Section 9-1115. REAL PROPERTY TAX ABATEMENT FOR CERTAIN COMMERICAL PROPERTIES

 

1115.1For a real property owner, the real property tax attributable to the increase in the assessed value for (a) and/or (b), below, shall be abated for 5 years if the owner:

 

(a) Constructs a new eligible building for a QHTC and the initial or temporary certificate of occupancy was received after December 31, 2000; or

 

(b) Improves or renovates an existing eligible building or a portion of an existing building which is necessary to adapt or to convert for use by a QHTC.

 

(c) In order to qualify for the abatement under this section, a QHTC must apply to the Real Property Administration of OTR on or before the first day of the real property tax year (that begins October 1) of the tax year for which the QHTC seeks the abatement.

 

1115.2For the tenant who is liable for the real property tax, the real property tax attributable to the increase in the assessed value shall be abated for 5 years. The abatement applies where the tenant makes improvements or renovations to an existing eligible building or a portion of an existing eligible building which are necessary to adapt or to convert for use by:

 

(a) The tenant who is a QHTC; or

 

(b) A subtenant who is a QHTC.

 

1115.3The amount of an abatement under this section will appear on the real property tax bill as a credit. If a tenant is liable for real property taxes under a lease, it will be solely the responsibility of the owner/landlord to transfer the benefits under this section to the tenant. There shall be no recourse by the tenant against the District for the failure of the owner/landlord to make the transfer of benefits.

 

1115.4If a lease for real property for an eligible building that is used by a QHTC is terminated during the 5-year abatement period, the abatement will remain in effect for twelve months or less if the owner or tenant makes a good faith effort to lease the real property to a QHTC.

 

1115.5The abatement period for the real property shall not exceed 5 years from the first day of the month following the rent commencement date. For purposes of this section, the rent commencement date shall be the earlier of the date an initial certificate of occupancy is issued for, or a person takes possession or renews possession of, the improvement or renovation (made under this section) of any part of the real property.

 

1115.6On or after the rent commencement date, the abatement shall be the increase in real property tax attributable to the improvements or renovations made under this section as such improvements or renovations are valued by the Deputy Chief Financial Officer as of the rent commencement date.

 

1115.7The annual income expense statement filed by the owner shall be deemed the real property tax return for purposes of this section. Each year, the person filing the income expense statement shall attach thereto a copy of the Form QHTC-CERT from each tenant. The person filing such statement shall indicate the rent commencement date, as defined in section 1115.5. The person filing such statement shall state thereon the square, suffix, and lot of the real property.

 

1115.8The abatement will be revoked immediately if the owner or tenant leases the real property to a tenant who is not a QHTC, which causes the building to become no longer an eligible building.

 

1115.9The owner shall immediately provide written notice to the Deputy Chief Financial Officer, when the real property becomes ineligible. The owner shall state the square, suffix, and lot on the written notice as well as the date of ineligibility.

 

1115.10The Board of Real Property Assessments and Appeals, or the Superior Court of the District of Columbia, shall, when rendering a decision, make allocation to the renovations or improvements made under this section.

 

source

Final Rulemaking published at 49 DCR 2142 (March 8, 2002).