Code of the District of Columbia

§ 2–1215.16. Additional authority and duties of BIDs; dispute resolution.

(a) A BID’s authority shall include any powers possessed by a nonprofit corporation organized pursuant to District law, including, but not limited to, the authority to accept donations or gifts of money and property, to apply for and receive grants from public and private sources, to carry over funds from one fiscal year to the next, and to borrow money or issue bonds. Any agency or independent agency of the District, as those terms are defined in § 1-603.01, shall acknowledge and recognize the unique characteristics of a BID corporation.

(b) A BID shall make a payment to the District to cover any reasonable marginal costs the District documents to the BID it has incurred in collecting the BID tax associated with such BID. If the District is unable to allocate a marginal cost to a particular BID, the District may allocate such costs between the BIDs associated with such marginal costs; provided, that any such allocation shall be based, to the extent practicable, on the equitable benefit received by each BID from such costs.

(c) In addition to the obligation to pay the BID tax, if any owner requests a special capital improvement or service of a nature above the level of improvements or services provided generally by the BID within the BID area, such owner shall be specially charged, in accordance with such reasonable provisions as the BID Board may determine, to reflect the benefit received by such owner from such special capital improvement or service. Such special charge shall constitute the personal obligation of the property owner involved and shall be payable directly to the BID and may be deposited directly into a bank account established by the BID. Such special charges shall not be construed as a BID tax. The contract for any such special capital improvement or service valued in excess of $1,000 shall be approved by a majority vote of the disinterested members of the Board.

(d) In the event disputes arise with respect to any charge pursuant to this section or any activity conducted by a BID, such disputes shall be resolved through mediation, or, if mediation is unsuccessful, arbitration in accordance with the rules of the American Arbitration Association or such other reputable organization as is generally recognized as providing arbitration services as determined by the BID bylaws. Any party to such arbitration shall have the right to initiate judicial proceedings to enforce any award or decision made pursuant to arbitration, but no person shall be authorized to institute judicial proceedings with respect to the matters referred to in this subsection except to enforce an arbitration award. Residents of a residential neighborhood adjoining a BID and citizens associations covering an area in which a BID is located shall be entitled to seek relief under this section.

(e) A BID shall have a lien on any property on which a capital improvement is made pursuant to subsection (c) of this section and such lien shall be enforced and shall have the same priority as a mechanics lien provided that the BID complies with the procedural mechanisms governing mechanics liens under District law.

(f) The Mayor shall charge a reasonable fee to the proposed BID applicant to cover costs incurred by the District Government associated with processing BID applications and holding administrative hearings.