District of ColumbiaB26-0053Council Period 26 (2025-2026)HouseWALLET

Vacant to Vibrant to Amendment Act of 2025

Sponsored By: Phil Mendelson (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

23 provisions identified: 11 benefits, 5 costs, 7 mixed.

50% credit to rehab vacant homes

Beginning January 1, 2027, you can claim a refundable tax credit equal to 50% of eligible development costs. Costs must be paid after December 31, 2026 for buying, building, major rehab, demolition, or environmental cleanup of Class 3 or 4 homes of four or fewer units or condos in Mayor‑designated census tracts. The Mayor must certify the credit, including that you sold the rehabbed home to a qualifying homeowner. You claim it in the year the substantial rehab is completed. The Mayor may approve up to $2 million in credits each fiscal year.

Commercial redevelopment property tax abatement

If eligible development costs exceed $1,500,000 and the property was vacant or blighted for at least 12 months without exemptions, the Mayor may certify a property tax abatement. You must use at least 35% certified business enterprise contracting and sign a First Source Agreement. Get a certificate of occupancy within 24 months of the eligibility letter; the Mayor may extend up to 8 months. The abatement schedule: pay 50% of otherwise‑due tax in years 1–6, two‑thirds in years 7–8, and three‑quarters in years 9–10.

Court receivers for problem vacant buildings

The Attorney General can ask a court to appoint a receiver to fix, demolish, or sell a vacant building. Triggers include being a nuisance property for at least 24 months with unresolved violations, being blighted with appeals finished, or being condemned. The owner gets at least 90 days’ notice before filing. A receiver can borrow with a lien, manage the property for up to two years, foreclose the receiver’s lien, and sell the property. An owner or mortgagee may still rehab the building if they show ability and post a bond.

Higher fines for unpaid vacant‑building fees

The law sets tiered civil penalties if you do not pay required vacant‑building fees or break related rules. The first violation can be up to $1,000, the second up to $2,500, and the third and later up to $5,000. Owners who still do not pay after notice are reported to the Attorney General. The Mayor may also use construction code actions, civil fines, and criminal prosecution.

Higher taxes on long-vacant and blighted

Starting with tax years beginning October 1, 2027, Class 3 vacant properties pay $2 per $100 of assessed value in year 1, $3 in year 2, $4 in year 3, and $5 in year 4 and after. Class 4 blighted properties pay $4 per $100 in year 1, $6 in year 2, $8 in year 3, and $10 in year 4 and after. The tax office may rely on vacancy and blight lists and request inspections. If reclassified, owners must apply to register vacant within 30 days; reclassification can be retroactive to the half tax year and back taxes, penalties, and interest apply after appeals. A narrow exception applies for certain transfers 30 days or less before the deed is executed.

City can take title or auction

If no one answers and the court finds proper notice, a vacant or blighted Class 3 or 4 property that is not redeemed is transferred to the Mayor. The Mayor may convey the property to a land bank or sell it at a public auction, with notice in at least two newspapers and on the tax office website. Auction buyers must place a 20% deposit before bidding, pay in full within 5 business days, show rehab resources and experience, have no unresolved housing code issues, and be current on District taxes. If a bid exceeds taxes and recorded liens, the extra is refunded to the recorded owner; unclaimed excess after three years goes to the General Fund. A defaulting buyer forfeits the 20% deposit.

New foreclosure path with owner protections

If a Class 3 or 4 property is over one year tax‑delinquent, appeals are exhausted, and notice is mailed, the Attorney General can file to foreclose the right of redemption. The Mayor must mail a 90‑day pre‑filing notice and then publish after 60 days; published notices run weekly for three weeks and give at least 60 days to answer or redeem. You have a right to a hearing at least 30 days after filing and 60 days after publication; the court appoints a guardian ad litem for minors or adjudicated incompetents. The complaint must list parties, addresses, and amounts due; the District must name all interested parties and can use any method that gives actual notice, with an affidavit. The Attorney General may decline or dismiss for payment, occupancy, notice errors, hardship, or a one‑year rehab/sale plan, and must publish any dismissal; the Mayor cannot sell Class 3 or 4 property at tax sale if delinquent less than one year.

Faster permits to fix vacant homes

Within 180 days, the District sets up expedited permit review for Class 3 and Class 4 properties that are registered as vacant. It covers demolition, raze, additions, repairs, sheeting and shoring, new buildings, and trade permits. The District cannot charge extra fees for the expedited review beyond normal permit fees. This shortens time to start rehab or demolition.

Grants to fix single-family homes

The housing department offers grants to eligible homeowners for accessibility changes, roofs, code fixes (including lead), energy upgrades, structural repairs, and major systems like plumbing and HVAC. To qualify, your household income must be at or below 80% of area median income, the home has been your primary residence for at least 3 years, you are current on your mortgage for the last 3 months, current on District and federal taxes as allowed, and have homeowners insurance. The department selects licensed contractors and pays them directly.

Payment plans for overdue property taxes

If you get the homestead deduction and show hardship, you can apply online for a 12‑, 18‑, or 24‑month property tax payment plan. Your monthly payment equals your total bill divided by the months you choose. Eligible income is under $125,000 AGI, adjusted each year starting October 1, 2025 by the senior/disabled COLA; seniors and people with disabilities may also qualify under alternate rules. While the plan is active, your home is not sold at tax sale. If you default and want reinstatement, you may need to pay a lump sum equal to twice one monthly payment plus any missed payments.

Time-limited exemptions for vacant properties

Some vacant buildings do not have to register or pay higher vacant‑property taxes. Federal and certain foreign‑mission properties are exempt. The Mayor may grant short exemptions for probate (up to 3 tax years), good‑faith efforts to rent or sell, pending approvals (up to 2 tax years), active permit filings (up to half a tax year), or active construction (up to 3 tax years). Hardship exemptions may be renewed with proof. All exemptions under these rules together cannot exceed 5 tax years in any 12‑year period.

Register and maintain vacant buildings

Owners must register a building within 90 days after it becomes vacant. You must file a maintenance plan, name a local contact, and schedule inspections. You must keep the building secure, weather‑tight, clean, and free of hazards. The initial registration fee is $350 and renewal is $500. The Mayor may deny or revoke registration when safety or code rules are not met.

Broader Class 1A status and timing

Class 1A now includes regular non‑transient housing that is not Class 1B, and can still host short‑term guests with a valid license. It also includes properties with permits to build or substantially rehab for mostly non‑transient housing. If the change happens Oct 1–Mar 31, the Class 1A rate applies for the whole year; if Apr 1–Sep 30, it applies to the second installment only. You must apply with the CFO and provide documents. If the property is not put to mainly residential use within three years, the CFO can reclassify and assess back taxes, interest, and penalties; you may seek review within 45 days and ask for relief for undue hardship.

Broader definition of blighted areas

The Mayor may label areas as blighted if they are unsafe or unsanitary, have many abandoned or vacant buildings or substandard structures, or harm health, safety, or welfare because of decay, poor planning, or unsafe uses. This supports stronger neighborhood enforcement and redevelopment tools in more places.

Help transferring a home after death

The housing department provides a clear information sheet within 180 days on how to transfer a home after an owner dies. It lists steps for probate and title and low‑cost or free legal help. Funeral homes must give this sheet to survivors within 5 days after final disposition or when they deliver death certificates, whichever comes first. A funeral home that fails to provide it can be fined up to $100 per offense.

Will registry for safe document storage

Beginning January 1, 2028, the Register of Wills runs a will registry. A domiciliary testator, the testator’s agent, or the testator’s attorney can deposit an original sealed will for safekeeping. The office indexes the will and issues a receipt when you pay the required fee. After the testator dies, the office unseals the will and sends it to Probate Court. The Register is not liable for loss under this law.

Deadlines to appeal vacancy decisions

If your property is designated vacant or blighted vacant, you have 15 days to ask the Mayor to reconsider. The Mayor issues a final notice within 60 days; after that, you have 45 days to appeal to the Real Property Tax Appeals Commission, and that deadline cannot be extended. The Commission must decide within 120 days. Advisory Neighborhood Commissions get materials at least 15 days before a hearing, and agency responses must be available at least 7 days before. The District may appeal Commission decisions to Superior Court within 90 days.

Clearer tax‑delinquency notices for homeowners

Delinquency notices now explain the consequences and how to pay online at MyTax.DC.gov or by mail. The notice tells you that paying to avoid tax sale may be less than the total owed. It must list help such as the Real Property Tax Ombudsman, hardship forbearance, tax relief, free legal services, and HUD housing counseling. The presale notice also tells you to provide a copy of your receipt if you pay less than 10 business days before the sale.

Stronger planning to fix vacant homes

The January 1, 2026 Strategic Enforcement Plan must include predictive models, proactive enforcement ideas from other places, and feasibility analysis for enforcing vacant and blighted laws. The January 1, 2027 plan, and every three years after, must add a rehabilitation strategy. Plans must cover interagency work, incentives and best practices, performance metrics, and consult listed stakeholders.

Clear tests for vacant and blighted homes

The Mayor now applies specific facts to decide vacancy, such as neighbor complaints, piled‑up mail, low or past‑due utilities, overgrown yards, no furnishings, and open access or trespass. To decide blight, the Mayor considers police‑documented illegal activity, condemnation, boarded or missing windows or doors, structural decay, trash and debris, vandalism, mold or pests, and agency referrals. These tests guide whether a building is labeled vacant or blighted.

Some sections start only when funded

Several sections of this law apply only on the date the Chief Financial Officer certifies their fiscal effect is in an approved budget and financial plan. The Budget Director must publish the CFO’s certification in the D.C. Register. Publication does not change the applicability date.

Public tracking of vacant properties

The District keeps a public website listing vacant buildings with key details like address, ANC, dates, exemptions, last inspection, and current tax class. The Mayor sends vacancy and blight lists to the tax office at least weekly and reconciles records monthly. When certifying vacancy or blight, the buildings department must state which half‑year tax rate applies. The law also aligns Class 3 and 4 definitions across code sections.

Property tax abatements capped and prorated

The law caps total property tax abatements at up to $2.5 million for Fiscal Years 2027–2029 and $3 million each year after FY2029. Before each semiannual tax bill, the Mayor certifies which properties qualify and how much tax to abate for that half‑year, and states the total dollars available. If certified abatements are more than the money available, the funds are split pro rata across all certified properties. The Mayor must also issue rules that set who can apply, how to get certified, and other program details.

Sponsors & Cosponsors

Sponsor

Phil Mendelson
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 23 • No: 0

House vote • 7/1/2025

Final Reading

Yes: 12 • No: 0

House vote • 6/3/2025

First Reading, CC

Yes: 11 • No: 0 • Other: 1

Actions Timeline

Law Number L26-0041 Effective from Oct 01, 2025
10/1/2025House
Transmitted to Congress
8/19/2025House
Act A26-0128 Published in DC Register Vol 72 and Page 008881
8/15/2025House
Returned from Mayor
8/12/2025House
Signed by the Mayor and Enacted with Act Number A26-0128
8/11/2025House
Transmitted to Mayor, Response Due on Aug 14, 2025
7/31/2025House
Legislative Meeting
7/1/2025House
Committee Report Filed by the Committee of the Whole, Includes Hearing Record
6/30/2025House
Notice of Mark-up filed in the Office of Secretary
6/3/2025House
Legislative Meeting
6/3/2025House
Committee Mark-up of B26-0053 by the Committee of the Whole
6/3/2025House
Notice of Intent to Act on B26-0053 Published in the District of Columbia Register
1/24/2025House
Referred to Committee of the Whole with comments from the Committee on Executive Administration and Labor
1/21/2025House
B26-0053 Introduced by Chairman Mendelson at Office of the Secretary
1/13/2025House

Bill Text

Amendment
7/1/2025
PDF
Enrollment
7/1/2025
PDF
Amendment
6/3/2025
PDF
Engrossment
6/3/2025
PDF
Introduced
1/13/2025
PDF

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