(a)(1) Property eligible for the low-income housing tax credit provided by section 42 of the Internal Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2189; 26 U.S.C. § 42), (“affordable housing”) that is owned by an organization that is not organized or operated for private gain, or that is owned by an entity controlled, directly or indirectly, by such an organization, shall be exempt from the tax imposed by Chapters 8 and 10 and from a payment in lieu of tax imposed under § 47-1002(20) during the time that the real property is being developed for or being used as affordable housing and is subject to restrictive covenants governing income during the federal low-income housing tax credit compliance period, including any extended use period.
(2) The conveyance of a property to an owner for which a certification as to both the property and owner has been made pursuant to subsection (b)(1) of this section (and that has not been revoked under subsection (b)(2) of this section) shall be exempt from the tax imposed by Chapter 11 of Title 42, and the transfer of any of property by an owner for which a certification as to both the property and owner has been made pursuant to subsection (b)(1) of this section (and that has not been revoked under subsection (b)(2) of this section) shall be exempt from the tax imposed by Chapter 9 of Title 47. Unless waived by regulation, a copy of the certification shall accompany the deed at the time it is submitted for recordation in order to claim an exemption.
(3) A security interest instrument, including a mortgage or deed of trust, securing debt incurred to acquire, develop, or redevelop property described in paragraph (1) of this subsection, or a refinancing or modification of a debt on such property, shall be exempt from the tax imposed by Chapter 11 of Title 42; provided, that a certification of exemption has been made pursuant to subsection (b)(1) of this section with respect to both the owner granting the security interest and the property encumbered by the security interest. Unless waived by regulation, to claim an exemption, a copy of the certification of exemption shall accompany the security interest instrument at the time it is submitted for recordation.
(b)(1) The Mayor shall certify to the Office of Tax and Revenue (“OTR”) each owner and property eligible for an exemption. 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 owner, including taxpayer identification number, that is eligible;
(C) The tax or taxes to which the certification applies;
(D) The portion of the property that is eligible;
(E) The effective date of the exemption, which shall be the date on which the organization acquired the parcel, or October 1, 2012, whichever is later; and
(F) Any other information OTR shall require to administer the exemption.
(2) The Mayor shall notify OTR if any owner or property certified as eligible under paragraph (1) of this subsection becomes ineligible for the exemptions under subsection (a) of this section. The notification shall identify:
(A) The property to which the notice applies by square and lot or parcel or reservation number;
(B) The full legal name of the owner, including taxpayer identification number;
(C) The tax or taxes to which the notice applies;
(D) The portion of the property ineligible;
(E) The date on which the taxpayer or property became ineligible; and
(F) Any other information OTR shall require to administer the termination of the exemption.
(3) OTR shall administer the exemption provided under this section in the same manner as the exemptions provided under § 47-1002, and properties exempted under subsection (a) of this section shall be subject to §§ 47-1005, 47-1007, and 47-1009, except that an owner shall not be required to file an application with OTR to qualify for an exemption.
(c) The grant of a tax exemption as provided in this section shall be in addition to, and not in lieu of, any other tax relief or assistance from any other source applicable to either the real property or its owner.
(d) This section shall apply for real property tax years beginning after September 30, 2012.
(Sept. 20, 2012, D.C. Law 19-168, § 7132(b), 59 DCR 8025; Dec. 24, 2013, D.C. Law 20-61, § 7154(a), 60 DCR 12472; Dec. 13, 2017, D.C. Law 22-33, § 7232(b)(2), 64 DCR 7652; Oct. 30, 2018, D.C. Law 22-168, § 7093(b)(3), 65 DCR 9388.)
Section ReferencesThis section is referenced in § 42-1102 and § 47-902.
Effect of AmendmentsThe 2013 amendment by D.C. Law 20-61 rewrote (a)(1).
Emergency LegislationFor temporary amendment of (a)(1), see § 102 of the Fiscal Year 2013 Budget Support Technical Clarification Emergency Amendment Act of 2012 (D.C. Act 19-482, October 12, 2012, 59 DCR 12478).
For temporary amendment of (a)(1), see § 102 of the Fiscal Year 2013 Budget Support Technical Clarification Congressional Review Emergency Amendment Act of 2012 (D.C. Act 19-604, January 14, 2013, 60 DCR 1045), applicable as of January 10, 2013.
For temporary (90 days) amendment of this section, see § 7154 of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).
For temporary (90 days) amendment of this section, see § 7154 of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).
Temporary LegislationSection 102 of D.C. Law 19-226 amended subsection (a)(1) of this section to read as follows:
“(a)(1) Property eligible for the low-income housing tax credit provided by section 42 of the Internal Revenue Code, (‘affordable housing’ ) that is owned by an organization that is not organized or operated for private gain, or that is owned by an entity controlled, directly or indirectly, by such an organization, shall be exempt from the tax imposed by Chapter 8 of this title and from a payment in lieu of tax imposed under § 47-1002(20) during the time that the real property is being developed for or being used as affordable housing and is subject to restrictive covenants governing income during the federal low-income housing tax credit compliance period, including any extended use period.”
Section 402(b) of D.C. Law 19-226 provided that the act shall expire after 225 days of its having taken effect.
Short TitleSection 7151 of D.C. Law 20-61 provided that Subtitle O of Title VII of the act may be cited as the “Tax Clarification Amendment Act of 2013”.
Editor's NotesApplicability of D.C. Law 20-61: Section 7154(b) of D.C. Law 20-61 provided that § 7154(a) (which amended § 47-1005.02(a)(1)) shall apply as of September 20, 2012.