Section 10-B6202. REQUIREMENTS FOR TAX ABATEMENTS FOR NEW RESIDENTIAL DEVELOPMENTS

B6202.1As a prerequisite to a property receiving a tax abatement under this chapter, the provisions of this section must be satisfied. 

B6202.2A tax abatement under this chapter shall not be allowed for a project which is financed in any part by the Tax Increment Financing program established by the Tax Increment Financing Authorization Act of 1998 (D.C. Law 12-143; D.C. Official Code § 2-1217.01 et seq.).

B6202.3A tax abatement under this chapter shall not be allowed for a property which receives relief as the result of the Distressed Properties Improvement Program under the Rental Housing Act of 1985 (D.C. Law 6-10; D.C. Official Code § 42-3508.02).

B6202.4A tax abatement under this chapter shall not be allowed for a property owned by the District of Columbia or one of its instrumentalities as of January 1, 2008.

B6202.5A tax abatement shall not be allowed unless the owner obtains the documents required by sections B6202.7 or B6202.9 of this chapter and submits to DMPED the letter and other documents required by section B6202.10 of this chapter prior to December 31, 2012.

B6202.6A tax abatement shall only be allowed if the building permit for the project’s superstructure was issued after January 1, 2008.

B6202.7Except as provided in subsection B6202.8, prior to requesting certification of a tax abatement, the owner must receive:

(a)A final building permit; or

(b)Letters from the building architect and DMPED certifying that the first level of concrete has been laid and the building has received building permits for both (1) the building’s sheeting and shoring and excavation work and (2) the building’s foundation to grade structural work.  Certification by DMPED that the first level of concrete has been laid shall be given upon the submission by the owner of the standard test reports to DCRA.  DMPED shall issue a certification letter regarding the first layer of concrete being laid within ten (10) business days after receipt of a written request from the owner and receipt of the standard concrete tests reports by DCRA, if such reports are required by DCRA.

B6202.8If an owner has obtained a certificate of occupancy prior to requesting certification of a tax abatement, section B6202.7 shall not apply.

B6202.9If a certificate of occupancy has been issued to the owner, the owner may submit a letter to DMPED requesting a tax abatement certification that the property is eligible for a certain annual dollar amount of residential tax abatement as set forth in the NoMA Residential Development Tax Abatement Act of 2009 (D.C. Law 18-10; D.C. Official Code §§ 47-859.01 et seq.).  The letter shall include the information required by section B6202.10(a)(i) - (iii), (v), (vi), (vii) and (viii), along with the documents required by section B6202.10(b)(iv)(A), (B) and (E), and section B6202.14.

B6202.10(a) If a certificate of occupancy has not been issued to the owner, the owner may submit a letter to DMPED requesting a tax abatement certification that the property is eligible for a certain annual dollar amount of residential tax abatement as set forth in the NoMA Residential Development Tax Abatement Act of 2009 (D.C. Law 18-10; D.C. Official Code §§ 47-859.01 et seq.).

(b)The owner’s request letter shall include the following information about the project:

(1)The address of the project;

(2)The square and lot number;

(3)The proposed number of residential units;

(4)A statement that the documents required by subsection B6202.7 of this chapter have been obtained and are attached;

(5)The total residential FAR square footage;

(6)The annual dollar amount of residential tax abatement requested;

(7)A statement that no financing is being provided under the Tax Increment Financing program referenced in subsection B6202.2 of this chapter; and

(8)A statement that no relief is being provided under the Distressed Properties program referenced in subsection B6202.3 of this chapter;

(c)  The owner’s request letter shall include the following attachments:

(1)Three (3) dated photographs of the project taken within the ten (10) day period that precedes the date of submission of the owner’s request letter.  If the owner’s request letter states that the first level of concrete has been laid, at least one (1) photograph must show the first level of concrete;

(2)The documents specified by section B6202.7 (a) or (b) of this chapter;

(3)Certification of the total residential FAR square footage certified by the project architect; and

(4)The following items:

(A)An area map showing the eligible area boundary and the project by location arrow;

(B)A scaled site plan with building footprint.  The site plan shall be submitted in both full size and eleven inch (11″) by seventeen inch (17″) format;

(C)A tabulation of the zoning data for the project prepared and certified by the project architect, which shall include both the allowed and used lot occupancy, height, FAR, yards, courts, parking, and loading, and an indication of any zoning variance that is being requested;

(D)A calculation of the total residential FAR square footage; and

(E)A calculation of the annual dollar amount of residential tax abatement being requested, showing total residential FAR square footage, and tax abatement per square foot of total residential FAR square footage.

B6202.11Within fifteen (15) business days after receipt of the owner’s request letter and documents specified in subsections B6202.9 or  B6202.10 of this chapter, DMPED shall:

(a)Transmit a reservation letter to the owner stating:

(1)Whether the property is eligible for the applicable tax abatement;

(2)Whether the District of Columbia has reserved a tax abatement for the project; and

(3)If the District of Columbia has reserved a tax abatement for the property, the authorized annual dollar amount for the property. 

(b)If an owner’s request letter is not complete, transmit a letter to the owner requesting the required additional information, which shall not affect the date of the submission by the owner of its request to DMPED for certification (unless such letter was significantly deficient);

(c)Transmit a letter of partial reservation and partial non-certification, if the amount of the tax abatement authorized for the property partially exceeds the amount of abatement remaining under caps set forth in section B6204 of this chapter; or

(d)Transmit a letter of non-certification, if the amount of the tax abatement requested exceeds the caps set forth in section B6204 of this chapter.

B6202.12A tax abatement authorized by the Act and reserved by DMPED pursuant to section B6202.11 shall not be allowed:

(a)Unless the first level of concrete for the project has been laid either before, or within six (6) months after, the date the reservation letter is transmitted by DMPED under subsection B6202.11 of this chapter, if certification was requested pursuant section B6202.9 of this chapter; or

(b)If the project does not receive a certificate of occupancy within thirty-six (36) months after the date the reservation letter is transmitted by DMPED pursuant to section B6202.11 of this chapter; provided, that DMPED may extend the thirty-six (36) months period by up to an additional six (6) months if the building’s construction has reached grade, as certified by the project architect and DCRA.

B6202.13Valid and complete requests for certification shall be reviewed by DMPED pursuant to section B6202.11 of this chapter in the order in which they are received; provided, however, that any project which has achieved the requirements of section B6202.7, B6202.9, or B6202.10 prior to the effective date of this chapter shall be given preference for review and certification of eligibility in order of the date the requirements of sections B6202.9 or B6202.10 were achieved; and provided further, that this preference shall be applicable beginning on the date this chapter becomes effective and only for the first thirty (30) days thereafter. 

B6202.14Once the certificate of occupancy has been issued by DCRA and the owner has complied with sections B6202.9 or B6202.10, the owner shall submit the following documents to DMPED:

(a)A copy of the certificate of occupancy;

(b)A calculation of the “as-built” total residential FAR square footage certified by the project architect; and

(c)A schedule of the dollar amounts for the property’s twenty (20) semiannual tax abatements for the ten (10) year tax abatement period beginning with the first full six (6) month period of the tax year (October 1 through March 31 or April 1 through September 30) following the issuance date of the certificate of occupancy. 

B6202.15Upon receipt of the documents required under section B6202.14, DMPED shall certify the total residential FAR square footage and, within twenty (20) business days:

(a)Issue to the owner a letter certifying the tax abatement pursuant to D.C. Official Code § 47-8579.03; and

(b)Notify OTR of the owner’s eligibility for the annual dollar amount of residential tax abatement, provided that such annual dollar amount shall not exceed the amount reserved under B6202.11, and provide OTR with a schedule of the tax abatement dollar amounts to be reflected on the property’s twenty (20) semiannual tax bills issued during the ten (10) year tax abatement period. 

B6202.16After receiving notification from DMPED under subsection B6202.15, OTR shall reflect the tax abatement in a real property tax bill issued for the first full six (6) month period of the tax year (October 1 through March 31 or April 1 through September 30) following the issuance date of the certificate of occupancy. 

B6202.17If a condominium regime is established at the property pursuant to District of Columbia law and condominium units are sold, the tax abatement shall be prorated among the residential unit owners of the condominium in proportion to their percentage interest in the condominium regime, and the tax abatement shall accrue only to residential unit owners.  DMPED shall allocate the tax abatement to the individual units, based on a schedule of the dollar amounts for the semiannual tax abatements for the then remaining portion of the ten (10) year tax abatement period.  The owner shall provide this schedule to DMPED at the time of the unit sale, DMPED shall certify such allocation to OTR, and OTR shall notate the tax bills for such units to specifically reflect the abatement.

B6202.18The imposition of a penalty or disallowance of the tax abatement by DMPED pursuant to the provisions of this chapter shall be subject to the notice and hearing provisions of the Civil Infractions Act of 1985 (D.C. Law 6-42; D.C. Official Code §§ 2-1801.01 et seq.), and its implementing regulations.

authority

NoMA Residential Development Tax Abatement Act of 2009, effective July 7, 2009 (D.C. Law 18-10; D.C. Official Code §§ 47-859.01 et seq.), and Mayor’s Order 2010-61, dated April 6, 2010

source

Final Rulemaking published at 57 DCR 6122, 6123 (July 16, 2010).