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

Vacant to Vibrant to Amendment Act of 2025

Sponsored By: Phil Mendelson (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

19 provisions identified: 10 benefits, 3 costs, 6 mixed.

Repair grants for lower-income homeowners

The housing department can pay contractors to repair eligible owner-occupied single-family homes. Covered work includes accessibility, roofs, code violations, lead reduction, structural repairs, electrical, plumbing, heating, cooling, and energy improvements. Household income must be at or below 80% of the Washington area's median income. Owners must have lived there for at least 3 years and kept mortgage payments current for the last 3 months. They also need homeowners insurance and current District and federal taxes; a compliant property-tax payment plan satisfies that tax requirement. The department helps plan repairs, choose licensed and certified contractors, and manage construction.

Refundable credit for vacant-home rehabilitation

For tax years beginning after December 31, 2026, eligible taxpayers get a refundable credit worth 50% of eligible rehabilitation costs. Costs must be paid or incurred after that date and exceed $150,000. The property must be vacant or blighted Class 3 or Class 4, with no more than 4 residential units, or a condominium unit. Its census tract must have median family income at most 80% of the District median and poverty at least 130% of the District rate. The tract's median owner-occupied home value cannot exceed the District median. The Mayor must approve and certify the credit, and the taxpayer must sell to a qualifying homeowner. Credits are claimed in the completion year, capped at $2 million in total approvals per fiscal year, and require approved-budget funding.

Court receivers can take vacant properties

The Attorney General can ask a court to appoint a receiver to repair, demolish, or sell a qualifying building. Grounds include nuisance status, a blighted-vacant designation with appeals exhausted, or a condemnation order. Nuisance status requires at least 24 months of registered or designated vacancy, excluding specified exempt buildings. It also requires failed maintenance or a code violation left unresolved at least 30 days after a final order. Owners must receive at least 90 days' notice before filing, and interested parties can participate. Receiver costs become property liens ahead of private liens, but behind taxes and other government assessments. Receivers can foreclose, sell through a court-approved process that clears prior title interests, or transfer property to a land bank.

Vacant-property taxes rise with time

Beginning with tax years starting October 1, 2027, combined property-tax rates increase with years of vacancy. Taxable vacant Class 3 properties pay $2, $3, $4, then $5 per $100 of assessed value in years 1–4 onward. Blighted-vacant Class 4 properties pay $4, $6, $8, then $10 per $100 over the same years. Exemption periods can count when an exemption expires or is withdrawn and the property remains vacant or blighted vacant. Periods wrongly classified because of false or misleading registration information also count.

Foreclosed owners can claim leftover proceeds

After required notice, service, classification, and nonpayment findings, the court transfers full ownership of qualifying foreclosed properties to the Mayor. The Mayor can transfer them to a land bank or sell them at public auction. Buyers must show repair funding and experience, or an agreement with an experienced partner, and meet tax and code-compliance requirements. They must deposit 20% before bidding and pay the full bid within 5 business days after the sale ends. Former owners can claim qualifying money left after taxes and recorded liens are paid, but must claim it within 3 years.

Residential projects gain conditional tax treatment

Class 1A tax treatment covers qualifying permitted new construction mainly for long-term residential use and substantial rehabilitation exclusively for that use. Eligible permits include raze, demolition, sheeting and shoring, and building permits; owners must apply with complete documents. Classification begins in the application half-year: October–March changes receive full-year rates, while April–September changes affect only the second installment. The property must become mainly residential within 3 years after permit issuance. Otherwise, the Chief Financial Officer must collect the tax difference for affected years or half-years, plus penalties and interest. The officer can extend the deadline or waive penalties and interest for undue hardship. Qualifying residential properties can host short-term guests only with an unexpired short-term rental license endorsement.

Vacant-property foreclosure with owner protections

The Attorney General must seek foreclosure of qualifying Class 3 or Class 4 properties after one year of unpaid taxes. Designation appeals must be exhausted, and the Mayor must give at least 90 days' notice stating the amount due. Paying taxes, interest, and penalties or entering a property-tax payment plan before filing can stop the case. People served by publication get at least 60 days from the publication order to answer or pay to keep the property. The Mayor cannot sell qualifying properties with less than one year of delinquency after designation appeals end. The Attorney General can decline or dismiss cases for payment, occupancy, notice or address errors, or substantial personal and economic hardship. Other grounds include a credible ability to return and occupy, repair, or sell within one year, or the District's best interest.

Limited tax relief for vacant owners

Vacant owners can receive temporary relief from registration fees and higher tax rates for listed reasons. Good-faith marketing relief lasts up to half a tax year for single-family homes, or 2 tax years for other buildings. Marketing requires upkeep compliance and proper rental licensing. Probate or title disputes allow up to 3 tax years, pending development approvals 2, and active permit applications half a year. Active permitted construction or rehabilitation allows up to 3 tax years; work must continue toward making the building fit to occupy. Substantial personal or financial hardship allows up to 2 tax years, with annual renewal and possible withdrawal. These temporary exemptions together cannot exceed 5 tax years in any 12-year period. Federal and qualifying diplomatic properties also avoid registration; District-owned buildings still need registration and upkeep but avoid fees, fines, and higher rates.

Property-tax payment plans for eligible seniors

Eligible homeowners can pay overdue and current property taxes in 12, 18, or 24 equal monthly installments without a down payment. They must receive the homestead deduction, show hardship, and meet age-65-or-older or qualifying disability requirements. Household adjusted gross income must be below $125,000, with annual adjustments beginning October 1, 2025, rounded down to $50 multiples. Applications go through MyTax.DC.gov, and payments can use ACH or checks. Owners may have only one active plan, must pay new taxes, and cannot face a tax sale while it remains active. Plans exclude listed business-district taxes, financing and energy assessments, payments in lieu of taxes, externally certified charges, and previously defaulted periods. OTR must warn owners when a payment is 20 days late. A material breach requires at least 65 days from the payment deadline and 45 days from the breach notice. Reinstatement requires twice the regular monthly payment plus missed payments; failure to cure within the notice's 45-day window can void the plan.

Vacant owners face upkeep and fines

Vacant-building owners must secure openings, maintain exterior surfaces, structures and drainage, and remove debris, excess vegetation, and hazards. Initial and renewal registration require inspections, complete paperwork, and compliance with maintenance, safety, fire, building, housing, and occupancy rules. Registration lasts one year and can be denied or revoked for noncompliance. Covered violations can bring fines up to $1,000 first, $2,500 second, and $5,000 for third or later violations. Triggers include unpaid fees after notice, registration failures, false information, and refused inspections; maintenance failures also face code enforcement. A final vacant or blighted classification stays until the owner supplies enough evidence to change it, without mandatory repeat inspections.

Vacant owners face registration and fees

Unless exempt, owners must register and pay within 90 days after a building becomes vacant; good-cause extensions are available. Initial registration costs $350 and renewal costs $500, and the Mayor can raise these fees through rules. Applications need ownership details, a local maintenance contact, and a signed plan for monitoring, upkeep, security, and neighbor notices. Owners must correct invalid information within 10 days without another fee. Only the record owner or an agent with proof of permission can register. The Mayor can allow a relative when the owner is physically unable, or register a property whose owner fails to act.

District residents can store original wills

Beginning January 1, 2028, District residents, their agents, or their attorneys can deposit original wills with the Register of Wills. The optional service requires a fee, whose amount is not stated here. Wills stay sealed, with lifetime return generally limited to the resident or someone authorized in writing, subject to court-supervised access. After notice of death, the Register unseals the will and sends it to Probate Court. Storage does not prove authenticity or legal validity, and the Register is not liable for loss.

Faster permits for vacant-property repairs

The buildings department must create expedited permit reviews within 180 days after this section's applicability date. The process covers registered vacant Class 3 and Class 4 properties. Eligible permits include demolition, raze, alteration, repair, sheeting and shoring, new-building, and trade permits. Applicants pay standard permit fees with no added charge for expedited review.

Owners can challenge vacancy decisions

Owners have 15 days to ask the Mayor to reconsider covered vacancy, blight, registration, or fee-payment decisions. The Mayor has 60 days to decide; silence counts as denial. Owners then have 45 days after the final decision or missed deadline to appeal to the Real Property Tax Appeals Commission. The Commission must decide within 120 days, and the District has 90 days to appeal its written decision to court. The buildings department can review vacancy or blight status, make needed reclassifications, and seek rehearing as allowed by law.

Property-transfer guidance for surviving families

The department must publish an inheritance property-transfer guide within 180 days after the subtitle's effective date. Prepared with the court and legal providers, it explains property transfers and lists low-cost or free estate legal help. Funeral homes must give survivors the guide within 5 days after final disposition or with ordered death certificates, whichever comes first. Failure to provide it can bring a civil fine up to $100 per offense.

Tax-sale notices explain homeowner help

Property tax-sale delinquency notices must explain hardship forbearance, payment plans, free or reduced-cost legal help, and housing counseling. They must also point owners to the Real Property Tax Ombudsman. Later-stage notices must explain how to report a last-minute payment so the property can be removed from sale. Owners paying less than 10 calendar days before the last business day before sale must send their receipt directly to OTR.

Tax breaks for commercial property redevelopment

The Mayor can approve tax breaks for commercial redevelopment of Class 3 or Class 4 properties vacant at least 12 months without exemption. Eligible development costs must exceed $1.5 million, excluding land purchases, and the project must need the break to proceed. Tax reductions cover 50% in years 1–6, two-thirds in years 7–8, and 75% in years 9–10. Projects need at least 35% certified-business construction contracting and a First Source Agreement covering construction and operations. A certificate of occupancy is due within 24 months after the reservation letter, with an extension of up to 8 months. Annual caps are $2.5 million for fiscal years 2027–2029 and $3 million afterward; shortages are shared proportionally. The program requires certification and inclusion of its fiscal effects in an approved budget and financial plan.

Clearer vacancy rules and owner notices

A vacant building lacks regular, lawful occupancy; for homes, the Mayor must also find no resident clearly intends to return. Vacancy decisions consider complaints, utility use, piled-up mail, furnishings, and trespass access. Blight decisions consider illegal activity, condemnation proceedings, damage, debris, vandalism, mold, pests, and other relevant facts. Notices must be mailed to the owner's tax-record address or served through the statutory process, posted, and copied to the neighborhood commission. Class 3 and Class 4 follow the vacant and blighted-vacant lists; the tax office can request inspections to check designations. The law also defines blighted areas through unsafe conditions, excessive abandoned or vacant properties, and threats to public health or safety.

Public vacancy records support tax enforcement

The buildings department must keep a public online database or list of vacant buildings. It shows locations, vacancy dates, exemptions, time listed, last inspections, and current tax classifications. The Mayor must send finalized vacancy and blight lists to the tax office at least weekly after determination and appeal periods end. The Mayor and tax office must reconcile material differences between vacancy records and Class 3 or Class 4 classifications at least monthly. These records make property status public and support applying the matching tax classification.

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
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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