Section 10-B3907. RENT REGULATORY AGREEMENTS

 

3907.1The owner of each project determined to be eligible for tax abatement, under §3902 of this chapter, or for deferral or forgiveness of indebtedness to the District under §3904 of this chapter shall be required to enter into a rent regulatory agreement with the DHCD prior to the issuance by the DHCD of any certification of eligibility for abatement, deferral or forgiveness.

 

3907.2Each rent regulatory agreement (“agreement”) shall include, but not be limited to, the following requirements:

 

(a)Provide that the project shall be completed in conformity with the plans and specifications submitted for the project with the application;

 

(b)Establish the basis for the approval or disapproval of rent increases in the reserved units during the term of the agreement;

 

(c)Provide for marketing and tenant selection policies to be followed by the housing provider consistent with the requirements of §§3902.3, 3902.4, 3902.6 and 3904.6 and other related provisions of this chapter;

 

(d)Provide that the housing provider shall give priority in renting vacant reserved units in the project to persons on the DHCD public housing waiting list, the Department's waiting list for Section 8 Certificates, Tenant Assistance Program Certificates, or other similar forms of rental assistance as may be available;

 

(e)Provide that the housing provider shall rent vacant non-reserved units in the project to persons specified in paragraph (d) of this subsection at all times on an equal basis with any other applicant;

 

(f)Provide that all indebtedness of the property which has been deferred or forgiven under this chapter, shall become immediately due and payable upon the sale or transfer of the property, or the majority of any ownership interest in the property, from the party with whom the rent regulatory agreement has been executed to any other party; Provided, that this requirement may be waived by the DHCD if the party to whom the property is transferred shall agree in writing to all the terms and conditions of the rent regulatory agreement and there are at least two (2) years remaining in the term of the agreement; Provided, further, that the enforcement of the provisions of this subsection shall be by means of the note(s) and deed(s) of trust provided for in §3906.4, §3906.5 and §3906.6; and

 

(g)Provide that the DHCD may establish such other means of enforcement of the provisions of the rent regulatory agreement as it determines to be necessary consistent with this chapter and other provisions of D.C. law.

 

3907.3The term of each rent regulatory agreement for a project determined to be eligible for tax abatement only shall be five (5) years. The term of each rent regulatory agreement for a project determined to be eligible for tax abatement and deferral or forgiveness of indebtedness shall be ten (10) years.

 

source

Final Rulemaking published at 34 DCR 980, 991 (February 6, 1987), as amended by Final Rulemaking published at 34 DCR 2404 (April 10, 1987).