Section 10-B3902. CERTIFICATION CRITERIA FOR TAX ABATEMENT

 

3902.1Tax abatements as specified in §802(a) of the Act (D.C. Code §45-2582 (1981)) shall be granted to any newly constructed rental housing accommodation or any vacant rental housing accommodation which has been rehabilitated where it is determined that such abatements are in the best interest of the District and consistent with the District's rental housing needs.

 

3902.2Granting of the tax abatement to newly constructed rental housing accommodations shall be in the best interest of the District and consistent with the District's rental housing needs if the project meets the requirements of §§3902.3 through 3902.9.

 

3902.3At least five percent (5%) of the units in the project shall be made available at rents which are affordable by lower and moderate income households during the applicable period of the rent regulatory agreement under §3907.3 of this chapter. In determining compliance with this requirement, the following shall apply:

 

(a)Affordable rents shall not exceed an amount to be determined periodically by DHCD which shall be no higher than thirty percent (30%) of the monthly gross income of lower and moderate income households of appropriate household size in. relation to unit size;

 

(b)In determining the number of units for compliance with the five percent (5%) requirement of this subsection, any fraction of a whole number shall be rounded up to the next highest whole number;

 

(c)Where essential utilities are not provided as part of the rent, a reasonable allowance for utilities as determined by the DHCD shall be subtracted from the maximum allowable rent in determining compliance with affordable rent requirements; and

 

(d)The current maximum allowable rents, including utilities, as determined by the DHCD under §3902.3(a) shall be as follows:

 

Type of Unit	Maximum Allowance Monthly Rent
Efficiency	$408
1 bedroom	$498
2 bedrooms	$582
3 bedrooms	$687
4 bedrooms or more	$750

 

3902.4Ten percent (10%) of the units in the project, which shall be in addition to the percentage of units required in §3902.3, shall be made available, at market rental rates, on a priority basis to households in possession of a Certificate of Eligibility from DHCD under the Section 8 Existing Housing Program or the Tenant Assistance Program, and all other units in the project shall be made available as specified in §3907.2(e) of this chapter; Provided, that nothing shall prevent the housing provider from renting these units to other households under one (1) of the following conditions:

 

(a)The proposed market rental rates exceed the maximum rents allowed under the Section 8 or Tenant Assistance Programs;

 

(b) Insufficient households with certificates actually apply for the units; or

 

(c)The priority period has expired.

 

3902.5The units specified in §3902.4 shall be considered made available on a priority basis if the housing provider gives advance notice to DHCD of the actual or expected availability of units for the following priority periods:

 

(a)For units offered for initial occupancy, a period of ninety (90) days; or

 

(b)For units becoming available after initial occupancy, a period of thirty (30) days.

 

3902.6Units meeting the affordable rent requirements of §3902.3 shall be termed reserved units, and the housing provider shall certify to the DHCD that he or she shall rent all reserved units in the project only to lower and moderate income households.

 

3902.7For projects containing forty (40) or more units, not less than fifty percent (50%) of reserved units in the completed project shall contain two (2) or more bedrooms (in determining the number of units for compliance with the fifty percent (50%) requirement, any fraction of a whole number shall be rounded down to the next lowest whole number); Provided, that the Director may waive this requirement if the housing provider agrees to rent all units in the project exclusively to elderly households (head of household is sixty-two (62) years or older).

 

3902.8The housing provider shall have entered into a rent regulatory agreement with DHCD, covering the reserved units, consistent with §3907 of this chapter.

 

3902.9The housing provider shall have certified to DHCD that none of the rental units in the project which are subject to a condominium regime at any time during the term of the rent regulatory agreement, shall be offered for sale or sold during the term of the rent regulatory agreement.

 

3902.10The requirement of §3902.7 may be waived by the Director for vacant rental housing accommodations which have been rehabilitated upon a finding of the following:

 

(a)There are not a sufficient number of existing two (2) or more bedroom units in the project prior to rehabilitation to meet the requirement; and

 

(b)It would be physically or economically infeasible for the project to convert sufficient existing units to two (2) or more bedrooms to meet the requirement.

 

3902.11For projects where the Director has provided a waiver under §3902.10, DHCD may require that all existing two-bedroom or larger units in the project be reserved units.

 

3902.12Granting of the tax abatement to a vacant rental housing accommodation which has been rehabilitated shall be in the best interest of the District and consistent with the District's rental housing needs; Provided, that the requirements of §§3902.3 through 3902.11 have been met.

 

3902.13A newly constructed rental housing accommodation or a vacant rental housing accommodation which has been rehabilitated shall be granted tax abatement if the project is receiving financing through the District of Columbia Housing Finance Agency's multi-family programs without the need to meet the requirements of §§3902.3 through 3902.12.

 

source

Final Rulemaking published at 34 DCR 980, 982 (February 6, 1987).