D.C. Mun. Regs. tit. 10, r. 10-B3908

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

Rule 10-B3908 - PROCEDURES FOR CERTIFICATION AND IMPLEMENTATION

3908.1

When the DHCD has determined that a project is eligible for tax abatement, deferral of indebtedness or forgiveness of indebtedness to the District under this chapter, the implementation procedures of this section shall be followed.

3908.2

If the DHCD determines that a project is eligible for tax abatement under this chapter, the DHCD shall issue a Certificate of Eligibility for Tax Abatement to the owner of the project. This certificate shall be conditioned upon the continuing compliance by the project with the rent regulatory agreement for the project during the entire term of the tax abatement.

3908.3

The Director of the Department of Finance and Revenue shall, upon delivery of a Certificate of Eligibility for Tax Abatement and a valid Certificate of Occupancy for housing use, cause the amount of real estate taxes owed by the project to be abated, consistent with the provisions of § 3903 and all other provisions of this chapter.

3908.4

If the DHCD determines that a project is eligible for deferral or forgiveness of indebtedness to the District under this chapter, the DHCD shall consult with the Departments of Finance and Revenue, Consumer and Regulatory Affairs, and Public Works, as appropriate, to determine the current status of debt collection efforts regarding the project.

3908.5

Based on such consultation, the DHCD shall include appropriate provisions regarding the terms and conditions of the deferral or forgiveness in any agreement or certificate provided to the project by the DHCD. The terms and conditions may include, but are not limited to, the following:

(a) A deadline(s) for the completion of some or all of the rehabilitation work planned at the project; and

(b) The execution by the applicant of a consent judgment or agreement before a court of competent jurisdiction specifying the applicant's acceptance and agreement to the indebtedness proposed to be deferred or forgiven.

3908.6

If the DHCD determines, under this chapter, that a project is eligible for deferral of indebtedness to the District and has certified that the project is within the annual debt deferral ceiling as required by § 3905.4, the DHCD shall execute a Conditional Agreement for Deferral with the housing provider for the subject project (the "deferral agreement"), which shall include, but not be limited to, the following requirements:

(a) The amount and type of indebtedness to be deferred, the period for which the payment of the amount is to be deferred, and the schedule for the subsequent repayment of the indebtedness;

(b) Any other provision as may be required by the DHCD under § 3908.5;

(c) An incorporation by reference of the provisions of the rent regulatory agreement for the project; and

(d) Provisions for the enforcement of the agreement consistent with §§ 3906.4 and 3906.5 of this chapter.

3908.7

Upon delivery of a properly executed deferral agreement, the Director of the Department of Finance and Revenue or the Department of Public Works shall cause the payment of any indebtedness specified to be deferred, consistent with the terms of the deferral agreement.

3908.8

If the DHCD makes a determination, under this chapter, that an applicant is eligible for forgiveness of any indebtedness owed to the District, and has certified that the project is within the annual debt forgiveness ceiling as required by § 3905.4 of this chapter, the DHCD shall issue the applicant a Conditional Certificate of Forgiveness which shall include, but not be limited to, the following provisions:

(a) The amount and type of indebtedness to be forgiven;

(b) Any other provision as may be required by the DHCD under § 3908.5;

(c) An incorporation by reference of the provisions of the rent regulatory agreement for the project; and

(d) Provisions for the enforcement of the agreement consistent with § 3906.6 of this chapter.

3908.9

Upon delivery of a properly executed Conditional Certificate of Forgiveness, the Director of the Department of Finance and Revenue or the Department of Public Works shall cause any indebtedness specified to be forgiven, and shall cause any liens securing the indebtedness to be released, consistent with the terms of the certificate.

D.C. Mun. Regs. tit. 10, r. 10-B3908

Final Rulemaking published at 34 DCR 980, 992 (February 6, 1987)