Section 11-I901. TRANSFER OF CREDITS

 

901.1 Ownership of credits as acknowledged by the Zoning Administrator through a covenant required pursuant to Subtitle I, § 805 (for residential, arts, or preferred uses) and Subtitle I § 807 (for historic preservation) hereinafter collectively referred to as the “Credit Covenant” or acknowledged through the issuance of a Certificate of Credit Conversion pursuant to Subtitle I § 806 may be transferred by the owner of such credits at any time to any entity or individual for use on property owned by such entity or individual or for later retransfer to a property pursuant to Subtitle I § 902, provided that the property receiving the credit is located in an eligible trade area.

901.2 A transfer of credit ownership is not effectuated until the Zoning Administrator issues a Certificate of Credit Transfer and that certificate is recorded in the land records of the District of Columbia pursuant to the procedures set forth in this section.

901.3 A request for a Certificate of Credit Transfer shall be made by the owner of the credits and the entity or individual to whom the credits are to be transferred hereinafter collectively referred to as “the applicant”, and shall include: 

(a) The Credit Covenant or Certificate of Credit Conversion from which the credits are to be transferred;

(b) Any prior Certificate of Credit Transfer from that Credit Covenant or Certificate of Credit Conversion;

(c) A statement by the owner of the credits that the property that generated the credits is in compliance with the Credit Covenant or the CLD or TDR covenant, as applicable;

(d) A statement by the owner of the credits that there have been no prior transfers of credit ownership from the Credit Covenant or Certificate of Credit Conversion or, if there have been prior transfers, the number of credits transferred and the number of credits that remain to be transferred; and

(e) A draft Certificate of Credit Transfer that contains:

(1) The name and contact information for the entity or individual owning the credits as identified in the Credit Covenant or Certificate of Credit Conversion;

(2) The name and contact information for the individual or entity to whom the credits are to be transferred;

(3) A description of the Credit Covenant or Certificate of Credit Conversions from which ownership of the credits is being transferred including:

(A) The date upon which it was recorded in the land records; and

(B) The number of generated credits;

(4) If generated by a Credit Covenant, the action that generated the credits;

(5) The trade area(s) and purposes for which the credits could be used;

(6) Whether any credits have previously been transferred from the Certificate of Credit Transfer or Certificate of Credit Conversion and if so, the number of credits that remain to be transferred;

(7) The number of the credits proposed for transfer;

(8) The number of credits that would remain in possession of the transferring party after the proposed credit transfer;

(9) Whether the transferred credits are to be used on a property owned by the entity or individual to whom the credits are to be transferred or are to be held for retransfer to a property; and

(10) If the credits are to be used on a property:

(A) The legal description of that property; and

(B) The purpose for which the credits are to be used.

901.4 A request for a Certificate of Credit Transfer may be made at the same time as the Credit Covenant is being reviewed, provided that the Credit Covenant must be recorded in the land records prior to or simultaneously with the Certificate of Credit Transfer.

901.5 The Zoning Administrator, in his or her discretion, may request their General Counsel or the Office of the Attorney General to undertake a legal sufficiency review of the draft Certificate of Credit Transfer.

901.6 If approved, the Certificate of Credit Transfer shall be signed by the Zoning Administrator. 

901.7 The signature of the Mayor of the District of Columbia is not required.

901.8 The applicant, upon notification by the Zoning Administrator that the Certificate of Credit Transfer has been signed, shall take the Certificate of Credit Transfer to the Recorder of Deeds, who shall record the certificate with the lot that generated the credits, and if applicable, with the lot that is receiving the credits, and provide the applicant with two (2) certified copies of the certificate.

901.9 The applicant shall provide one (1) certified copy to the Zoning Administrator and one (1) to the Office of Planning.

901.10 The transfer shall be effective as of the recordation date of the certificate unless a later time is requested by the applicant.

901.11 If more than one (1) transfer of credits is made from a Credit Covenant or Certificate of Credit Conversion the second Certificate of Credit Transfer and all subsequent Certificates of Credit Transfers shall be numbered “two” (2) and sequentially, and each shall include the names of the transferors and transferees involved in all previous transfers, including the amount of credits transferred and the dates of recordation of each transfer.

901.12 Credits used to achieve non-residential density shall not be retransferred unless the building that utilized the additional density is destroyed or demolished; provided that any such retransfer shall divest the property of the additional density allowed by the credits. 

901.13 Credits not used may be retransferred in accordance with the provisions of Subtitle I § 902. 

 

 

authority

§ 1 of the Zoning Act of 1938, approved June 20, 1938 (52 Stat. 797, as amended; D.C. Official Code § 6-641.01 (2012 Repl.)).

source

Final Rulemaking published at 63 DCR 2447, 3041 (March 4, 2016 – Part 2).