B 26-0700

June 3, 2026
Nyasha Smith, Secretary
Council of the District of Columbia
1350 Pennsylvania Avenue, NW
Washington, D.C. 20004
Dear Secretary Smith,
Today, I am introducing the “Reservoir District Tax Exemption Amendment Act of 2026.” Please
see enclosed signed copy of the legislation. This legislation is identical in substance to
emergency and temporary versions of this bill that were adopted by the Council on May 5, 2026
and June 2, 2026.
The Reservoir District is a mixed-use urban community that exemplifies the District’s public-
private partnership model, transforming underutilized land into a vibrant residential and
commercial neighborhood. Section §47–4683 of the District of Columbia Official Code provides
a tax exemption for Reservoir District Parcels 2 and 4, a critical component of the project’s
financing; however, an issue has arisen with the way that language was drafted: The project’s
Tax Abatement Financial Analysis (“TAFA”) was structured using the 80 Percent Income Limit
Category of the Multifamily Tax Subsidy Project Income Limits established annually by the
United States Department of Housing and Urban Development (“HUD”) as the basis for
projected residential revenue. The Inclusionary Zoning (“IZ”) rates published by the District of
Columbia Department of Housing and Community Development in February 2026 do not match
HUD’s Multifamily Tax Subsidy Project Income Limits.
Requiring the project to operate under the current IZ rates rather than HUD’s Multifamily Tax
Subsidy Project Income Limits would impact the project’s economic feasibility, delaying or
potentially preventing the delivery of the planned housing and associated community benefits.
Those beneifts include new affordable housing units as well as a long-promised and much
needed grocer tenant. This legislation provides a tailored correction that would allow the project
to operate using 80 Percent Income Limit Category of the Multifamily Tax Subsidy Project
Income Limits established annually by HUD, as contemplated in its TAFA.
Please feel free to reach out to me or my Legislative Director, Neferteria Brown, with any
questions or for additional information.
Sincerely,
Zachary Parker
Ward 5 Councilmember
Chair, Committee on Youth Affairs
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3Councilmember Zachary Parker
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6A BILL
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10IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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15To amend, on an emergency basis, Chapter 46 of Title 47 of the District of Columba
16 Official Code to designate the property as affordable housing for which Fair Market Rents, as
17 calculated by the US Department of Housing and Urban Development, apply.
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19BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
20Act may be cited as the “Reservoir District Tax Exemption Amendment Act of 2026”.
21Sec. 2. § 47–4683 is amended as follows:
22(a) Section 47-4683(b)(2) is amended to read as follows:
23“(2) Set aside 1/3 of the operating rental housing units in the Property as
24 affordable as defined by 26 U.S. Code § 42(g)(2)(A). The units designated as affordable will be
25 available to households qualifying for the 80 Percent Income Limit Category of the Multifamily
26 Tax Subsidy Project Income Limits for the Washington-Arlington-Alexandria, DC-VA-MD
27 HUD Metro Fair Market Rent Area as reported annually by the US Department of Housing and
28 Urban Development and made in a manner consistent with I.R.C. § 142(d)(2)(B).
29Sec. 3. Fiscal impact statement.
30The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact
31 statement required by section 4a of the General Legislative Procedures Act of 1975, approved
32 October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
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33Sec. 4. Effective date.
34This act shall take effect following approval by the Mayor (or in the event of veto by the
35 Mayor, action by the Council to override the veto), a 30-day period of congressional review as
36 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
37 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of
38 Columbia Register.
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