District Of Columbia 2025-2026 Regular Session

District Of Columbia Council Bill B26-0225 Compare Versions

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

Old	New	Differences
1	1	COUNCIL OF THE DISTRICT OF COLUMBIA
2	2	The John A. Wilson Building
3	3	1350 Pennsylvania Avenue, NW
4	4	Washington, D.C. 20004
5	5	Statement of Introduction
6	6	Unlocking Housing at Metro Property Tax Exemption Amendment Act of 2025
7	7	April 10, 2025
8	8	Today, I am introducing the Unlocking Housing at Metro Property Tax Exemption Amendment
9	9	Act of 2025, along with Councilmembers Brianne K. Nadeau, Charles Allen, Brooke Pinto,
10	10	Anita Bonds, and Robert C. White, Jr. This legislation was first introduced in Council Period 25
11	11	and would accelerate much-needed mixed-use residential development at Washington
12	12	Metropolitan Area Transit Authority (WMATA) Metrorail stations in the District. Eligible sites
13	13	do not currently generate tax revenues and it is financially infeasible under existing conditions
14	14	for WMATA to pursue transit-oriented development (TOD) through joint development
15	15	agreements at these stations.
16	16	TOD is common in thriving urban areas and features compact, high-density, mixed-use areas
17	17	within walking distance of a central stop of a public transportation system. TOD projects
18	18	maximize residential, business,
19	19	and leisure space and create more walkable, vibrant, and
20	20	exciting communities. People living in TOD zones in the District drive less, more frequently
21	21	bike and walk, and use public transportation more, energizing neighborhoods and advancing
22	22	sustainable transit goals.
23	23	1
24	24	Since WMATA’s inception, District leaders and
25	25	residents have
26	26	recognized the potential of integrating transit hubs
27	27	with housing, retail, and other amenities,
28	28	and have worked with WMATA to invest in the blocks around Metro stations.
29	29	WMATA is a national leader in TOD. WMATA has delivered more than 60 buildings at 30
30	30	stations throughout the region. Since 1975, WMATA has built TOD projects in the District at the
31	31	Farragut North, Gallery Place/Chinatown, Tenleytown, Columbia Heights, Navy Yard, Rhode
32	32	Island Avenue, Fort Totten, Georgia Avenue/Petworth, Minnesota Avenue, Metro Center,
33	33	McPherson Square, Shaw/Howard University, U Street-Cardozo, and Van Ness/UDC stations.
34	34	2
35	35
36	36	The WMATA projects advanced at these stations brought even more private and public
37	37	investment in surrounding neighborhoods, attracting new stores, arts and entertainment venues,
38	38	medical providers, restaurants, and additional businesses
39	39	that provide essential services, all of
40	40	which create new jobs. As of 2022, WMATA’s TOD projects throughout the DMV region
41	41	yielded 17 million square feet of mixed-used development, generated 5 million new annual
42	42	Metro trips, and raised $194 million in new annual state and local taxes.
43	43	3
44	44	In 2024,
45	45	WMATA
46	46	1
47	47	The analysis of transit-oriented development (TOD) in Washington, D.C. and Baltimore metropolitan areas, 2014.
48	48	Arefeh Nasri, Lei Zhan
49	49	2
50	50	Washington Metropolitan Area Transit Authority 10-Year Strategic Plan for Joint Development
51	51	3
52	52	Ibid.
53	53	Christina Henderson Committee Member
54	54	Councilmember, At-Large Human Services
55	55	Chairperson, Committee on Health Facilities
56	56	Transportation and the Environment COUNCIL OF THE DISTRICT OF COLUMBIA
57	57	The John A. Wilson Building
58	58	1350 Pennsylvania Avenue, NW
59	59	Washington, D.C. 20004
60	60	and joint development partners were constructing 1,900 new residential units throughout the
61	61	Washington Metropolitan area.
62	62	4
63	63
64	64	WMATA is planning new projects and has TODs underway at Metro stations in the District,
65	65	including at the Anacostia, Congress Heights, Brookland, Deanwood, Fort Totten, and
66	66	Friendship Heights stations. However, challenges limit the potential of these sites. Obstacles
67	67	include existing transit facilities and infrastructure such as rail tracks and traction power sub-
68	68	stations, roadway design, the location of utilities, commuter parking needs, and bus loop
69	69	configurations. Preliminary feasibility analyses found that projects at Congress Heights,
70	70	Deanwood, and Brookland could yield net property tax revenues of $1M to $14M per site to the
71	71	District over 30 years after accounting for upfront infrastructure costs, but development is
72	72	impossible in the near-term without public assistance. The initial infrastructure cost estimates for
73	73	potential Fort Totten developments exceed potential property tax revenues over a 30-year period.
74	74	Absent private uses or development, WMATA property at Metrorail stations cannot currently
75	75	generate tax revenues for the District and represent a missed opportunity to invest in the District
76	76	and its residents. Outside supports are necessary to unlock the full potential of WMATA's
77	77	properties.
78	78	The District’s regional neighbors have provided mechanisms to WMATA to reduce cost burdens
79	79	and achieve higher density at Metro stations. For example, in 2020, the Montgomery County
80	80	Council passed the More Housing at Metrorail Stations Act. That law provides a tax abatement
81	81	that lowers the cost of developing high-rise buildings at Metrorail stations, thereby increasing
82	82	density, allowing WMATA and its partners to produce more market-rate and affordable housing,
83	83	and expediting development. The abatement's stability convinced WMATA and its joint
84	84	development partners to commit to building even more housing at Metro stations than it could
85	85	have otherwise.
86	86	To realize the TOD potential at underdeveloped Metro stations in the District, this bill would
87	87	waive property taxes for 20 years on qualifying developments at Metro stations. To qualify for
88	88	the benefit, WMATA must enter into a joint development agreement that provides that at least
89	89	half of a development must be housing, and 75% of the project overall must consist of new
90	90	construction or substantially rehabilitated structures. The exemption would be available
91	91	beginning on January 1, 2026.
92	92	I look forward to working with my Council colleagues and the public to advance this legislation
93	93	and to build on the District’s strong transit-oriented development record for the benefit of current
94	94	and future residents.
95	95	4
96	96	Metro offers new development opportunity in the District’s historic Deanwood neighborhood 1
97	97	_____________________________ _____________________________ 1
98	98	Councilmember Brianne K. Nadeau Councilmember Christina Henderson 2
99	99	3
100	100	4
101	101	_____________________________ _____________________________ 5
102	102	Councilmember Brooke Pinto Councilmember Charles Allen 6
103	103	7
104	104	8
105	105	_____________________________ _____________________________ 9
106	106	Councilmember Robert C. White, Jr. Councilmember Anita Bonds 10
107	107	11
108	108	12
109	109	13
110	110	A BILL 14
111	111	15
112	112	_______________ 16
113	113	17
114	114	18
115	115	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 19
116	116	20
117	117	_______________________ 21
118	118	22
119	119	To amend section 47-1002 of the District of Columbia Official Code to exempt from real 23
120	120	property taxation qualifying improvements located on land in the District subject to a 24
121	121	Joint Development Agreement ith the Washington Metropolitan Area Transit Authority. 25
122	122	26
123	123	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 27
124	124	act may be cited as the “Unlocking Housing at Metro Property Tax Exemption Amendment Act 28
125	125	of 2025”. 29
126	126	Sec. 2. Section 47-1002 of the District of Columbia Official Code is amended as follows: 30
127	127	(a) Paragraph (34) is amended by striking the phrase “; and” and inserting a semicolon in 31
128	128	its place. 32
129	129	(b) Paragraph (35) is amended by striking the period and inserting the phrase “; and” in 33
130	130	its place. 34
131	131	(c) A new paragraph (36) is added to read as follows: 35 2
132	132	“(36)(A) Subject to the provisions of subparagraph (B) of this paragraph, a 36
133	133	qualifying development located on land subject to a Joint Development Agreement ith the 37
134	134	Washington Metropolitan Area Transit Authority (“WMATA”). 38
135	135	“(B) The real property tax exemption granted by subparagraph (A) of this 39
136	136	paragraph shall apply only: 40
137	137	“(i) For 20 consecutive real property tax years beginning on the 41
138	138	date that a certificate of occupancy for a qualifying development is issued; and 42
139	139	“(ii) To a qualifying development constructed after January 1, 43
140	140	2026. 44
141	141	“(C) The real property tax exemption granted by subparagraph (A) of this 45
142	142	paragraph shall be in addition to, and not in lieu of, any other tax relief or assistance from any 46
143	143	other source applicable to the qualifying development. 47
144	144	“(D) Nothing in this paragraph shall prevent or restrict WMATA from 48
145	145	utilizing any other tax, development, or other economic incentives available to Joint 49
146	146	Development Agreement partners or the qualifying development, including other tax, 50
147	147	development, or other economic incentives shall set forth in Chapter 38 of this chapter. 51
148	148	“(E) Nothing in this paragraph shall be construed to limit WMATA or 52
149	149	Joint Development Agreement partners from appealing or contesting a real estate tax assessment 53
150	150	of a qualifying development. 54
151	151	“(F) For the purposes of this paragraph, the term: 55
152	152	“(i) “Joint Development Agreement” means a contract between 56
153	153	WMATA and a third party to sell or ground lease WMATA property for a qualifying 57
154	154	development; and 58 3
155	155	“(ii) “Qualifying development” means a real property development 59
156	156	in which: 60
157	157	“(I) Improvements are made to real property subject to a 61
158	158	Joint Development Agreement ith WMATA in the District; 62
159	159	“(II) At least 50% of the improvements include the 63
160	160	construction of multifamily residential buildings; provided, that all multifamily residential 64
161	161	buildings located on the property shall be subject to the requirements of Chapter 10 of Title 11-C 65
162	162	of the District of Columbia Municipal Regulations; and 66
163	163	“(III) At least 75% of the improvements consist of 67
164	164	buildings that are newly constructed or substantially rehabilitated.”. 68
165	165	Sec. 3. Fiscal impact statement. 69
166	166	The Council adopts the fiscal impact statement in the committee report as the fiscal 70
167	167	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 71
168	168	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 72
169	169	Sec. 4. Effective date. 73
170	170	This act shall take effect folloing approval by the Mayor (or in the event of veto by the 74
171	171	Mayor, action by the Council to override the veto) and a 30-day period of congressional review 75
172	172	as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 76
173	173	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1). 77