Councilmember Jack Evans
Councilmember David Catania
Councilmember Phil Mendelson
Councilmember Sharon Ambrose
A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To amend the Tax Increment Financing Authorization Act of 1998 to expand the scope of
priority development areas, to authorize a greater portion of available real property tax
revenues to be available to support tax increment financing bonds, and to create a housing
development fund from tax increment financing bond proceeds to promote housing
construction.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as
the "Tax Increment Financing Amendment Act of 1999."
Sec. 2. The Tax Increment Financing Authorization Act of 1998, effective September 11,
1998 (D.C. Law 12-143; D.C. Code §1-2293.1 et seq.), as amended, is amended as
follows:
(a) Section 2(3) is amended by striking the phrase ", exclusive of the special tax
provided for in section 481 of the District of Columbia Home Rule Act, approved December
24, 1973 (87 Stat. 807; D.C. Code §47-331) and pledged to the payment of general
obligation indebtedness of the District".
(b) Section 2(24) is amended by striking the period at the end of such subsection and
replacing such period with the following: "; and the Uptown Arts-Mixed Use Overlay
District as defined in Chapter 19 of the Zoning Regulations of the District (11 D.C.M.R.
19); and the census tracts located in the District for which the poverty rate is not less
than 10 percent as determined on the basis of the 1990 census."
(c) A new Section 6A is added after Section 6 to read as follows:
"Sec. 6A. Housing Development Fund.
"The Housing Development Fund is established as a special fund to be administered
by the Department of Housing and Community Development of the District. If less than an
amount equal to 10 percent of the net proceeds of sale of any issue of TIF bonds shall be
incurred for development costs associated with new or substantially rehabilitated housing,
then a portion of such proceeds equal to the excess of (i) 10% of the net proceeds over
(ii) the amount incurred for development costs associated with new or substantially
renovated housing, shall be deposited into the Housing Development Fund. Moneys in the
Housing Development Fund shall be used for projects that provide new or substantially
rehabilitated housing, provided that not less than 60 percent of the moneys in the Housing
Development Fund shall be granted to projects that provide new or substantially
rehabilitated housing within the downtown area. The provision of housing under this
section shall include the construction of apartments for rent or in a condominium regime,
which apartment units shall contain one or more habitable rooms to be used for sleeping
and living purposes and contain full kitchen facilities. The requirements of this Section
6A shall apply to any project for which the initial application pursuant to Section 4(a)
is submitted after May 1, 1999."
Sec. 3. Section 9(a) of the General Obligation Bond for Fiscal Year 1998 Act of 1997
(D.C. Law 12-41) is amended as follows:
(a) The fourth sentence of section 9(a) is amended by striking the period at the end of
such sentence and replacing such period with the following: "; provided, however,
that to the extent that the proceeds of the special tax are real property tax increment
revenues (as defined in section 2(26) of the Tax Increment Financing Authorization Act of
1998, (D.C. Law 12-143, D.C. Code §1.2293.1 et seq.) (as amended, the "TIF
Act")), such proceeds shall not be set aside in such special tax fund but shall
instead be disbursed in accordance with the TIF Act."
(b) The first sentence of section 9(b) is amended by striking the period at the end of
such sentence and replacing such period with the following: ", except for revenue
from the special tax that constitutes real property tax increment revenues."
(c) Section 9(f) is amended by adding at the end of such subsection the following:
"In calculating the real property special tax rates pursuant to this subsection (f),
the Mayor shall take into account the projected amount of real property tax increment
revenues for the applicable real property tax year, for projects that have been approved
or for projects that reasonably may be expected to be approved for tax increment financing
under the TIF Act."
(d) Section 9(g) is amended by adding after the first sentence of such subsection the
following: "In establishing the real property special tax rates pursuant to this
subsection (g), the Council shall take into account the projected amount of real property
tax increment revenues for the applicable real property tax year, for projects that have
been approved or for projects that reasonably may be expected to be approved for tax
increment financing under the TIF Act."
Sec. 4. Fiscal impact statement. The Council adopts the fiscal impact statement in the
committee report as the fiscal impact statement required by section 602(c)(3) of the
Distinct of Columbia Self-Government and Governmental Reorganization Act, approved
December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(3)).
Sec. 5. Applicability. This act shall apply to any project approved by the Council (as
provided in Section 5 of the TIF Act) after [July 1, 1999].
Sec. 6. 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), approval by the Financial
Responsibility and Management Assistance Authority as provided in section 203(a) of the
District of Columbia Financial Responsibility and Management Assistance Act of 1995,
approved April 17, 1995 (109 Stat. 1 16; D.C. Code §47-392.3(a)), a 30-day period of
Congressional review as provided in section 602(c)( 1 ) of the District of Columbia Home
Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)( 1)), and
publication in the District of Columbia Register.