B 26-0545 — River East at Grandview Homeownership Relief and Restoration Amendment Act of 2025

ENGROSSEDENROLLED ORIGINAL AAN BILLACT 3________ 26-545 5 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 7 _______________ 9 To amend the Relief for River East at Grandview Condominium Owners Act of 2024 to provide housing relief to certain owners and former owners of the River East at Grandview Condominiums by establishing eligibility for Home Purchase Assistance Program grants, converting existing Home Purchase Assistance Program loans to grants, and limiting the affordability covenant period for former owners Inclusionary Zoning and AccessoryAffordable Dwelling ownership units to 15 years;years, and requiring the Department of Housing and Community Development to submit an annual report to the Council;

and to addressamend relatedChapter tax18 considerationsof andTitle reportingof requirements.the District of Columbia Official Code to exempt relief from District income tax.

Official Code § 42–208142-2081 et seq.)seq.), is amended as follows:

Official Code § 42–2081)42-2081) is amended as follows:

ENGROSSED ORIGINAL (2) Paragraph (l) is amended by striking the periodphrase “Property.” and inserting the phrase “and“Property and purchased the condominium unit between July 2017 and March 2019.” in its place.

(b) A new Section 21352134(d) is(D.C. added to read as follows:

Official Code § 42-2083(d)) is repealed.

(c) A new section 2135 is added to read as follows:

21352135. HPAP loan conversion to grant and shortening the length of IZ or ADU affordability covenant for Property Owners and Former Property Owners “(a) DHCD shall provide relief under this section to Property Owners or Former Property Owners as follows:

(1)HPAP DHCDloan shallconversion maketo Propertygrant Ownersand orshortening Formerthe Propertylength Ownersof whoIZ haveor notADU purchasedaffordability anothercovenant primaryfor residenceProperty sinceOwners leavingand theFormer Property eligibleOwners. for HPAP assistance, pursuant to the Home Purchase Assistance Fund Act of 1978, effective September 20, 1978 (D.C.

“(a)(1) DHCD shall make Property Owners or Former Property Owners who have not purchased another primary residence since leaving the Property eligible for HPAP assistance, pursuant to the Home Purchase Assistance Fund Act of 1978, effective September 20, 1978 (D.C.

Official Code § 42–260142-2601 et seq.), in the form of a grant toward the ENROLLED ORIGINAL purchase of a primary residence in the DistrictDistrict, ofand Columbia.exclude them from the HPAP program’s credit requirements.

The“(2)(A) DHCD shall convert outstanding HPAP loans for Property OwnerOwners or Former Property OwnerOwners shallwho bepreviously excludedreceived fromHPAP creditassistance requirementsto forpurchase a primary residence in the HPAPDistrict program.to grants.

(2) DHCD shall convert outstanding HPAP loans for Property Owners or Former Property Owners who previously received HPAP assistance to purchase a primary residence in the District of Columbia into grants.

(A)“(B) DHCD and the Office of Tax and Revenue shall record any release, modification, or other instrument necessary to reflect the conversion in the land records.

ENGROSSED“(3) ORIGINAL (3) DHCD shall award HPAP grants of up to $50,000 to be used towards the payment of a primary residence mortgage principal balance, in the form of a recast or refinance of the current mortgage, for Property Owners or Former Property Owners who purchased a primary residence in the District of Columbia without HPAP assistance.

(4)“(4) A Property Owner or Former Property Owner who has purchased, or will purchase, an IZ or ADU unit as their next primary residence under Chapter 22 of Title 14 of the District of Columbia Municipal Regulations (14 DCMR § 2200 et seq.seq.) shall receive priority when applying for an IZ or ADU ownership unit.

shall receive priority when applying for an IZ or ADU ownership unit.

DHCD shall record and make publicly available the termination of any covenant underpursuant to this paragraph.

“(b) NotwithstandingBy anySeptember other1, provision2027, ofand law:annually thereafter through Fiscal Year 2032, DHCD shall submit to the Council a report identifying:

(1)“(1) AnyThe amountnumber receivedof underindividuals thisreceiving sectionrelief shalland bethe excludedtotal fromamount Districtof grossrelief incomereceived forunder purposeseach ofparagraph Title 47 of thesubsection District(a) of Columbiathis Officialsection; Code;

and“(2) (2)The Anyward amountin realizedwhich byeach reasongrant ofrecipient thepurchased conversiona orproperty; forgiveness of an HPAP loan under subsection (a)(2) shall also be excluded from District gross income for purposes of Title 47 of the District of Columbia Official Code.

Theand Office“(3) ofAny Taxadministrative andor Revenuefiscal shallchallenges issuein guidanceimplementing to implement this subsection.section.

ENGROSSED“(c) ORIGINALNothing “(c)in Bythis Septembersection 1,shall 2027,be andconstrued annuallyto thereaftercreate throughan Fiscalentitlement Yearor 2032,to DHCDrequire shallthe submitDistrict to make payments in excess of funds appropriated for the Councilpurpose aof reportthis identifying:section.

(1)“(d) TheThis numbersection ofshall individualssunset receivingafter reliefDecember and31, the2032.”. total amount of relief received under each paragraph of subsection (a);

(2) The ward in which each grant recipient purchased a property;

and (3) Any administrative or fiscal challenges in implementing this section.

“(d) Nothing in this section shall be construed to create an entitlement or to require the District to make payments in excess of funds appropriated for the purpose of this section.”.

Sec 3.

Applicability This act shall sunset after December 31, 2032.

3.

Section 47-1803.02(a)(2) of the District of Columbia Official Code is amended by adding a new subparagraph (BBB) to reads as follows:

“(BBB) For tax years ending on or before December 31, 2032:

“(i) Any income realized by reason of the forgiveness of any debt or loans under § 42-2083(b) or (c);

and “(ii) Any income realized by reason of the conversion or forgiveness of a Home Purchase Assistance Program loan under to section 2135 of the Relief for River East at Grandview Condominium Owners Act of 2024, passed on 2nd reading on June 2, (Enrolled version of Bill 26-545).”.

ENROLLED ORIGINAL Sec.

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),veto) and a 30-day period of congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat.

Official Code § 1-206.02(c)(1)),1-206.02(c)(1)). and publication in the District of Columbia Register.

___________________________________ Chairman Council of the District of Columbia _________________________________ Mayor District of Columbia 3