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12ABILL.
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16IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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20To amend Chapter 13Aof Title 47 of the D.C. Official Code to modernize the tax sale process
21and enhance equity protections for District property owners; and to amend Chapter 11 of
22Title 42 to permit the collection of delinquent recordation tax through tax sale,
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24BEIT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
25act may be cited as the “Tax Sale Equity Amendment Actof2026”.
26Sec. 2. Section 308aofthe District of Columbia Deed Recordation Tax Act, effective
27April 4, 2003 (D.C. Law 14-282; D.C. Official Code § 42-1108.01) is amended by striking the
28phrase “chapters 41,” and inserting the phrase “chapters 13A, 41,” in its place.
29Sec. 3. Title 47, Chapter 13Aof the District of Columbia Official Code is amended as
30follows:
31(a) The tableofcontents is amended by striking the section designation Ҥ 47-1376.
32Validity of taxes and sale presumed unless attacked in answer.” and inserting the section
33designation Ҥ 47-1376. Validityoftaxes and sale presumed unless attacked in answer; claim for
34in its place.
35(b) D.C. Official Code § 47-1330 is amended as follows:
36(1) Paragraph (8) is amended by striking the phrase “business improvement
37 district.” and inserting the phrase “business improvement district and the Recorder of Deeds.” in
38 its place.
39(2) A new paragraph (9) is added to read as follows:
40“(9)(A) The term “cost-of-living adjustment” for the reasonable attorneys’ fees
41 allowed under § 47-1377(a)(1)(B)(i) means an amount equal to the maximum reimbursable
42 dollar amount of the reasonable attorneys’ fees, as modified by any prior cost-of-living
43 adjustments, multiplied by the difference between the Consumer Price Index for the preceding
44 real property tax year and the Consumer Price Index for the real property tax year beginning
45 October 1, 2024, divided by the Consumer Price Index for the real property tax year beginning
46 October 1, 2024.
47“(B) For the purposes of this paragraph, the Consumer Price Index for any
48 real property tax year is the average of the Consumer Price Index for the Washington-Baltimore
49 Metropolitan Statistical Area for all urban consumers published by the Department of Labor, or
50 any successor index, as of the close of the 12-month period ending on September 30 of such real
51 property tax year.”.
52(c) D.C. Official Code § 47-1336(e)(2) is amended by adding a new subparagraph (C-i)
53 to read as follows:
54“(C-i) An owner or interested party may redeem the real property by
55 making the payments listed in § 47-1361(a), or may claim the equity in the real property under §
56 47-1376(b)(3) within 90 days of being served;”.
57(d) D.C. Official Code § 47-1353(b)(1)(H) is amended by striking the phrase “periods
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58 and amounts” and inserting the word “amount” in its place.
59(e) D.C. Official Code § 47-1353.01(b) is amended as follows:
60(1) Strike the phrase “an additional $381.50” and insert the phrase “an additional
61 $531.50” in its place.
62(2) Strike the phrase “to obtain title to the property.” and insert the phrase “to
63 obtain title to the property or cause a judicial sale thereof. If you wish for the real property to be
64 sold at a judicial sale and any remaining equity returned to you, you may be required to make a
65 claim for the equity in the lawsuit within 90 days (or 30 days in the case of real property sold
66 under § 47-1353(b)) of being served.”.
67(f) D.C. Official Code § 47-1361(a) is amended as follows:
68(1) The lead-in language is amended by striking the phrase “paragraph (6A) of”
69 and insert the phrase “paragraphs (6A) and (9) of” in its place.
70(2) Paragraph (6A) is amended to read as follows:
71“(6A) Where an action to foreclose the right of redemption has been properly
72 filed, the person redeeming shall pay directly to the applicable purchaser:
73“(A) All expenses to which the purchaser is entitled to reimbursement
74 under § 47-1377(a)(1)(B); and
75“(B) Unless there is fraud in the conduct of the action to foreclose, if
76 judgment of foreclosure of the right of redemption of the sale is reopened after the purchaser
77 received the deed, all expenses reasonably incurred by the purchaser and the purchaser’s
78 successors in interest to improve or maintain the real property, including payments commonly
79 associated with real property ownership.”.
80(3) Paragraph (8) is amended to read as follows:
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81“(8) The reasonable expenses due to the District under § 47-1363.”.
82(4) A new paragraph (9) is added to read as follows:
83“(9) If judgment of foreclosure of the right of redemption of the sale is reopened
84 or set aside, the reasonable compensation and reasonable expenses due to the trustee or to any
85 other person (including an auctioneer) who provided services relating to the sale of the real
86 property under § 47-1382.01 to the date the judgment is reopened or set aside.”.
87(g) D.C. Official Code § 47-1370 is amended as follows:
88(1) Subsection (b) is amended as follows:
89(A) Paragraph (2) is amended by striking the phrase “purchaser; or” and
90 inserting the phrase “purchaser, subject to the requirements for issuance of a deed in § 47-1382;”
91 in its place.
92(B) A new paragraph (2-A) is added to read as follows:
93“(2-A) Appoint a trustee to sell the property and distribute the proceeds pursuant
94 to § 47-1382.01; or”.
95(2) Subsection (c)(1) is amended as follows:
96(A) Subparagraph (E) is amended by striking the phrase “property; and”
97 and inserting the phrase “property;” in its place.
98(B) Subparagraph (F) is amended by striking the semicolon at the end and
99 inserting the phrase “; and” in its place.
100(C) A new subparagraph (G) is added to read as follows:
101“(G) The right of an owner or interested party to redeem the real property
102 by making the payments listed in § 47-1361(a), or to claim the equity in the real property under §
103 47-1376(b)(3) by answer within 90 days (or 30 days in the case of real property sold under § 47-
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104 1353(b)) of being served.”.
105(h) D.C. Official Code § 47-1371 is amended as follows:
106(1) Subsection (b)(1)(B) is amended to read as follows:
107“(B) The legal title holder, if different from the record title holder,
108 including reasonably ascertainable heirs of a record or legal title holder known to be deceased for
109 whom no estate was opened or personal representative appointed;”.
110(2) A new subsection (c) is added to read as follows:
111“(c) Where a record or legal title holder is known to be deceased and no estate was
112 opened, the purchaser may petition to open a probate proceeding under Title 20 of the D.C.
113 Official Code.”.
114(i) D.C. Official Code § 47-1374(e)(1) is amended as follows:
115(1) The lead-in language is amended by striking the word “later” and inserting the
116 word “latest” in its place.
117(2) Subparagraph (A) is amended to read as follows:
118“(A) For any unimproved real property that abuts improved real property
119 with common ownership, or improved real property that is Class 1A or 1B Property or Class 2
120 Property on the date of the tax sale, one year following the initial scheduling conference in the
121 foreclosure action;”.
122(3) New subparagraphs (A-i) and (A-ii) are added to read as follows:
123“(A-i) For any unimproved real property that does not abut improved real
124 property with common ownership, six months following the initial scheduling conference in the
125 foreclosure action;
126“(A-ii) For any improved real property that is Class 3 or 4 Property on the
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127 date of the tax sale, three months following the initial scheduling conference in the foreclosure
128 action; or”.
129(j) D.C. Official Code § 47-1376 is amended as follows:
130(1) The section title is amended by striking the phrase “answer.” and inserting the
131 phrase “answer; claim for equity.” in its place.
132(2) Designate the existing language as subsection (a).
133(3) New subsections (b)-(e) are added to read as follows:
134“(b) Within 90 days (or 30 days in the case of real property sold under § 47-1353(b)) of
135 being served in the foreclosure action, an owner or interested party may, by answer:
136“(1) Plead the affirmative defenses listed in subsection (a) of this section or any
137 other affirmative defenses recognized under law;
138“(2) Respond to the allegations in the complaint consistent with the rules of the
139 Superior Court; and
140“(3) Claim that the owner or interested party’s equity in the real property exceeds
141 the amounts required to redeem under § 47-1361(a).
142“(b-1) For any person included as a defendant in the foreclosure action pursuant to § 47-
143 1371(b)(4) or § 47-1373(a), the time for filing an answer under subsection (b) of this section
144 shall begin to run from the later of the purchaser’s completing the:
145“(1) Posting required under § 47-1372(f); or
146“(2) Publication required under § 47-1375.
147“(c) The Superior Court may grant an additional period not to exceed 30 days for an
148 owner or interested party to file the answer permitted by subsection (b) of this section upon a
149 showing of good cause for the failure to file within the original answer period. The additional
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150 period is not required to run consecutive to the original answer period.
151“(d) For any real property that is presumptively subject to sale by a trustee under § 47-
152 1382.01, the purchaser may, by motion, rebut the presumption by establishing through a
153 preponderance of the evidence that a trustee sale under § 47-1382.01 would not result in a
154 distribution under § 47-1382.01(d)(4). If the purchaser succeeds in rebutting the presumption, §
155 47-1382 shall apply to the judgment foreclosing the right of redemption. The purchaser may rely
156 on the most recent assessed value for the property under Chapter 8 of Title 47 in rebutting a
157 claim for equity.
158“(e) Subject to subsection (c) of this section, failure to timely assert the affirmative
159 defenses in subsection (b)(1) of this section or make the claim for equity in subsection (b)(3) of
160 this section shall be deemed a waiver of those defenses or claims.”.
161(k) D.C. Official Code § 47-1377(a)(1) is amended as follows:
162(1) Subparagraph (A) is amended as follows:
163(A) Sub-subparagraph (i) is amended by striking the phrase “$50” and
164 inserting the phrase “$75” in its place.
165(B) Sub-subparagraph (iii) is amended by striking the phrase “$300” and
166 inserting the phrase “$425” in its place.
167(2) Subparagraph (B) is amended as follows:
168(A) Sub-subparagraph (i) is amended as follows:
169(i) Sub-sub-subparagraphs (I) and (II) are amended to read as
170 follows:
171“(I) In a case in which the property is redeemed before the
172 3rd status hearing, reasonable attorneys’ fees not to exceed $2,100;
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173“(II) In a case requiring 3 or more status hearings,
174 reasonable attorneys’ fees not to exceed $2,100 plus $100 for the 3rd status hearing and each
175 additional status hearing thereafter;”.
176(ii) Sub-sub-subparagraph (III) is amended by striking the phrase
177 “$300” and inserting the phrase “$425” in its place.
178(iii) New sub-sub-subparagraphs (IV) through (VI) are added to
179 read as follows:
180“(IV) For each motion filed by an owner or interested party
181 where the purchaser files an opposition and substantially prevails, additional attorneys’ fees in
182 the amount of $425;
183“(V) For any foreclosure action where the purchaser files a
184 motion under § 47-1376(d) that substantially prevails, additional attorneys’ fees in the amount of
185 $425; and
186“(VI) The caps on reasonable attorneys’ fees established by
187 this paragraph shall be increased annually, beginning on January 1, 2027, to the cost-of-living
188 adjustment (if the adjustment does not result in a multiple of $25, rounded down to the next
189 multiple of $25). The attorneys’ fees a purchaser may collect from a redeeming party under this
190 subparagraph shall (except for the additional fees as permitted by subsection (a)(1)(B)(ii)) be the
191 cost-of-living adjustment permitted to be collected as of the date of the tax sale.”.
192(B) Sub-subparagraph (ii) is amended as follows:
193(i) Strike the phrase “an action” and insert the phrase “a
194 foreclosure action” in its place.
195(ii) Strike the phrase “§ 47-1382.01(a), other” and insert the phrase
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196 Ҥ 47-1382.01(a) or in other court proceedings directly related to the purchaser holding the
197 certificate of sale or prosecuting the foreclosure action, other” in its place.
198(iii) Strike the phrase “or where a purchaser” and insert the phrase
199 “or if a purchaser” in its place.
200(iv) Strike the phrase “subsection (c)” and insert the phrase
201 “subsection (d)” in its place.
202(C) Sub-subparagraph (iii) is amended as follows:
203(i) The lead-in language is amended by striking the phrase
204 “actually incurred” and inserting the phrase “actually and reasonably incurred” in its place.
205(ii) Sub-sub-subparagraph (III) is amended by striking the phrase
206 “$75” and inserting the phrase “$100” in its place.
207(iii) Sub-sub-subparagraph (VII) is amended by striking the phrase
208 “; and” and inserting a semicolon in its place.
209(iv) Sub-sub-subparagraph (VIII) is amended by striking the period
210 at the end and inserting a semicolon in its place.
211(v) New sub-sub-subparagraphs (IX) through (XIII) are added to
212 read as follows:
213“(IX) Filing fee charged by the Recorder of Deeds for
214 recording a lis pendens;
215“(X) Fee charged to obtain a death certificate for a person
216 named as a defendant under § 47-1371 (or who would be named if not deceased) and the
217 person’s heirs who are deceased;
218“(XI) Fee for an heir search for a deceased person named as
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219 a defendant under § 47-1371 (or who would be named if not deceased) and the person’s heirs
220 who are deceased;
221“(XII) Fees to comply with the Servicemembers Civil
222 Relief Act; and
223“(XIII) Fee for an appraisal or other property valuation
224 obtained to establish a reasonable estimate of the market value of the real property in support of
225 a motion under § 47-1376(d) that substantially prevails.”.
226(l) D.C. Official Code § 47-1379 is amended to read as follows:
227“§ 47–1379. Reopening judgments.
228“The Superior Court shall not reopen a judgment rendered in an action for foreclosure of
229 the right of redemption, except on the grounds of lack of jurisdiction or fraud in the conduct of
230 the action to foreclose. A motion under this section must be made within a reasonable time—and
231 for the ground of constructive fraud in the conduct of the action to foreclose, within 6 months
232 from the date of the judgment.”.
233(m) D.C. Official Code § 37-1380 is amended as follows:
234(1) Subsection (a) is amended to read as follows:
235“(a) If the Superior Court shall set aside a sale, the amount required to redeem is the
236 amount required by this chapter, as may be adjusted by the court.”.
237(2) Subsection (c) is amended as follows:
238(A) Paragraph (2) is amended by striking the semicolon and inserting the
239 phrase “; and” in its place.
240(B) Paragraph (3) is amended by striking the phrase “; and” and inserting a
241 period in its place.
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242(C) Paragraph (4) is repealed.
243(3) A new subsection (e) is added to read as follows:
244“(e)(1) Except for fraud on the part of the purchaser, and subject to the limitations in
245 paragraph (2) of this subsection, a motion to set aside a sale shall be filed no later than one year
246 after the entry of a judgment of foreclosure of the right of redemption.
247“(2) Except for fraud on the part of the purchaser, a sale shall not be set aside
248 where:
249“(A) The purchaser has made the payment for the deed under § 47-1382;
250 or
251“(B) The trustee has a signed contract for the sale of the real property
252 under § 47-1382.01.
253“(3) The purchaser shall immediately file notice in the foreclosure action upon
254 making the payment for the deed under § 47-1382.
255“(4) The trustee shall immediately file notice in the foreclosure action once there
256 is a signed contract for the sale of the real property under § 47-1382.01. The trustee shall
257 immediately file a second notice in the foreclosure action if the parties to the sale fail to
258 complete it.”.
259(n) D.C. Official Code § 47-1382 is amended as follows:
260(1) Subsection (c) is amended by adding a new sentence at the end to read as
261 follows: “The payment required by this subsection may be made no earlier than 30 days after the
262 judgment of foreclosure of the right of redemption is entered by the Superior Court.”.
263(2) Subsection (d) is amended to read as follows:
264“(d) The deed shall be prepared and recorded by the Mayor.”.
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265(3) Subsection (e) is amended by striking the phrase “a certified copy” and
266 inserting the phrase “a copy” in its place.
267(4) Subsection (f) is amended as follows:
268(A) Paragraph (1) is amended by striking the phrase “30 days” and
269 inserting the phrase “60 days” in its place.
270(B) Paragraph (2) is repealed.
271(C) A new paragraph (4) is added to read as follows:
272“(4) The filing of a motion under § 47-1379 or § 47-1380 shall toll the
273 time for making the payment under this section until the motion is resolved.”.
274(5) Subsection (g) is amended to read as follows:
275“(g) Any surplus paid for a real property by a purchaser shall be applied against other
276 taxes, interest thereon, and expenses owing on the real property for which a deed is sought if the
277 application and timely balance payment shall result in the full payment required to obtain the
278 deed. Any remaining surplus after the full payment required to obtain the deed shall be
279 distributed to the person or entity entitled to the equity in the property as determined by the
280 court.”.
281(o) D.C. Official Code § 47-1382.01 is amended as follows:
282(1) Subsection (a) is amended to read as follows:
283“(a) This section shall presumptively apply to any real property sold that is not identified
284 in subsections (a-1)(1)-(4) of this section. For any real property identified in subsections (a-1)(1)-
285 (4) of this section, this section shall presumptively apply only where the owner or interested
286 party makes a claim under § 47-1376(b)(3). The purchaser shall bear the burden of establishing
287 that this section is not applicable to the real property.”.
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288(2) New subsections (a-1) and (a-2) are added to read as follows:
289“(a-1) Unless a claim is made by the owner or interested party under § 47-1376(b)(3), the
290 presumption in subsection (a) of this section shall not apply to real property that on the date of
291 the tax sale is:
292“(1) Unimproved and its most recent assessed value under Chapter 8 of Title 47 is
293 less than $100,000;
294“(2) Class 3 or 4 Property;
295“(3) Sold under § 47-1353(b); or
296“(4) Subject to taxes due that are 50% or more of its most recent assessed value
297 under Chapter 8 of Title 47 and is not Class 1A or 1B Property, with 5 or fewer units, that a
298 record owner (or a person with an interest in the real property as heir or beneficiary of the record
299 owner, if deceased) is occupying as his or her principal residence.
300“(a-2) This section shall not apply to real property where the purchaser rebuts the
301 presumption under § 47-1376(d).”.
302(3) Subsection (d) is amended as follows:
303(A) Paragraph (3) is amended by striking the phrase “§ 47-1377” and
304 inserting the phrase “§ 47-1361(a)(6A)” in its place.
305(B) Paragraph (4) is amended to read as follows:
306“(4) The remainder to the person or persons (including, when appropriate, a
307 decedent’s estate) entitled to the balance, in proper proportion as determined by the trustee, or,
308 when necessary, a court.”.
309(4) A new subsection (d-1) is added to read as follows:
310“(d-1) If a person entitled to a distribution under subsection (d)(4) cannot be located, the
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311 funds shall be deposited into the court registry and be subject to Chapter 1A of Title 41.”.
312(5) Subsection (e)(2) is amended by striking the phrase “distribution or” and
313 inserting the phrase “distribution of” in its place.
314(p) D.C. Official Code § 47-1383 is amended by striking the phrase “chapter is” and
315 inserting the phrase “chapter or a trustee appointed under § 47-1382.01 is” in its place.
316Sec. 4. Fiscal impact statement.
317The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal
318 impact statement required by section 4a of the General Legislative Procedures Act of 1975,
319 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
320Sec. 5. Effective date.
321This act shall take effect following approval by the Mayor (or in the event of veto by the
322 Mayor, action by the Council to override the veto) and a 30-day period of congressional review
323 as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
324 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1))
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