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District of Columbia Code Division VIII. General Laws. § 47-861. Tax abatements for the redevelopment of vacant and blighted commercial properties -- Requirements.

Current as of January 01, 2024 | Updated by Findlaw Staff

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(a) Subject to § 47-861.03, the Mayor may approve an abatement of the tax otherwise imposed under this chapter, in an amount calculated pursuant to § 47-861.03(a), for an eligible property if:

(1) Eligible development costs exceed $1.5 million;

(2) The property owner, or its designee or assignee, demonstrates to the satisfaction of the Mayor that the abatement shall materially assist the redevelopment project and the redevelopment project would not go forward without the abatement;

(3) The property owner, or its designee or assignee, enters into an agreement with the District that requires the owner, or its designee or assignee, to, at a minimum, contract with certified business enterprises for at least 35% of the contract dollar volume of the construction of the project, in accordance with § 2-218.46;

(4) The property owner, or its designee or assignee, executes a First Source Agreement for the construction and operation of the project;

(5) The property owner, or its designee or assignee, requests a letter from the Mayor stating that the proposed redevelopment project is eligible for the tax abatement, setting forth the expected amount of the abatement, as determined pursuant to § 47-861.03(a), and reserving that amount for the project;  and

(6) The Mayor transmits to the owner the eligibility and reservation letter requested under paragraph (5) of this subsection, subject to such conditions as may be imposed by the Mayor and subject to the adjustment of the abatement amount based on the certifications provided for in § 47-860.03(a) and the abatement cap set forth in § 47-861.03(b).

(b) The Mayor shall, as nearly as practicable, review requests for eligibility and reservation letters in the order in which each completed request is received.

(c) The Mayor shall transmit to the Office of Tax and Revenue (“OTR”) a copy of each eligibility and reservation letter transmitted by the Mayor to an owner pursuant to subsection (a)(6) of this section.

(d) An abatement of the tax otherwise imposed under this chapter shall not be provided for a property for which an eligibility and reservation letter was transmitted by the Mayor pursuant to subsection (a)(6) of this section if the project that was the basis upon which the eligibility and reservation letter was issued has not received a certificate of occupancy within 24 months after the date the eligibility and reservation letter was transmitted;  provided, that the Mayor may extend the 24-month period for up to 8 months as deemed necessary.

(e)(1) After the completion of a project for which an eligibility and reservation letter was issued, the Mayor shall, if the conditions set forth in this section and the eligibility and reservation letter have been met, and subject to the abatement cap set forth in § 47-860.03(b), issue the property owner a certification of tax abatement, subject to such conditions as the Mayor may impose.  The Mayor shall provide a copy of the certification letter to OTR.  The certification shall identify:

(A) The property to which the certification applies by square and lot, or parcel or reservation number;

(B) The full legal name of the property owner, including taxpayer identification number;

(C) The tax to which the certification applies;

(D) The portion of the property that is eligible;

(E) The commencement date of the abatement;  and

(F) Any other information that OTR shall require to administer the abatement.

(2) The Mayor shall notify the property owner and OTR if any property or owner certified under paragraph (1) of this subsection becomes ineligible for the abatement.  The notice shall be written and shall identify the ineligible property, the date that the property became ineligible, and any other information required by OTR to terminate the abatement.

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Cite this article: FindLaw.com - District of Columbia Code Division VIII. General Laws. § 47-861. Tax abatements for the redevelopment of vacant and blighted commercial properties -- Requirements. - last updated January 01, 2024 | https://codes.findlaw.com/dc/division-viii-general-laws/dc-code-sect-47-861-02/

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