Jim Graham
Councilmember Adrian Fenty
Councilmember Kevin Chavous
A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
Councilmember Jim Graham introduced the following bill, which was referred
to the Committee on Economic Development.
To provide for affordable housing in mufti-unit housing projects which
involve public land or a public subsidy.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act
may be cited as the "Creating Affordable and Diverse Housing Bill of
2001".
Sec. 2. Definitions.
For the purposes of this act, the term:
(1) "AMI" means the area median income for the Washington
Metropolitan Standard Statistical Area, as determined by the United States
Department of Housing and Urban Development.
(2) "Project" means the construction or renovation of
residential housing consisting of 20 or more dwelling units. The term
"project" shall include the real property improved or to be
improved.
(3)(A) "Public Land" means improved or unimproved land:
(i) Owned by the District of Columbia or any of its instrumentalities;
(ii) Sold to its owner by the District of Columbia or any of its
instrumentalities; or(B) Subparagraph (A)(ii) shall apply to sales
occurring after the effective date of this act. For the purposes of this
subparagraph, the date of sale shall be the date of settlement.
(4) "Public subsidy" means any financial
assistance, services, or statutory or administrative relief or benefit
provided by the District of Columbia, including cash; loans, guarantees,
or other financing assistance; tax abatements, exemptions, or waivers; fee
abatements, exemptions, or waivers; alley or street closings; road
improvements; or debt forgiveness. The term "public subsidy"
shall not include any matter related to zoning.
Sec. 3. Affordable housing allocation.
(a) The owner of a project involving public land or a
public subsidy shall offer, for sale or rent, 10% of units of the project
shall be set aside for persons defined in subsection (b) of this section.
The number of units required under this section shall be rounded to the
nearest whole number.
(b) One-half of the units allocated under subsection
(a) of this section shall be affordable to families of 4 with a total
income of no more than 60°% of AMI and one-halt of the units allocated
under subsection (a) of this section shall be affordable to families of 4
with a total income of no more than 30% of AMI; provided, that if an odd
number of units is required under this subsection, the last, odd-numbered
unit shall be affordable to a family of 4 with a total income of no more
than 60% of AMI.
(c) If the unit allocated under this section is a
rental unit, the limitations under subsection (b) of this section shall:
(1) Survive a sale or other transfer of the project
or a renovation of the project and shall apply to all rentals of the
unit; and(2) Apply to all subleases and assignments of the
lease. For the purposes of this paragraph, any consideration received
for a sublease or an assignment in addition to the payment of the amount
required under the prime lease shall be included in the computation of
the rent limitation.
(d) If the unit allocated under this section is sold and subsequently
offered for rent, the limitations under subsection (b) of this section
shall apply to all rentals of the unit.
(e) If the unit allocated under this section is sold and subsequently
re-sold by the purchaser, the limitations under subsection (b) of this
section, determined as of the date of the contract, shall apply to the
sale of the unit.
(f)(1) The owner of a project involving public land or a public subsidy
shall record in the land records of the Recorder of Deeds covenants which
set forth the requirements and restrictions of this section. The
requirements and restrictions of this section shall be superior to all
other liens, restrictions, and claims.
(2) A deed conveying title to the ownership to the project or a unit
allocated under subsection (a) of this section shall set forth the
requirements and restrictions of this section.
(g) In lieu of the allocation under subsection (a) of this section, the
owner of a project involving public land or a public subsidy may:
(1) Offer, for sale or rent, a number of dwelling units equal to 15%
of the number of the units of the project at another location for the
persons defined in subsection (b) of this section. The number of units
required under this section shall be rounded to the nearest whole
number. Subsections (c), (d), (e), and (f) of this section shall apply
to these units; or(2) Contribute 15% of the greater of the fair market value or the
cost of the project to the Housing Production Trust Fund established by
section 3 of the Housing Production Trust Fund Act of 1988, effective
March 16, 1989 (D.C. Law 7-202; D.C. Code § 45-3101 et seq.).
Sec. 4. Penalties.
An owner of a project who violates the provisions of this act shall be
liable to the District of Columbia for a penalty equal to:
(1) The excess of the sales price or rent received over the allowable
sales price or rent, with interest at the rate of 18% per year on such
excess from the date received;
(2) Twenty thousand dollars for each violation; and
(3) Reasonable attorneys’ fees for the enforcement of this act.
Sec. 5. Regulations.
The Mayor shall promulgate regulations to carry out the purposes of
this act. The regulations shall include the amount of the sales price and
rental limitations under section 3, which limitations shall be revised
annually, and the method for determining total income under section
3.
Sec. 6. Applicability. This act shall not apply to a project for which:
(1) Construction commenced prior to the effective date of this act and
is diligently pursued to completion; or
(2)(A) The District government has accepted a request for proposals or
offer, or has entered into a contract, for development of public land
prior to the effective date of this act; and
(B) Is diligently pursued to completion.
Provided that the project was diligently pursued to completion.
Sec. 7. 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
District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat.
813; D.C. Code §1-233(c)(3)).
Sec. 8. 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),
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. 116; 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)(I)), and publication in the District of Columbia
Register.