Code of the District of Columbia

Chapter 25. District Government Employee Housing Assistance.

Subchapter I. Government Employer-Assisted Housing Program.

§ 42–2501. Definitions.

For the purposes of this chapter, the term:

(1) “Agency” means the District of Columbia Housing Finance Agency.

(2) “Agreement” means the housing allowance agreement required, pursuant to § 42-2504, to be entered into between a Participant and the District of Columbia government.

(3) “Deferred payment loan” means funds made available to Participants in the Program by the District to assist with the purchase of housing units and for which payment of the principal is deferred until the property is sold, transferred, or otherwise ceases to be the principal residence of the Participant.

(4) “Department” means the District of Columbia Department of Housing and Community Development.

(4A) "Educator" means:

(A) A principal, assistant principal, school teacher or instructor, assistant teacher, or a paraprofessional who is employed by or has accepted an offer of employment with the District of Columbia Public Schools or a District of Columbia public charter school; or

(B) An employee working as a full-time professor or instructor at the University of the District of Columbia;

(4B) "First-responder" means a District of Columbia police officer, correctional officer, firefighter, paramedic, or emergency medical technician, or an individual who has accepted an offer of employment as a District of Columbia police officer, correctional officer, firefighter, paramedic, or emergency medical technician.

(5) “First-time homebuyer” means a purchaser who has no ownership interest in a principal residence at any time during the 3-year period ending on the date of the application for assistance, but includes an applicant who has divorced or separated during the 3-year period where a formal settlement did not convey an ownership interest in a principal residence which had been jointly owned.

(6) “Household” means all of the persons living in a housing unit.

(7) “Housing unit” means any room or group of rooms forming a single-family residential unit, including a semi-detached condominium, cooperative, or semi-detached or detached home that is used or intended to be used for living, sleeping, and the preparation and eating of meals by human occupants.

(8) “Matching contribution” means those funds made available to Participants in the Program by the District to assist the Participants in saving toward a down payment.

(9) “Participant” means a person who has applied to the Program and who has met the eligibility requirements set forth in § 42-2503.

(10) “Program” means the District of Columbia Government Employer-Assisted Housing Program established pursuant to § 42-2502.

§ 42–2502. Establishment.

There is established within the District of Columbia Department of Housing and Community Development a District of Columbia Government Employer-Assisted Housing Program to assist District of Columbia government employees and educators to become homeowners in the District. The Program shall include:

(1) A District contribution toward a down payment pursuant to § 42-2504;

(2) A deferred payment loan of up to $20,000 pursuant to § 42-2505

(3) Agency single-family mortgage financing for qualified applicants pursuant to this chapter; and

(4) A grant of up to $10,000, for first-responders or educators pursuant to § 42-2505.01.

§ 42–2503. Eligibility.

(a) An applicant shall be eligible for the Program if the applicant is:

(1) A District of Columbia government employee, a first-responder, or an educator; and

(2) A first-time homebuyer in the District.

(b) No more than one member of a household shall be eligible for the Program.

(c) The Mayor shall not limit the eligibility of an applicant to participate in the Program based on the length of employment of the applicant or the length of time that the applicant has resided in the District of Columbia if the applicant is a District of Columbia police officer, firefighter, emergency medical technician, or educator; provided, that the Mayor may limit the eligibility of an applicant to receive a District of Columbia contribution toward a down payment based on the length of employment of the applicant with the District of Columbia or as an educator or the length of time the applicant has resided in the District of Columbia. The Mayor shall not limit the eligibility of an applicant to participate in the Program based on the place of residence of the applicant at the time of his or her application. A rule, or a portion of a rule, inconsistent with this subsection shall be void.

(d) Nothing in this chapter shall be construed to prohibit participation in subchapter I of Chapter 26 of this title.

§ 42–2504. Employee and educator savings; District government contribution.

(a) Each Participant in the Program shall be required to save an agreed upon amount, as set forth in this section, which shall be applied toward the down payment and closing costs for the housing unit. Each Participant shall enter into an Agreement with the Department. The Agreement shall set forth the following items:

(1) The amount to be saved by the employee or educator and the period of time during which the savings shall be accomplished;

(2) A provision for amendment or termination of the Agreement;

(3) A penalty for withdrawal of funds or termination of the Agreement prior to settlement of the loan;

(4) A procedure for refund to the District of the amount of matching funds contributed by the District on behalf of a Participant who has withdrawn from the Agreement, terminated the Agreement, or otherwise failed to purchase the housing unit;

(5) The matching funds to be contributed by the District;

(6) The requirement that the matching funds provided by the District shall be used only for the purchase of a housing unit that shall be the principal residence of the Participant; and

(7) Any other item that the Department deems necessary.

(b) Except as provided in subsection (b-1) of this section, for each Participant in the Program who sets aside $2,500 under an Agreement, the District shall obligate $1,000 in the financial management system. The District shall match succeeding Participant saving increments of $2,500 with a $1,000 obligation until the District obligation totals $5,000. Matching contributions by the District shall not exceed $5,000 for any individual Participant. The District shall disburse its cash contribution at the time of settlement.

(b-1) For each first-responder or educator Participant in the Program who sets aside $2,500 under an Agreement, the District shall obligate $1,500 in the financial management system. The District shall match succeeding first-responder or educator Participant saving increments of $2,500 with a $1,500 obligation until the District obligation totals $15,000. Matching contributions by the District shall not exceed $15,000 for any individual first-responder or educator Participant. The District shall disburse its cash contribution at the time of settlement.

(c) The Mayor shall establish a procedure to allow a Participant in the Program to save the target amount of money listed in the Agreement through a system of payroll deduction.

(d) An applicant who has saved toward a down payment prior to entering the Program shall also be eligible for the matching contribution upon entering into an Agreement with the Department.

§ 42–2505. Deferred payment loan.

(a) In addition to the assistance provided in § 42-2504(b) or (b-1) and § 42-2505.01, the Department shall make available to each Participant a deferred loan of up to $20,000 to provide financial assistance for the purchase of a housing unit. The deferred payment loan shall be available only if the housing unit shall be the principal residence of the Participant.

(b) Payment of the principal may be deferred until the property is sold, transferred, or ceases to be the principal residence of the Participant.

(c) Deferred payment loans may be secured by a second deed of trust on the subject property.

(d) The deferred payment loan may be used in conjunction with the Home Purchase Assistance Program established by Chapter 26 of this title.

(e) The Department may charge interest on the loan if the housing unit is sold within 5 years.

§ 42–2505.01. First-responder and educator grant.

(a) In addition to the assistance provided in § 42-2504(b-1) and § 42-2505, the Department shall make available a grant of up to $10,000 to provide financial assistance for the purchase of a housing unit to each first-responder or educator who is a Participant.

(b) In order to receive financial assistance for the purchase of a housing unit under this section, a first-responder or educator Participant must agree to a 5-year service obligation, which shall begin at the date of settlement on the purchase of the housing unit, or, if the first-responder or educator Participant is not yet a District employee or employee of a District public charter school on the date of settlement, on the first-responder's or educator's first day of employment with the District or with a District public charter school.

(c) The grant shall convert into a loan to be repaid by the Participant if:

(1) Within 5 years after the date of settlement on the purchase of the housing unit, the housing unit is sold, transferred, or ceases to be the principal residence of the first-responder or educator Participant; or

(2) The first-responder or educator Participant does not complete the 5-year service obligation required by subsection (b) of this section.

(d) For the purposes of this section, the term "service obligation" means employment as a first-responder or educator.

§ 42–2506. Assistance available for educators.

(a) In addition to the assistance provided in §§ 42-2504 and 42-2505, an educator, or a person who has accepted an offer to be a District of Columbia police officer, firefighter, emergency medical technician, or an educator who is a first-time homebuyer in the District shall be eligible for the following assistance, subject to annual available appropriations:

(1) A sliding-scale property tax credit as follows:

(A) An 80% property tax credit for the first year;

(B) A 60% property tax credit for the second year;

(C) A 40% property tax credit for the third year;

(D) A 20% property tax credit for the fourth year; and

(E) A 20% property tax credit for the fifth year.

(2) A $2,000 income tax credit in the tax year the District of Columbia government employee, educator, or person who has accepted an offer to be a District of Columbia police officer, firefighter, emergency medical technician, or educator purchases the housing unit and each of the 4 immediately succeeding tax years; provided, that the District of Columbia government employee, educator, or person who has accepted an offer to be a District of Columbia police officer, firefighter, emergency medical technician, or educator remains eligible for the tax credit. The credit shall not be prorated and any portion of the credit that is not utilized in a tax year shall not be carried forward, carried back, or refunded to the District of Columbia government employee, educator, or person who has accepted an offer to be a District of Columbia police officer, firefighter, emergency medical technician, or educator.

(b) Any real property owner eligible to receive a real property tax credit under this section shall receive the tax credit as of the next half of the real property tax year following the date the real property owner applied for the credit. The real property owner shall continue to receive the real property tax credit for each succeeding 9 halves of the real property tax year; provided, that the real property owner remains eligible to receive the tax credit.

(c) This section shall not apply to a home purchase with a closing date of after March 30, 2015.

§ 42–2507. Rules.

(a) The Mayor shall, pursuant to subchapter I of Chapter 5 of Title 2, issue rules within 90 days after the effective date of this chapter to implement the provisions of this chapter.

(b) The rules shall include the following:

(1) An application procedure for the Program;

(2) A standard for eligibility and selection of applicants; and

(3) The conditions under which the deferred payment loan may be granted.

(c) The proposed rules shall be submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution within this 45-day review period, the proposed rules shall be deemed approved. Nothing in this section shall affect any requirements imposed upon the Mayor by subchapter I of Chapter 5 of Title 2.

Subchapter II. Negotiated Employee Affordable Housing.

§ 42–2521. Negotiated Employee Affordable Home Purchase Fund.

(a) There is established as a special fund the Negotiated Employee Affordable Home Purchase Fund ("Fund"), which shall be administered by the Department of Housing and Community Development in accordance with subsection (c) of this section.

(b) There shall be deposited into the Fund:

(1) Amounts the District is required to allocate pursuant to a collective bargaining agreement to fund the Negotiated Employee Affordable Home Purchase Program ("NEAHP Program") that is administered by the Department of Housing and Community Development and the Office of Labor Relations and Collective Bargaining with the assistance of the Greater Washington Urban League, Inc.; and

(2) Any required repayment to the District of a financial award made through the NEAHP Program.

(c) The Fund shall be used to provide financial assistance to District government employees pursuant to the terms of the applicable collective bargaining agreement and the NEAHP Program.

(d)(1) The money deposited into the Fund shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.

(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation.