827 vegetation and debris; and 760
828828 “(15) The property on which the building is located, as well as any accessory or 761
829829 appurtenant structures, shall be free from safety, health, or fire hazards. 762
830830 “(b) The owner of a vacant property or his or her agent shall submit a vacant property 763
831831 maintenance plan with the registration form required pursuant to § 42–3131.06. The plan shall 764
832832 include the following: 765
833833 “(1) The name, address, and contact information (telephone number and 766
834834 electronic mail address where applicable) of the person submitting the plan; 767
835835 “(2) Contact information for the person designated to manage and maintain the 768
836836 property; 769
837837 “(3) A copy of a letter or notice to properties immediately adjacent to the vacant 770
838838 building advising residents of the name and contact information of the person designated to 771
839839 manage and maintain the property; 772
840840 34
841841
842842 “(4) A plan for actively monitoring, maintaining, and securing the property for the 773
843843 anticipated or expected period of vacancy that demonstrates how the property will be maintained 774
844844 in accordance with subsection (a) of this section; 775
845845 “(5) Any other information deemed necessary by the Mayor for purposes of 776
846846 effectuating this section.”. 777
847847 (k) Section 15 (D.C. Official Code § 42-3131.15) is amended to read as follows: 778
848848 “(a) Within 15 days after the designation of an owner’s building as a vacant building, the 779
849849 determination of delinquency of registration or fee payment, the denial or revocation of 780
850850 registration, or the designation of a vacant building as a blighted vacant building, the owner may 781
851851 petition the Mayor for reconsideration by filing the form prescribed by the Mayor. 782
852852 “(b) Within 60 days after receiving a petition pursuant to subsection (a) of this section, 783
853853 the Mayor shall issue a notice of final determination to the owner of the vacant building. The 784
854854 petition shall be deemed denied, and it shall have the same effect of the issuance of a notice of 785
855855 final determination, if the Mayor does not act upon the petition within 60 days. 786
856856 “(c) Within 15 days after the date of the notice of final determination under subsection (b) 787
857857 of this section, or within 15 days after the expiration of the time period under subsection (b) of 788
858858 this section, an owner may file an appeal with the Real Property Tax Appeals Commission for the 789
859859 District of Columbia on the form prescribed by the Mayor; provided, that the notice of final 790
860860 determination or passive appeal under subsection (b) of this section shall be a prerequisite to 791
861861 filing an appeal with the Real Property Tax Appeals Commission for the District of Columbia. 792
862862 The Real Property Tax Appeals Commission may not extend the time to file an appeal. 793
863863 “(d) After receiving a notice of appeal from an owner as required under subsection (c) of 794
864864 this section, the Real Property Tax Appeals Commission for the District of Columbia shall 795
865865 35
866866
867867 provide by mail or electronic mail to the Advisory Neighborhood Commission in which the 796
868868 vacant building is located, at least 15 days before any scheduled hearing on the appeal, the 797
869869 following information related to the building at issue: 798
870870 “(1) The name of the owner of the building, and the address of the building, 799
871871 including square, suffix and lot numbers; 800
872872 “(2) The determination under review; and 801
873873 “(3) The date, time, and location of the hearing. 802
874874 “(e) The District, through the Office of the Attorney General, may appeal a decision of 803
875875 the Real Property Tax Appeals Commission to the Superior Court of the District of Columbia 804
876876 within 90 days after the receipt of a written decision.”. 805
877877 (l) Section 16 (D.C. Official Code § 42-3131.16) is amended to read as follows: 806
878878 “(a) No less than once a week, the Mayor shall transmit to the Office of Tax and Revenue 807
879879 a list of buildings: 808
880880 “(1) Registered as vacant or blighted vacant; 809
881881 “(2) Designated as vacant or blighted vacant; and 810
882882 “(3) For which the time period to issue a notice of final determination under § 42-811
883883 3131.15(b) has expired or a notice of final determination has been issued under § 42-3131.15 and 812
884884 administrative appeals have been exhausted or expired. 813
885885 “(b) The list shall be in the form and medium prescribed by the Office of Tax and 814
886886 Revenue. 815
887887 “(c) Buildings shall remain on the list required by this section until a change in 816
888888 classification is approved. 817
889889 36
890890
891891 “(d) The Mayor and the Office of Tax and Revenue shall develop a procedure to reconcile 818
892892 any material differences between information retained by the Department of Buildings regarding 819
893893 buildings registered as vacant or designated as blighted vacant, and buildings taxed as Class 3 or 820
894894 4, on at least a monthly basis.”. 821
895895 (m) Section 17 (D.C. Official Code § 42-3131.17) is repealed. 822
896896 (n) Section 18 (D.C. Official Code § 42-3131.18) is amended to read as follows: 823
897897 “Sec. 18. Publication of vacant and blighted vacant building information by the 824
898898 Department. 825
899899 “(a) The Department of Buildings shall maintain, on a publicly available website, a 826
900900 database or list of vacant and blighted buildings. The database or list shall, at a minimum, 827
901901 contain the following information: 828
902902 “(1) The address of the building, including the square, suffix, and lot number of 829
903903 the property on which the building is located; 830
904904 “(2) The Advisory Neighborhood Commission and Ward in which the building is 831
905905 located; 832
906906 “(3) The date on which the building was determined to be a vacant or blighted 833
907907 vacant building or registered as a vacant or blighted vacant building pursuant to § 42-3131.06; 834
908908 “(4) The type of exemption the building has received, the date on which the 835
909909 building received an exemption, and the number of half tax years the building has been exempt, 836
910910 if applicable; 837
911911 “(5) The number of months the building has been registered vacant or designated 838
912912 as blighted vacant; 839
913913 “(6) The last date on which the property was inspected by the Department; and 840
914914 37
915915
916916 “(7) The current tax classification of the property.”. 841
917917 (o) Sec. 19 (D.C. Official Code § 42-3131.19) is repealed. 842
918918 (p) A new section 20 (D.C. Official Code § 42-3131.20) is added to read as follows: 843
919919 “Sec. 20. Vacant and blighted vacant building receivership. 844
920920 “(a) The Mayor may petition the Superior Court of the District of Columbia for the 845
921921 appointment of a receiver to rehabilitate, demolish, or sell a vacant or blighted vacant building, 846
922922 upon the occurrence of any of the following, each of which is deemed a nuisance per se: 847
923923 “(1) The vacant building has been registered as vacant for at least 12 months, 848
924924 excluding any exemptions provided pursuant to § 42–3131.6a, and at least one notice of 849
925925 infraction for which a final order has been issued by the Office of Administrative Hearings has 850
926926 not been abated by the owner 30 days after the issuance of the final order; 851
927927 “(2) The vacant building has been registered as vacant for at least 36 months, 852
928928 excluding any exemptions provided pursuant to § 42–3131.6a; 853
929929 “(3) The blighted vacant building has been designated as blighted vacant for at 854
930930 least 12 months, excluding any exemptions provided pursuant to § 42–3131.6a; or 855
931931 “(4) The vacant or blighted vacant building is subject to a condemnation order by 856
932932 the Board for the Condemnation of Insanitary Buildings pursuant to § 6-903. 857
933933 “(b) The Mayor shall give notice to the owner of the building no less than 90 days prior 858
934934 to the filing of a petition. 859
935935 “(c) The petition for appointment of a receiver shall include: 860
936936 “(1) A copy of the registration form or designation form; 861
937937 “(2) A copy of the final order from the Office of Administrative Hearings, if 862
938938 applicable; and 863
939939 38
940940
941941 “(3) A verified pleading that identifies and states the qualifications of the 864
942942 proposed receiver. 865
943943 “(c) The petition for the appointment of a receiver shall name as respondents: 866
944944 “(1) The owner of the property; 867
945945 “(2) Any lien holder of record; and 868
946946 “(3)(A) The plaintiff in a proceeding to foreclose the right of redemption. 869
947947 “(B) Failure to name the plaintiff shall not prevent the action from going 870
948948 forward but shall prevent the receiver’s lien for expenses incurred from rehabilitating, 871
949949 demolishing, or selling the building from having priority over the plaintiff’s lien interest. 872
950950 “(d)(1) After filing a petition and before a receiver is appointed, the Mayor shall 873
951951 give notice of pendency and nature of the proceedings by certified mail to the last known 874
952952 addresses of all judgment creditors and lien holders with a recorded interest in the property. This 875
953953 notice is not required for respondents named under subsection (c) of this section. 876
954954 “(2) Within 30 days after the date on which the notice was mailed, a judgment 877
955955 creditor or lien holder with a recorded interest in the property may apply to intervene in the 878
956956 proceeding and to be appointed a receiver. A creditor or lien holder whose interest is not recorded 879
957957 does not have standing to intervene in the proceeding and is not eligible to be appointed a 880
958958 receiver. 881
959959 “(3) Failure to give notice to any judgment creditors or lien holders as required by 882
960960 this subsection shall not prevent the action from going forward but shall prevent the receiver’s 883
961961 lien for expenses incurred from rehabilitating, demolishing, or selling the building from having 884
962962 priority over that person’s lien interest. 885
963963 39
964964
965965 “(e)(1) Instead of appointing a receiver to rehabilitate, demolish, or sell the building, the 886
966966 Court may permit an owner, mortgagee, or other person with an interest in the property to 887
967967 rehabilitate or demolish it, if the person: 888
968968 “(A) Demonstrates the ability to complete the rehabilitation or demolition 889
969969 within a reasonable time; 890
970970 “(B) Agrees to comply with a specified schedule for rehabilitation or 891
971971 demolition of the building; and 892
972972 “(C) Posts bond, in an amount determined by the court, as security for the 893
973973 performance of the required work in compliance with a specified schedule. 894
974974 “(2)(A) The Mayor may apply to the court for immediate revocation of a person’s 895
975975 appointment pursuant to this subsection if the person appointed is not proceeding with due 896
976976 diligence or in compliance with the specified schedule. 897
977977 “(B) In the event that the court revokes the person’s appointment and 898
978978 appoints a receiver, the bond posted under subparagraph (C) of paragraph (1) of this subsection 899
979979 shall be applied to the subsequently appointed receiver’s expenses for rehabilitating, 900
980980 demolishing, or selling the building. 901
981981 “(f)(1) If no qualified person with an ownership interest requests an appointment to 902
982982 rehabilitate or demolish the property, or if an appointee is dismissed, the court shall appoint a 903
983983 receiver of the property for the purposes of rehabilitating and managing the property, 904
984984 demolishing the property, or selling it to a qualified bidder. 905
985985 “(2) On the appointment of a receiver to rehabilitate, demolish, or sell the 906
986986 property, all parties are divested from any authority to act in furtherance of those goals. 907
987987 40
988988
989989 “(3) A receiver appointed to rehabilitate, demolish, or sell a vacant building has 908
990990 no duty to, and is not personally liable for failing to, maintain the property or protect the property 909
991991 from casualty or loss. 910
992992 “(g) A receiver appointed to rehabilitate or demolish a vacant building, in addition to all 911
993993 necessary and customary powers, has the right of possession with authority to: 912
994994 “(1) Contract for necessary labor and supplies for rehabilitation or demolition. 913
995995 “(2) Borrow money for rehabilitation or demolition from an approved lending 914
996996 institution or through a government agency or program, using the receiver’s lien against the 915
997997 property as security; 916
998998 “(3) Manage the property for a period of up to 2 years and apply the rent received 917
999999 to current operating expenses and to repayment of outstanding rehabilitation expenses; and 918
10001000 “(4) Foreclose on the receiver’s lien or accept a deed in lieu of foreclosure. 919
10011001 “(h)(1) A receiver appointed to sell a vacant building, in addition to all necessary and 920
10021002 customary powers, may sell the property to the high bidder at public auction. 921
10031003 “(2) The receiver must post a notice of a public auction 60 days prior to the date 922
10041004 on which the auction will be held. The notice must contain: 923
10051005 “(A) The address of each building for sale at the public auction; 924
10061006 “(B) A description of each building for sale at the public auction, including 925
10071007 the size and type of the building; and 926
10081008 “(C) Any other information deemed necessary by the receiver. 927
10091009 “(3) The minimum bid required to purchase a building at a public auction shall be 928
10101010 $5,000. 929
10111011 41
10121012
10131013 “(4) Before any sale, applicants to bid in a public auction or the proposed buyer in 930
10141014 a private sale must demonstrate that: 931
10151015 “(A) The applicants or proposed buyer have financial resources available 932
10161016 to rehabilitate the property; 933
10171017 “(B) The applicants or proposed buyer have experience rehabilitating 934
10181018 properties or have a contract or agreement with a person or organization that has experience 935
10191019 rehabilitating properties; and 936
10201020 “(C) The applicants or proposed buyers do not have any outstanding 937
10211021 property maintenance violations in the District, if applicable. 938
10221022 “(5) The receiver may charge a reasonable fee to applicants in connection with an 939
10231023 application to bid at a public auction or in connection with the solicitation of offers for a private 940
10241024 sale. 941
10251025 “(6) After deducting the expenses of the sale, the amount of outstanding taxes and 942
10261026 other government assessments, and the amount of the receiver’s lien, the receiver must apply the 943
10271027 remaining proceeds of the sale, first to the petitioner’s costs and expenses, and then to the liens 944
10281028 against the property in order of priority. 945
10291029 “(i)(1) Any costs or fees incurred by the receiver for purposes of rehabilitating, 946
10301030 demolishing, or selling a building pursuant to this subsection shall be a lien against the property. 947
10311031 The receiver’s lien shall have priority over all other liens and encumbrances, except taxes or 948
10321032 other government assessments. The receiver must allow the Mayor’s costs and expenses, 949
10331033 including reasonable attorney’s fees, to be paid to the extent that proceeds of a sale permit. 950
10341034 “(2) A receiver may foreclose on the lien by a sale of the building at a public 951
10351035 auction. After deducting the expenses of the sale, the receiver must apply the proceeds of the sale 952
10361036 42
10371037
10381038 to the liens against the building, in order of priority. In lieu of foreclosure, and only if the 953
10391039 receiver has rehabilitated the building, an owner may pay the receiver’s costs, fees, including 954
10401040 attorney’s fees, and expenses or may transfer all ownership in the property to either the receiver 955
10411041 or an agreed-on third party for an amount agreed to by all parties to the receivership as being the 956
10421042 property’s fair market value. 957
10431043 “(j) Following court ratification of a sale made pursuant to subsection (h) of this section, 958
10441044 the receiver must sign a deed conveying title to the buyer, free and clear of all liens, judgments 959
10451045 and other encumbrances. On court ratification of the sale, any secured interest of a lien or 960
10461046 judgment creditor automatically attaches to the proceeds from the sale to the extent that those 961
10471047 proceeds are available. 962
10481048 “(k) Upon sale of the property, the receiver must: 963
10491049 “(1) File with the court a final accounting; and 964
10501050 “(2) At the same time, file a motion with the court to dismiss the action. 965
10511051 “(l) The Mayor may contract with a nonprofit or for-profit organization to act as a 966
10521052 receiver pursuant to this section; provided, that any organization acting as a receiver must: 967
10531053 “(1) Not be delinquent on any fees, fines, taxes, or financial penalties owed to the 968
10541054 District; and 969
10551055 “(2) Have demonstrated experience with the management or sale of residential or 970
10561056 commercial properties; or 971
10571057 “(3) If the receiver will rehabilitate or demolish properties, have demonstrated 972
10581058 experience in the rehabilitation or demolition of residential or commercial properties.”. 973
10591059 (q) A new section 21 (D.C. Official Code § 42-3131.21) is added to read as follows: 974
10601060 “Sec. 21. Vacant and Blighted Building Report and Plan. 975
10611061 43
10621062
10631063 “(a) By January 1, 2026, the Mayor shall submit a report to the Council containing the 976
10641064 following information: 977
10651065 “(1) A description of predictive statistical models that could be used to identify 978
10661066 properties at risk of becoming vacant or blighted, as well as the data sources and information 979
10671067 technology infrastructure necessary to effectively implement these models; 980
10681068 “(2) A detailed description of proactive measures utilized by other jurisdictions in 981
10691069 the United States to enforce vacant and blighted property registration ordinances; and 982
10701070 “(3) An analysis and determination of the feasibility of utilizing proactive 983
10711071 measures to enforce the District’s laws regarding registration and maintenance of vacant and 984
10721072 blighted buildings. 985
10731073 “(b) By January 1, 2027, and every three years thereafter, the Mayor shall submit a 986
10741074 vacant and blighted property rehabilitation strategic plan to the Council. In developing the 987
10751075 strategic plan, the Mayor shall: 988
10761076 “(1) Analyze the extent and nature of interagency collaboration among District 989
10771077 agencies with respect to: 990
10781078 “(A) Enforcing legal requirements related to vacant and blighted buildings 991
10791079 in the District; and 992
10801080 “(B) Incentivizing the successful redevelopment or rehabilitation of vacant 993
10811081 and blighted buildings; 994
10821082 “(2) Review the use and effectiveness of existing incentives in the District that 995
10831083 support the redevelopment or rehabilitation of vacant and blighted buildings; 996
10841084 “(3) Review best practices for preventing vacancy and blight, and best practices 997
10851085 for redeveloping or rehabilitating vacant and blighted buildings; 998
10861086 44
10871087
10881088 “(4) Develop and refine performance metrics that measure the effectiveness of the 999
10891089 District’s programs, interventions, and incentives regarding vacant and blighted properties; and 1000
10901090 “(5) Consult with stakeholders, including the following: 1001
10911091 “(A) Advisory Neighborhood Commissions; 1002
10921092 “(B) Organizations with significant experience redeveloping or 1003
10931093 rehabilitating vacant or blighted buildings; and 1004
10941094 “(C) Organizations or individuals with policy or research expertise on: 1005
10951095 “(i) Implementing strategic code enforcement programs; 1006
10961096 “(ii) Development incentives; and 1007
10971097 “(iii) Developing performance measures.”. 1008
10981098 (r) A new section 22 (D.C. Official Code § 42-3131.22) is added to read as follows: 1009
10991099 “Sec. 22. Rules. 1010
11001100 “The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to 1011
11011101 implement the provisions of this chapter. The proposed rules shall be submitted to the Council 1012
11021102 for a 45-day period of review, excluding days of Council recess. If the Council does not approve 1013
11031103 or disapprove of the proposed rules, by resolution, within the 45-day review period, the proposed 1014
11041104 rules shall be deemed approved.”. 1015
11051105 Sec. 302. Section 47-825.01a(e)(1)(B) of the District of Columbia Official Code is 1016
11061106 amended to read as follows: 1017
11071107 “(B)(i) If an owner is aggrieved by a notice of final determination issued 1018
11081108 pursuant to §42-3131.15 or the time period to issue a notice of final determination under that 1019
11091109 section has expired, the owner may file an appeal on the determination of vacancy with the 1020
11101110 Commission within 15 days after the date of the notice or expiration. The Commission may not 1021
11111111 45
11121112
11131113 extend the time to file an appeal. Notwithstanding any other provision of this section, the 1022
11141114 Commission shall render a decision on the appeal within 120 days after the filing. 1023
11151115 “(ii) An appeal to the Commission under this subparagraph shall be 1024
11161116 on the same terms and under the same conditions, to the extent reasonable, as if the appeal were 1025
11171117 brought under subparagraph (A) of this paragraph; except, that no worksheet shall be required to 1026
11181118 be mailed, the Department of Buildings shall be the responsible agency, and any supplemental 1027
11191119 filing shall be provided to the Commission and the Department of Buildings. 1028
11201120 “(iii) A response from the Department of Buildings shall be 1029
11211121 available for inspection at least 7 days before the scheduled hearing. 1030
11221122 “(iv) The Department of Buildings shall have the authority, as 1031
11231123 provided to OTR under subsection (f) of this section, to make redeterminations of vacancy and 1032
11241124 blight and any reclassifications that may be necessary. 1033
11251125 “(v) The Department of Buildings shall be entitled to a rehearing to 1034
11261126 establish the proper status, vacant or blight, and tax classification of the real property under the 1035
11271127 same conditions and to the same extent under paragraph (6) of this subsection; provided, that 1036
11281128 paragraph (6)(D) of this subsection shall not apply.”. 1037
11291129 TITLE IV. VACANT AND BLIGHTED PROPERTY INCENTIVES AND TAXES. 1038
11301130 SUBTITLE A. EXPEDITED PERMIT REVIEW FOR VACANT AND BLIGHTED 1039
11311131 PROPERTIES. 1040
11321132 Sec. 401. (a) The Construction Codes Approval and Amendments Act of 1986, effective 1041
11331133 March 21, 1987 (D.C. Law 6-216; D.C. Official Code § 6-1401 et seq.), is amended by adding a 1042
11341134 new section 10e to read as follows: 1043
11351135 “Sec. 10e. Expedited permit review for vacant and blighted vacant properties. 1044
11361136 46
11371137
11381138 “(a) No later than 180 days after the effective date of the Vacant to Vibrant Amendment 1045
11391139 Act of 2024, the Department shall establish an expedited permit review process for permits 1046
11401140 described in subsection (b) of this section; provided, that the expedited permit review process 1047
11411141 shall only apply to permits for Class 3 and Class 4 properties. 1048
11421142 “(b) The following permits shall be eligible for an expedited permit review process 1049
11431143 established pursuant to subsection (a) of this section: 1050
11441144 “(1) A demolition permit; 1051
11451145 “(2) A raze permit; 1052
11461146 “(3) An addition, alteration, and repair permit; 1053
11471147 “(4) An alteration and repair permit; 1054
11481148 “(5) A sheeting and shoring permit; 1055
11491149 “(6) A new building permit; and 1056
11501150 “(7) Trade permits. 1057
11511151 “(c) The Department shall not charge additional fees beyond the standard permit fees for 1058
11521152 eligible applicants to utilize the expedited permit review process established pursuant subsection 1059
11531153 (a) of this section.”. 1060
11541154 SUBTITLE B. VACANT AND BLIGHTED PROPERTY TAX RATES. 1061
11551155 Sec. 402. Section 47-812 of the District of Columbia Official Code is amended by 1062
11561156 adding a new subsection (b-13) to read as follows: 1063
11571157 “(b-13)(1) Notwithstanding the provisions of subsection (a) of this section, the sum of 1064
11581158 real property tax rates and special property tax rates for taxable Class 3 properties in the District 1065
11591159 of Columbia for the tax year beginning October 1, 2025, and each tax year thereafter, shall be as 1066
11601160 follows: 1067
11611161 47
11621162
11631163 “(A) For the first year in which the property is registered as vacant, the tax 1068
11641164 rate shall be the applicable tax rate for a Class 1A, Class 1B, or Class 2 property. 1069
11651165 “(B) For the second year in which the property is registered as vacant, the 1070
11661166 tax rate shall be $3 for each $100 of assessed value. 1071
11671167 “(C) For the third year in which the property is registered as vacant, the 1072
11681168 tax rate shall be $4 for each $100 of assessed value. 1073
11691169 “(D) For the fourth year, and any subsequent years, in which the property 1074
11701170 is registered as vacant, the tax rate shall be $5 for each $100 of assessed value. 1075
11711171 “(2) Notwithstanding the provisions of subsection (a) of this section, the sum of 1076
11721172 the real property tax rates and special real property tax rates for taxable Class 4 Properties in the 1077
11731173 District of Columbia for the tax year beginning October 1, 2025, and each year thereafter, shall 1078
11741174 be as follows: 1079
11751175 “(A) For the first year in which the property is designated as blighted 1080
11761176 vacant, the tax rate shall be the tax rate for a Class 1A, Class 1B, or Class 2 property. 1081
11771177 “(B) For the second year in which the property is designated as blighted 1082
11781178 vacant, the tax rate shall be $6 for each $100 of assessed value. 1083
11791179 “(C) For the third year in which the property is designated as blighted 1084
11801180 vacant, the tax rate shall be $8 for each $100 of assessed value. 1085
11811181 “(D) For the fourth year, and any subsequent years, in which the property 1086
11821182 is designated as blighted vacant, the tax rate shall be $10 for each $100 of assessed value.”. 1087
11831183 SUBTITLE C. TAX SALE PROCEDURE FOR VACANT AND BLIGHTED 1088
11841184 PROPERTIES. 1089
11851185 48
11861186
11871187 Sec. 403. Chapter 13A of Title 47 of the District of Columbia Official Code is amended 1090
11881188 as follows: 1091
11891189 (a) The table of contents is amended by adding the following at the end: 1092
11901190 “Subchapter V. Procedures for Class 3 and 4 Properties. 1093
11911191 “§ 47-1390. Eligibility to foreclose on a Class 3 or 4 Property. 1094
11921192 “§ 47-1391. Pre-foreclosure action notice; publication requirements. 1095
11931193 “§ 47-1392. Parties. 1096
11941194 “§ 47-1393. Complaint form; notice to certain persons. 1097
11951195 “§ 47-1394. Foreclosure proceedings; right of redemption. 1098
11961196 “§ 47-1395. Tax sale notice; bidder qualifications; excess; tax deed.”. 1099
11971197 (b) Section 47-1330 is amended as follows: 1100
11981198 (1) New paragraphs (1A) and (1B) are added to read as follows: 1101
11991199 “(1A) “Class 3 property” shall have the same meaning as § 47–813(c-9)(4)(A). 1102
12001200 “(1B) “Class 4 property” shall have the same meaning as § 47–813(c-9)(5)(A).”. 1103
12011201 (c) Section 47-1332 is amended as follows: 1104
12021202 (1) Subsection (c) is amended to read as follows: 1105
12031203 “(c) The Mayor shall not sell any real property if: 1106
12041204 “(1) A forbearance authorization has been approved in writing by the Mayor for 1107
12051205 the applicable tax sale; 1108
12061206 “(2) The owner enters into a payment plan pursuant to § 47-870 prior to the date 1109
12071207 of the tax sale; 1110
12081208 “(3) For an improved Class 1A or 1B Property, the tax amount to be sold is less 1111
12091209 than $7,500; 1112
12101210 49
12111211
12121212 “(4) The real property is a Class 1A or 1B Property that is receiving a homestead 1113
12131213 deduction, with respect to which there is an outstanding non-void certificate of sale; provided, 1114
12141214 that no real property shall be excluded from sale solely pursuant to this paragraph if the non-void 1115
12151215 certificate of sale has been outstanding for 3 years or more; or 1116
12161216 “(5) For a Class 3 or Class 4 property, the owner has been delinquent for less than 1117
12171217 one year.”. 1118
12181218 (2) Subsection (e)(3)(A) is amended to read as follows: 1119
12191219 “(3)(A) The Mayor shall approve an application if the real property receives a 1120
12201220 homestead deduction and the tax amount to be sold is less than or equal to $12,500.”. 1121
12211221 (d) New sections 47-1390 through 47-1396 are added to read as follows: 1122
12221222 “Sec. 47-1390. Eligibility to foreclose on a Class 3 or 4 Property. 1123
12231223 “After the expiration of one year from the date of delinquency, the Mayor may file a 1124
12241224 complaint with the Superior Court to foreclose on a tax certificate or certificates for a Class 3 or 1125
12251225 4 property.”. 1126
12261226 “Sec. 47-1391. Pre-foreclosure action notice; publication requirements. 1127
12271227 “(a)(1) No less than 90 days prior to the filing of a complaint with the Court pursuant to § 1128
12281228 47-1393, the Mayor shall send written notice to the owner of record of the property at such 1129
12291229 owner’s mailing address as updated in OTR’s real property records.. 1130
12301230 (A) The notice shall inform the owner of the intent to file a complaint to 1131
12311231 foreclose on the tax certificate or certificates. The notice shall also contain the amount due as of 1132
12321232 the day of the notice, and state that the owner may pay the amount due, together with any 1133
12331233 additional interest, which may be owed prior to the filing date to halt any foreclosure action. 1134
12341234 50
12351235
12361236 “(2) The written notice pursuant to paragraph (1) of this subsection shall be sent 1135
12371237 by first class mail. 1136
12381238 “(b) At any time after 60 days from the mailing of the notice required in subsection (a) of 1137
12391239 this section, the Mayor shall cause to be advertised once in not less than 2 newspapers of general 1138
12401240 circulation in the District that are published once every 2 weeks, notice that the listed properties 1139
12411241 will subject to foreclosure proceedings due to delinquent real property taxes. 1140
12421242 “Sec. 47-1392. Parties. 1141
12431243 “(a) The plaintiff in an action to foreclose a Class 3 or 4 property pursuant to § 47-1394 1142
12441244 shall be the District. 1143
12451245 “(b) The defendants in an action to foreclose a Class 3 or 4 Property pursuant to § 47-1144
12461246 1394 shall be: 1145
12471247 “(1) The record owner of the real property; 1146
12481248 “(2) If the real property is encumbered by a recorded life tenancy, the record life 1147
12491249 tenant and record remaindermen; 1148
12501250 “(3) If the real property is subject to a recorded estate for life or a recorded lease 1149
12511251 or ground rent for a term (with renewals) that is at least 30 years, the record owner of the fee 1150
12521252 simple title and the owner of the possessory interest as disclosed by a search performed in 1151
12531253 accordance with generally accepted standards of title examination of the records of the Recorder 1152
12541254 of Deeds; 1153
12551255 “(4) Any mortgagee of the real property, or any assignee of the mortgage of 1154
12561256 record, named as such in an unreleased mortgage recorded in the records of the Recorder of 1155
12571257 Deeds; 1156
12581258 51
12591259
12601260 “(5) The trustee of record under a deed of trust recorded against the real property 1157
12611261 and a holder of a beneficial interest in a deed of trust who files notice of the interest, which 1158
12621262 notice includes identification of the deed of trust, the book and page or roll and frame where the 1159
12631263 deed of trust is recorded, and the current address at which the holder may be served with a 1160
12641264 summons. 1161
12651265 “(c) If the identity of an owner cannot be ascertained, the unknown owner of the real 1162
12661266 property may be included may be included as a defendant by the designation: “Unknown owner 1163
12671267 of real property (insert a description of the real property in substantially the same form as the 1164
12681268 description that appears on the certificate of sale along with the street address, if any), the 1165
12691269 unknown owner’s heirs, devisees, and personal representatives and their or any of their heirs, 1166
12701270 devisees, executors, administrators, grantees, assigns, or successors in right, title and interest.” 1167
12711271 “Sec. 47-1393. Complaint form; notice to certain persons. 1168
12721272 “(a) A complaint filed to foreclose on a tax certificate or certificates for a Class 3 or 4 1169
12731273 Property shall, for each property listed in the complaint, contain: 1170
12741274 “(1) A description of the real property, by premises address, taxation square, 1171
12751275 suffix, and lot number, or parcel and lot number; 1172
12761276 “(2) The name(s) of the owner or owners of the property; 1173
12771277 “(3) A statement of the amount of taxes owed, including interest and penalties; 1174
12781278 and 1175
12791279 “(4) A request that the Court pass a judgment to foreclose on right of redemption. 1176
12801280 “(b) For each property listed in a complaint filed pursuant to subsection (a) of this 1177
12811281 section, a copy of the written notice provided to the owner pursuant to § 47-1391(a) shall be 1178
12821282 attached. 1179
12831283 52
12841284
12851285 “(c)(1) Upon filing a complaint with Superior Court pursuant to subsection (a) of this 1180
12861286 section, the Mayor shall send written notice of the action to all persons having a recorded 1181
12871287 interest, recorded claim, or recorded lien, including a recorded judgment, who have not been 1182
12881288 made a defendant in the action. 1183
12891289 “(2) The written notice required under paragraph (1) of this subsection shall be 1184
12901290 sent by first class mail and shall include as an attachment thereto a copy of the summons and 1185
12911291 complaint. 1186
12921292 “(d) The Mayor shall file a statement that the notice provisions of subsection (c) of this 1187
12931293 section have been complied with, or an affidavit stating that the address of the holder of the 1188
12941294 subordinate interest is not reasonably ascertainable. 1189
12951295 “Sec. 47-1394. Foreclosure proceedings; right of redemption. 1190
12961296 “(a)(1) Any defendant listed under § 47-1392(b) may file an answer and defense to the 1191
12971297 complaint within 30 after service of the notice and complaint. The answer may object to the 1192
12981298 proposed foreclosure upon one or more of the following grounds only: 1193
12991299 “(A) The real property is exempt from taxation or assessment pursuant to 1194
13001300 § 47–1002; or 1195
13011301 “(B) The delinquent taxes or assessments identified in the tax certificate or 1196
13021302 certificates were in fact paid; 1197
13031303 “(2) If an answer and defense is filed by any defendant or other interested person, 1198
13041304 the matter shall be heard in a summary manner without other pleading, and the court shall 1199
13051305 pronounce judgment. 1200
13061306 “(b) Real property subject to a foreclosure proceeding pursuant to this section may be 1201
13071307 redeemed at any time before the close of business before a judgment is entered, by payment, as 1202
13081308 53
13091309
13101310 prescribed by the Mayor, of the total amount of delinquent taxes, inclusive of interest and 1203
13111311 penalties. 1204
13121312 “(c) In the event that no answer by any person having a right to answer pursuant to 1205
13131313 subsection (a) of this section is provided, the Court determines that the issue raised by the answer 1206
13141314 of the defendant is without merit, or there is a failure to redeem pursuant to subsection (b) of this 1207
13151315 section, the Court shall order the District to sell the property at a public auction to satisfy the 1208
13161316 amount of lien, fees, and costs. 1209
13171317 “(d) The Court shall tax as a part of the taxable costs all legal fees and charges 1210
13181318 necessarily paid or incurred in procuring searches relative to the title of the real property, 1211
13191319 prosecuting the foreclosure action, providing for a court-ordered sale (including advertising and 1212
13201320 auctioneer fees) and securing and maintaining a guardian ad litem. 1213
13211321 “(e) The District shall not be required to plead or prove various steps, proceedings, and 1214
13221322 notices for the assessment and levy of taxes or assessments against the real property and all such 1215
13231323 taxes and assessment shall be presumed to be valid. A defendant alleging any jurisdictional 1216
13241324 defect or invalidity in the tax or assessment, because said real property was not liable to taxation 1217
13251325 or assessment, must particularly specify in the defendant’s answer such jurisdictional defect or 1218
13261326 invalidity and must affirmatively establish such defense. 1219
13271327 “(f) A guardian ad litem shall be appointed to serve for all persons known or unknown 1220
13281328 who have or may have an interest in the real property subject to a foreclosure action and who are 1221
13291329 or may be minors or individuals adjudicated incompetent at the date of filing such a list. 1222
13301330 “Sec. 47-1395. Tax sale notice; bidder qualifications; excess; tax deed. 1223
13311331 “(a) No less than 90 days after a judgment is entered by the Court, the Mayor shall 1224
13321332 publicly notice any Class 3 and 4 Properties that will be sold at a tax sale as follows: 1225
13331333 54
13341334
13351335 “(1) In not less than 2 newspapers of general circulation in the District that are 1226
13361336 published once every 2 weeks, a public notice stating the listed real property will be sold at 1227
13371337 public auction and at the place named in the public notice; and 1228
13381338 “(2) A list of real property in the public notice on the Office of Tax and Revenue’s 1229
13391339 website. 1230
13401340 “(b) The list in the public notice shall contain the following: 1231
13411341 “(1) A description of the real property, by premises address, taxation square, 1232
13421342 suffix, and lot number, or parcel and lot number; 1233
13431343 “(2) The name of the person who last appears on the Mayor’s tax roll as the owner 1234
13441344 of the real property; 1235
13451345 “(3) The minimum bid required to purchase the property at tax sale. 1236
13461346 “(c) Before any sale, applicants to bid in a public auction must demonstrate that: 1237
13471347 “(1) The applicants or proposed buyer have financial resources available to 1238
13481348 rehabilitate the property; 1239
13491349 “(2) The applicants or proposed buyer have experience rehabilitating properties or 1240
13501350 have a contract or agreement with a person or organization that has experience rehabilitating 1241
13511351 properties; 1242
13521352 “(3) The applicants or proposed buyer do not have any unresolved notices of 1243
13531353 infraction related to property maintenance violations in the District, if applicable; and 1244
13541354 “(4) The applicant is current on all taxes and liabilities owed to the District. 1245
13551355 “(d) Real property sold at tax sale pursuant to this section shall be sold “as is.” There is 1246
13561356 no guarantee or warranty of any kind, express or implied, relative to: Title, eligibility to build 1247
13571357 55
13581358
13591359 upon or subdivide the property; zoning classification; size; location; fitness for any use or 1248
13601360 purpose; or any other feature or condition of a foreclosed property sold pursuant to this section. 1249
13611361 “(e) If the highest bid for a property sold pursuant to this section exceeds the minimum 1250
13621362 bid due upon the whole property, the excess must be refunded, following payment of any 1251
13631363 recorded liens, to the owner of the record of the property. In the event that no claim for the 1252
13641364 excess is received by the Mayor within three years after the date of the sale, the Chief Financial 1253
13651365 Officer shall deposit the excess in the General Fund of the District of Columbia. 1254
13661366 “(f) The Mayor shall issue a deed for any property purchased by a bidder at a tax sale 1255
13671367 held pursuant to this section. The deed shall be prima facie evidence of a good and perfect title in 1256
13681368 fee simple to the real property.”. 1257
13691369 SUBTITLE D. VACANT AND BLIGHTED HOME REVITALIZATION TAX 1258
13701370 CREDIT. 1259
13711371 Sec. 404. Title 47 of the District of Columbia Official Code is amended as follows: 1260
13721372 (a) The table of contents is amended by adding a new chapter designation to read as 1261
13731373 follows: 1262
13741374 “19. Vacant and Blighted Property Rehabilitation Credit.” 1263
13751375 (b) A new chapter 19 is added to read as follows: 1264
13761376 “CHAPTER 19. VACANT AND BLIGHTED PROPERTY REHABILITATION 1265
13771377 CREDIT. 1266
13781378 “47-1819.01. Definitions. 1267
13791379 “47-1819.02. Credit Established. 1268
13801380 “47-1819.03. Annual Cap. 1269
13811381 “47-1819.04. Application and Mayoral Certification. 1270
13821382 56
13831383
13841384 “Sec. 47-1819.01. Definitions. 1271
13851385 “For purposes of sections § 47–1806.17a through 47-1806.17g, the term: 1272
13861386 “(1) “Area median family income” means the median family income for the 1273
13871387 Washington Metropolitan Statistical Area as set forth by the United States Department of 1274
13881388 Housing and Urban Development, adjusted for household size. 1275
13891389 “(2) “Class 3 property” shall have the same meaning as § 47–813(c-9)(4)(A). 1276
13901390 “(3) “Class 4 property” shall have the same meaning as § 47–813(c-9)(5)(A). 1277
13911391 “(4) “Eligible development costs” means amounts paid or incurred by an eligible 1278
13921392 taxpayer after December 31, 2025 for the acquisition of eligible property, construction, 1279
13931393 substantial rehabilitation, demolition of structures, or environmental remediation. 1280
13941394 “(5) “Eligible property” means a Class 3 or Class 4 property that is: 1281
13951395 “(A) A house comprised of 4 or fewer residential units or a condominium 1282
13961396 unit; and 1283
13971397 “(B) Located in a qualifying census tract as determined by the Mayor as of 1284
13981398 the date of the application pursuant to § 47–1819.04. 1285
13991399 “(6) “Eligible taxpayer” means a taxpayer certified by the Mayor pursuant § 47–1286
14001400 1819.04(b) as eligible to claim the credit established under this chapter. 1287
14011401 “(7) “Qualifying census tract” means a census tract which has: 1288
14021402 “(A) A median family income which does not exceed 120% of the median 1289
14031403 family income of the District; 1290
14041404 “(B) A poverty rate that is not less than 130% of the poverty rate of the 1291
14051405 District; and 1292
14061406 57
14071407
14081408 “(C) A median value for owner-occupied homes that does not exceed the 1293
14091409 median value for all owner-occupied homes in the District. 1294
14101410 “(8) “Qualified homeowner” means an individual whose family income is 120% 1295
14111411 or less of the area median family income as of the date that a binding contract is entered into 1296
14121412 between that individual and an eligible taxpayer for the sale of the eligible property. 1297
14131413 “(9) “Substantial rehabilitation” means amounts paid or incurred for rehabilitation 1298
14141414 of an eligible property if such amounts exceed $150,000 multiplied by the difference between the 1299
14151415 Consumer Price Index for the preceding tax year and the Consumer Price Index for the tax year 1300
14161416 2024 divided by the Consumer Price Index for tax year 2024. For the purposes of this paragraph, 1301
14171417 the Consumer Price Index for any real property tax year is the average of the Consumer Price 1302
14181418 Index for the Washington-Baltimore Metropolitan Statistical Area for all urban consumers 1303
14191419 published by the Department of Labor, or any successor index, as of the close of the 12-month 1304
14201420 period ending on September 30 of such tax year. 1305
14211421 “Sec. 47-1819.02. Credit established. 1306
14221422 (a) For tax years beginning after December 31, 2025, there is established a District of 1307
14231423 Columbia vacant and blighted home revitalization tax credit that may be claimed against taxes 1308
14241424 imposed under this subtitle. 1309
14251425 (b) The amount of the credit shall be 75% of the eligible development costs as certified 1310
14261426 by the Mayor to the Chief Financial Officer pursuant to § 47–1819.04(b). 1311
14271427 (c) The credit may exceed the tax liability under this chapter, including any minimum tax 1312
14281428 due under §§ 47-1807.02(b) or 47-1808.03(b), for that taxable year and shall be refundable to the 1313
14291429 eligible taxpayer, including an organization exempt under § 47–1802.01(a)(3) from taxation 1314
14301430 under this subtitle. 1315
14311431 58
14321432
14331433 (d) The credit may only be allowed if it: 1316
14341434 (1) Has been approved and certified by the Mayor to the Chief Financial Officer 1317
14351435 pursuant to § 47–1819.04: 1318
14361436 (2) Is claimed by an eligible taxpayer in the taxable year in which the substantial 1319
14371437 rehabilitation of the eligible property is completed; and 1320
14381438 (3) Is claimed in the manner and form prescribed by the Chief Financial Officer. 1321
14391439 “Sec. 47-1819.03. Annual Cap. 1322
14401440 “The Mayor may approve up to $2,500,000 in credits under this subchapter each fiscal 1323
14411441 year. 1324
14421442 “Sec. 47-1809.04. Application and Mayoral certification. 1325
14431443 (a) Before a taxpayer may claim a credit pursuant this subchapter, the taxpayer must 1326
14441444 apply to the Mayor requesting approval. 1327
14451445 (b) If a taxpayer’s application is approved in accordance with this subchapter, the Mayor 1328
14461446 shall certify to the Chief Financial Officer the following on before December 1 of the calendar 1329
14471447 year following the end of the fiscal year in which the credit was approved: 1330
14481448 (1) The name and taxpayer identification number of the eligible taxpayer; 1331
14491449 (2) The address of the eligible property (including square and lot); 1332
14501450 (3) That the eligible taxpayer’s application in accordance with this section was 1333
14511451 approved; 1334
14521452 (4) The date the substantial rehabilitation was completed; 1335
14531453 (5) That the eligible taxpayer sold the property to a qualifying homeowner; 1336
14541454 (6) The total amount of the eligible development costs incurred by the eligible 1337
14551455 taxpayer; 1338
14561456 59
14571457
14581458 (7) The total amount of the credit approved for the eligible taxpayer; and 1339
14591459 (8) Any other information requested by the Chief Financial Officer.”. 1340
14601460 SUBTITLE E. TAX ABATEMENT FOR THE REDEVELOPMENT OF VACANT 1341
14611461 AND BLIGHTED COMMERCIAL PROPERTIES. 1342
14621462 Sec. 405. Title 47 of the District of Columbia Official Code is amended as follows: 1343
14631463 (a) Section 47-813 is amended as follows: 1344
14641464 (1) Subsection (c-9)(4) is amended to read as follows: 1345
14651465 “(c-9)(4)(A) Class 3 property shall be comprised of all improved real property that 1346
14661466 appears as vacant on the list compiled under § 42-3131.16. 1347
14671467 “(B) The Office of Tax and Revenue may request the Mayor to inspect the 1348
14681468 improved real property to determine whether the property is correctly designated or registered as 1349
14691469 vacant on the list compiled under § 42-3131.16.”. 1350
14701470 (2) Subsection (c-9)(5) is amended to read as follows: 1351
14711471 “(c-9)(5)(A) Class 4 Property shall be comprised of all improved real property that 1352
14721472 appears as blighted vacant on the list compiled under § 42-3131.16. 1353
14731473 “(B) The Office of Tax and Revenue may request the Mayor to inspect the 1354
14741474 improved real property to determine whether the property is correctly designated as blighted 1355
14751475 vacant on the list compiled under § 42-3131.16.”. 1356
14761476 (c) By adding new sections 47-861.01 through 47-861.04 to read as follows: 1357
14771477 “Sec. 47-861.01. Tax abatements for the redevelopment of vacant and blighted 1358
14781478 commercial properties – Definitions. 1359
14791479 “For purposes of §§ 47-861.01 through 47-861.04, the term: 1360
14801480 “(1) “Class 3 property” shall have the same meaning as § 47–813(c-9)(4)(A). 1361
14811481 60
14821482
14831483 “(2) “Class 4 property” shall have the same meaning as § 47–813(c-9)(5)(A). 1362
14841484 “(3) “Eligible development costs” means amounts paid or incurred for 1363
14851485 construction, substantial rehabilitation, demolition of structures, or environmental remediation of 1364
14861486 an eligible property. Eligible development costs shall not include land acquisition costs. 1365
14871487 “(4) “Eligible property” means a Class 3 or Class 4 property that: 1366
14881488 “(A) Shall be redeveloped to be used for commercial purposes as defined 1367
14891489 in paragraph 5 of this section; and 1368
14901490 “(B) Has been registered as a Class 3 or Class 4 property for at least 12 1369
14911491 months without any exemptions pursuant to § 42–3131.06a. 1370
14921492 “(5) “Used for commercial purposes” means use of real property primarily for 1371
14931493 conducting any trade, business, or profession, whether for profit or not, including providing 1372
14941494 goods or services or operating as a hotel or inn. 1373
14951495 “(6) “OTR” means the Office of Tax and Revenue. 1374
14961496 “Sec. 47-861.02. Tax abatements for the redevelopment of vacant and blighted 1375
14971497 commercial properties – Requirements. 1376
14981498 “(a) Subject to § 47-861.03, the Mayor may approve an abatement of the tax otherwise 1377
14991499 imposed under this chapter, in an amount calculated pursuant to § 47-861.03(a), for an eligible 1378
15001500 property if: 1379
15011501 “(1) Eligible development costs exceed $1.5 million. 1380
15021502 “(2) The property owner, or its designee or assignee, demonstrates to the 1381
15031503 satisfaction of the Mayor that the abatement shall materially assist the redevelopment project and 1382
15041504 the redevelopment project would not go forward without the abatement. 1383
15051505 61
15061506
15071507 “(3) The property owner, or its designee or assignee, enters into an agreement 1384
15081508 with the District that requires the owner, or its designee or assignee, to, at a minimum, contract 1385
15091509 with certified business enterprises for at least 35% of the contract dollar volume of the 1386
15101510 construction of the project, in accordance with § 2-218.46. 1387
15111511 “(4) The property owner, or its designee or assignee, executes a First Source 1388
15121512 Agreement for the construction and operation of the project. 1389
15131513 “(5) The property owner, or its designee or assignee, requests a letter from the 1390
15141514 Mayor stating that the proposed redevelopment project is eligible for the tax abatement, setting 1391
15151515 forth the expected amount of the abatement, as determined pursuant to § 47-861.03(a), and 1392
15161516 reserving that amount for the project. 1393
15171517 “(6) The Mayor transmits to the owner the eligibility and reservation letter 1394
15181518 requested under paragraph (4) of this section, subject to such conditions as may be imposed by 1395
15191519 the Mayor and subject to the adjustment of the abatement amount based on the certifications 1396
15201520 provided for in § 47-860.03(a) and the abatement cap set forth in § 47-861.03(b). 1397
15211521 “(b) The Mayor shall, as nearly as practicable, review requests for eligibility and 1398
15221522 reservation letters in the order in which each completed request is received. 1399
15231523 “(c) The Mayor shall transmit to OTR a copy of each eligibility and reservation letter 1400
15241524 transmitted by the Mayor to an owner pursuant to subsection (a)(5) of this section. 1401
15251525 “(d) An abatement of the tax otherwise imposed under this chapter shall not be provided 1402
15261526 for a property for which an eligibility and reservation letter was transmitted by the Mayor 1403
15271527 pursuant to subsection (a)(5) of this section if the project which was the basis upon which the 1404
15281528 eligibility and reservation letter was issued has not received a certificate of occupancy within 24 1405
15291529 62
15301530
15311531 months after the date the eligibility and reservation letter was transmitted; provided, that the 1406
15321532 Mayor may extend the 24-month period for up to 8 months as deemed necessary. 1407
15331533 “(e)(1) After the completion of a project for which an eligibility and reservation letter was 1408
15341534 issued, the Mayor shall, if the conditions set forth in this section and the eligibility and 1409
15351535 reservation letter have been met, and subject to the abatement cap set forth in § 47-860.03(b), 1410
15361536 issue the property owner a certification of tax abatement, subject to such conditions as the Mayor 1411
15371537 may impose. The Mayor shall provide a copy of the certification letter to OTR. The certification 1412
15381538 shall identify: 1413
15391539 “(A) The property to which the certification applies by square and lot, or 1414
15401540 parcel or reservation number; 1415
15411541 “(B) The full legal name of the property owner, including taxpayer 1416
15421542 identification number; 1417
15431543 “(C) The tax to which the certification applies; 1418
15441544 “(D) The portion of the property that is eligible; 1419
15451545 “(E) The commencement date of the abatement; 1420
15461546 “(F) Any other information OTR shall require to administer the abatement. 1421
15471547 “(2) The Mayor shall notify the property owner and OTR if any property or owner 1422
15481548 certified under paragraph (1) of this subsection becomes ineligible for the abatement. The notice 1423
15491549 shall be written, shall identify the ineligible property, the date that the property became 1424
15501550 ineligible, and any other information required by OTR to terminate the abatement. 1425
15511551 “Sec. 47-861.03. Tax abatements for the redevelopment of vacant and blighted 1426
15521552 commercial properties – Abatement period, abatement amount, and caps. 1427
15531553 63
15541554
15551555 “(a) For each property for which a certification of abatement was issued under § 47-1428
15561556 860.02(e), the real property tax imposed on the property under this chapter shall be abated as 1429
15571557 follows: 1430
15581558 “(1) Half of the otherwise applicable tax in each of the first six tax years 1431
15591559 following the tax year during which a certification of tax abatement is issued pursuant to § 47-1432
15601560 860.02(e); 1433
15611561 “(2) Two-thirds of the applicable tax in each of the seventh and eighth tax years 1434
15621562 following the tax year during which a certification of tax abatement is issued pursuant to § 47-1435
15631563 860.02(e); and 1436
15641564 “(3) Three-quarters of the applicable tax in each of the ninth and tenth tax years 1437
15651565 following the tax year during which a certification of tax abatement is issued pursuant to § 47-1438
15661566 860.02(e). 1439
15671567 “(b) The total amount of tax abatements the Mayor may approve or certify under § 47-1440
15681568 860.02 in each fiscal year, including amounts certified in prior years, shall be capped at the 1441
15691569 following amounts, subject to the availability of funding: 1442
15701570 “(1) For fiscal years 2027, 2028, and 2029, up to $3 million; and 1443
15711571 “(2) For each succeeding fiscal year after Fiscal Year 2029, up to $6 million. 1444
15721572 “(c) (1) Prior to the preparation by OTR of tax bills for each half-year installment of tax, 1445
15731573 the Mayor shall certify to OTR, by a date and in a form and medium prescribed by OTR, each 1446
15741574 property eligible to receive a real property tax abatement pursuant to a certification issued 1447
15751575 pursuant to § 47-860.02(e), and the portion of the tax to be abated under subsection (a) of this 1448
15761576 section for each such property with respect to such half-year installment bill. 1449
15771577 64
15781578
15791579 “(2) The certification required by paragraph (1) of this subsection shall be 1450
15801580 accompanied by a statement from the Mayor specifying the total amount of the tax abatement 1451
15811581 under subsection (b) of this section for the semiannual period of the certification that is available 1452
15821582 to abate the taxes of the properties identified pursuant to paragraph (1) of this subsection. 1453
15831583 “(d) If the amount of tax to be abated for any semiannual billing period for all properties 1454
15841584 certified under subsection (c)(1) of this section exceeds the total dollar amount of tax abatements 1455
15851585 available as certified under subsection (c)(2) of this section, the available dollar amount shall be 1456
15861586 allocated pro rata among all properties certified under subsection (c)(1) of this section. 1457
15871587 “Sec. 47-861.04. Tax abatements for the redevelopment of vacant and blighted 1458
15881588 commercial properties – Rules. 1459
15891589 “The Mayor shall, pursuant to Subchapter I of Chapter 5 of Title 2, issue rules to 1460
15901590 implement §§ 47-861.01 through 47-861.03.”. 1461
15911591 TITLE V. FISCAL IMPACT STATEMENT; EFFECTIVE DATE. 1462
15921592 Sec. 501. Fiscal impact statement. 1463
15931593 The Council adopts the fiscal impact statement in the committee report as the fiscal 1464
15941594 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 1465
15951595 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 1466
15961596 Sec. 502. Effective date. 1467
15971597 This act shall take effect following approval by the Mayor (or in the event of veto by the 1468
15981598 Mayor, action by the Council to override the veto), a 30-day period of congressional review as 1469
15991599 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 1470
16001600 24, 1973, (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 1471
16011601 Columbia Register. 1472