PR 25-0602 — Housing in Downtown Tax Abatement Technical Amendment Emergency Declaration Resolution of 2024

MURIELENROLLED BOWSERORIGINAL MAYORA RESOLUTION 25-410 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA January 4,9, 2024 TheTo Honorabledeclare Philthe Mendelsonexistence Chairmanof Councilan emergency with respect to the need to amend Chapter 8 of Title 47 of the District of Columbia PennsylvaniaOfficial Avenue,Code N.W.,to Suiterevise 504the Washington,statutes DCgoverning 20004tax Dearabatements Chairmanfor Mendelson:housing in downtown to ensure the program is competitive, ensure proper recording of the Tenant Opportunity to Purchase Act exemption, extend the timeframe for receiving a certificate of occupancy, and remove a calculation that is no longer applicable.

EnclosedRESOLVED, forBY considerationTHE byCOUNCIL theOF CouncilTHE isDISTRICT proposedOF legislationCOLUMBIA, entitledThat thethis "Housingresolution inmay Downtownbe Taxcited Abatementas Technical Amendment Emergency Declaration Resolution of 2024", the accompanying, “Housing in Downtown Tax Abatement Technical Amendment Emergency ActDeclaration ofResolution 2024”, and temporary and permanent legislation, entitled “Housing in Downtown Tax Abatement Technical Amendment Temporary Act of 2024”2024”. and “Housing in Downtown Tax Abatement Technical Amendment Act of 2024”, respectively.

This legislation facilitates implementation of the laws previously enacted to promote housing downtown.

Approval of the enclosed emergency declaration and approval of the emergency, temporary and permanent legislation will allow the Office of the Deputy Mayor for Planning and Economic Development to move forward with promulgating regulations as mandated by D.C.

Official Code § 47–860.04 for the housing in downtown tax abatement program.

I look forward to your prompt and favorable consideration of this resolution.

In order to facilitate a response to any questions you may have, please have your staff contact Nina Albert, Acting Deputy Mayor for Planning and Economic Development, at 202-727-6365.

Sincerely, Muriel Bowser Enclosures 2 at the requestfthe Mayor 5 7 A PROPOSED RESOLUTION 9 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA To declare the existence ofan emergency with respect to the need to amend Chapter 8 of Title 47 ofthe District of Columbia Official Code to revise the statutes governing tax abatements for housing in downtown to ensure the program is competitive, ensure proper recording ofthe Tenant Opportunity to Purchase Act exemption, extend the timeframe for receiving a certificate ofoccupancy, and remove a calculation that is no longer applicable.

RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this resolution may be cited as the "Housing in Downtown Tax Abatement Technical Amendment Emergency Declaration Resolution of2024".

ActLaw 24-492;24-167;

69 DCR 009223)9223) ("original(“original act"),act”), authorized the Mayor to approve tax abatements to incentivize the creation ofmoreof housinginmore housing in the downtown area oftheof the District.

(b) The Housing in Downtown Abatement Amendment Act of2023,of 2023, effective September 6, 2023 (D.C.

Law 25-50;7025-50; DCR 10366) ("2023 amendment act"), made some changes to how the abatement would function and clarified the amount of abatements authorized to be approved.

(c)70 DuringDCR the10366) executive(“2023 branch'samendment processact”), ofdraftingmade regulationssome changes to implementhow the tax abatement program, it was determined that an effective program would requirefunction amendmentsand toclarified allow the Mayoramount toof award the abatements throughauthorized ato competitivebe process;approved.

(c) During the executive branch’s process of drafting regulations to implement the tax abatement program, it was determined that an effective program would require amendments to allow the Mayor to award the abatements through a competitive process, ensure that all exemptions granted by statute are properly recorded;recorded, extend the timeframe of completing required documents to reflect more realistic estimates, and remove a calculation that is no longer applicable.

extend(d) Emergency legislation is necessary to allow the timeframeMayor, through the Office of completingthe requiredDeputy documentsMayor for Planning and Economic Development (“DMPED”) to reflectrelease moreproposed realisticregulations estimates;for public comment to advance the goals of revitalizing downtown and promoting housing development there as embodied in the original act and the 2023 amendment act.

andThe removeregulations acannot calculationbe thatreleased isfor nopublic longercomment applicable.before the amendments to the underlying statute are enacted;

(e)so, Emergencyany legislationdelay isin necessary to allow the Mayor,enactment through the Office of the Deputyamendments Mayordelays forDMPED’s Planningability and Economic Development (“DMPED”) to releaseissue proposed regulations for public comment to advance the goals of revitalizing downtown and promotingstart housingoffering developmenttax thereabatements as embodied in the originalCouncil actintended. and the 2023 amendment act.

TheENROLLED regulationsORIGINAL cannotSec. be released for public cefore the amendments to the underlying statute are enacted, so any delay in the enactment of the amendments delays DMPED’s ability to issue regulations and start offering tax abatements as the Council intended.

Sec.

The Council of the District of Columbia determines that the circumstances enumerated in section 2 constitute emergency circumstances making it necessary that the Housing in Downtown Tax Abatement Emergency Amendment Act of 2024 be adopted after a single reading.