B 26-0657

                    COUNCIL OF THE DISTRICT OF COLUMBIA
                    OFFICE OF COUNCILMEMBER BROOKE PINTO
                          THE JOHN A. WILSON BUILDING
                   1350 PENNSYLVANIA AVENUE, N.W., SUITE 106
                             WASHINGTON, D.C. 20004
April 10th, 2026
Nyasha Howard, Secretary
Council of the District of Columbia
1350 Pennsylvania Avenue, N.W.
Washington, DC 20004
Dear Secretary Howard,
Today, I am introducing the “Housing Opportunity, Mobility, Equity, and Stability (HOMES)
Omnibus Amendment Act of 2026.” This legislation provides a comprehensive housing
package designed to expand housing production, preserve existing affordable housing units,
create additional pathways to homeownership, reduce barriers to small-scale infill development,
and improve the systems through which housing development and rehabilitation is financed,
approved, and delivered in the District.
The District continues to face a severe housing affordability and supply challenge across
multiple income levels.1 Addressing that challenge requires more than a single policy tool. It
requires a broader, creative housing framework that both increases the production of new
homes and strengthens the District’s ability to preserve affordable units, support neighborhood
stabilization, and help residents remain in and access housing in communities across the city.
This omnibus bill is intended to advance that framework by bringing together a set of
complementary reforms that address housing finance, vacant property reuse, homeownership
access, infill housing opportunities, and administrative barriers within the development
and permitting process.
The HOMES Amendment Act will:
      1. Modernize the District’s tax increment financing authority to allow a new
  noncontiguous renewal District model that can support housing, infrastructure, resident
  stabilization, and anti-displacement strategies across multiple areas under a single
  financing plan.
      2. Establish a vacant and blighted property acquisition and affordable housing disposition
  program to return these properties to productive use with priority transfer to community
  land trusts and mission-driven affordable housing nonprofit providers, with the ability
  for the District-held taxes and liens attached to the property to be forgiven.
      3. Create a lease-purchase homeownership opportunity pilot to help households who are
  not yet mortgage-ready, lack necessary financial savings, are impacted by low credit
  scores, or simply need a buffer, transition into homeownership through structured lease-
1
    Washington D.C. Economic Partnership, DC Development Report, (2025/2026), available here
 purchase agreements backed by homeownership counseling services, credit repair
 opportunities and supports, escrow matching funds, and consumer protections.
   4.   Create a first-time homebuyer mortgage interest tax credit for qualifying households to
 reduce the burdens of early homeownership and help low- and moderate-income first-
 time homebuyers afford their mortgage payments.
   5.   Establish a residential infill program to streamline the subdivision process for zoning
 confirming residential lots and support homeowners that participate in the program with
 predevelopment assessment grants and low- to no-cost loans for the development of
 new affordable housing.
   6.   Create a revolving housing financing tool to accelerate the production of mixed-income
 multifamily housing by providing subordinate construction loans and mezzanine
 financing as gap-closing mechanisms for shovel-ready or near-shovel ready projects
 that are unable to close because of a shortfall in senior debt, interest-rate conditions, or
 equity constraints that have left the development undercapitalized.
   7.   Establish a Building Permit Advisory Council to make policy recommendations for
 improving the efficiency, transparency, and predictability of the District’s permitting
 process.
Together, these reforms are intended to provide the District with a broader and more
coordinated set of tools to support housing growth, affordability, and stability. This omnibus
reflects the understanding that the District’s housing challenges exist across the full continuum:
from vacant and blighted properties that could contribute to the supply of affordable housing,
to renters and prospective homeowners facing barriers to stable housing access, to multifamily
developments delayed by capital stack gaps, to smaller infill opportunities constrained by
process barriers, and to the need for more predicable permitting and implementation. By
combining supply-side, preservation, and access-oriented strategies into one legislative
package, this bill aims to further advance durable housing policies for the District.
Should you have any questions about this legislation, please contact my Legislative Counsel,
Isaiah Boyd, at iboyd@dccouncil.gov.
Thank you,
Brooke Pinto
Councilmember, Ward 2
Chairwoman, Committee on the Judiciary and Public Safety
Council of the District of Columbia
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2_____________________________
3Councilmember Brooke Pinto
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5
6A BILL
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8_________________________
9
10IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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12_________________________
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15 To amend the Tax Increment Financing Authorization Act of 1998 to create a modernization lane
16for the certification and approval of noncontiguous renewal district financing plans, to
17authorize renewal district specific bond caps, sunset issuances, and termination dates for
18renewal districts, and to authorize affiliated development projects, district-level eligible
19uses, anti-displacement and affordability requirements, resident stabilization
20programming, public participation, advisory oversight, and monitoring and ex post
21assessment; to amend Title IV of the Abatement and Condemnation of Nuisance
22Properties Omnibus Amendment Act of 2000 to establish a Department of Housing And
23Community Development program for the acquisition and affordable disposition of a
24vacant and blighted residential properties, including priority transfer to community land
25trusts and affordable housing nonprofit providers; to establish a Lease-Purchase
26Homeownership Opportunity Program to provide a structured pathway to
27homeownership for eligible households through lease-purchase agreements, to authorize
28financial assistance, an escrow matching program, counseling, and consumer protections
29in connection with that program, to authorize coordination with existing District
30homeownership assistance programs, to require reporting on program outcomes; to
31amend Chapter 18 of Title 47 of the District of Columbia Official Code to establish first-
32time homebuyer mortgage interest tax credit for qualifying first-time homebuyers with a
33household income at or below 150% of area median income; to amend An Act To
34establish a code of law for the District of Columbia to establish a streamlined
35administrative pathway for conforming residential low subdivision, buildability and
36design review, anti-displacement protections, reporting requirements, and
37recommendations for future zoning and planning amendments; to establish a Housing
38Acceleration Fund to provide revolving subordinate acquisition and construction
39financing for shovel-ready or acquisition-ready mixed-income multifamily rental housing
40developments through a designated administering agency and to originate loans directly
41or through qualified co-lenders, to establish eligibility criteria, underwriting standards,
42and project priorities, to require repayment and recycling of Fund capital, and to require
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43transparency and annual reporting; and to establish the Building Permit Advisory Council
44for the Department of Buildings.
45
46TABLE OF CONTENTS
47 TITLE I. TAX INCREMENT FINANCING MODERNIZATION ................................................3
48   Sec. 101. Short title ......................................................................................................................3
49   Sec. 102. Section 2 amended ........................................................................................................3
50   Sec. 103. Section 3 amended ........................................................................................................5
51   Sec. 104. New sections 4a through 4i ..........................................................................................6
52   Sec. 105. Section 5 amended ......................................................................................................13
53   Sec. 106. Section 6 amended ......................................................................................................14
54 TITLE II. VACANT PROPERTY ACQUISITION AND AFFORDABLE DISPOSITION
55 PROGRAM. ...................................................................................................................................14
56   Sec. 201. Short title ....................................................................................................................14
57   Sec. 202. Amendments ...............................................................................................................14
58 TITLE III. LEASE-PURCHASE HOMEOWNERSHIP OPPORTUNITY PILOT......................20
59   Sec. 301. Short title ....................................................................................................................20
60   Sec. 302. Definitions ..................................................................................................................20
61   Sec. 303. Lease-purchase Homeownership Opportunity Program established ..........................21
62   Sec. 304. Eligible households, eligible properties, and participating entities ............................22
63   Sec. 305. Financial assistance and eligible uses ........................................................................22
64   Sec. 306. Required terms of lease-purchase agreements............................................................24
65   Sec. 307. Escrow accounts .........................................................................................................25
66   Sec. 308. Counseling and mortgage-readiness requirements .....................................................26
67   Sec. 309. Consumer protections. ................................................................................................26
68   Sec. 310. Conversion to ownership. ...........................................................................................27
69   Sec. 311. Treatment of escrow funds if purchase option is not exercised .................................27
70   Sec. 312. Sunset .........................................................................................................................28
71 TITLE IV. FIRST-TIME HOMEBUYER MORTGAGE INTEREST TAX CREDIT .................28
72   Sec. 401. Short title ....................................................................................................................28
73   Sec. 402. Amendments ...............................................................................................................28
74 TITLE V. RESIDENTIAL INFILL OPPORTUNITY PROGRAM .............................................30
75   SUBTITLE A. AMENDATORY LANGUAGE........................................................................30
76   Sec. 501. Short title ....................................................................................................................31
77   Sec. 502. Amendments ...............................................................................................................31
78   SUBTITLE B. SMALL-SITE AFFORDABLE HOUSING SUPPORT PROGRAM ..............33
79   Sec. 503. Small-Site Affordable Housing Support Program established ...................................33
80   Sec. 504. Predevelopment grants ...............................................................................................33
81   Sec. 505. Small infill loans.........................................................................................................33
82   Sec. 506. Fee waivers or reimbursements ..................................................................................33
83   Sec. 507. Affordability covenants and recapture .......................................................................33
84   Sec. 508. Eligible property inventory and recommendations ....................................................34
85   Sec. 509. Anti-displacement protections ....................................................................................34
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86 TITLE VI. HOUSING ACCELERATION FUND ........................................................................36
87   Sec. 601. Short title ....................................................................................................................36
88   Sec. 602 Definitions ...................................................................................................................36
89   Sec. 603 Housing acceleration fund established ........................................................................37
90   Sec. 604 Administration of the fund ..........................................................................................38
91   Sec. 605 Eligible uses of the fund ..............................................................................................39
92   Sec. 606 Eligible sponsors and projects .....................................................................................39
93   Sec. 607 Underwriting and loan terms .......................................................................................40
94   Sec. 608 Conditions before closing ............................................................................................42
95   Sec. 609 Fund priorities .............................................................................................................42
96   Sec. 610 Revolving use of funds ................................................................................................43
97   Sec. 611 Reporting .....................................................................................................................43
98 TITLE VII. BUILDING PERMIT ADVISORY COUNCIL ........................................................44
99   Sec. 701. Short title ....................................................................................................................44
100   Sec. 702. Amendments ...............................................................................................................44
101 TITLE VIII. STANDARD PROVISIONS ....................................................................................48
102   Sec. 801. Rulemaking.................................................................................................................48
103   Sec. 802. Fiscal Impact Statement..............................................................................................48
104   Sec. 803. Effective Date .............................................................................................................48
105BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
106 act may be cited as the “Housing Opportunity, Mobility, Equity, and Stability (HOMES)
107 Omnibus Amendment Act of 2026”.
108 TITLE I. TAX INCREMENT FINANCING MODERNIZATION.
109Sec. 101. Short title.
110This title may be cited as the “Tax Increment Financing Modernization Amendment Act
111 of 2026”.
112Sec. 102. Section 2 amended
113Section 2 of the Tax Increment Financing Authorization Act of 1998, effective
114 September 11, 1998 (D.C. Law 12-143; D.C. Official Code §§ 2-1217.01 et seq.), is amended as
115 follows:
116(a) New paragraphs (33) through (39) are added to read as follows:
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117“(33) “Affiliated development project” means a project located within or in proximity to
118 a renewal district area and identified in, or later added to, an approved renewal district financing
119 plan pursuant to section 4d.
120“(34) “Anti-displacement strategy” means the set of policies, programs, covenants,
121 investments, and protections contained in a renewal district financing plan to minimize the
122 displacement of residents, tenants, small businesses, and community-serving uses already present
123 in a renewal district area. And shall, at a minimum, address:
124“(1) housing affordability preservation or production objectives;
125“(2) tenant protections or relocation measures where occupied housing is affected;
126“(3) measures to support low-income homeowners, renter-serving housing, or
127 small businesses where District investment may increase displacement pressure;
128“(4) any affordability covenants, replacement requirements, or preservation
129 commitments applicable to assisted housing; and
130“(5) any reserve, subaccount, or dedicated allocation for resident stabilization
131 activities or affordability-protection purposes.
132“(35) “Renewal district financing plan” means a plan certified pursuant to section 4a for a
133 renewal district area and may include one or more projects, phases, public improvements,
134 affiliated development projects, grant programs, reserves, and other eligible uses.
135“(36) “Renewal district” means a noncontiguous TIF area approved pursuant to sections
136 4a and 5 for one or more combined purposes, including housing, community revitalization,
137 transit-supportive infrastructure, resident stabilization, or anti-displacement activities.
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138“(37) “Noncontiguous TIF area” means 2 or more separate geographic areas, parcels,
139 corridors, subareas, or project clusters designated and established under a single renewal
140 financing plan approved pursuant to this act.
141“(38) “Resident stabilization activity” means a grant, forgivable loan, preservation
142 investment, 80% AMI affordability commitments, or other approved intervention designed to
143 preserve long-term housing affordability, support low-wealth homeowners, stabilize renter-
144 serving housing, reduce utility burden, or mitigate displacement pressure.
145“(39) “Transit-supportive infrastructure” means public improvements, transportation
146 improvements, bus-priority improvements, station-area access improvements, utility relocations,
147 streetscape improvements, sidewalks, bridges, and other infrastructure that supports mobility,
148 access, redevelopment, or housing opportunity within or serving a renewal district.
149Sec. 103. Section 3 amended
150Section 3 of the Tax Increment Financing Authorization Act of 1998, effective
151 September 11, 1998 (D.C. Law 12-143; D.C. Official Code §§ 2-1217.01 et seq.), is amended as
152 follows:
153(a) Subsection (b) is amended by striking the phrase “eligible projects approved pursuant
154 to this act” and inserting the phrase “eligible projects approved pursuant to this act or renewal
155 financing plans approved pursuant to section 4a” in its place.”.
156(b) A new subsection (f) is added to read as follows:
157“(f)(1) For a renewal financing plan approved pursuant to section 4a, the Mayor shall
158 specify in the proposed resolution transmitted to the Council:
159“(A) the maximum aggregate principal amount of TIF bonds or other
160 obligations authorized for the modernization district;
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161“(B) the final date by which such bonds or other obligations may be
162 issued;
163“(C) the termination date for the allocation of tax increment revenues to
164 the modernization district;
165“(D) any district-specific reserves or limitations applicable to housing,
166 infrastructure, resident stabilization activities, anti-displacement measures, grant programming,
167 affiliated development projects, or transit-supportive infrastructure; and
168“(E) any other district-specific financing limitation required by the Chief
169 Financial Officer.
170“(2) The Chief Financial Officer shall not issue bonds or other obligations for a
171 renewal financing plan unless the district-specific financing limitations required under paragraph
172 (1) of this subsection are included in the approved resolution transmitted to the Council and the
173 Chief Financial Officer has certified that the issuance is consistent with applicable District debt-
174 limit requirements.”.
175Sec. 104. New sections 4a through 4i.
176The Tax Increment Financing Authorization Act of 1998, effective September 11, 1998
177 (D.C. Law 12-143; D.C. Official Code §§ 2-1217.01 et seq.), is amended by adding new sections
178 4a through 4h to read as follows:
179“Sec. 4a. Certification of noncontiguous renewal financing plan.
180“(a) In addition to certification of an individual development project under section 4, the
181 Chief Financial Officer (“CFO”) may certify a renewal financing plan for a Renewal district.
182“(b) An application under this section shall include:
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183“(1) The boundaries of the proposed noncontiguous TIF area and each proposed
184 subarea, parcel group, lot number, or project cluster;
185“(2) A description of the proposed land uses, public improvements, housing
186 activities, revitalization activities, transit-supportive infrastructure, resident stabilization
187 activities, and any affiliated development projects;
188“(3) A description of the use of financing proceeds and projected tax increment
189 revenues;
190“(4) A pro forma projection of revenues and expenses for the renewal financing
191 plan;
192“(5) An assessment of the financial feasibility of the renewal financing plan;
193“(6) A general description of the anticipated timing, phasing, and implementation
194 of the renewal financing plan;
195“(7) A description of the plan’s compatibility with the Comprehensive plan’
196“(8) A description of the zoning consistency or anticipated zoning plan where
197 applicable;
198“(9) An analysis of the projected tax revenues and public benefits to be generated
199 by the renewal financing plan.
200“(10) An analysis demonstrating that the renewal financing plan would not
201 proceed in the same scope, timing, affordability mix, or public-benefit form without the renewal
202 district designation.
203“(11) An anti-displacement strategy; and
204“(12) A summary of public participation conducted before final certification and
205 submission to the Council.
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206“(c) Not later than 180 days after receipt of a completed application under this section,
207 the Chief Financial Officer shall certify or reject the renewal district financing plan.
208“(d) In determining whether to certify a renewal financial plan, the Chief Financial
209 Officer shall consider:
210“(1) Whether the renewal financing plan is financially feasible;
211“(2) Whether the plan is likely to result in a new increase in taxes payable to the
212 district, taking into account anticipated increments and other District revenues;
213“(3) Whether the plan is consistent with the Comprehensive Plan and will advance
214 development priorities identified in the Comprehensive plan for the affected area or areas;
215“(4) whether the total anticipated public and financial benefits to the District
216 exceed the total anticipated costs to the District;
217“(5) Whether the requested allocation of increment would substantially compete
218 with or supplant benefits from other sources otherwise reasonably available for the goals of the
219 renewal financing plan;
220“(6) Whether the proposed renewal district is characterized by one or more of the
221 following: underinvestment, inadequate housing supply, infrastructure deficiency, weak transit
222 access, fragmented development patterns, corridor distress, or other barriers impeding equitable
223 growth; and
224“(7) Whether the renewal financing plan includes adequate affordability for
225 current residents, anti-displacement, public participation, and monitoring provisions;
226“(e) Upon certification, the Chief Financial Officer may negotiate with the Mayor or the
227 designated applicant agency concerning the boundaries of the renewal district, the amount and
228 type of tax increment allocation, the renewal area-specific bond caps and issuance sunset, the
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229 termination date of the district, reserve requirements, and the terms and conditions of
230 implementation agreements or financing documents.
231“Sec. 4b. Eligible uses under a renewal district financing plan.
232“(a) In addition to any development costs authorized elsewhere in this act, an approved
233 renewal financing plan may authorize the use of TIF proceeds, tax increment revenues, or both,
234 for the following renewal district-level uses:
235“(1) housing production, preservation, rehabilitation, or acquisition;
236“(2) community revitalization, including corridor improvement, façade
237 improvement, neighborhood commercial stabilization, and public space improvements;
238“(3) transit-supportive infrastructure;
239“(4) resident stabilization activities, including low-wealth homeowner repair
240 grants, weatherization, energy-efficiency improvements, and renter-serving preservation
241 investments;
242“(5) anti-displacement s and affordability-preservation activities;
243“(6) grants or forgivable loans to eligible households, nonprofit entities,
244 community-serving uses, or small businesses where authorized by the renewal financing plan;
245“(7) implementation, monitoring, and administrative costs directly related to the
246 renewal district financing plan; and
247“(8) any other use determined by the Chief Financial Officer to fall within the
248 scope of development costs under section 2(13) of the act and specifically approved by
249 resolution of the Council for the renewal district.
250“Sec. 4c. Renewal financing plan requirements.
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251“(a) Each renewal financing plan certified under section 4a shall include renewal area-
252 specific financing limitations, including:
253“(1) The maximum aggregate principal amount of TIF bonds or obligations for
254 the renewal district;
255“(2) The final date by which bonds or obligations may be issued for the renewal
256 district;
257“(3) the termination date for the allocation of tax increment revenues to the
258 renewal district;
259“(4) Any secondary caps on revenue funds applicable to affiliated development
260 projects, grants, resident stabilization activities, or transit-supportive infrastructure; and
261“(5) Any reserve requirements, coverage requirements, or other fiscal safeguards
262 required by the Chief Financial Officer.
263“(b) The Council shall approve the renewal district specific financing limitations by
264 resolution pursuant to section 5, and no bond or other obligation may be issued in excess of those
265 limits.
266“Sec. 4d. Affiliated development projects.
267“(a) An approved renewal financing plan may authorize the later inclusion of an affiliated
268 development project or expansion parcel if the project or parcel:
269“(1) is located within a proximity zone, corridor, station area, or plan area
270 identified in the renewal financing plan;
271“(2) advances one or more purposes of the renewal district; and
272“(3) is approved in accordance with the procedures established under this act
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273“(b) An affiliated development project may receive assistance under an approved renewal
274 district financing plan even if it has not yet been added to the revenue-contributing boundaries of
275 the modernization district, if the Council resolution approving the renewal district financing plan
276 expressly authorizes such assistance and the Chief Financial Officer certifies that the assistance
277 is fiscally compatible with the renewal district financing plan.
278“Sec. 4e. Advisory board.
279“(a) There is established a Renewal District Advisory Board for each renewal district
280 approved under this act.
281“(b) The Mayor shall appoint members of the Advisory Board, which shall include
282 residents of affected communities, representatives or relevant District agencies, and persons or
283 entities with expertise in housing, community development, transportation, small business, or
284 public finance.
285“(c) The Advisory Board shall review the renewal district financing plan, monitor its
286 implementation, review annual reports required in section 4h, advise on material amendments
287 where necessary, and provide recommendations biannually for renewal district activities to the
288 Mayor or designee and the Council.
289“(d) The Advisory Board shall be advisory only and shall not exercise independent
290 authority to approve or disapprove bonds, financing documents, or subsidies.
291“Sec. 4f. Public participation.
292“(a) Before final Council approval of a renewal district financing plan a public hearing
293 shall be required on the proposed renewal district delineation and on the proposed renewal
294 district financing plan.
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295“(b) The hearing shall not occur less than 14 days before final Council approval and the
296 proposed renewal district financing plan shall be made publicly available no later than seven
297 days before the scheduled hearing.
298“(c) The Council shall prepare a public participation summary describing the comments
299 received and any revisions made in response.
300“(d) Any material amendment to an approved district financing plan shall require public
301 notice and at least one additional public hearing. Minor or technical amendments shall not
302 require a public hearing.
303“Sec. 4g. Annual reporting and ex post assessment.
304“(a) The Chief Financial Officer shall prepare and submit to the Council, for each
305 renewal district approved under this act, an annual report for each fiscal year during which tax
306 increment revenues are allocated or otherwise used to support the renewal district.
307“(b) The annual report shall include, at a minimum, information concerning increment
308 generated, debt service coverage, use of proceeds, project status, affordability performance,
309 resident stabilization activities where applicable, transit or infrastructure improvements where
310 applicable, and any affiliated development projects or expansion parcels added or assisted during
311 the reporting period.
312“(c) Not later than 3 years after substantial completion of the principal improvements
313 financed by a renewal district financing plan, or 10 years after the first issuance of bonds for the
314 renewal district, whichever comes first, the Chief Financial Officer shall prepare an ex post
315 assessment comparing the actual fiscal, housing, infrastructure, affordability, anti-displacement,
316 and revitalization outcomes of the renewal district to the projections and commitments contained
317 in the renewal district financing plan.
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318“Sec. 4h. Rules.
319“The Chief Financial Officer may issue rules, guidelines, or bulletins consistent with this
320 act concerning fiscal certification, district-specific financing limitations, reporting formats, and
321 reserve or allocation requirements.”.
322Sec. 105. Section 5 amended.
323Section 5 of the Tax Increment Financing Authorization Act of 1998, effective
324 September 11, 1998 (D.C. Law 12-143; D.C. Official Code § 2-1217.01 et seq.), is amended as
325 follows:
326(a) The first sentence is amended by striking the phrase “with the development sponsor”
327 and inserting the phrase “with the Mayor or designee agency” in its place.
328(a) The first sentence is amended by striking the phrase “the project” and inserting the
329 phrase “the project or renewal district financing plan” in its place.
330(b) The second sentence is amended by striking the phrase “a proposed resolution to
331 approve the project, the TIF area, the development agreement, and the amount to be financed”
332 and inserting the phrase “either: a proposed resolution to approve the project, the TIF area, the
333 development agreement, and the amount to be financed; or the renewal district financing plan
334 and the renewal district, together with the applicable implementation agreements and the amount
335 to be financed” in its place.
336(c) The third sentence is amended by striking the phrase “The proposed resolution shall
337 define the TIF area for the eligible project” and inserting the phrase “The proposed resolution
338 shall define the TIF area for the eligible project, or the noncontiguous TIF area for the renewal
339 district,” in its place.
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340(d) A new sentence is added at the end to read as follows: “For a district financing plan
341 approved pursuant to section 4a, the proposed resolution shall also specify the renewal district
342 specific financing limitations required by section 4c.
343Sec. 106. Section 6 amended.
344Section 6 of the Tax Increment Financing Authorization Act of 1998, effective
345 September 11, 1998 (D.C. Law 12-143; D.C. Official Code § 2-1217.01 et seq.), is amended as
346 follows:
347(a) Subsection (a) is amended by striking the phrase “When a TIF area for a project is
348 established pursuant to sections 4 and 5” and inserting the phrase “When a TIF area for a project
349 is established pursuant to sections 4 and 5, or when a renewal district is established pursuant to
350 sections 4a and 5,” in its place.
351(b) Subsection (b) is amended by striking the phrase “within each TIF area” and inserting
352 the phrase “within each TIF area or renewal district” in its place.
353 TITLE II. VACANT PROPERTY ACQUISITION AND AFFORDABLE DISPOSITION
354 PROGRAM.
355Sec. 201. Short title.
356This title may be cited as the “Vacant Property Acquisition and Affordable Disposition
357 Amendment Act of 2026”.
358Sec. 202. Amendments. Title IV of the Abatement and Condemnation of Nuisance
359 Properties Omnibus Amendment Act of 2000, effective April 27, 2001 (D.C. Law 13-281; D.C.
360 Official Code § 42-3171.01 et seq.), is amended as follows:
361(a) Section 401 is amended by adding new paragraphs to read as follows:
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362“(4) “Affordable housing nonprofit provider” means a nonprofit organization in
363 good standing that is organized primarily to develop, preserve, own, operate, or steward housing
364 units rented to households whose income does not exceed 80% of the area median income and is
365 approved by the Mayor pursuant to this title.
366“(5) “Blighted property” shall have the same meaning as "blighted vacant
367 building" as provided in section 5 of An Act To provide for the abatement of nuisances in the
368 District of Columbia by the Commissioners of said District, approved April 14, 1906 (34 Stat.
369 114; D.C. Official Code § 42-3131.01 et seq.).
370“(6) “Community land trust” shall mean a nonprofit organization that:
371(A) Acquires and holds land for the purpose of providing and maintaining
372 affordable housing for low- and moderate-income families in perpetuity; and
373(B) Employs land leases as a method to secure the affordability of
374 housing.
375“(7) “Program” means the District Vacant Property Acquisition and Affordable
376 Disposition Program established by this title.
377“(8) “Qualified affordability developer” means a private developer approved by
378 the Mayor that agrees to recorded affordability restrictions of not less than 15 years and satisfies
379 additional criteria established by rulemaking.
380“(9) “Qualified transferee” means a community land trust, affordable housing
381 nonprofit provider, or qualified affordability developer approved to receive property under this
382 title.
383“(10) “Department” means the Department of Housing and Community
384 Development.
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385(b) A new section 411A is added to read as follows:
386“Sec. 411A. District Vacant Property Acquisition and Affordable Disposition Program.
387“(a) There is established within the Department a District Vacant property Acquisition
388 and Affordable Disposition program, which may be administered through the Property
389 Acquisition and Disposition Division or any successor office designated by the Mayor.
390“(b) The program shall:
391“(1) Create and maintain a dedicated inventory of vacant and blighted residential
392 properties suitable for rehabilitation, affordable homeownership, affordable rental housing,
393 shared-equity reuse, or lease-purchase homeownership;
394“(2) Acquire, hold, manage, clear title to, and dispose of those properties using
395 existing lawful acquisition channels, including negotiated acquisition, donations, transfers, tax
396 sale foreclosure pathways, eminent domain where otherwise authorized by law, and any other
397 lawful means of acquisition.
398“(3) Prioritize the productive reuse of distressed residential property for long-term
399 affordable housing and neighborhood stabilization;
400“(4) Facilitate the transfer of suitable properties to qualified transferees under
401 affordability and rehabilitation conditions.
402(c) A new section 411B is added to read as follows:
403“Sec. 411B. Inventory and priority disposition.
404“(a) The Department shall create and maintain an inventory of vacant and blighted
405 residential properties held or controlled through the program.
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406“(b) To the greatest extent practicable, and except where the Mayor determines another
407 disposition is necessary to protect the public interest, the Department shall offer suitable program
408 properties in the following order of priority:
409“(1) First, to community land trusts;
410“(2) Second, to affordable housing nonprofit providers; and
411“(3) Third, to qualified affordability developers.
412“(c) The Department may dispose of program properties for long-term affordable
413 homeownership, long-term affordable rental housing, shared-equity homeownership, lease-
414 purchase homeownership under a Department-approved program, and other housing uses
415 approved by the Mayor that further the purposes of this title.
416“(d) A disposition under this title shall not be based solely on highest price. The
417 Department shall consider affordability, rehabilitation feasibility, organizational capacity,
418 community service use, speed to productive reuse, and long-term stewardship capacity in
419 determining the appropriate transferee.
420(d) A new section 411C is added to read as follows:
421“Sec. 411C. Conditional relief authority.
422“(a) Subject to appropriations and any other applicable law, the Mayor may reduce,
423 compromise, defer, or forgive, in whole or in part, District-held taxes, fees, penalties, interest,
424 special assessments, costs, liens, or other charges specified in this section that would otherwise
425 make transfer or rehabilitation infeasible when a vacant or blighted property is transferred
426 through the program to a qualified transferee.
427“(b) Relief authorized under this section may include:
428“(1) Tax-sale arrears;
                                                 17
429“(2) Delinquent real property taxes, to the extent permitted by law;
430“(3) Penalties and interest associated with delinquent real property taxes;
431“(4) Unpaid vacant-building registration fees;
432“(5) Costs, fees, and liens assessed by the District in connection with nuisance
433 abatement, or related vacant property enforcement activity; and
434“(6) Other District-held charges determined by the Mayor by rule to be directly
435 related to the vacancy, blight, nuisance, or tax-delinquency status of the property.
436“(c) Relief under this section shall be conditioned on:
437“(1) Transfer of the property to a qualified transferee;
438“(2) Execution and recordation of affordability restrictions required by this title;
439“(3) Completion of rehabilitation within the period established by section 411D;
440“(4) Compliance with any use, occupancy, or stewardship conditions imposed by
441 the Mayor; and
442“(5) Additional requirements that the Mayor shall establish
443“(d) The Mayor may structure relief under this section as immediate, staged, or earned
444 relief, including immediate forgiveness of penalties and interest and conditional or partial
445 forgiveness of base tax liabilities upon completion of rehabilitation and recordation of
446 affordability restrictions.“(e) Relief under this section shall not extinguish or impair any
447 privately held mortgage, lien, security interest, utility obligation, judgement, or other non-
448 District claim.
449(e) A new section 411D is added to read as follows:
450“Sec. 411D. Rehabilitation deadline, affordability restrictions, and recapture.
                                                   18
451“(a) A qualified transferee receiving property or relief under this title shall complete
452 rehabilitation of the property within 24 months after transfer, unless the Mayor grants an
453 extension for good cause shown.
454“(b) Before or at final disposition, the qualified transferee shall execute and record
455 affordability restrictions in the form approved by the Mayor.
456“(c) Affordability restrictions shall require, as applicable:
457“(1) Long-term affordability for community land trust projects;
458“(2) Affordability for not less than 15 years for nonprofit affordable housing
459 projects; or
460“(3) Affordability for not less than 15 years for qualified affordability developers.
461“(d) The Mayor may require principal-residence occupancy, shared-equity resale
462 restrictions, lease-purchase program participation, rental affordability restrictions, or other
463 conditions necessary to carry out the purposes of this title.
464“(e) If a qualified transferee fails to complete rehabilitation within the required period
465 and any approved extension, fails to record or maintain required affordability restrictions,
466 transfers the property in violation of this title, or otherwise fails to comply with material
467 conditions of relief or disposition, the Mayor shall recapture all or part of the value of any relief
468 provided under this title and may impose additional remedies authorized by agreement or by
469 rule.
470(f) A new section 411E is added to read as follows:
471“Within one year after the effective date of this act, and annually thereafter, the
472 Department shall submit a report to the Council on the implementation of the Program, including
473 the number of properties in Program inventory, the number of properties acquired and disposed
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474 of, the number of properties transferred to community land trusts, affordable housing nonprofit
475 providers, and qualified affordability developers, the amount and type of liabilities reduced,
476 compromised, deferred, or forgiven, and the number of properties rehabilitated and returned to
477 occupancy.”
478 TITLE III. LEASE-PURCHASE HOMEOWNERSHIP OPPORTUNITY PILOT.
479Sec. 301. Short title.
480This title may be cited as the “Lease-Purchase Homeownership Opportunity Pilot Act of
481 2026”.
482Sec. 302. Definitions.
483For the purposes of this title, the term:
484(1) “Lease-purchase agreement” means a written agreement for the lease of residential
485 real property that grants a program participant a right or option to purchase the leased property,
486 or another approved ownership interest in the leased property, pursuant to the terms of this title.
487(2) “Department” means the Department of Housing and Community Development.
488(3) “Eligible household” means a low- or moderate-income household, as defined by
489 rules issued pursuant to this title, that is not yet prepared to complete a home purchase with
490 conventional mortgage financing but is reasonably likely to become mortgage-ready during the
491 applicable program term.
492(4) “Eligible property” means a residential property approved by the Department for
493 participation in the Program, including a single-family dwelling, condominium unit, community
494 land trust home, or other residential units approved by rule.
                                                    20
495(5) “Escrow account” shall have the same meaning as provided in section 18 of the
496 District of Columbia real Estate Licensure Act of 1982, effective March 10, 1983 (D.C. Law 4-
497 209; D.C. Official code 42–1704).
498(6) “Program” means the Lease-Purchase Homeownership Opportunity Program
499 established by section 304 of this title.
500(7) “Program administrator” means the Department or a nonprofit organization,
501 community land trust, affordable housing provider, or other entity approved by the Department
502 to administer or operate the Program.
503(8) “Program Participant” means an eligible household admitted to the Program.
504(9) “Affordable housing nonprofit provider” means a nonprofit organization in good
505 standing that is organized primarily to develop, preserve, own, operate, or steward housing units
506 rented to households whose income does not exceed 80% of the area median income and is
507 approved by the Mayor pursuant to this title.
508Sec. 303. Lease-purchase Homeownership Opportunity Program established.
509(a) There is established a Lease-Purchase Homeownership Opportunity Program to
510 provide a structured pathway to homeownership for eligible households through lease-purchase
511 agreements and other ownership-transition models approved by the Department.
512(b) The Department shall administer the Program and may directly administer the
513 Program or contract with one or more program administrators.
514(c) The Program shall be designed to supplement existing District homeownership
515 programs by assisting households that are not yet prepared to complete a conventional home
516 purchase but are reasonably likely to become mortgage-ready within a defined period of
517 occupancy, savings accumulation, and counseling.
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518Sec. 304. Eligible households, eligible properties, and participating entities.
519(a) The Department shall establish eligibility criteria for households participating in the
520 Program, including income standards, occupancy requirements, and mortgage-readiness criteria.
521(b) The Department shall establish criteria for eligible properties and may prioritize
522 homes subject to long-term affordability restrictions, community land trust properties, properties
523 owned or developed by nonprofit affordable housing providers, homes acquired or rehabilitated
524 with District assistance, and other properties that further the purposes of this title.
525(c) The Department may approve community land trusts, nonprofit affordable housing
526 providers, and other mission-driven housing entities as program administrators or participating
527 lessors.
528Sec. 305. Financial assistance; sources and eligible uses of funds.
529(a) Subject to authorization in an approved budget and financial plan, the Mayor shall
530 provide financial assistance for the Program from appropriated District funds, federal funds to
531 the extent permitted by law, and other public and private funds lawfully available for the
532 purposes of this title.
533(b) Financial assistance under this title may be used for:
534(1) Acquisition of eligible property, including single-family homes, condominium
535 units, community land trust homes, scattered-site residential properties, and other residential
536 units approved by the Department;
537(2) Rehabilitation, repair, preservation, modernization, code-compliance work,
538 accessibility improvements, environmental remediation, and habitability repairs necessary to
539 prepare eligible property for occupancy or conveyance through the Program;
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540(3) Predevelopment costs, due diligence costs, legal costs, title costs, appraisal
541 costs, environmental review costs, financing costs, closing costs, and other transaction costs
542 approved by the Department;
543(4) Construction, reconstruction, or improvement of eligible property, where
544 approved by the Department as consistent with the purposes of this title;
545(5) Carrying costs, operating costs, and maintenance during the lease-purchase
546 term, to the extent approved by the Department and limited to costs reasonably necessary to
547 preserve the property and maintain the property in decent, safe, sanitary, and habitable condition;
548(3) Administrative costs of approved program administrators;
549(4) Counseling, financial education, homebuyer counseling, case management,
550 and mortgage-readiness services, and credit repair activities connected to the lease-purchase
551 conversion of the eligible property under the Program;
552(5) credit repair activities, including credit counseling, budget and debt-
553 management assistance, credit report review, dispute assistance, payment-plan assistance,
554 savings coaching, and other services designed to improve mortgage readiness;
555(6) Down payment assistance, closing cost assistance, escrow matching
556 contributions, and other direct homebuyer assistance tied to an eligible property participating in
557 the Program;; and
558(7) Other uses approved by rule that further the purposes of this title.
559(c) Financial assistance may be awarded to:
560(1)_A program administrator approved pursuant to this title;
561(2) A community land trust;
562(3) An affordable housing nonprofit provider;
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563(4) A mission-driven housing entity approved by the Department; or
564(5) A for-profit housing developer, owner, or sponsor approved by the
565 Department.
566(c) Services authorized under subsection (b)(4) and (5) of this section may be provided
567 directly by the Department or through nonprofit organizations, HUD-approved housing
568 counseling agencies, approved program administrators, or other entities approved by the
569 Department.
570(d) The Department shall prioritize funds used for purposes described in subsection (b)(5)
571 of this section for program participants who have confirmed an intent to purchase an eligible
572 property but require additional credit or financial-readiness support to qualify for mortgage
573 financing.
574(e) There shall be a dedicated fund for escrow matching contributions by the Department
575 for program participants; escrow matching contributions may be structured as grants, loans,
576 deferred loans, forgivable loans, direct homebuyer assistance, or other forms of financial
577 assistance permitted by District and federal law.
578(f) Assistance under this title may be combined with assistance available under other
579 District homeownership programs, including the Home Purchase Assistance Program, to the
580 extent permitted by law and program rules.
581Sec. 306. Required terms of lease-purchase agreements.
582(a) A lease-purchase agreement under this title shall be in writing and shall be on a
583 standard form approved by the Department.
584(b) A lease-purchase agreement shall include, at a minimum:
585(1) The initial lease term and any permitted renewal periods;
                                               24
586(2) The conditions under which the program participant may exercise the
587 purchase option;
588(3) The purchase price, or a clear formula for determining the purchase price;
589(4) The amount of the monthly payment and the portion of that payment that shall
590 be deposited into the escrow account;
591(5) A description of all fees that are charged under the lease-purchase agreement
592 separately, including any other charges such as taxes, late payment fees, default fees, processing
593 fees, reinstatement fees, or other charges required of the program participant;
594(6) The rights of the participant in the event of a default, including any cure
595 period or reinstatement right;
596(7) The treatment of escrowed funds if the participant does not exercise the
597 purchase option;
598(8) Any affordability, owner-occupancy, resale, or use restrictions applicable to
599 the property; and
600(9) Any other provisions required by rulemaking.
601(c) The Department may establish by rulemaking a minimum escrow contribution or a
602 formula for escrow contributions.
603Sec. 307. Escrow accounts.
604(a) A program participant’s escrowed funds shall be held in a segregated account
605 maintained by the program administrator, an approved escrow agent, or another entity approved
606 by the Department.
607(b) The Department shall establish by rulemaking standards for deposits of participant
608 contributions, deposits of District matching contributions or other assistance, accounting and
                                                25
609 periodic statements to participants, permissible uses of escrowed funds, and disbursement of
610 escrowed funds at purchase conversion or nonpurchase.
611(c) Escrowed funds shall be used primarily for down payment, closing costs, and other
612 approved home purchase expenses.
613Sec. 308. Counseling and mortgage-readiness requirements.
614(a) Before entering into a lease-purchase agreement under this title, an eligible household
615 shall complete homeownership counseling approved by the Department.
616(b) During participation in the Program, a program participant shall receive ongoing
617 counseling or case management designed to support credit improvement, savings accumulation,
618 budgeting and debt management, mortgage readiness, and transition to ownership.
619(c) Counseling under this section may be provided through entities approved by the
620 Department.
621(d) The Department shall establish standards by rule for :
622(1) confirming the participant’s intent to purchase;
623(2) assessing the participants mortgage readiness;
624(3) approving savings and credit counselling and coaching providers; and
625(4) tracking participant progress towards purchase conversion.
626Sec. 309. Consumer protections.
627(a) A program participant shall receive clear written disclosures, in a form prescribed by
628 the Department, explaining the legal nature of the lease-purchase agreement, the participant’s
629 rights and obligations during the lease term, the conditions for exercising the purchase option,
630 the treatment of escrowed funds and fees, and the consequences of default or nonpurchase.
631(b) A lease-purchase agreement under this title shall not:
                                               26
632(1) require a participant to waive rights or remedies provided by District or
633 federal law;
634(2) permit automatic forfeiture of escrowed funds except as authorized by rule and
635 clearly disclosed in advance;
636(3) impose unreasonable fees, penalties, or purchase-option terms; or
637(4) contain other terms prohibited by rule.
638(c) Before terminating a participant’s rights under a lease-purchase agreement for
639 nonpayment or other material breach, the owner or program administrator shall provide written
640 notice and a reasonable opportunity to cure, in accordance with rules issued under this title.
641Sec. 310. Conversion to ownership.
642(a) Upon the satisfaction of the requirements of the lease-purchase agreement and this
643 title, a program participant may exercise the purchase option and purchase the eligible property.
644(b) The Department shall establish standards for applying escrowed funds to down
645 payment, closing costs, and other approved home purchases expenses.
646(c) The Department may coordinate assistance under this title with the Home Purchase
647 Assistance Program and other District homeownership programs at the time of purchase
648 conversion.
649Sec. 311. Treatment of escrow funds if purchase option is not exercised.
650(a) If a program participant does not exercise the purchase option, escrowed funds
651 attributable to the participant’s payments shall be disbursed in accordance with the lease-
652 purchase agreement and rules issued under this title.
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653(b) Rules issued under this section shall be designed to preserve, to the greatest extent
654 practicable, the participant’s accumulated savings for future housing stability, homeownership,
655 debt reduction, relocation, or rental stabilization purposes.
656Sec. 312. Sunset.
657This act shall expire on December 31, 2030.
658 TITLE IV. FIRST-TIME HOMEBUYER MORTGAGE INTEREST TAX CREDIT.
659Sec. 401. Short title.
660This title may be cited as the “First-Time Homebuyer Mortgage Interest Tax Credit
661 Amendment Act of 2026”.
662Sec. 402. Amendments. Chapter 18 of Title 47 of the District of Columbia Official Code
663 is amended by adding a new section 47-1806.18 to read as follows:
664Ҥ 47-1806.18. First-time homebuyer mortgage interest tax credit.
665“(a) For taxable years beginning after December 31, 2027, a qualitied taxpayer shall be
666 allowed a credit against the tax imposed by this chapter for the taxable year in an amount equal
667 to 10% of the qualified mortgage interest paid by the taxpayer during the taxable year on a
668 qualified principal residence.
669“(b) The credit allowed under this section shall:
670“(1) not exceed $2,000 in any taxable year;
671“(2) not be nonrefundable;
672“(3) may not exceed the taxpayer’s tax liability for the taxable year; and
673“(4) A taxpayer shall be eligible to claim the credit under this section for no more
674 than 5 taxable years with respect to the same qualified principal residence.
675“(c) For the purpose of this section, the term:
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676“(1) “Area median income” means the area median income of the Washington
677 Metropolitan Statistical Area as set forth in the periodic calculation provided by the U.S.
678 Department of Housing and Urban Development.
679“(2) “First-time homebuyer” means a real property purchaser who had no
680 ownership interest in his or her principal residence at any time during the 3 year period ending
681 on the date of his or her application for assistance, but including an applicant who has divorced
682 or separated during the 3 year period where a formal settlement has been made under which the
683 applicant does not receive an ownership interest in a primary residence which had been jointly
684 owned, and who has no other current ownership interest in residential real property.
685“(3) “Qualified mortgage interest” means interest paid during the taxable year on
686 acquisition indebtedness secured by a qualified principal residence, as verified in the manner
687 prescribed by the Chief Financial Officer; provided, that qualified mortgage interest shall not
688 include prepaid interest, points, penalties, or any amount not properly allocable to the taxable
689 year.
690“(4) “Qualified principal residence” means a dwelling unit located in the District
691 of Columbia that:
692“(A) Is purchased by a first-time homebuyer for use as the taxpayer’s
693 principal place of residence;
694“(B) Is subject to a mortgage loan or deed of trust originated by an
695 institutional lender or other lender approved by the Chief Financial Officer by rule; and
696“(C) Is occupied by the taxpayer as the taxpayer’s principal residence for
697 the taxable year for which the credit is claimed.
698“(5) “Qualified taxpayer means a taxpayer who:
                                               29
699“(A) Is a first-time homebuyer;
700“(B) Has household income for the taxable year that does not exceed
701 150% of area median income;
702“(C) Owns and occupies the qualified principal residence; and
703“(D) Meets any additional documentation and eligibility requirements
704 established by rule.
705“(d) A taxpayer may claim the credit under this section only for the taxable years in
706 which the taxpayer both owns and occupies the qualified principal residence as the taxpayer’s
707 principal residence.
708“(e) The Chief Financial Officer shall prescribe the form and manner in which a taxpayer
709 shall claim the credit, including documentation of:
710“(1) First-time homebuyer status;
711“(2) Household income;
712“(3) Principal residence occupancy;
713“(4) Original mortgage amount; and
714“(5) Qualified mortgage interest paid during the taxable year.
715“(f) If the Chief Financial Officer determines that a taxpayer improperly claimed the
716 credit under this section, the amount of the improperly claimed credit may be recaptured in the
717 manner prescribed by rule.
718“(g) The Chief Financial Officer may issue proposed rules to implement the provisions of
719 this title.”
720 TITLE V. RESIDENTIAL INFILL OPPORTUNITY PROGRAM.
721 SUBTITLE A. AMENDATORY LANGUAGE.
                                                30
722Sec. 501. Short title.
723This title may be cited as the “Residential Infill Opportunity Program Amendment Act Of
724 2026”.
725Sec. 502. Amendments. Chapter 854 of An Act To establish a code of law for the District
726 of Columbia, approved March 3, 1901 (31 Stat. 1425, ch. 854; D.C. Official Code § 1-1320), is
727 amended by adding a new section to subchapter 55 to read as follows:
728“Sec. 1617. Conforming residential lot subdivisions.
729“(a) For the purposes of this section, the term:
730“(1) “Department” means the Department of Buildings.
731“(2) “Buildable record lot” means a lot of record that may be separately conveyed
732 and lawfully improved with a principal residential building or other permitted residential use
733 under applicable law.
734“(3) “Conforming residential lot subdivision” means the subdivision of one
735 residential lot into no more than two resulting lots where the parent lot and each resulting lot
736 comply with all applicable subdivision, zoning, access, and development standards in effect on
737 the date of approval, including minimum lot area, minimum lot width, yards, floor area ratio, lot
738 occupancy, parking, and related requirements.
739“(4) “Resulting lot” means a lot created through a conforming residential lot
740 subdivision approved under this chapter.
741“(5) “Eligible lot subdivision” means a conforming residential lot subdivision
742 approved or conditionally approved under this chapter.
743“(b) The Mayor, through the Department, shall establish a consolidated administrative
744 fast-track process for the review and approval of conforming residential lot subdivisions.
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745“(c) The Mayor shall establish by rule a process, including:
746“(1) A completeness determination;
747“(2) One written deficiency notice identifying objective defects or missing items;
748“(3) A final written approval, conditional approval, or denial;
749“(4) Standards for revised plat submissions; and
750“(5) Procedures to allow concurrent review, where practicable, with related
751 building permit submissions.
752“(d) A conforming residential lot subdivision may be approved only if:
753“(1) Each residential lot is capable of independent title and recordation;
754“(2) Each resulting lot has lawful access as required by applicable law and zoning
755 commission regulation;
756“(3) The subdivision does not require a variance, special exception, planned unit
757 development approval, or zoning text amendment to become conforming; and
758“(4) The Department determines that the proposed subdivision satisfies all
759 objective requirements established by this title and other applicable law; this includes
760 confirmation that:
761“(A) Each resulting lot complies with the dimensional and access
762 requirements applicable to the lot;
763“(B) Each resulting lot may be recorded as a separate lot of record;
764“(C) Each resulting lot is separately buildable for a principal residential
765 building or other permitted residential use;
766“(D) The subdivision does not create a paper lot incapable of lawful
767 development; and
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768“(E) Any conditions of approval have been satisfied.
769“(e) Nothing in this chapter shall be construed to waive, amend, or supersede the Zoning
770 Regulations or to authorize a nonconforming lot subdivision.”
771 SUBTITLE B. SMALL-SITE HOUSING SUPPORT PROGRAM.
772Sec. 503. Small-Site Housing Support Program established.
773There is established a Small-Site Housing Support Program to support qualifying
774 affordable housing projects arising from conforming residential lot subdivisions.
775Sec. 504. Predevelopment grants.
776The Mayor, through the Department of Housing and Community Development or another
777 designated agency, may award predevelopment grants to owner-occupants, nonprofit affordable
778 housing providers, community land trusts, and other affordable housing driven developers to
779 support surveying, legal work, title work, architectural feasibility, utility planning, permitting,
780 and related predevelopment costs associated with an eligible lot subdivision.
781Sec. 505. Small infill loans.
782The Mayor may provide acquisition, construction, bridge, or gap financing for qualifying
783 affordable housing projects arising from conforming lot subdivisions, including projects
784 undertaken by nonprofit affordable housing providers, community land trusts, and owner-
785 occupants subject to affordability restrictions outlined in section 507.
786Sec. 506. Fee waivers or reimbursements.
787The Mayor may waive or reimburse reasonable subdivision, recordation tax, and related
788 administrative fees for eligible lot subdivisions that will be used for affordability-restricted,
789 owner-occupied, or community land trust housing.
790Sec. 507. Affordability covenants and recapture.
                                                 33
791As a condition of receiving financial assistance under this title, a recipient shall execute
792 and record an affordability covenant requiring affordability, owner-occupancy, resale, or use
793 restrictions for a period determined by the Mayor.
794Sec. 508. Eligible property inventory and recommendations.
795Within 365 days after the effective date of this act, and annually thereafter, the
796 Department and the Office of Planning shall jointly prepare and submit to the Council a report
797 identifying properties reasonably likely to qualify for conforming lot subdivision under current
798 law, common barriers to subdivision, and recommended statutory and administrative changes
799Sec. 509. Tenant protections for occupied residential property
800(a) Tenant notice. Before filing an application for a conforming residential lot subdivision
801 for a property containing an occupied residential dwelling unit, the owner shall provide written
802 notice to each tenant and lawful occupant of the property stating:
803(1) That the owner intends to apply for a conforming residential lot subdivision;
804(2) That approval of a conforming residential lot subdivision does not, by itself,
805 waive or limit any tenant protections otherwise provided by District law;
806(3) Whether the owner intends to seek demolition, substantial rehabilitation,
807 conversion, sale, redevelopment, or other action that may affect continued occupancy of the
808 property; and
809(4) That tenants shall retain any rights and remedies provided under applicable
810 District law.
811(b) Preservation of tenant protections. Nothing in this section shall be construed to waive,
812 limit, supersede, or impair any tenant protection, notice requirement, right of occupancy, right of
                                                34
813 purchase, relocation right, anti-displacement protection, or other right or remedy available under
814 District law.
815(c) Certification of compliance. As part of any application involving occupied residential
816 property, the applicant shall certify, in a form prescribed by the Mayor, that:
817(1) The applicant has complied with the notice requirements of subsection (a) of
818 this section;
819(2) The proposed subdivision is not being pursued for the purpose of evading
820 tenant protections or facilitating unlawful displacement; and
821(3) The applicant shall comply with all applicable District laws governing tenants,
822 sales, demolition, discontinuance of housing use, conversion, relocation, and affordability
823 restrictions.
824(d) Additional review for occupied property. For an application involving occupied
825 residential property, the Department may require additional information reasonably necessary to
826 determine whether the proposed subdivision is being used primarily to facilitate displacement,
827 speculative redevelopment, or circumvention of District tenant-protection laws.
828(e) Denial or conditional approval. The Department of Buildings may deny, or may
829 condition approval of, an application for a conforming residential lot subdivision if it determines
830 that:
831(1) The application is being used to evade applicable tenant protections;
832(2) The proposed subdivision is part of a plan primarily intended to displace
833 current tenants in order to facilitate speculative redevelopment;
834(3) The applicant has failed to provide the notice required by this section; or
835(4) The applicant has failed to certify compliance with applicable District law.
                                                35
836 TITLE VI. Housing Acceleration Fund.
837Sec. 601. Short title.
838This title may be cited as the “Housing Acceleration Fund Act of 2026”.
839Sec. 602. Definitions.
840(1) “Acquisition-ready project” means a project for which the borrower has site control, a
841 purchase contract, an assignment right, or another time-sensitive acquisition opportunity and can
842 demonstrate a credible, path to development or preservation of mixed-income multifamily rental
843 housing.
844(2) “Administering agency” means the means the agency, instrumentality, or independent
845 agency designated by the Mayor by rule or Mayor's order to administer the Fund pursuant to this
846 act.
847(3) “Area median income” means the area median income of the Washington
848 Metropolitan Statistical Area as set forth in the periodic calculation provided by the U.S.
849 Department of Housing and Urban Development.
850(4) “Fund” means the Housing Acceleration Fund established by section 3.
851(5) “Mixed-income multifamily rental housing” means a multifamily housing
852 accommodation in which 40%-60% of the units are at low-income rents affordable to households
853 earning up to 80% of Area Median Income (AMI) and the other 40%-60% of units have rents
854 affordable to moderate and/or middle-income households earning up to 120% of AMI.
855(6) “Project loan” means a loan, participation interest, or other extension of credit
856 provided from the Fund in a subordinate or mezzanine position to support the acquisition,
857 preservation, rehabilitation, adaptive reuse, or construction of mixed-income multifamily rental
858 housing.
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859(7) “Qualified co-lender” means banks, including but not limited to retail banks,
860 commercial banks, cooperative banks and credit unions, and Community Development Financial
861 Institutions (CDFI) with extensive experience in underwriting, origination, and servicing of
862 multifamily residential construction loans.
863(8) “Shovel-ready project” means a project that has advanced to a stage at which it can
864 proceed to financial closing and commencement of construction within a timeframe
865 demonstrated by secured funding commitments from equity sponsors and debt lenders,
866 substantial progress on zoning requirement satisfaction, design approval, permitting competition,
867 financing commitments, and other predevelopment project ready milestones; yet, due to changes
868 in construction or capital costs have stalled due to financial gaps that have made financial return
869 expectations are not commensurate with the risk of moving forward with the project.
870(9) “Single-asset, sole purpose entity” means a borrower entity formed for the ownership,
871 acquisition, development, preservation, rehabilitation, or operation of a single eligible project.
872Sec. 603. Housing Acceleration Fund established.
873(a) There is established a non-lapsing special fund the Housing Acceleration Fund
874 (“Fund”), which shall be administered by the agency in accordance with this act.
875(b) The Fund shall be used to provide revolving subordinate acquisition and construction
876 financing, and closely related credit support, for eligible projects under this act.
877(c) The Fund shall consist of:
878(1) Amounts appropriated to the Fund;
879(2) Repayments of principal, interest, fees, or other returns on project loans made
880 from the Fund;
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881(3) Proceeds from bonds, notes, or other obligations authorized for the purposes
882 of the Fund;
883(4) Gifts, grants, donations, or other contributions from public or private sources
884 accepted by the Mayor in accordance with law; and
885(5) Other amounts lawfully credited to the Fund.
886(d) The money deposited into the Fund, but not expended in a fiscal year, shall not revert
887 to the unassigned fund balance of the General Fund at the end of a fiscal year, or at any other
888 time.
889(e) Subject to authorization in an approved budget and financial plan, money in the Fund
890 shall be continually available without regard to fiscal year limitation.
891Sec. 604. Administration of the Fund
892(a) The administering agency shall administer the Fund and is authorized to:
893(1) Originate project loans directly;
894(2) Participate in project loans with one or more qualified co-lenders;
895(3) Allocate Fund capital to qualified co-lenders for the origination of project
896 loans subject to the requirements of this act and rules issued pursuant to this act;
897(4) Enter into interagency agreements, servicing agreements, participation
898 agreements, risk-sharing agreements, and other agreements necessary to implement the Fund;
899 and
900(5) Establish underwriting standards, term sheets, notices of funding availability,
901 or requests for applications consistent with this act.
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902(b) The administering agency may charge reasonable fees in connection with the
903 origination, participation, servicing, monitoring, and administration of project loans, provided
904 that any fees collected shall be deposited into the Fund.
905Sec. 605. Eligible uses of the Fund.
906(a) Money in the Fund may be used for the following purposes:
907(1) Subordinate acquisition loans for acquisition-ready projects;
908(2) Bridge acquisition financing for time-sensitive purchase opportunities
909 involving existing or proposed mixed-income multifamily rental housing;
910(3) Subordinate construction financing for new construction, substantial
911 rehabilitation, or adaptive reuse of mixed-income multifamily rental housing;
912(4) Construction-period gap financing, including interest reserves or other credit
913 support necessary to close an eligible project loan;
914(5) Financing related to the preservation and recapitalization of occupied
915 multifamily rental housing, where the borrower demonstrates that acquisition financing or
916 construction-period subordinate financing is necessary to maintain or create mixed-income
917 occupancy; and
918(6) Other subordinate credit support determined by the administering agency by
919 rule to be necessary to accelerate eligible projects consistent with this act.
920(b) The Fund shall not be used for unrestricted land banking, speculative site acquisition
921 without a credible housing execution plan, or permanent financing except as may be necessary
922 for a short transition period established by rule to facilitate repayment or conversion of a project
923 loan.
924Sec. 606. Eligible borrowers and projects.
                                                 39
925(a) A borrower under this act shall be a single-asset, sole-purpose entity approved by the
926 administering agency.
927(b) For-profit, limited-dividend, nonprofit, joint-venture, and mission-driven borrowers
928 shall be eligible, provided that the sponsor and principal participants are not in default under any
929 mortgage financing or other material financing obligations, and satisfy underwriting, credit, and
930 disclosure requirements established by the administering agency.
931(c) To be eligible for a project loan, a project shall:
932(1) Be locating in the District of Columbia;
933(2) Be a mixed-income multifamily rental housing development or housing
934 accommodation, or a project that will be converted or adapted to multifamily rental housing;
935(3) Consist of 50 or more dwelling units, unless the administering agency
936 establishes by rule a lower threshold for acquisition or preservation projects that materially
937 advance the purposes of this act;
938(4) Demonstrate through a project-specific "but for" analysis that, absent the
939 project loan, the project would not proceed in substantially the same timeframe or on
940 substantially the same terms;
941(5) Include a senior lender, expected senior lender, or another credible primary
942 financing source, together with a realistic plan to assemble the balance of the capital stack;
943(6) Comply with baseline local inclusionary, affordability, or tax-abatement
944 requirements applicable to the project; and
945(7) Meet any additional eligibility criteria established by rule.
946Sec. 607. Underwriting and loan terms.
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947(a) Project loans made under this act shall be in a subordinate or mezzanine position to
948 the senior construction loan or senior acquisition financing, as applicable.
949(b) The administering agency shall establish underwriting standards by rule, including
950 standards governing maximum loan amounts, minimum borrower equity, maximum combined
951 loan-to-cost, debt service assumptions, collateral guarantees, recourse, reserves, appraisals, third-
952 party reports, and closing conditions.
953(c) Unless modified by rule for a particular class of projects, a project loan shall satisfy
954 the following requirements:
955(1) The combined value of senior debt and the project loan shall not exceed 80%
956 of the total development or acquisition cost, as applicable;
957(2) The borrower shall contribute not less than 20% equity during the construction
958 or acquisition period, except that the administering agency may establish alternative equity
959 requirements for preservation transactions supported by mission-driven sponsors;
960(3) A project loan in the construction acceleration lane shall be limited to the
961 construction period and shall not exceed 36 months, except that the Administering agency may
962 grant extensions for good cause shown;
963(4) A project loan in the acquisition acceleration lane shall have a term not to
964 exceed 24 months, except that the administering agency may grant a limited extension for good
965 cause shown where the borrower demonstrates substantial progress toward a takeout event;
966(5) Interest may accrue or be paid currently at a rate established by the
967 administering agency, which shall be below market and may vary based on project
968 characteristics, borrower strength, co-lender participation, and market conditions;
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969(6) The project loan shall be repaid at construction closing, conversion to
970 permanent financing, sale, refinancing, recapitalization, assignment, or another approved capital
971 event determined by the administering agency; and
972(7) The borrower shall provide completion guarantees, environmental
973 indemnities, and other credit support as the administering agency requires.
974Sec. 608. Conditions before closing.
975(a) Prior to the closing of a project loan, the administering agency shall require
976 documentation sufficient to demonstrate that the project is prepared to proceed on the timetable
977 proposed by the borrower.
978(b) Required materials may include commitment letters or financing term sheets from
979 senior lenders and equity providers, a final project budget, evidence of site control, permits or
980 entitlement documentation as applicable, an appraisal, market study, insurance, title materials,
981 environmental review materials, and other third-party reports established by rule.
982(c) For an acquisition-ready project, the administering agency shall require a housing
983 execution plan, a proposed timeline to preservation, rehabilitation, or construction, and
984 documentation of the anticipated takeout financing or other repayment source.
985Sec. 609. Fund Priorities.
986(a) In awarding project loans, the administering agency shall give priority to projects that:
987(1) Are likely to commence construction or close on acquisition quickly after
988 award;
989(2) Leverage significant private capital relative to the amount of public capital
990 committed;
991(3) Provide income-restricted units beyond 30%;
                                                 42
992(4) Preserve existing mixed-income multifamily rental housing that is at risk of
993 conversion, substantial disinvestment, or financial distress;
994(5) Are located near major transit, employment centers, or high-opportunity areas;
995(6) Convert underutilized commercial, institutional, or vacant property to housing;
996(7) Add family-sized units or otherwise advance District housing production
997 goals; or
998(8) Demonstrate that the project loan will materially accelerate the start or
999 preservation of housing in the District.
1000  (b) The administering agency may establish additional priorities by rule or by notice of
1001   funding availability, provided that such priorities are consistent with this act.
1002  Sec. 610. Revolving nature of the fund.
1003  (a) All principal, interest, fees, and other returns from project loans shall be deposited
1004   into the Fund.
1005  (b) The administering agency shall administer the Fund in a manner designed to preserve
1006   and recycle capital so that the same public dollars may support multiple projects over time.
1007  (c) The Mayor may seek additional capitalization for the Fund from local funds, bond
1008   proceeds, philanthropy, employer contributions, mission-related investments, federal sources
1009   lawfully available for the purposes of this act, and other public or private sources, subject to
1010   applicable law and budget authority.
1011  Sec. 611. Reporting.
1012  (a) No later than 120 days after the end of each fiscal year, the Mayor shall submit to the
1013   Council and publish on a publicly accessible website a report on the administration of the Fund.
1014  (b) The report shall include:
                                                  43
1015  (1) The number of applications received, approved, denied, withdrawn, and
1016   pending;
1017  (2) The amount and type of each project loan awarded;
1018  (3) The number of units in projects assisted, including market-rate units and
1019   income-restricted units;
1020  (4) The ward location and status of each project assisted;
1021  (5) The amount of private capital leveraged by each award, to the extent
1022   practicable;
1023  (6) The amount of Fund capital repaid and revolved during the fiscal year;
1024  (7) The amount of Fund capital outstanding at the end of the fiscal year; and
1025  (8) Any recommendations for statutory or regulatory changes to improve the
1026   operation of the Fund.
1027  (c) The administering agency shall maintain project-level records sufficient to evaluate
1028   compliance with this act and applicable loan documents.
1029   TITLE VII. BUILDING PERMITTING ADVISORY COUNCIL.
1030  Sec. 701. Short title.
1031   This title may be cited as the “Building Permitting Advisory Council Amendment Act of 2026”.
1032  Sec. 702. Amendments.
1033  The Department of Buildings Establishment Act of 2020, effective April 5, 2021 (D.C.
1034   Law 23-269; D.C. Official Code § 10-561.01 et seq.), is amended as follows:
1035  (a) Title II is amended by adding a new section to read as follows:
1036  “Sec. 203. Building Permitting Advisory Council.
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1037  “(a) The Mayor shall establish a Building Permitting Advisory Council (“BPAC”) to
1038   make policy recommendations designed to continually improve the efficiency, transparency,
1039   predictability, and accountability of the District’s building permitting process.
1040  “(b) The purpose of the BPAC shall be to:
1041  “(1) Advise the Mayor, the Council, and the Director on policies and practices to
1042   improve the efficiency, transparency, predictability, and accountability of the building permitting
1043   process;
1044  “(2) Review the performance of the Department’s permitting-related functions,
1045   including permit intake, plan review, interagency referral and coordination, permit issuance,
1046   inspection-related permitting delays, and related customer service processes;
1047  “(3) Identify administrative, regulatory, technological, staffing, and legal barriers
1048   that contribute to unnecessary delay, duplication, inconsistency, or unpredictability in the
1049   permitting process;
1050  “(4) Develop recommendations to streamline permitting and related development
1051   review processes across the Department and, where applicable, across agencies with review or
1052   approval responsibilities affecting permit issuance; and
1053  “(5) Solicit feedback from affected stakeholders and the public regarding the
1054   operation of the permitting process.
1055  “(c) The BPAC shall:
1056  “(1) Review data and information made available by the Department concerning
1057   permitting timelines, application volume, review times, permit issuance outcomes, resubmission
1058   rates, common sources of delay, and other permitting performance indicators identified by the
1059   Department or the Board;
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1060  “(2) Evaluate the effectiveness of electronic plan submission, electronic plan
1061   review, permit tracking, and related records systems used in connection with permitting;
1062  “(3) Review recurring issues involving interagency coordination that materially
1063   affect the timeliness or predictability of permit review or issuance;
1064  “(4) Make recommendations regarding process improvements, staffing needs,
1065   service standards, guidance documents, rulemaking, legislation, and agency coordination; and
1066  “(5) Submit an annual report and recommendations in accordance with subsection
1067   (h) of this section.
1068  “(d)(1) The BPAC shall consist of 13 members.
1069  “(2) The Mayor shall appoint the following members, or their designees:
1070  “(A) The Director of the Department of Buildings;
1071  “(B) The Chief Building Official;
1072  “(C) One representative from the Office of Planning;
1073  “(D) One representative from the Department of Energy and Environment;
1074   and
1075  “(E) One representative from the Office of the City Administrator.
1076  “(3) The Mayor shall appoint 7 public members with relevant experience,
1077   including:
1078  “(A) One architect licensed in the District;
1079  “(B) One professional engineer licensed in the District;
1080  “(C) One representative of the residential development or homebuilding
1081   industry;
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1082  “(D) One representative of an affordable housing developer or affordable
1083   housing nonprofit provider; and
1084  “(E) One representative of a community-based organization, tenant
1085   advocacy organization, or neighborhood association with experience navigating the permitting
1086   process.
1087  “(F) Two representatives of local building trade unions.
1088  “(4) The Mayor shall appoint 1 public member with relevant expertise in
1089   construction, housing, planning, land use, design, permitting, or community development.
1090  “(5) Public members may be reappointed.
1091  “(6) A vacancy in the membership of the BPAC shall be filled in the same manner
1092   as the original appointment.
1093  “(f)(1) The BPAC shall meet at least quarterly.
1094  “(2) The Director, or the Director’s designee, shall convene the initial meeting of
1095   the BPAC not later than 90 days after the applicability date of the act that established the BPAC.
1096  “(3) A majority of the members serving shall constitute a quorum.
1097  “(4) The Chairperson of the BPAC shall be the Director of the Department of
1098   Buildings.
1099  “(g) (1) On or before January 1, 2028, and annually thereafter, the BPAC shall submit to
1100   the Mayor, Council, and Department a report that:
1101  “(A) Assesses the performance of the District’s building permitting
1102   process during the prior fiscal year;
1103  “(B) Identifies major causes of delay, inconsistency, or inefficiency in the
1104   permitting process;
                                                47
1105  “(C) Summarizes stakeholder feedback received by the BPAC;
1106  “(D) Recommends administrative, interagency, regulatory, or legislative
1107   actions to improve permitting performance and transparent communication with permit
1108   applicants; and
1109  “(E) Identifies any data collection or transparency improvements needed
1110   to better evaluate the permitting process.
1111  “(2) The report required by this subsection shall be made publicly available by the
1112   Department online.
1113  “(h) Nothing in this section shall be construed to authorize the BPAC to intervene in,
1114   adjudicate, or direct the outcome of any individual permit application, contested case,
1115   enforcement matter, zoning determination, or licensing action.
1116   TITLE VIII. STANDARD PROVISIONS.
1117  Sec. 801. Rulemaking.
1118  The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure Act,
1119   approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), may issue rules
1120   to implement the provisions of this act
1121  Sec. 802. Fiscal Impact Statement.
1122  The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact
1123   statement required by section 4a of the General Legislative Procedures Act of 1975, approved
1124   October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a)
1125  Sec. 804. Effective Date.
1126  This act shall take effect after approval by the Mayor (or in the event of veto by the
1127   Mayor, action by the Council to override the veto) and a 30-day period of congressional review
                                                48
1128   746 as provided in section 602(c)(2) of the District of Columbia Home Rule Act, approved
1129   December 747 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(2))
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