§ 47-820.02 — Residential real property subject to certain affordability and resale restrictions; Mayor to issue rules.

District of Columbia § 47-820.02

• Jurisdiction: District of Columbia
• Title 47: Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]
• Ch. 8: Real Property Assessment and Tax.
• Subch. II: Authority and Procedure to Establish Real Property Tax Rates.

Text

(a) Except as otherwise provided in subsection (b) of this section, the assessed value of resale restricted properties (as defined in subsection (c) of this section) shall be:

(A) First determined for the year in which the current property owner received the property.

(B) The base assessment amount shall be the amount paid by the current property owner in exchange for the property, not including:

(i) Any grants or other amounts received by the property owner from government agencies, housing organizations, and other entities that are not likely to be repaid (absent a violation of the terms of the limitations, encumbrances, or other restrictions attached to the sale); and

(ii) Any preexisting equity as defined in [ § 42-2801(8A) ], in the case of resale restricted properties subject to [ Chapter 28 of Title 42 ( §  42-2801 et seq.)].

(2) For subsequent years in which the limitations, encumbrances, or restrictions remain in effect, the property shall be assessed at the base assessment amount, adjusted by the consumer price inflation index for the Washington-Baltimore Metropolitan Area as reported by the Bureau of Labor Statistics, United States Department of Labor.

(b) If the purchase price is not ascertainable or the property has been transferred from a government entity or tax-exempt organization to a property owner without significant consideration, the property shall be assessed taking into account all limitations, encumbrances, and restrictions and shall be assessed in its initial year at a value not to exceed the price the property owner would receive under a sale under the terms of the limitations, encumbrances, and restrictions associated with the property. In any subsequent year in which the limitations, encumbrances, or restrictions remain in effect, the property’s assessed value shall be calculated under subsection (a)(2) of this section.

(c) For the purposes of this section, the term “resale restricted properties” means any properties for which a United States or District of Columbia government entity, or a charitable organization with tax-exempt status under section 501(c)(3) of the Internal Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2085; 26 U.S.C. § 501(c)(3)), directly or indirectly, imposes limitations, encumbrances, or restrictions upon the properties’ subsequent sale or transfer that are intended to preserve or promote the affordability of housing for low- and moderate-income owners, for a period of not less than 5 years.

(c-1) If the grounds of a resale restricted property are owned by a community land trust as defined by § 47-803(1) and are subject to a land lease with the community land trust as the lessor, the assessed value of the grounds shall be based upon the average annual rent over the term of the lease, including renewals, capitalized at a rate of 10%, plus any additional actual consideration payable; except, that the amount to which the rate is applied shall not exceed the fair market value of the real property covered by the interest transferred.

(d) The Mayor shall promulgate rules for the administration of this section within one year of [October 20, 2005].

Legislative History

Oct. 20, 2005, D.C. Law 16-33, § 1281(a)(3), 52 DCR 7503; Mar. 10, 2015, D.C. Law 20-190, § 3, 61 DCR 12156