District Of Columbia 2025-2026 Regular Session

District Of Columbia Council Bill B26-0225 Latest Draft

Bill / Introduced Version Filed 04/10/2025

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