D.C. Mun. Regs. tit. 10, r. 10-B3308

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

Rule 10-B3308 - SCHEDULE, TERMS AND CONDITIONS OF DEFERRAL AND FORGIVENESS AND OF DEFERRAL OR MORATORIUM

3308.1

The schedule for repayment of any deferred indebtedness to the District under §§ 3306.5(a) through (f) shall be determined by DHCD, based on the financial feasibility review and analysis required in § 3306. In determining the schedule, DHCD shall use the following criteria:

(a) The period of initial deferral, during which no payment of the amount deferred is due, shall not exceed a maximum of five (5) tax years commencing the date a Conditional Agreement for Deferral is executed by DHCD under § 3310.6; and

(b) The total period of deferral, including the period for repayment of deferred indebtedness, shall not exceed ten (10) full tax years from the date established in paragraph (a).

3308.2

The schedule for repayment of future real property tax liability which is subject to deferral or moratorium under § 3306.5(g) shall be determined by DHCD based on the following:

(a) The financial feasibility review and analysis provided for in § 3306;

(b) The period of initial deferral or moratorium during which no payment of the amount deferred is due, shall not exceed a maximum of five (5) years commencing the first full tax year after the project is certified consistent with § 3306.12; and

(c) The total period of deferral, including the period for repayment of deferred real property taxes, shall not exceed ten (10) full tax years from the date established in paragraph (b).3308.3 When a project has been certified eligible for deferral of indebtedness under § 3307.2 and a Conditional Agreement for Deferral has been executed by DHCD under § 3310.6, no further interest or penalties shall accrue on that portion of the unpaid indebtedness which has been deferred beyond that which had accrued through the date of the Conditional Agreement for Deferral.

3308.4

Penalties and interest on any indebtedness which have not been deferred shall continue to accrue and be charged as provided elsewhere in D.C. law.

3308.5

If the housing provider, or his or her successor, fails to meet the schedule for payment of deferred indebtedness established under § 3308.1 or § 3308.2, any indebtedness due under the schedule shall remain and be considered as taxes due, water or sewer fees due, or other indebtedness, if any, due to the District as of the date established in the schedule.

3308.6

The District shall collect the indebtedness using all legally available means, including but not limited to, the imposition of tax liens on the property, and the sale of the property at the next scheduled tax sale.

3308.7

All deferrals of indebtedness under § 3308.1 or § 3308.2 shall be considered conditional during the entire period of the rent regulatory agreement provided in § 3309. This provision shall be enforced as follows:

(a) Each housing provider granted a deferred of indebtedness under this program shall execute and deliver to the District at the time the deferral takes effect, a Deed of Trust note ("Note") for the entire amount of deferred indebtedness; and

(b) The terms of the note shall include, but not be limited to, the provisions under § 3308.8 through § 3308.12.

3308.8

The entire amount of indebtedness shall become due and payable immediately upon a finding by DHCD that the housing provider has violated any provision of the rent regulatory agreement executed with and attached to the note.

3308.9

The amount of indebtedness shall be considered paid in full and cancelled upon the payment in full of the deferred indebtedness according to the established schedule, and upon the completion of the term of the rent regulatory agreement without violation of the provisions of the agreement.

3308.10

The amount of indebtedness shall be secured by a Deed of Trust given by the owner of the property to the District, in form and content acceptable to the District.

3308.11

The District may, at the request of the housing provider, allow for the subordination of the Deed of Trust securing the note to other liens, securing private financing for the rehabilitation of the subject property as the District may, in its discretion, accept as necessary for the rehabilitation of the property.

3308.12

The District shall not unreasonably withhold an agreement to subordinate the subject Deed of Trust to private financing.

3308.13

All forgiveness of indebtedness owed to the District under this Program shall be considered conditional during the entire period of this rent regulatory agreement provided for in § 3315.

3308.14

The provision of § 3308.13 shall be enforced by means of a Deed of Trust Note, executed by each housing provider granted a forgiveness of indebtedness under this Program, similar in form and content to the Deed of Trust Note established in § 3308.7 through § 3308.12, but substituting provisions appropriate to the forgiveness of indebtedness in place of deferral of indebtedness.

3308.15

The Plan shall include provision for all taxes, water and sewer fees and other indebtedness owed to the District which are not explicitly deferred or forgiven under this Program to be paid when due, whether or not a project has received a deferral or forgiveness of any past indebtedness to the District under this Program.

D.C. Mun. Regs. tit. 10, r. 10-B3308

Final Rulemaking published at 35 DCR 2541, 2556 (April 8, 1988)