B 26-0545

                                                                      ENROLLED ORIGINAL
                                            AN ACT
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                   IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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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, limiting the
      affordability covenant period for former owners Inclusionary Zoning and Affordable
      Dwelling units to 15 years, and requiring the Department of Housing and Community
      Development to submit an annual report to the Council; and to amend Chapter 18 of Title
      47 of the District of Columbia Official Code to exempt relief from District income tax.
       BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
act may be cited as the “River East at Grandview Homeownership Relief and Restoration
Amendment Act of 2026”.
         Sec. 2. The Relief for River East at Grandview Condominium Owners Act of 2024,
effective September 18, 2024 (D.C. Law 25-217; D.C. Official Code § 42-2081 et seq.), is
amended as follows:
         (a) Section 2132 (D.C. Official Code § 42-2081) is amended as follows:
                 (1) A new subsection (c-1) is added to read as follows:
         “(c-1) “Former Property Owner” means an individual who purchased a condominium
unit at the River East at Grandview Condominiums between July 2017 and March 2019 and who
no longer owns that unit.
                 (2) Paragraph (l) is amended by striking the phrase “Property.” and inserting the
phrase “Property and purchased the condominium unit between July 2017 and March 2019.” in
its place.
         (b) Section 2134(d) (D.C. Official Code § 42-2083(d)) is repealed.
         (c) A new section 2135 is added to read as follows:
         “Sec. 2135. HPAP loan conversion to grant and shortening the length of IZ or ADU
affordability covenant for Property Owners and Former Property Owners.
         “(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. Law 2-135; D.C. Official Code § 42-2601 et seq.), in the form of a grant toward the
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                                                                       ENROLLED ORIGINAL
purchase of a primary residence in the District, and exclude them from the HPAP program’s
credit requirements.
               “(2)(A) 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 to grants. This provision shall not apply to any subsequent purchase
beyond the first primary residence.
                        “(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.
               “(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. This provision shall not
apply to any subsequent purchase beyond the first primary residence.
               “(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.) shall receive priority
when applying for an IZ or ADU ownership unit. The affordability covenant on that unit shall
terminate 15 years after the date the Property Owner or Former Property Owner closed on a
condominium unit at the Property. This provision applies only to the first qualifying unit and
does not apply to any later purchases. DHCD shall record and make publicly available the
termination of any covenant pursuant to this paragraph.
        “(b) By September 1, 2027, and annually thereafter through Fiscal Year 2032, DHCD
shall submit to the Council a report identifying:
               “(1) The number of individuals receiving relief and the total amount of relief
received under each paragraph of subsection (a) of this section;
               “(2) The ward in which each grant recipient purchased a property; and
               “(3) Any administrative or fiscal challenges in implementing this section.
        “(c) 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.
        “(d) This section shall sunset after December 31, 2032.”.
        Sec. 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,
206 (Enrolled version of Bill 26-545).”.
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                                                                     ENROLLED ORIGINAL
       Sec. 4. Fiscal impact statement.
       The Council adopts the fiscal impact statement in the committee report as the fiscal
impact statement required by section, 602(c)(3) of the District of Columbia Home Rule Act,
approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)).
       Sec. 5. Effective date.
       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) 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. 813; D.C. Official Code § 1-206.02(c)(1)).
              ___________________________________
              Chairman
              Council of the District of Columbia
_________________________________
Mayor
District of Columbia
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