Chapter 20A. Limited-Equity Cooperative Task Force.

Subchapter I. Limited-Equity Cooperative Task Force.

§ 42–2061. Definitions.

For the purposes of this subchapter, the term

(1) "Cooperative" means an association, whether incorporated or unincorporated, organized for the purpose of owning and operating residential real property in the District of Columbia, the shareholders or members of which, by reason of their ownership of a stock or membership certificate, a proprietary lease, or other evidence of membership, are entitled to occupy a dwelling unit pursuant to the terms of a proprietary lease or occupancy agreement.

(2) "Limited-equity cooperative" or "LEC" means a cooperative required by a government agency or nonprofit organization to limit the resale price of membership shares for the purpose of keeping the housing affordable to incoming members that are low- and moderate-income.

§ 42–2062. Establishment of Limited-Equity Cooperative Task Force.

There is established a Limited-Equity Cooperative Task Force ("Task Force") to provide the Council with comprehensive policy recommendations on how the District can assist in the formation of new LECs and help existing LECs succeed.

§ 42–2063. Membership.

(a) The composition of the Task Force shall be as follows:

(1) Three residents, each of whom is currently a board member of an LEC in the District; provided, that no 2 residents shall be from the board of the same LEC.

(2) One representative from a community-based organization that provides training, counseling, and client advocacy services to low- to moderate-income residents.

(3) One representative from a property management company that manages cooperatives in the District.

(4) One representative from a development company that develops cooperatives in the District.

(5) One representative from a financial entity that specializes in the financing of LECs.

(6) One attorney with experience working with LECs.

(7) One individual who has conducted significant research on LECs in the District and elsewhere in the United States.

(8) Other representatives appointed by the Chairperson of the Committee on Housing and Neighborhood Revitalization.

(9) One representative from the Department of Housing and Community Development.

(10) One representative from the District of Columbia Housing Finance Agency.

(b) The Chairperson of the Council Committee on Housing and Neighborhood Revitalization shall appoint the:

(1) Chair of the Task Force; and

(2) Task Force representatives designated in subsection (a)(1) through (8) of this section.

(d) Meetings of the Task Force shall be open to the public.

(e) The Department of Housing and Community Development shall provide administrative support to the Task Force.

§ 42–2064. Duties of the Task Force.

Within 180 days after the appointment of all members, the Task Force shall submit to the Council a comprehensive report on:

(1) Policy and legislative recommendations related to how the District can help stabilize, strengthen, and preserve existing LECs, as well as how the District can best support the formation of new LECs;

(2) Funding options and sources to assist in the formation of new LECs and to provide technical support and assistance to LEC members and LEC boards in the District;

(3) How to establish appropriate government oversight to ensure that LEC boards have the necessary financial and structural management resources to help them succeed and prosper; and

(4) Any other identified needs or requirements for the successful formation and preservation of LECs in the District.

§ 42–2065. Sunset.

This subchapter shall expire upon the Task Force submitting the report required pursuant to § 42-2064 to the Council.

Subchapter II. Limited Equity Cooperative Advisory Council Act.

§ 42–2067.01. Definitions.

For the purposes of this subchapter, the term:

(1) "Advisory Council" means the Limited Equity Cooperative Advisory Council established by § 42-2067.02.

(2) "Cooperative" shall have the same meaning as given in § 42-2061(1).

(3) "Limited-Equity cooperative" or "LEC" shall have the same meaning as in § 47-802(11).

(Feb. 23, 2023, D.C. Law 24-243, § 2, 69 DCR 15091.)

Applicability

Section 7283 of D.C. Law 25-217 repealed section 6 of D.C. Law 24-243 removing the applicability provision impacting this section. Therefore the creation of this section by section 6 of Law 24-243 has been implemented.

Section 7283 of D.C. Act 25-506 repealed section 6 of D.C. Law 24-243 removing the applicability provision impacting this section. Therefore the creation of this section by section 6 of Law 24-243 has been implemented.

Applicability of D.C. Law 24-243: § 6 of D.C. Law 24-243 provided that the creation of this section by § 2 of D.C. Law 24-243 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

§ 42–2067.02. Establishment of the Limited-Equity Cooperative Advisory Council.

There is established a Limited-equity Cooperative Advisory Council to provide the Council with comprehensive policy recommendations on how the District can assist in the formation of new LECs and help existing LECs succeed.

(Feb. 23, 2023, D.C. Law 24-243, § 3, 69 DCR 15091.)

Applicability

Applicability of D.C. Law 24-243: § 6 of D.C. Law 24-243 provided that the creation of this section by § 3 of D.C. Law 24-243 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

§ 42–2067.03. Membership.

(a) The composition of the Advisory Council shall be as follows:

(1) Up to 6 resident-owner representatives, each of whom who is currently a board member of an LEC in the District; provided, that no 2 residents shall be from the board of the same LEC;

(2) Two representatives from a community-based organization, including:

(A) One of whom has experience in the formation of LECs, including the legal and organizational structure of the LEC; and

(B) One of whom has experience in ongoing technical assistance required to sustain LECs;

(3) One representative from a property management company that manages cooperatives in the District;

(4) One representative from a development company that develops cooperatives in the District;

(5) One representative from a financial entity that specializes in the financing of LECs;

(6) One attorney who has experience working with LECs;

(7) One individual who has conducted significant academic research on LECs in the District and elsewhere in the United States;

(8) Other representatives appointed by the Chairperson of the Council committee responsible for housing issues;

(9) One representative from the Department of Housing and Community

Development ("DHCD"); and

(10) One representative from the District of Columbia Housing Finance Agency.

(b) The Chairperson of the Council committee responsible for housing issues shall appoint the:

(1) Chair of the Advisory Council; and

(2) Advisory Council representatives designated in subsection (a)(1) through (8) of this section.

(1) Serve for a period of 2 years;

(2) Either reside or work in the District; and

(3) Serve without compensation.

(d) Meetings of the Advisory Council shall be open to the public.

(e) The Advisory Council shall meet at least 6 times each year.

(f) The Advisory Council may request administrative support from the Director of DHCD, who shall provide support as the Director of DHCD and not as a member of the Advisory Council for all such reasonable requests to prepare for the required reports and meetings of the Advisory Council.

(Feb. 23, 2023, D.C. Law 24-243, § 4, 69 DCR 15091.)

Applicability

Applicability of D.C. Law 24-243: § 6 of D.C. Law 24-243 provided that the creation of this section by § 4 of D.C. Law 24-243 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

§ 42–2067.04. Duties of the Advisory Council.

Each calendar year, the Advisory Council shall submit to the Council a 6-month preliminary report and an annual comprehensive report on:

(2) Funding options and sources to assist in the formation of new LECs and to provide technical support and assistance to LEC members and LEC boards in the District;

(3) How to establish appropriate government oversight to ensure that LEC boards have the necessary financial and structural management resources to help them succeed and prosper; and

(4) Any other identified needs or requirements for the successful formation and preservation of LECs in the District.

(Feb. 23, 2023, D.C. Law 24-243, § 5, 69 DCR 15091.)

Applicability

Applicability of D.C. Law 24-243: § 6 of D.C. Law 24-243 provided that the creation of this section by § 5 of D.C. Law 24-243 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

§ 42–2067.05. Applicability. [Repealed]

Repealed.