Unlocking Housing at Metro Property Tax Exemption Amendment Act of 2025

COUNCIL OF THE DISTRICT OF COLUMBIA
The John A. Wilson Building
1350 Pennsylvania Avenue, NW
Washington, D.C. 20004
Statement of Introduction
Unlocking Housing at Metro Property Tax Exemption Amendment Act of 2025
April 10, 2025
Today, I am introducing the Unlocking Housing at Metro Property Tax Exemption Amendment
Act of 2025, along with Councilmembers Brianne K. Nadeau, Charles Allen, Brooke Pinto,
Anita Bonds, and Robert C. White, Jr. This legislation was first introduced in Council Period 25
and would accelerate much-needed mixed-use residential development at Washington
Metropolitan Area Transit Authority (WMATA) Metrorail stations in the District. Eligible sites
do not currently generate tax revenues and it is financially infeasible under existing conditions
for WMATA to pursue transit-oriented development (TOD) through joint development
agreements at these stations.
TOD is common in thriving urban areas and features compact, high-density, mixed-use areas
within walking distance of a central stop of a public transportation system. TOD projects
maximize residential, business,
and leisure space and create more walkable, vibrant, and
exciting communities. People living in TOD zones in the District drive less, more frequently
bike and walk, and use public transportation more, energizing neighborhoods and advancing
sustainable transit goals.1 Since WMATA’s inception, District leaders and residents have
recognized the potential of integrating transit hubs with housing, retail, and other amenities,
and have worked with WMATA to invest in the blocks around Metro stations.
WMATA is a national leader in TOD. WMATA has delivered more than 60 buildings at 30
stations throughout the region. Since 1975, WMATA has built TOD projects in the District at the
Farragut North, Gallery Place/Chinatown, Tenleytown, Columbia Heights, Navy Yard, Rhode
Island Avenue, Fort Totten, Georgia Avenue/Petworth, Minnesota Avenue, Metro Center,
McPherson Square, Shaw/Howard University, U Street-Cardozo, and Van Ness/UDC stations.2
The WMATA projects advanced at these stations brought even more private and public
investment in surrounding neighborhoods, attracting new stores, arts and entertainment venues,
medical providers, restaurants, and additional businesses
that provide essential services, all of
which create new jobs. As of 2022, WMATA’s TOD projects throughout the DMV region
yielded 17 million square feet of mixed-used development, generated 5 million new annual
Metro trips, and raised $194 million in new annual state and local taxes.3 In 2024, WMATA
1 The analysis of transit-oriented development (TOD) in Washington, D.C. and Baltimore metropolitan areas, 2014.
Arefeh Nasri, Lei Zhan
2 Washington Metropolitan Area Transit Authority 10-Year Strategic Plan for Joint Development
3 Ibid.
Christina Henderson Committee Member
Councilmember, At-Large Human Services
Chairperson, Committee on Health Facilities
Transportation and the Environment
COUNCIL OF THE DISTRICT OF COLUMBIA
The John A. Wilson Building
1350 Pennsylvania Avenue, NW
Washington, D.C. 20004
and joint development partners were constructing 1,900 new residential units throughout the
Washington Metropolitan area.4
WMATA is planning new projects and has TODs underway at Metro stations in the District,
including at the Anacostia, Congress Heights, Brookland, Deanwood, Fort Totten, and
Friendship Heights stations. However, challenges limit the potential of these sites. Obstacles
include existing transit facilities and infrastructure such as rail tracks and traction power sub-
stations, roadway design, the location of utilities, commuter parking needs, and bus loop
configurations. Preliminary feasibility analyses found that projects at Congress Heights,
Deanwood, and Brookland could yield net property tax revenues of $1M to $14M per site to the
District over 30 years after accounting for upfront infrastructure costs, but development is
impossible in the near-term without public assistance. The initial infrastructure cost estimates for
potential Fort Totten developments exceed potential property tax revenues over a 30-year period.
Absent private uses or development, WMATA property at Metrorail stations cannot currently
generate tax revenues for the District and represent a missed opportunity to invest in the District
and its residents. Outside supports are necessary to unlock the full potential of WMATA's
properties.
The District’s regional neighbors have provided mechanisms to WMATA to reduce cost burdens
and achieve higher density at Metro stations. For example, in 2020, the Montgomery County
Council passed the More Housing at Metrorail Stations Act. That law provides a tax abatement
that lowers the cost of developing high-rise buildings at Metrorail stations, thereby increasing
density, allowing WMATA and its partners to produce more market-rate and affordable housing,
and expediting development. The abatement's stability convinced WMATA and its joint
development partners to commit to building even more housing at Metro stations than it could
have otherwise.
To realize the TOD potential at underdeveloped Metro stations in the District, this bill would
waive property taxes for 20 years on qualifying developments at Metro stations. To qualify for
the benefit, WMATA must enter into a joint development agreement that provides that at least
half of a development must be housing, and 75% of the project overall must consist of new
construction or substantially rehabilitated structures. The exemption would be available
beginning on January 1, 2026.
I look forward to working with my Council colleagues and the public to advance this legislation
and to build on the District’s strong transit-oriented development record for the benefit of current
and future residents.
4 Metro offers new development opportunity in the District’s historic Deanwood neighborhood
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Councilmember Brianne K. Nadeau Councilmember Christina Henderson 2
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Councilmember Brooke Pinto Councilmember Charles Allen 6
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Councilmember Robert C. White, Jr. Councilmember Anita Bonds 10
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A BILL 14
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 19
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To amend section 47-1002 of the District of Columbia Official Code to exempt from real 23
property taxation qualifying improvements located on land in the District subject to a 24
Joint Development Agreement with the Washington Metropolitan Area Transit Authority. 25
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 27
act may be cited as the “Unlocking Housing at Metro Property Tax Exemption Amendment Act 28
of 2025”. 29
Sec. 2. Section 47-1002 of the District of Columbia Official Code is amended as follows: 30
(a) Paragraph (34) is amended by striking the phrase “; and” and inserting a semicolon in 31
its place. 32
(b) Paragraph (35) is amended by striking the period and inserting the phrase “; and” in 33
its place. 34
(c) A new paragraph (36) is added to read as follows: 35

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“(36)(A) Subject to the provisions of subparagraph (B) of this paragraph, a 36
qualifying development located on land subject to a Joint Development Agreement with the 37
Washington Metropolitan Area Transit Authority (“WMATA”). 38
“(B) The real property tax exemption granted by subparagraph (A) of this 39
paragraph shall apply only: 40
“(i) For 20 consecutive real property tax years beginning on the 41
date that a certificate of occupancy for a qualifying development is issued; and 42
“(ii) To a qualifying development constructed after January 1, 43
2026. 44
“(C) The real property tax exemption granted by subparagraph (A) of this 45
paragraph shall be in addition to, and not in lieu of, any other tax relief or assistance from any 46
other source applicable to the qualifying development. 47
“(D) Nothing in this paragraph shall prevent or restrict WMATA from 48
utilizing any other tax, development, or other economic incentives available to Joint 49
Development Agreement partners or the qualifying development, including other tax, 50
development, or other economic incentives shall set forth in Chapter 38 of this chapter. 51
“(E) Nothing in this paragraph shall be construed to limit WMATA or 52
Joint Development Agreement partners from appealing or contesting a real estate tax assessment 53
of a qualifying development. 54
“(F) For the purposes of this paragraph, the term: 55
“(i) “Joint Development Agreement” means a contract between 56
WMATA and a third party to sell or ground lease WMATA property for a qualifying 57
development; and 58
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“(ii) “Qualifying development” means a real property development 59
in which: 60
“(I) Improvements are made to real property subject to a 61
Joint Development Agreement with WMATA in the District; 62
“(II) At least 50% of the improvements include the 63
construction of multifamily residential buildings; provided, that all multifamily residential 64
buildings located on the property shall be subject to the requirements of Chapter 10 of Title 11-C 65
of the District of Columbia Municipal Regulations; and 66
“(III) At least 75% of the improvements consist of 67
buildings that are newly constructed or substantially rehabilitated.”. 68
Sec. 3. Fiscal impact statement. 69
The Council adopts the fiscal impact statement in the committee report as the fiscal 70
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 71
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 72
Sec. 4. Effective date. 73
This act shall take effect following approval by the Mayor (or in the event of veto by the 74
Mayor, action by the Council to override the veto) and a 30-day period of congressional review 75
as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 76
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1). 77