D.C. Mun. Regs. tit. 10, r. 10-B3306

Current through Register Vol. 71, No. 36, September 6, 2024

Rule 10-B3306 - REVIEW OF APPLICATIONS

3306.1

A rental housing accommodation which meets the eligibility and certification criteria of § 3300 through § 3305 shall be reviewed for consideration of tax deferral, moratorium or forgiveness in accordance with this section. This may include the deferral or moratorium on real property taxes for up to five (5) years, or the deferral or forgiveness or any indebtedness owed to the District, including but not limited to any outstanding tax liens, real property taxes, and unpaid water and sewer fees.

3306.2

The granting of tax or debt adjustments shall be based on a determination by DHCD that the action is in the best interest of the District, and consistent with the District 's rental housing needs in terms of its location, type and variety of sizes of rental units, as specified in this chapter.

3306.3

In reviewing applications and related plans, DHCD may consider the following:

(a) The interests of tenants in achieving decent, safe, and sanitary housing at affordable rents;

(b) The long-term interest of the housing provider in achieving a sound investment and a reasonable return on the housing provider's investment;

(c) The long-term interest of the mortgagor in achieving a financially secure mortgage; and

(d) The long-term interest of the District in achieving a decent, safe, and sanitary housing accommodation which is fiscally sound and which generates and pays its fair property tax assessment.

3306.4

The DHCD shall review each application for financial feasibility, based on commonly accepted underwriting criteria established by the Department and disclosed to applicants as part of the application package for the program.

3306.5

The DHCD review shall establish the amounts of deferral, moratorium or forgiveness which create the minimum financial loss to the District and also make the project financially feasible.

3306.6

In determining specific amounts of deferral or forgiveness, DHCD shall use the following order of priorities:

(a) Deferral of some or all real property taxes owed only;

(b) Some deferral and some forgiveness of real property taxes owed only;

(c) Forgiveness of all real property taxes owed;

(d) Forgiveness of all real property taxes owed and deferral of some or all water and sewer fees owed;

(e) Forgiveness of all real property taxes owed plus some deferral and some forgiveness of water and sewer fees owed;

(f) Forgiveness of all real property taxes owed and all water and sewer fees owed; and

(g) Up to five (5) years deferral or moratorium of future real property tax liability.

3306.7

In reviewing the Plan in each application, DHCD shall determine whether any proposed rent increases are authorized consistent with the Act, or consistent with other program requirements or rent restriction if the property is exempt under the Act.

3306.8

The Director may incorporate all of the increases to the rent ceilings approved by the Rent Administrator consistent with § 3302.3(b).

3306.9

In determining whether to incorporate part or all of the rent increase proposed, pursuant to either paragraph (a) or (b) of § 3302.3, the Director shall take into consideration the impact of these increases on the tenants of the property.

3306.10

Applicants approved under this Program may only implement rent ceiling increases consistent with the final schedule of rents and rent increases approved by the Director.

3306.11

An applicant shall be responsible for obtaining all necessary approvals of rent increases required by District law and regulations from the Department of Consumer and Regulatory Affairs.

3306.12

Applicants for projects financed under a Multi-Family Housing Rehabilitation Program of the D.C. Housing and Finance Agency may be certified by DHCD for tax or debt adjustments; Provided, that the following has occurred:

(a) The project has a firm written commitment of financing from the D.C. Housing Finance Agency;

(b) The D.C. Housing Finance Agency has certified in writing to the Director of DHCD that the project will be financially infeasible without the granting of deferral or forgiveness to the District in the amounts and under the terms and conditions proposed by the D.C. Housing Finance Agency, which are consistent with this chapter;

(c) The Director of DHCD has not received any information pursuant to the provisions of §§ 3304.5 and 3304.6 which would cause him or her to determine that the granting of deferral or forgiveness of any indebtedness would not be in the best interest of the District; and

(d) The D.C. Housing Finance Agency has certified in writing, and DHCD has confirmed, that the project meets the requirements of §§ 3305.5 and 3305.13 through 3305.19.

3306.13

All other applicants may be certified by DHCD for tax or debt adjustment; Provided, that the following requirements are met:

(a) All certification criteria of § 3305 and review requirements of § 3306 have been met;

(b) The DHCD has made a determination that the project is infeasible without deferral or forgiveness, based on the feasibility analysis under § 3306.4;

(c) The Director of DHCD has not received any information pursuant to the provisions of §§ 3304.5 and 3304.6 which would cause him or her to determine that the granting of deferral or forgiveness of any indebtedness would not be in the best interest of the District; and

(d) The Director of DHCD has made a determination, where applicable based on the feasibility analysis under § 3306.4, that project income is insufficient, and that a deferral or moratorium of future real property tax liability appears to be in the best interest of the District and consistent with the program intent.

3306.14

In order for a project certified eligible for tax deferral or moratorium of future real property tax liability to receive the first year of deferral or moratorium, the following shall be delivered to, and stamped "received" by the D.C. Department of Finance and Revenue not later than the, close of business on the last business day prior to the start of a new tax year on July 1st:

(a) An executed Certificate of Occupancy for all units in the project; and

(b) All additional documentation as specified by DHCD in accordance with this chapter.3306.15 If the Certificate of Occupancy or other required documents are received after the time specified in § 3306.14, the project shall not receive real property tax deferral or moratorium until the tax year which begins on July 1st of the following calendar year.

D.C. Mun. Regs. tit. 10, r. 10-B3306

Final Rulemaking published at 35 DCR 2541, 2552 (April 8, 1988)