D.C. Mun. Regs. r. 21-565

Current through Register Vol. 71, No. 24, June 14, 2024

Rule 21-565 - ELIGIBILITY CRITERIA FOR PROPERTIES OF NONPROFIT ORGANIZATIONS

565.1

To be eligible for relief under the CRIAC Nonprofit Relief Program for the CRIAC assessed on a particular property, an organization shall, with respect to that property:

(a) Have an active DC Water account and responsibility for paying DC Water's CRIAC; and

(b) Meet at least one of the following conditions:

(1) Have obtained, from the District's Office of Tax and Revenue (OTR), a real property tax exemption, pursuant to:

(A) D.C. Official Code § 47-1002(12) (certain cemeteries);

(B) D.C. Official Code § 47-1002(13) and (14) (certain property of religious institutions): or

(C) D.C. Official Code § 47-1002(8) (certain charitable institutions);or

(D) D.C. Official Code § 47-1002(32) (certain continuing care retirement communities); or

(2) Maintain a current license, from the Department of Insurance, Securities, and Banking (DISB), as a continuing care retirement facilityfora propertythat is exempt from District real property tax, pursuant to D.C. Official Code §§ 44-151.01et seq; or

(3) Have obtained, from OTR, an exemption from possessory interest tax pursuant to D.C. Official Code§ 47-1005.01 for a use described in D.C. Official Code §§ 47-1002(8), (12), (13), (14), and (32).

565.2

If a portion of the property has a use other than the eligible uses described in § 565.1,or is otherwise excluded from benefits under these rules, to determine the eligible impervious area or eligible ERUs for the remainder of the property, the Department may:

(a) Use the percent of real property improvements for which OTR has granted real property tax exemption;

(b) Use the DC Water-calculated amount of eligible ERUs, as available; or

(c) Estimate the eligible ERUs, using at a minimum, aerial photography and other relevant information, as available.

565.3

In addition to § 565.1 above, for a property to be eligible for the CRIAC Nonprofit Relief Program, the nonprofit organization shall:

(a) Show significant financial hardship in paying its CRIAC in accordance with § 565.4;

(b) At the Department's request, allow the Department, or an organization approved by the Department, to visit the site of the nonprofit organization and recommend potential stormwater mitigation project(s) on the site;

(c) Submit forthe Department's approval, a written proposal to mitigate stormwater runoff through one of the following:

(1) Install and maintain on the site of the nonprofit organization a stormwater runoff mitigation project that meets the requirements of § 565.5;

(2) If a stormwater runoff mitigation project on the site of the nonprofit organization is infeasible, implement or have implemented an alternative, off- site stormwater runoff mitigation measure or activity in the District that meets the requirements of § 565.6;

(3) Maintain on the site of the nonprofit organization an existing stormwater mitigation project that meets the requirements of § 565.5; or

(4) For a major regulated project, as defined in§ 599, maintain compliance with the stormwater Management Performance Requirements in§§ 520 and 522;

(d) For any project under paragraphs (c)(1) and (c)(2) of this subsection, complete, implement, or have implemented the stormwater mitigation project within one (1) year after receiving the Department's approval of the written proposal; and

(e) Submit to the Department:

(1) A copy of the most recently submitted FP-161 Exempt Property Use Report; and

(2) If applicable, a copy of the most recent, active Permanent License as a Continuing Care Retirement Community, issued by DISB.

565.4

For eligible organizations, as determined by § 565.1(b), significant financial hardship, as referred to in § 565.3(a), shall be established as follows:

(a) For an organization that is required to file a U.S. Department of the Treasury, Internal Revenue Service (IRS) form 990,or that has filed said form voluntarily, submit the most recent filed copy of the IRS Form 990, provided that it was filed within the last two completed tax years, and a signed declaration, executed under penalty of perjury, attesting that the annual CRIAC is at least one percent (1%) of the organization's annual revenue, less expenses, as reported on Part I, Line 19 of the IRS Form 990.

(b) For an organization that, in the most recent completed fiscal year, was not required by the IRS to file, or has not voluntarily filed, an IRS form 990, submit a signed declaration and income statement, consistent with the requirements of an IRS Form 990, executed under penalty of perjury, prepared in accordance with standard accounting practices, documenting that the annual CRIAC is at least one percent (1 %) of the organization's annual revenue, less expenses.

(1) The Department will apply best practices, such as testing a subset of signed declarations, to help ensure that the submission an d declaration process is valid.

(2) For the purposes of this provision, fiscal year is defined as twelve (12) consecutive months ending on the last day of any month used as an annual accounting period by the eligible organization for keeping records and reporting income and expenses.

565.5

For an on-site stormwater mitigation project to qualify under §§ 565.3(c)(1) or (c)(3), the organization must:

(a) Plant, or have planted after May 1, 2009, one tree per eligible ERU on the property of the nonprofit organization for which the CRIAC benefit is sought; or

(b) Manage ten percent (10%) of the eligible impervious area through the installation of BMPs that are eligible for a stormwater Fee Discount as described in § 558.

565.6

For an off-site stormwater mitigation project to qualify under§ 565.3(c)(2), the organization must:

(a) Obtain and retireten (10) stormwater Retention Credits (SRCs) per eligible ERU, which may be SRCs obtained prior to the commencements of the CRIAC Nonprofit Relief Program; or

(b) Elect to use a portion of their approved benefit, equal to the current market value of ten (10) SRCs per eligible ERU, to fund stormwater mitigation efforts elsewhere in the District. The Department shall use this funding through a Department program to provide stormwater mitigation on behalf of the organization.

565.7

An eligible nonprofit organization may implement a combination of the above stormwater mitigation options, including on-site and off-site, to receive benefits.

565.8

As a requirement of continued eligibility in the CRIAC Nonprofit Relief Program:

(a) A nonprofit organization that met the requirements of § 565.3(c) in whole or in part through on-site stormwater mitigation must both meet the requirements of § 565.5 and:

(1) Properly maintain the tree(s), or maintain the qualifying BMP(s) so that it continues to function as designed and approved; and

(2) Allow the Department access to the property to inspect the tree or BMP; or

(b) A nonprofit organization that met the requirements of § 565.3(c) in whole or in part through off- site stormwater mitigation must, as applicable:

(1) Retire ten (10) SRCs per eligible ERU annually; or

(2) Elect to use a portion of their approved benefit, equal to the current market value of ten (10) SRCs per eligible ERU, to fund stormwater mitigation efforts elsewhere in the District through a Department-approved program.

D.C. Mun. Regs. r. 21-565

Final Rulemaking published at 65 DCR 012973 (10/4/2019)