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B26-0281 • 2025

Reservoir District Tax Exemption Amendment Act of 2025

Reservoir District Tax Exemption Amendment Act of 2025

Housing Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Parker
Last action
2026-01-09
Official status
Under Council Review
Effective date
Not listed

Plain English Breakdown

The bill status shows it is still under Council Review and has not yet become law.

Reservoir District Tax Exemption Amendment Act of 2025

This bill offers a tax break for specific buildings in the Reservoir District if they provide affordable housing and hire certified local businesses.

What This Bill Does

  • Adds a new law to give a real property tax exemption starting October 1, 2029.
  • Exempts 100% of taxes on four specific lots in Square 3128 for up to 20 years.
  • Requires the owner to operate at least 449 housing units at these locations.
  • Mandates that one-third of the rental units be affordable for households earning an average of 80% of the Area Median Income.
  • Requires construction contracts worth at least 35% of the total cost go to certified business enterprises.
  • Reduces or removes the tax break if the owner fails to meet housing unit requirements.

Who It Names or Affects

  • McMillan Parcel 2 Owner, LLC and McMillan Parcel 4 Owner, LLC
  • Affiliates of LDP Holdings, LLC doing business as Jair Lynch Real Estate Partners
  • The District government Office of Tax and Revenue
  • Households earning an average of up to 80% of the Area Median Income

Terms To Know

Real property tax exemption
A rule that allows an owner to pay zero taxes on land and buildings for a set time.
Area Median Income (AMI)
The middle income level of all households in the local area, used to define affordable housing limits.
Certified business enterprises
Companies that are officially recognized by the government as being owned by specific groups eligible for special contracts.

Limits and Unknowns

  • The tax break only begins on October 1, 2029.
  • The amount of money saved depends on whether the owner meets all housing and hiring rules each year.
  • This bill must be approved by the Mayor and reviewed by Congress before it becomes law.

Bill History

  1. 2026-01-09 Council of the District of Columbia LIMS

    Re-Referral published.

  2. 2026-01-06 Council of the District of Columbia LIMS

    Re-Referred to Committee of the Whole

  3. 2025-06-20 Council of the District of Columbia LIMS

    Notice of Intent to Act on B26-0281 Published in the District of Columbia Register

  4. 2025-06-17 Council of the District of Columbia LIMS

    Referred to Committee on Business and Economic Development

  5. 2025-06-04 Council of the District of Columbia LIMS

    B26-0281 Introduced by Councilmember Parker at Office of the Secretary

Official Summary Text

Reservoir District Tax Exemption Amendment Act of 2025

Current Bill Text

Read the full stored bill text 
1
_____________________________ 2
Councilmember Zachary Parker 3
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A BILL 6
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_________________________ 8
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 10
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_________________________ 12
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To amend Chapter 46 of Section 47 of the District of Columbia Official Code to provide for a 15
real property tax exemption for property located at Lots 809, 810, 814, 815, Square 3128. 16
17
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may 18
be cited as the “Reservoir District Tax Exemption Amendment Act of 2025”. 19
Sec. 2. Chapter 46 of Title 47 of the District of Columbia Official Code is amended as 20
follows: 21
(a) The table of contents is amended by adding a new section designation to read as 22
follows: 23
Ҥ 47-4682. Tax Exemption for Reservoir District; Lots 809, 810, 814, 815, Square 24
3128.” 25
(b) A new section 47-4682 is added to read as follows: 26
Ҥ 47-4682. Tax Exemption for Reservoir District; Lots 809, 810, 814, 815, Square 3128. 27
“(a) For the purpose of this section, the term: 28
“(1) “Owner” means McMillan Parcel 2 Owner, LLC, and McMillan Parcel 4 29
Owner, LLC, affiliates of LDP Holdings, LLC d/b/a Jair Lynch Real Estate Partners, its 30
successors, affiliates, and assigns. 31

“(2) “Property” means the real property, including any improvements constructed 32
thereon, at Parcel 2 West and Parcel 4 within the Reservoir District; known for tax and 33
assessment purposes as Lots 814 and 815 in Square 3128, and Lots 809 and 810 in Square 3128, 34
respectively. 35
“(b) Beginning on October 1, 2029, 100% real property tax imposed on the Property 36
pursuant to Chapter 8 of this title shall be exempted for 20 real property tax years; provided, that 37
the Owner shall: 38
“(1) Operate or cause to be operated 449 units of housing at the Property; 39
“(2) Set aside 1/3 of the operating rental housing units in the Property as 40
affordable and available for households earning an average of 80% Area Median Income; 41
“(3) Enter into an agreement with the District government that requires the 42
Owner, or its designee or assignee, to, at a minimum, contract with certified business enterprises 43
for at least 35% of the contract dollar volume of the construction of the project, in accordance 44
with Subchapter IX-A of Chapter 2 of Title 2; and 45
“(4) By September 30 of the year immediately preceding each tax year in the 46
exemption period set forth in this subsection, provide the Mayor with information showing what 47
percentage each of the requirements for eligibility for the exemption provided by this section has 48
been met. If the total number of units of housing per subsections (b)(1) and (b)(2) has not been 49
met the percentage of the real property tax exemption shall be reduced in equal proportion to the 50
percentage of units of housing that are not currently operating in the given real property tax year. 51
“(c) By December 31 of each tax year of the exemption period provided in subsection (b) 52
of this section, the Mayor shall certify to the Office of Tax and Revenue what percentage of tax 53
exemption the Property is eligible for the exemption provided in this section for that tax year. 54

The Mayor shall notify the Office of Tax and Revenue if the Property ceases to be eligible for 55
the exemption and the date such eligibility ceased. 56
“(d) The exemptions provided by this section shall be in addition to, and not in lieu of, 57
any other tax relief or assistance from any other source applicable to the Owner and/or Property.” 58
Sec. 3. Fiscal impact statement. 59
The Council adopts the fiscal impact statement in the committee report as the fiscal 60
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 61
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 62
Sec. 4. Effective date. 63
This act shall take effect after approval by the Mayor (or in the event of veto by the 64
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 65
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 66
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 67
Columbia Register. 68