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