January 29, 2024

D.C. Releases Draft Regulations for the Housing in Downtown Tax Abatement

Holland & Knight Alert
Christine M. Shiker | Kyrus Lamont Freeman | Leila Marie Jackson Batties | Dennis Russell Hughes | Jessica R. Bloomfield | Christopher S. Cohen | John T. Oliver | Brandice N. Elliott

The Office of the Deputy Mayor for Planning and Economic Development (DMPED) for the District of Columbia issued draft regulations effectuating the Housing in Downtown Tax Abatement (Abatement) on Jan. 26, 2024. The draft regulations seek to implement the provisions of the recently approved Abatement that authorize the mayor to approve real estate tax abatements as an incentive to the development of residential use in the area more broadly described as the District's downtown (Downtown).

Properties are eligible for an abatement if 1) they are located in the identified Downtown area, 2) there is a change in use of the parcel that results in the creation of at least 10 housing units, 3) the development meets certain affordability requirements and 4) other development and contracting requirements are met. Additionally, the draft regulations exempt a property awarded an abatement from the requirements of the District of Columbia Tenant Opportunity to Purchase Act (TOPA) for the first sale of said property within 10 years after the project's certificate of occupancy has been issued.

Consistent with the approved Abatement, the draft regulations allocate the following maximum funding amounts:

  • $2.5 million for fiscal year (FY) 2024, 2025 and 2026
  • $6.8 million for FY 2027
  • $41 million for FY 2028 and
  • an additional 104 percent for each FY thereafter

The draft regulations are now in a 30-day public comment period that expires on Feb. 26, 2024.

If you have any questions regarding the draft regulations, please contact the authors or another member of Holland & Knight's Mid-Atlantic Land Use Team.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.

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