D.C. Law 24-244. Limited Equity Cooperative Property Tax Assistance Amendment Act of 2022.
AN ACT
To amend Title 47 of the District of Columbia Official Code to clarify the definition of a limited-equity cooperative ("LEC") to include an LEC that has membership limitations in its articles of incorporation or organization, limits the household income of a buyer, and requires a vote of at least 2/3 of its membership to amend its articles of incorporation or organization, and to make the property tax abatement for LECs permanent for LECs where at least 50% of the LEC's households are less than 80% of lower income guidelines.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Limited Equity Cooperative Property Tax Assistance Amendment Act of 2022".
Sec. 2. Title 47 of the District of Columbia Official Code is amended as follows:
(a) Section 802(11) is amended to read as follows:
"(11) The term "limited-equity cooperative" means a cooperative that is required by a government agency, nonprofit organization, or by its articles of incorporation or organization to:
"(A) Limit either:
"(i) The resale price of membership shares; or"(ii) The household income of the buyer for the purpose of keeping the housing affordable to incoming members that are low and moderate income; and
"(B) Mandates a vote of at least 2/3 of its membership to amend its articles of incorporation or organization; and
"(C) Mandates occupancy of all dwelling units by its shareholders within the dwelling units assigned according to each shareholder's respective membership interests or agreement as the shareholder's principal place of residence as a domiciliary of the District.".
(b) Section 3503(c) is amended as follows:
(1) Paragraph (1) is amended to read as follows:
"(1) For the purposes of this subsection, the term:
"(A) "Carrying charges" means the entire amount of money, money's worth, benefit, bonus, or gratuity demanded, received, or charged by a cooperative housing association to cover a proportionate share of operating and maintaining the cooperative, including such items as blanket mortgage payments, property taxes, management fees, maintenance costs, insurance premiums, utilities, and contributions to reserve funds.
"(B) "Cooperative housing association" shall have the same meaning as in § 47-803(2).".
(2) Paragraph (2)(B) is amended as follows:
(A) Strike the phrase "§ 47-3502(2)(B)" and insert the phrase "§ 47-3502(a)(2)(B)" in its place.
(B) Strike the word "rent" and insert the phrase "carrying charges" in its place.
(3) Paragraph (3) is amended by striking the word "rent" and inserting the phrase "carrying charges" in its place.
(4) Paragraph (4) is amended by striking the word "rent" and inserting the phrase "carrying charges" in its place.
(5) A new paragraph (4a) is added to read as follows:
"(4a) Notwithstanding the provisions of paragraph (4) of this subsection, the exemption provided by this subsection shall apply to property owned by a limited-equity cooperative defined in § 47-802(11) and shall not expire; provided, that:
"(A) At least 50% of the dwelling units are occupied by households whose household income does not exceed 80% of the lower income guidelines established pursuant to section 8 of the United States Housing Act of 1937, approved August 22, 1974 (88 Stat. 662; 42 U.S.C. § 1437f), for the Washington Standard Metropolitan Statistical Area, as the median is determined by the United States Department of Housing and Urban Development and adjusted yearly by historic trends of that median, and as further may be adjusted by an interim census of District incomes by local or regional government agencies;
"(B) The conditions described in § 47-3502 and the credit against carrying charges requirement described in paragraph (2)(B) of this subsection are met; and
"(C) The limited-equity cooperative files the report required by § 47-1007.".
Sec. 3. Conforming amendment.
Section 2(2) of the Limited-Equity Cooperative Task Force Act of 2018, effective July 3, 2018 (D.C. Law 22-119; D.C. Official Code § 42-2061(2)), is amended to read as follows:
"(2) "Limited-equity cooperative" or "LEC" shall have the same meaning as in
Sec. 4. Applicability.
(a) This act shall apply upon the date of inclusion of its fiscal effect is included in an approved budget and financial plan.
(b) The Chief Financial Officer shall certify the date of the inclusion of the fiscal effect in an approved budget and financial plan and provide notice to the Budget Director of the Council of the certification.
(c)(1) The Budget Director shall cause the notice of the certification to be published in the District of Columbia Register.
(2) The date of publication of the notice of the certification shall not affect the applicability of this act.
Sec. 5. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
Sec. 6. Effective date.
This act shall take effect following approval by the Mayor (or in the event of veto by the
Mayor, action by the Council to override the veto), a 30-day period of congressional review as provided in section 602(c)(l) of the District of Columbia Home Rule Act, approved December
24, 1973 (87 Stat. 813; D.C. Official Code§ l-206.02(c)(l)), and publication in the District of Columbia Register.
