Tax abatements for housing in downtown – Abatement period and caps

*NOTE: This section includes amendments by emergency legislation that will expire on November 11, 2026. To view the text of this section after the expiration of all emergency and temporary legislation affecting this section, click this link: Permanent Version.* (a) For each property for which a certification of tax abatement was issued under § 47-860.02(e), the real property tax imposed by § 47-811 shall be abated in an annual amount, as reasonably determined by the Mayor for each property; provided, that: (1) The tax abatement shall begin in the tax year in which a certificate of occupancy is issued for the property and shall expire at the end of the 20th tax year after the tax year in which a certificate of occupancy is issued for the property; and (2)(A) A property shall cease to receive the abatement if during the period of the tax abatement the Mayor determines that the property is no longer eligible for the abatement. If the Mayor makes such a determination, the Mayor shall transmit to the property owner and the Office of Tax and Revenue a letter of termination, setting forth the reason for the termination and the date on which the termination took, or shall take, effect. Upon transmission of the letter of termination to the Office of Tax and Revenue, the Office of Tax and Revenue shall assess and collect any tax benefits improperly received during any period of ineligibility, in addition to interest, as provided by law. Amounts recaptured under this subparagraph, including interest, shall be deposited into the General Fund of the District. A property shall no longer be eligible for the tax abatement if it no longer contains 10 housing units, is in noncompliance with § 47-860.02(a)(1) or (2), is in noncompliance with any conditions set forth in the certification of tax abatement, or for any reason set forth by the Mayor by rule. (B) If the Mayor determines that a property is no longer eligible for the abatement, the Mayor may, in his or her sole discretion, provide the property owner a period to cure the property's ineligibility and, if during the period to cure, the owner cures the property's ineligibility, the Mayor may, subject to subsection (b) of this section, restore the tax abatement; provided, that the tax abatement shall not be provided for the period during which the property was ineligible, and the period of cure shall not toll the 20-year period set forth in paragraph (1) of this subsection. (C) If the Mayor restores a tax abatement under this subsection, the Mayor shall transmit a letter of restoration to the property owner and the Office of Tax and Revenue, setting forth the date on which the restoration took, or shall take, effect. (b) The amount of tax abatements the Mayor may approve or certify under § 47-860.02 and restore under subsection (a)(2) of this section shall be capped at the following amounts, subject to the availability of funding: (1) For Fiscal Years 2024, 2025, and 2026, up to $2.5 million; (2) For Fiscal Year 2027, up to $5 million; (3) [Repealed]. (4) For Fiscal Year 2028, up to $41 million; and (5) For each succeeding fiscal year after Fiscal Year 2028, up to an amount equal to 104% of the prior year's cap.