B 24-0168 — District’s Opportunity to Purchase Amendment Act of 2021

ENGROSSEDENROLLED ORIGINAL AAN BILLACT 3________________ 24-168 5 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 7___________________________ _________________ 9 To amend the Rental Housing Conversion and Sale Act of 1980 to remove certain limitations on the authority of the Mayor or the Mayor’s assignee to purchase housing accommodations under the District Opportunity to Purchase Act, and to establish affordable housing requirements applicable to housing accommodations purchased by the Mayor or assignee as aforesaid BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the “District’s Opportunity to Purchase Amendment Act of 2021”.

The Rental Housing Conversion and Sale Act of 1980, effective September 10, 1980 (D.C.

ENGROSSED ORIGINAL “(A) For the first 12 months, the monthly rent, including utilities, shall not be greater than the monthly rent, including utilities, on the date the offer of sale was provided to the Mayor;

and “(B) After the first 12 months, the monthly rent shall be subject to allow-allowable able percentage increases annually, limited to the lesser of:

“(i) The allowable annual increase in monthly rent for a rental unit pursuant to Sectionsection 208(h) of the Rental Housing Act (D.C.

(2) SubsectionSubsections (c) isand (d) are amended to read as follows:

“(c)“(c)(1) (1) Upon the initial sale of the housing accommodation to the Mayor or the Mayor’s assignee, the Mayor shall record a covenant that shall require the Mayor or the Mayor’s assignee, and every successor in interest, to maintain as rent-and-income-restricted, for as long as the ENROLLED ORIGINAL property remains a housing accommodation, each rental unit in the housing accommodation for which the most recent monthly rent, including utilities, on the date the offer of sale was provided to the Mayor, was equal to or less than the maximum rent for a household with an income of 60% of the median family income, and any additional units as designated by the affordability plan required by subsection (d) of this section.

ENGROSSED ORIGINAL “(A) If the most recent monthly rent was equal to or less than the maxi- mum rent for a household with an income of 60% of the median family income, that unit shall become a rent-and-income-restricted unit restricted to tenants with annual household incomes equal to or less than 60% of the median family income;

“(D) The Mayor may waive in writing subparagraphs (A) or (B) of this subsectionparagraph for all or a portion of the rental units in a specific property that are vacant on the date the offer of sale was provided to the Mayor, or subsequently become vacant before the parties execute the afford-affordability ability covenant, in order to increase financial feasibility of the purchase and operation of the project, in which case rents shall be set in accordance with the affordability plan required by subsection (d) of this section.”section. (3) Subsection (d) is amended to read as follows:

“(d)“(d)(1) The Mayor, or an assignee of the Mayor, shall develop an affordability plan detailing a strategy to meet the requirements of subsection (c)(2) of this section, and as practicable,prac- ENGROSSEDticable, ORIGINAL increase the number of rent-and-income-restricted units in the purchased housing accom-accommodation modation restricted to tenants with annual household incomes equal to or less than 60% of the median family income.

“(2) The affordability plan may allow for rent-and-income restricted units to be restricted to tenants with annual household incomes above 60% of the median family income,income; so long as the average designated household annual income limit of all rent-and-income res- tricted rental units in the housing accommodation is equal to or less than 60% of the median family income as a result of the affordability plan.

Inprovided, accordancethat with subsection (c)(1) of this section, the affordabilityaverage plandesignated mayhousehold notannual reduceincome thelimit number of unitsall affordablerent-and-income atres- 30%tricted orrental 60% of median family income below the number of such units existing in the housing accommodation onis theequal dateto theor offerless ofthan sale60% wasof provided to the Mayor.”median (4)family Aincome newas subsectiona (e)result isof addedthe toaffordability readplan. as follows:

“(e)“(3) ForIn theaccordance purposeswith subsection (c)(1) of this section, the term:affordability plan may not reduce the number of units affordable at 30% or 60% of median family income below the number of such units existing in the housing accommodation on the date the offer of sale was provided to the Mayor.”.

“(1)(3) “MaximumA rent”new meanssubsection the(e) highestis amountadded chargeableto forread a particular rental unit such that a household of the rental unit's imputed household size that earns the applicable MFI Level will expend no more than 30% of its annual income on monthly rent and utilities, as setfollows: forth in a Rent and Income Schedule published by the Mayor.

ForENROLLED purposesORIGINAL of“(e) thisFor paragraph, the imputedpurposes household size applicable to a unit will be determined in accordance with the Housing Production Trust Fund program regulations, Title 10, Chapter B41, Section 4107.3(b) of thethis Districtsection, of Columbia Municipal Regulations, as the sameterm: may be amended from time to time.”.

ENGROSSED“(1) ORIGINAL“Maximum “(2)rent” “Median family income” or “MFI” means the medianhighest familyamount incomechargeable for thea Washingtonparticular Metropolitanrental Statisticalunit Areasuch asthat seta forthhousehold byof the Unitedrental Statesunit's Departmentimputed ofhousehold Housingsize andthat Urbanearns Development,the adjustedapplicable forMFI householdlevel size,will withoutexpend regardno tomore anythan adjustments30% madeof byits theannual Unitedincome Stateson Departmentmonthly ofrent Housing and Urbanutilities, Developmentas forset theforth purposesin ofa theRent programsand itIncome administers.Schedule published by the Mayor.

AdjustmentsFor purposes of medianthis familyparagraph, incomethe forimputed household size shallapplicable beto madea asunit prescribedwill be determined in Sectionaccordance 2(1)with ofthe regulations governing the Housing Production Trust Fund Act,program. effective March 16, 1989 (D.C.

“(2) “Median family income” or “MFI” means the median family income for the Washington Metropolitan Statistical Area as set forth by the United States Department of Housing and Urban Development, adjusted for household size, without regard to any adjustments made by the United States Department of Housing and Urban Development for the purposes of the programs it administers.

Adjustments of median family income for household size shall be made as prescribed for the area median income in section 2(1) of the Housing Production Trust Fund Act, effective March 16, 1989 (D.C.

“(4) “Rent-and-income-restricted unit” means a unit that is restricted to tenants with a designated household annual income limit and with rents restricted to the maximum rent.rent.”.

This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), a 30-day period of Congressionalcongressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December ENROLLED ORIGINAL 24, 1973 (87 Stat.

______________________________ Chairman Council of the District of Columbia _________________________________ Mayor District of Columbia 4