Housing Production Omnibus Amendment Act of 2026

Statement of Introduction
Housing Production Omnibus Amendment Act of 2026
February 17, 2026

Today, we are jointly introducing the Housing Production Omnibus Amendment Act of 2026,
along with co-introducers Janeese Lewis George and Charles Allen. This legislation represents a
bold, comprehensive overhaul of how the District of Columbia funds housing, accelerates
production, and safeguards affordability.
The District's Housing Production Trust Fund was established in 2001 as one of the first state or
local funds of its kind and has supported thousands of affordable homes in the last 25 years.
However, rising construction costs, market volatility, and outdated policies have slowed
development and threatened our ability to address the District's housing needs. One-off fixes are
not enough, and our current laws are not meeting the moment.
We propose a modernized D.C. housing ecosystem that unlocks new resources and provides the
flexibility needed to respond to today’s challenges.
The Housing Production Omnibus Amendment Act of 2026 creates a new Housing
Opportunity Fund, replacing the existing Housing Production Trust Fund and a constellation of
related programs with a unified master fund. The Housing Opportunity Fund is organized into
five sub-accounts dedicated to specific policy purposes:
 Housing Production Account to attract and leverage investment to build new housing;
 Affordable Housing Subsidy Account to finance and support operations of deeply
affordable units and Permanent Supportive Housing;
 Preservation Account to preserve and expand the existing stock of affordable housing;
 Tenant Purchase Support Account to help tenants purchase and preserve their
buildings under the Tenant Opportunity to Purchase Act; and
 District Acquisition Account to enable strategic use of public land for housing
development.
In addition to establishing the Housing Opportunity Fund, this omnibus package introduces new
tools to accelerate housing production. It permits District retirement funds to invest in local
housing development; gives District government more power to acquire land for housing in high-
need areas; lets the District purchase and lease land to developers or tenant groups to keep
housing affordable; provides fast, flexible financing to jumpstart projects on public land with a
revolving loan fund; and strengthens the District’s ability to buy properties under the District
Opportunity to Purchase Act or assign purchase rights to affordable housing developers. This
legislation was developed through partnership with housing advocates, for-profit and non-profit
developers, tenant organizations, and a range of experts in housing finance.
Far too many residents struggle with excessive housing costs and the inability to find housing
appropriate for their needs. This legislation is a bold, comprehensive response to D.C.’s housing
shortage—one that ensures we can continue building homes and protecting affordability for
decades to come.

Signed,

Brianne K. Nadeau Robert C. White, Jr.
Councilmember, Ward 1

Councilmember, At-Large

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A BILL
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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To establish the Housing Opportunity Fund ("Fund") for the production, preservation, and 1
rehabilitation of affordable housing in the District of Columbia and to establish dedicated 2
revenue sources for the Fund, to establish sub-accounts of the Housing Opportunity Fund 3
for specific purposes, to set parameters for the initial apportionment of monies between 4
sub-accounts, to authorize reallocation of funds between sub-accounts and define 5
restricted reprogrammings, to require an annual audit of the Fund and regular audit of the 6
application and selection process, to direct the Chief Financial Officer to commission a 7
report on developer and bond fees, to establish limits and terms on the use of the Fund for 8
stabilization awards, to authorize the issuance of bonds for the purposes of the Fund, to 9
establish procedures for the application, scoring, and selection of projects for Fund 10
awards, to establish minimum affordability periods for rental and ownership units 11
supported by the Fund, to require a relocation and anti-displacement strategy for relevant 12
projects, to establish the Housing Opportunity Fund Board to monitor and advise on the 13
operations of the Fund and to review proposed fund awards that deviate from scoring 14
methodology, and to define the purpose and allowable uses of the Housing Production 15
Account, Affordable Housing Subsidy Account, Preservation Account, Tenant Purchase 16
Support Account, and District Acquisition Account; to amend the District of Columbia 17
Retirement Reform Act of 1979 to authorize the District of Columbia Retirement Board 18
to establish goals and procedures for investment in real property in the District of 19
Columbia with an emphasis on multifamily real estate and affordable housing; to amend 20
§ 16-1311 to include housing development in high-need areas as an authorized municipal 21
use for condemnation proceedings; to establish the Land Purchase Partnership Program 22
for the production or preservation of affordable housing and support of tenant purchases; 23
to amend the District of Columbia Housing Finance Agency Act to authorize the Housing 24
Finance Agency to establish a revolving construction loan fund; to amend the Rental 25
Housing Conversion and Sale Act of 1980 to apply the District's Opportunity to Purchase 26
for housing accommodations otherwise exempt from the Tenant Opportunity to Purchase 27
Act within the first 15 years after construction; and to amend § 47-1005.03 to clarify 28
Nonprofit Workforce Housing Properties eligibility. 29

_____________________________
Councilmember Robert C. White, Jr.
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Councilmember Brianne K. Nadeau
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Councilmember Charles Allen
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Councilmember Janeese Lewis George

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TABLE OF CONTENTS

TITLE I. HOUSING OPPORTUNITY FUND. ............................................................................. 3
SUBTITLE A. HOUSING OPPORTUNITY FUND. .................................................................... 3
Sec. 101. Short title. ........................................................................................................................ 3
Sec. 102. Definitions. ...................................................................................................................... 3
Sec. 103. Housing Opportunity Fund established. .......................................................................... 5
Sec. 104. Fund organization............................................................................................................ 7
Sec. 105. Apportionment of deposits and appropriations. .............................................................. 7
Sec. 106. Reallocations and reprogrammings. ................................................................................ 8
Sec. 107. Regular audits; report on reasonable fees. .................................................................... 10
Sec. 108. Use of Fund for stabilization. ........................................................................................ 11
SUBTITLE B. GENERAL PROVISIONS. .................................................................................. 12
Sec. 111. Bond issuance authorized. ............................................................................................. 12
Sec. 112. Project application and selection. .................................................................................. 12
Sec. 113. Maintaining affordability. ............................................................................................. 13
Sec. 114. Anti-displacement strategy............................................................................................ 15
Sec. 115. Housing Opportunity Fund Board. ................................................................................ 15
Sec. 116. Fund transparency and reporting. .................................................................................. 17
SUBTITLE C. SUB-ACCOUNTS. .............................................................................................. 19
Sec. 121. Housing Production Account. ....................................................................................... 19
Sec. 122. Affordable Housing Subsidy Account. ......................................................................... 21
Sec. 123. Preservation Account. ................................................................................................... 21
Sec. 124. Tenant Purchase Support Account. ............................................................................... 23
Sec. 125. District Acquisition Account......................................................................................... 24
SUBTITLE D. MISCELLANEOUS PROVISIONS. ................................................................... 25
Sec. 131. Conforming Amendments. ............................................................................................ 25
Sec. 132. Transfers; continuation.................................................................................................. 27
TITLE II. HOUSING PRODUCTION. ........................................................................................ 28
Sec. 201. Retirement fund real property investment..................................................................... 28
Sec. 202. Condemnation authority for housing development. ...................................................... 28
Sec. 203. Land Purchase Partnership Program. ............................................................................ 29
Sec. 204. Revolving public construction loan fund for affordable housing. ................................ 30
Sec. 205. District opportunity to purchase certain properties. ...................................................... 32
Sec. 206. Nonprofit Workforce Housing Properties eligibility clarification. ............................... 33
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TITLE III. STANDARD PROVISIONS. ..................................................................................... 34
Sec. 301. Rulemaking. .................................................................................................................. 34
Sec. 302. Applicability. ................................................................................................................. 34
Sec. 303. Fiscal impact statement. ................................................................................................ 34
Sec. 304 Effective date. ................................................................................................................ 35

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 30
act may be cited as the “Housing Production Omnibus Amendment Act of 2026”. 31
TITLE I. HOUSING OPPORTUNITY FUND. 32
SUBTITLE A. HOUSING OPPORTUNITY FUND. 33
Sec. 101. Short title. 34
This title may be cited as the “Housing Opportunity Fund Act of 2026”. 35
Sec. 102. Definitions. 36
For the purposes of this act, the term: 37
(1) "Affordable housing" means a housing unit with an income- or rent-restricted 38
covenant, including: 39
(A) Housing for individuals who have previously been incarcerated for or 40
convicted of a felony under state or federal law; 41
(B) Permanent Supportive Housing. 42
(2) "Area median income" means the area median income, as adjusted for 43
household size, of the Washington Metropolitan Statistical Area as set forth in the periodic 44
calculation provided by the U.S. Department of Housing and Urban Development. 45
(3) “Child development facility” means a facility where a child development 46
program is provided for infants and children, away from home, for less than 24 hours a day for 47
each infant or child, and which is to be located on a proposed housing or commercial project 48
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under a linked development agreement. The term “child development facility” shall include a 49
child development center, child development home, or infant care center, but does not include a 50
public or private elementary school engaged in legally required education and related functions. 51
(4) "Housing Opportunity Fund" or "Fund" means the Housing Opportunity Fund 52
as established in section 103, and all sub-accounts as established in section 104 and defined in 53
Subtitle C. 54
(5) "Stabilization" means funds awarded for the following purposes: 55
(A) Risk coverage to lenders for loans to stabilize affordable housing 56
properties in distress; or 57
(B) Bridge funding for properties with a demonstrated unforeseen debt 58
load; and 59
(C) Does not extend the period of affordability, increase the number of 60
affordable units, or would not otherwise be considered an award for the purposes of affordable 61
housing preservation as set forth in section 123. 62
(6) "Tier 1" means: 63
(A) Affordable housing targeted to a household with income equal to or 64
less than 30% of the area median income; or 65
(B) Permanent Supportive Housing. 66
(7) "Tier 2" means affordable housing targeted to a household with income equal 67
to, or less than, 50% of the area median income and greater than 30% of the area median income. 68
(8) "Tier 3" means affordable housing targeted to a household with income equal 69
to, or less than, 80% of the area median income and greater than 50% of the area median income. 70
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Sec. 103. Housing Opportunity Fund established. 71
(a) There is established the Housing Opportunity Fund as a permanent, interest-bearing, 72
revolving fund, separate from other accounts in the General Fund and consisting of identifiable, 73
renewable, and segregated capital. The Fund shall be administered by the Chief Financial Officer 74
and made available for use by the Mayor and Housing Authority in accordance with this title. 75
(b) Except as provided in this title, the Fund shall be used exclusively for the support, 76
provision, preservation, and rehabilitation of Tier 1, Tier 2, and Tier 3 affordable housing. 77
(c) The money deposited into the Fund, but not expended in a fiscal year, shall not revert 78
to the unassigned fund balance of the General Fund of the District of Columbia at the end of a 79
fiscal year, or at any other time. 80
(d) Subject to authorization in an approved budget and financial plan, any funds 81
appropriated in the Fund shall be continually available without regard to fiscal year limitation. 82
(e) There shall be deposited in the Fund, pursuant to section 105: 83
(1) Appropriated amounts; 84
(2) Repayments of principal and interest on loans provided from the Fund; 85
(3) Proceeds from bonds issued pursuant to section 111; 86
(4) Interest earned from the deposit or investment of monies from the Fund; 87
(5) All revenues, receipts, and fees of whatever source derived from the operation 88
of the Fund; 89
(7) Amounts deposited pursuant to § 47-919; 90
(8) Amounts deposited pursuant to Section 322 of the District of Columbia Real 91
Estate Deed Recordation Tax Act, approved March 2, 1962 (76 Stat. 17; D.C. Official Code § 92
42-1122); 93
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(9) Fee option contributions made by commercial developers under a commercial 94
linked development; 95
(10) Community development program contributions made pursuant to The 96
District of Columbia Regional Interstate Banking Act of 1985, effective November 23, 1985 97
(D.C. Law 6-63; D.C. Official Code § 26-701 et seq.); 98
(11) Grants, fees, donations, or gifts from public and private sources; 99
(12) Proceeds realized from the liquidation of security interests held by the 100
District under terms of assistance provided from the Fund; 101
(13)(A) Repayments of loans, including principal and interest, provided under 102
section 8 of the Homestead Housing Preservation Act of 1986, effective August 9, 1986 (D.C. 103
Law 6-135; D.C. Official Code § 42-2107); 104
(B) Proceeds realized from the liquidation of any security interests held by 105
the District under the terms of assistance provided from the fund through the Homestead 106
Housing Preservation Program established in Chapter 21 of this title; 107
(15) All fines collected pursuant to section 104 of the Inclusionary Zoning 108
Implementation Amendment Act of 2006, effective March 14, 2007 (D.C. Law 16-275; D.C 109
Official Code § 6-1041.04); and 110
(16) All fees collected pursuant to Section 204 of the Conversion of Rental 111
Housing to Condominium or Cooperative Status Act of 1980, effective September 10, 1980 112
(D.C. Law 3-86; D.C. Official Code § 42-3402.04) and Section 910 of the Rental Housing Act of 113
1985, effective April 16, 2020 (D.C. Law 23-72; D.C. Official Code § 42-3509.10). 114
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Sec. 104. Fund organization. 115
(a) There are established within the Housing Opportunity Fund the following sub-116
accounts, consisting of identifiable, renewable, and segregated capital and administered pursuant 117
to Subtitle C: 118
(1) Housing Production Account; 119
(2) Affordable Housing Subsidy Account; 120
(3) Preservation Account; 121
(4) Tenant Purchase Support Account; and 122
(5) District Acquisition Account. 123
(b) No less than 5% of the monies deposited into any sub-account of the Housing 124
Opportunity Fund in a fiscal year, or an equivalent amount appropriated from the General Fund 125
or other sources, shall be used to pay reasonable costs of compliance monitoring and 126
enforcement related to funding awards. 127
Sec. 105. Apportionment of deposits and appropriations. 128
(a) There is authorized to be appropriated at least $150 million annually, from all sources, 129
to be deposited into and expended from the Housing Opportunity Fund (“Fund”), adjusted every 130
5 fiscal years by the national Building Cost Index published by the Engineering News-Record. 131
(b) The Mayor shall submit to the Council, as part of the annual budget, a requested 132
appropriation of local funds for the Housing Opportunity Fund, along with a proposed 133
apportionment plan to distribute among the sub-accounts of the Fund any dedicated revenues 134
received, pursuant to section 103(e), above amounts in the Council's approved budget for that 135
fiscal year. 136
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(1) In formulating the Mayor's proposed annual budget for submission to the 137
Council, direct appropriations to the Housing Opportunity Fund shall be budgeted such that: 138
(A) The Housing Production Account and Affordable Housing Subsidy 139
Account combined shall comprise no less than 60% of the total amount appropriated to the 140
Housing Opportunity Fund in each fiscal year; 141
(B) No sub-account enumerated in section 115 receives less than 5% of 142
the total amount appropriated to the Housing Opportunity Fund for each fiscal year. 143
(c) Nothing in this section shall be interpreted as to constrain the Mayor’s ability to 144
reallocate or reprogram moneys between sub-accounts pursuant to section 118. 145
Sec. 106. Reallocations and reprogrammings. 146
(a) Except as provided in this section, at the request of the Mayor at any time in a fiscal 147
year, the Chief Financial Officer ("CFO") shall reallocate funds between sub-accounts of the 148
Housing Opportunity Fund, provided that the CFO determines that the funds are available for 149
reallocation. Subchapter IV of Chapter 3 of Title 47 of the District of Columbia Official Code 150
shall not apply to such reallocations. 151
(b) For the purposes of this section, “restricted reprogramming” means a reprogramming 152
request that includes: 153
(1) Funds transferred from the Tenant Purchase Support Account to another sub-154
account in the Housing Opportunity Fund; 155
(2) Funds transferred from the Affordable Housing Subsidy Account to another 156
sub-account in the Housing Opportunity Fund; or 157
(3) Funds transferred from any sub-account of the Housing Trust Account to 158
another budget category. 159
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(c)(1) Notwithstanding § 47-361(14), § 47-363(a) shall apply to a restricted 160
reprogramming, regardless of dollar value. 161
(2) Notwithstanding § 47-363(b)-(d), upon receipt of a restricted reprogramming 162
request, the Chairman of the Council shall cause a notice of the request to be published in the 163
District of Columbia Register, together with a statement that the request shall be deemed 164
disapproved 10 days from the date of publication in the District of Columbia Register, unless a 165
proposed approval resolution is filed before that time by a Councilmember, and that if a 166
proposed approval resolution is filed, the request shall be deemed disapproved 30 days 167
(excluding weekends, holidays, and days of Council recess) from the date of the receipt of the 168
reprogramming request, unless before the end of the 30-day review period the Council adopts a 169
resolution of disapproval or approval. 170
(3) The publication of a notice of a reprogramming request shall satisfy the public 171
notice requirements of this section and the rules of the Council and no further notice shall be 172
necessary for the Council to adopt a resolution affecting the request. 173
(4) The Council shall consider the reprogramming request according to its rules. 174
No reprogramming request may be submitted to the Chairman of the Council under this 175
subsection during such time as the Council is on recess, according to its rules, nor shall any time 176
period provided in this subsection or in the Council’s rules with respect to the request continue to 177
run during such time as the Council is on recess. 178
(5)(A) If no proposed approval resolution of a reprogramming request is filed 179
with the Secretary to the Council ("Secretary") within 10 days of the publication of the request 180
from the Mayor in the District of Columbia Register, the request shall be deemed disapproved. 181
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(B) If a proposed approval resolution is filed with the Secretary to the 182
Council within 10 days of publication of the reprogramming request from the Mayor in the 183
District of Columbia Register, the Council may approve or disapprove the reprogramming 184
request by resolution within 30 days (excluding weekends, holidays, and days of Council recess) 185
of the receipt of the request from the Mayor. If the Council neither affirmatively approves or 186
disapproves the request within 30 days (excluding weekends, holidays, and days of Council 187
recess) of the receipt of the request, the request shall be deemed disapproved. 188
(7) At any time before final action by the Council on a restricted reprogramming 189
request, including deemed disapproval, the Mayor may withdraw the request. 190
Sec. 107. Regular audits; report on reasonable fees. 191
(a) The Chief Financial Officer ("CFO") shall commission an annual audit report of the 192
Housing Opportunity Fund by a Certified Public Accountant or firm of public accountants 193
independent of the Department in accordance with generally acceptable government auditing 194
standards covering financial and compliance audits which sets forth the amount of deposits in the 195
Fund, the aggregate amount of all loans or grants issued by the Fund, and the number and 196
amount of Fund loans in default. 197
(b) The Office of the District of Columbia Auditor shall audit the application, scoring, 198
and award processes of the Fund every 5 years. 199
(c) Within 365 days of the applicability date of this subsection, and by request of the 200
Housing Opportunity Fund Board at any time thereafter, the CFO shall commission a report on 201
reasonable fees, including developer fees, bond fees, and consultant fees, that are associated with 202
financing of the production and preservation of affordable housing by the District and 203
instrumentalities of the District. 204
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Sec. 108. Use of Fund for stabilization. 205
(a) The Mayor may utilize up to 40% of the total approved budget of the Housing 206
Opportunity Fund in a fiscal year to issue awards for stabilization of properties in periods of 207
severe market distress, subject to the requirements of this section and provided that funds from 208
the Tenant Purchase Support Account shall not be used for such purposes. 209
(b)(1) If the planned fund usage for stabilization constitutes more than 10% of the total 210
approved budget of the Housing Opportunity Fund within that fiscal year, the Mayor shall, prior 211
to a solicitation for stabilization funds, submit to Council a resolution authorizing such use for a 212
30-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council 213
recess. A resolution that has not been approved or disapproved, in whole or in part, by resolution, 214
within this 30-day review period, the proposed rules shall be deemed approved. 215
(2) The resolution required under this subsection shall include an analysis of the 216
affordable housing market and projections for how the award of stabilization funds will serve to 217
stabilize the market. 218
(c) Within 60 days after a stabilization funding award is issued, property-specific analysis 219
shall be transmitted to the Council including: 220
(1) Financial data on the performance of the property; 221
(2) A third-party analysis of how the property will achieve stabilization after 222
receiving a stabilization award; and 223
(3) A copy of the latest Department of Buildings inspections of the building. 224
(d) The Mayor may award stabilization funds as a grant, or waive repayment of funds 225
awarded as a loan, provided that the Mayor and recipient or property owner enter into a written 226
agreement providing the District a reasonable equity stake in the property. 227
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SUBTITLE B. GENERAL PROVISIONS. 228
Sec. 111. Bond issuance authorized. 229
(a) Pursuant to section 490 of the Home Rule Act, the Mayor is authorized to issue bonds 230
to assist in financing, refinancing, or reimbursing costs of undertakings by the District to 231
accomplish the purposes of the Housing Opportunity Fund. 232
(b) The bonds, which may be issued from time to time, in one or more series, shall be 233
tax-exempt or taxable as the Mayor shall determine. 234
(c) The Mayor is authorized to pay from the proceeds of the bonds the costs and expenses 235
of issuing and delivering the bonds. Remaining proceeds of the bonds shall be deposited into the 236
Housing Opportunity Fund pursuant to sections 104 and 105. 237
Sec. 112. Project application and selection. 238
The provisions of this section shall apply to all sub-accounts of the Housing Opportunity 239
Fund and any stabilization funds made available pursuant to section 108. 240
(1)(A) The Mayor shall publish a Request for Proposals ("RFP") to advertise 241
funds made available pursuant to this act. The RFP may include other relevant housing funds 242
made available by the District. The RFP shall include scoring and selection criteria specific to 243
each sub-account of the Fund. 244
(B) An applicant may apply for an award of funding from one or more 245
sub-accounts of the Fund, or in the form of an application to a consolidated RFP. 246
(C) Eligibility for one sub-account shall not invalidate eligibility for any 247
other sub-account. An award of funding may be made to one project or applicant from multiple 248
funds, either simultaneously or sequentially. 249
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(D) Applications shall be accepted and scored on a quarterly basis, except 250
as provided in section 124. 251
(2) In the fiscal year before a fiscal year in which dedicated tax revenues will be 252
collected, proposals may be solicited and recipients ranked in funding priority order for the 253
expenditure of those tax revenues that will be dedicated to the Housing Opportunity Fund in the 254
next fiscal year; provided, that the dedicated tax revenues are not otherwise committed or 255
appropriated for other purposes and are certified in the approved financial plan for the next fiscal 256
year. 257
(3) The Mayor may issue an award that deviates from published scoring 258
methodology and selection criteria, provided, that: 259
(A) The project's initial score falls within 10% of either a point threshold 260
established in an RFP or the next lowest-scoring comparable project issued an award in that 261
fiscal year, whichever is higher; 262
(B) The decision to issue the award is based on factors not otherwise 263
captured by the scoring methodology; and 264
(C) The award is reviewed and approved by a majority of members 265
appointed to the Housing Production Opportunity Fund Board as established in section 115. 266
Sec. 113. Maintaining affordability. 267
(a) An affordable housing rental unit constructed pursuant to this act shall remain 268
affordable for a period of no less than 40 years. 269
(b)(1) A for-sale unit constructed pursuant to this act shall remain affordable for no less 270
than 180 months, in accordance with section 2218 of Title 14 of the District of Columbia 271
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Municipal Regulations (14 DCMR § 2218). If a for-sale unit is sold before the affordability 272
period expires, the new affordability term shall begin on the date of the sale. 273
(2) After the affordability period expires, there shall be no resale restrictions 274
unless otherwise agreed in an additional covenant. If no additional covenant exists after the 275
affordability period expires, the purchaser shall repay all preexisting equity to the Housing 276
Opportunity Fund pursuant to Subtitle A provided, that: 277
(A) Title to the property transferred from the purchaser to another party by 278
a means other than inheritance; or 279
(B) Refinancing of indebtedness secured by the property results in any 280
withdrawals of cash or equity value from the property by the purchaser/borrower. 281
(3) If the future sales price is not sufficient to pay off all deeds of trust, the 282
customary seller’s closing costs, and the preexisting equity, the amount due to the Housing 283
Opportunity Fund for the repayment of the preexisting equity shall be the amount available from 284
the sale of the property after payment of all deeds of trust and customary seller’s closing costs. 285
(4) Repayment of the preexisting equity shall not be required upon the refinancing 286
of indebtedness resulting in withdrawal of cash or equity value if the new loan, all other 287
indebtedness, and the preexisting equity result in an amount that is less than 80% of the 288
appraised value of the property. 289
(c) For the purposes of this section, the term: 290
(1) “Future sales price” means the greater of any contract sales price or a value 291
equal to 90% of the fair market appraised value determined within 6 months of the date of resale 292
by a licensed appraiser of an affordable for-sale unit. 293
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(2) “Preexisting equity” means the discounted price determined as the difference 294
between an initial contract sales price and the fair market appraised value at the time of the initial 295
sale or the amount of public subsidy provided pursuant to this chapter that was invested in the 296
creation of the affordable housing unit. 297
Sec. 114. Anti-displacement strategy. 298
(a) For proposed projects that that result in the temporary or permanent displacement of 299
current occupants, including commercial tenants, an applicant must submit a Relocation and 300
Anti-Displacement Strategy along with an application for funding. Instances where a Relocation 301
and Anti-Displacement Strategy is required include the following: 302
(1) Tenants will be required to move to facilitate the building’s rehabilitation, 303
even if they are moved to other units within the same building or complex; 304
(2) Demolition of existing dwelling or commercial units or buildings that are 305
occupied at the time of acquisition or at the time the applicant executes a legal instrument that 306
demonstrates site control; or 307
(3) Tenants will be displaced because the proposed rents are not affordable to 308
those households. 309
Sec. 115. Housing Opportunity Fund Board. 310
(a) There is established a Housing Opportunity Fund Board ("Board"). The Board shall: 311
(1) Advise the Mayor and Council on: 312
(A) The development, financing, and operation of the Housing 313
Opportunity Fund; 314
(B) Compliance monitoring and enforcement of Housing Opportunity 315
Fund projects; and 316
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(C) Other matters related to the production and preservation of affordable 317
housing; 318
(2) Review the uses of the Housing Opportunity Fund and all sub-accounts for 319
their conformity with this Title. The Board shall have access to records necessary to perform this 320
review; 321
(3) Review and approve or disapprove of proposed fund awards that deviate from 322
scoring methodology, pursuant to section 112; and 323
(4) Attend and, via the chairperson of the Board, provide testimony at one or more 324
Council oversight hearings per year, if invited by the chairperson of the Council committee with 325
jurisdiction over the Housing Opportunity Fund or the chair of the Council. 326
(b) The Board shall be composed of 9 members, selected as follows: 327
(1) One member shall be a representative of the financial services industry. 328
(2) One member shall be a representative of the nonprofit housing production 329
community. 330
(3) One member shall be a representative of the for-profit housing production 331
industry. 332
(4) One member shall be a representative of an organization that advocates for the 333
production, preservation, and rehabilitation of affordable housing for lower-income households. 334
(5) One member shall be a representative of a low-income tenant association. 335
(6) One member shall be a representative of an organization that advocates for 336
people with disabilities. 337
(7) The remaining 3 members shall have significant knowledge of an area related 338
to financing, production, preservation, or rehabilitation of affordable housing. 339
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(c) The members of the Board shall be appointed by the Mayor with the advice and 340
consent of the Council. Members of the Housing Production Trust Fund Board appointed and 341
confirmed pursuant to section 3a of the Housing Production Trust Fund Act of 1988, effective 342
March 16, 1989 (D.C. Law 7-202; D.C. Official Code § 24-2802.01) shall have their terms 343
transitioned to corresponding seats on the Housing Opportunity Fund Board. 344
(d) The terms of the members of the Board shall be 4 years. 345
(e) No member of the Board may serve more than 2 consecutive terms. 346
(f) The Board shall select a chairperson from among its members. 347
Sec. 116. Fund transparency and reporting. 348
(a) The Mayor shall create and maintain, on at least a quarterly basis, a publicly available 349
Housing Opportunity Fund database which shall include, at minimum: 350
(1) Applications and underwriting and prioritization scores of each application, 351
for both submitted and selected applications; 352
(2) For selected applications: 353
(A) Names of all corporate entities and related principals with a proposed 354
ownership interest in the project's ownership entity; 355
(B) The status of the project in the selection, funding, construction, and 356
operating pipeline; 357
(C) Fund sub-accounts utilized and amount of funding awarded; 358
(D) Percentage contribution of the Fund amount compared to the project's 359
total funding sources; 360
(E) Loan or grant agreements with the name of the recipient, amount, loan 361
interest rate, and terms; 362
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(F) The number, affordability tier, and bedroom size of housing units 363
created or preserved; 364
(G) The period of time units shall remain affordable; 365
(H) Status of the award recipient's compliance with the loan agreement; 366
and 367
(I) For any award that deviates from published scoring methodology and 368
selection criteria, justification for the deviation and confirmation of the Housing Opportunity 369
Fund Board's approval, pursuant to section 112. 370
(b) The Mayor and Housing Authority shall submit to the Chief Financial Officer 371
("CFO") and Council quarterly reports on activities and expenditures related to the Fund, which 372
shall be consistent with the District's internal accounting reporting systems and the Annual 373
Comprehensive Financial Report, and shall include a list of the loan repayments due and paid 374
during the reporting period and identify all fund recipients who are not in compliance with loan 375
agreement terms; 376
(c)(1) Each recipient of funds from the Housing Opportunity Fund shall provide certified 377
final development cost reports to the CFO. Such cost data shall include: 378
(A) Total development cost per unit for each project; 379
(B) Descriptive statistics such as average and median per-unit or per-380
bedroom costs; and 381
(C) Other information that the CFO deems necessary to improve cost 382
controls and enhance understanding of development costs. 383
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(2) The CFO shall provide information received pursuant to this subsection upon 384
request of the Council, the Mayor, the District of Columbia Housing Authority, the Housing 385
Opportunity Fund Board, or the District of Columbia Auditor. 386
(d) The Mayor shall monitor for compliance written agreements entered into pursuant to 387
this title. 388
SUBTITLE C. SUB-ACCOUNTS. 389
Sec. 121. Housing Production Account. 390
(a) The Housing Production Account ("Production Account") is established as a sub-391
account of the Housing Opportunity Fund, which shall be administered by the Mayor for the 392
purpose of assisting in the provision of affordable housing through new construction or adaptive 393
re-use of vacant or previously non-residential structures. The Production Account shall prioritize 394
affordable units that do not require ongoing operating subsidy to maintain affordability. 395
Allowable uses of the Production Account include: 396
(1) Pre-development loans; 397
(2) Bridge loans and gap financing; 398
(3) Financing for site acquisition, construction loan guarantees, collateral, or 399
operating capital; 400
(4) Debt service for bonds issued pursuant to section 111; and 401
(5) Other loans and grants for housing production determined by the Mayor to be 402
consistent with the purposes of this section. 403
(b) Up to 50% of funds obligated to new projects for a future expenditure from the 404
Production Account during a fiscal year may be used to support the production of rental housing 405
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units not subject to an income or rent-restricted affordability covenant, provided that, for such 406
units: 407
(1) The initial rent shall be set at a rate that does not exceed the Small Area Fair 408
Market Rents established annually for the District of Columbia by the federal Department of 409
Housing and Urban Development, or Reasonable Rents established by the District of Columbia 410
Housing Authority, whichever is lower. 411
(2) Future increases in rent shall be governed by Title II of the Rental Housing 412
Act of 1985, effective July 17, 1985 (D.C. Law 6-10; D.C. Official Code § 42-3502.01 et seq.); 413
and 414
(3) The Mayor and Housing Authority have approved a plan, as submitted by the 415
applicant, to market units to holders of tenant-based housing vouchers. 416
(c) As a condition of receiving funds from the Production Account, the Mayor shall 417
require that the recipient agree to enter into future affordability covenants, contingent on funding 418
awarded from the Affordable Housing Subsidy Account as established in section 122, or from 419
other sources. 420
(d) The Mayor shall establish application criteria and scoring procedures for the 421
Production Fund with greater weight given to applications that: 422
(1) Support the appropriate geographic distribution of new housing production; 423
(2) Provide for the direct District acquisition of land using a purchase and 424
leaseback agreement; 425
(3) Increase the supply of housing units with three or more bedrooms; 426
(4) Incorporate child development facilities; or 427
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(5) Encourage or facilitate the entry of well-qualified firms and investors to the 428
District's housing market. 429
Sec. 122. Affordable Housing Subsidy Account. 430
(a) The Affordable Housing Subsidy Account ("Subsidy Account") is established as a 431
sub-account of the Housing Opportunity Fund, which shall be used exclusively to support the 432
creation and operations of Tier 1 and Tier 2 affordable units. Allowable uses of the Subsidy 433
Account include: 434
(1) Shallow operating subsidy for units produced with support from the Housing 435
Production Fund to make such units available for very low income and extremely low income 436
households; 437
(2) Funding the conversion of housing units without affordability covenants, 438
including the awarding of funds to the owner of a housing accommodation in order to establish 439
an affordability covenant on one or more existing rental units; 440
(3) The Rent Supplement program as established by section 26a of the District of 441
Columbia Housing Authority Act of 1999, effective May 9, 2000 (D.C. Law 13-105; D.C. 442
Official Code § 6-226 et seq.); 443
(4) Supportive services for tenants provided above minimum requirements; and 444
(5) Construction loans and gap financing for projects in which Tier 1 and Tier 2 445
affordable units comprise no less than 30% of overall units. 446
Sec. 123. Preservation Account. 447
(a) The Preservation Account is established as a sub-account of the Housing Opportunity 448
Fund, which shall be administered by the Mayor to support the following purposes: 449
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(1) Supporting, preserving, and expanding the District’s existing stock of 450
affordable housing, which may include: 451
(A) Projects that propose replacing an existing, occupied building with 452
new on-site construction, provided that affordable housing units are replaced on no less than a 453
one-for-one basis; 454
(B) The acquisition and rehabilitation of existing, occupied housing where 455
affordability will be preserved for current tenants; 456
(C) The addition of affordable units to a property already subject to an 457
active affordability covenant; 458
(D) Bridge funding to support affordable housing accommodations 459
awaiting other funds for rehabilitation; 460
(E) Projects pending conversion to permanent financing; 461
(F) Provide debt or equity to finance housing preservation activities, 462
including acquisition bridge loans, predevelopment expenses, environmental remediation, critical 463
repairs, and other activities necessary to preserve the affordability of housing units; provided, 464
that for any property benefited by an expenditure of funds pursuant to this subsection, a covenant 465
shall be recorded with respect to affordability, the terms and conditions of which shall be 466
determined by the Mayor. 467
(2) Funding the establishment of an affordability covenant on one or more 468
existing rental units without income-restricted affordability covenants; and 469
(3) Supporting the purposes of the Homestead Housing Preservation Act of 1986, 470
effective August 9, 1986 (D.C. Law 6-135; D.C. Official Code § 42-2101 et seq.). 471
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(b) The Mayor shall establish application criteria and scoring procedures for the 472
Preservation Account, with greater weight given to applications that have previously received an 473
award from the Tenant Purchase Support Account or a prior bridge loan from the Preservation 474
Account issued pursuant to Subtitle D of Title II of the Fiscal Year 2018 Budget Support Act of 475
2017, effective December 13, 2017 (D.C. Law 22-33; D.C. Official Code §1–325.351). 476
Sec. 124. Tenant Purchase Support Account. 477
(a) The Tenant Purchase Support Account is established as a sub-account of the Housing 478
Opportunity Fund, which shall be administered by the Mayor to support the following purposes: 479
(1) Assisting tenants with the financing of pre-purchase and down payment costs 480
for housing pursuant to the Tenant Opportunity to Purchase Act of 1980, effective September 10, 481
1980 (D.C. Law 3-86; D.C. Official Code § 42-3404.01 et seq.), and costs incurred related to 482
organizing a tenant association for the purposes of exercising purchase rights; 483
(2) Assisting tenant associations with the financing of the development costs, 484
including acquisition, rehabilitation, and marketing, associated with the conversion of multi-unit 485
rental housing to cooperatives and condominiums; 486
(3) The purchase, redevelopment, or substantial rehabilitation of a property 487
resulting from the assignment of the purchase rights of tenants or the District to a qualified 488
purchaser, pursuant to sections 406 and 436 of the Tenant Opportunity to Purchase Act of 1980, 489
effective September 10, 1980 (D.C. Law 3-86; D.C. Official Code §§ 42-3404.06 and 42-490
3404.36); and 491
(4) Any project eligible for another sub-account of the Housing Opportunity Fund 492
that involves the exercise or assignment of tenant purchase rights. 493
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(b)(1) Notwithstanding section 112(1)(D), applications for funds from the Tenant 494
Purchase Support Account shall be accepted on a rolling basis. 495
(2) The Mayor shall endeavor to make Tenant Purchase Support Account funds 496
available throughout the year, and to align the timeline of application, selection and awarding of 497
funds with timelines related to the exercise of tenant rights as established in the Rental Housing 498
Conversion and Sale Act of 1980 (D.C. Law 3-86; D.C. Official Code § 42-3401.01 et seq.). 499
Sec. 125. District Acquisition Account. 500
(a) The District Acquisition Account ("Acquisition Account") is established as a sub-501
account of the Housing Opportunity Fund, which shall be administered by the Mayor to support 502
the acquisition of improved and unimproved properties by the District or an instrumentality of 503
the District, primarily for the purpose of affordable housing production and preservation. 504
(b) The following shall be considered allowable uses of the Acquisition Account: 505
(1) A transaction related to the Land Purchase Partnership Program as established 506
in section 203; 507
(2) Costs associated with site acquisition for any project that includes the 508
acquisition by the District or an instrumentality of the District of real property for a period of no 509
less than 50 years; 510
(3) Acquisition of real property pursuant to Subchapter II of Subtitle 13 of Title 511
16 of the District of Columbia Official Code; 512
(4) A master loan agreement to support time sensitive land purchase opportunities 513
on the District’s behalf and ensure the District’s competitiveness in the real estate market; 514
(5) Debt service for bonds issued pursuant to section 111; 515
(6) The District Construction Loan Fund, as established in section 204; and 516
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(7) Transactions pursuant to the District Opportunity to Purchase Act, effective 517
December 24, 2008 (D.C. Law 17-286; D.C. Official Code § 42-3404.31 et seq.). 518
(c)(1) Except as otherwise provided, within one year of acquisition of a property into the 519
District’s portfolio of real property, the Mayor shall submit to the Zoning Commission an 520
application for a zoning map amendment pursuant to 11 DCMR § Z305. 521
(2) The proposed zone district shall have a floor-area ratio at or near the upper 522
end of the residential floor-area ratio range of that property’s Future Land Use Map designation, 523
as defined in 10 DCMR § A200. 524
(3) Properties that, upon acquisition, are zoned at or near the upper end of the 525
residential floor-area ratio range of that property’s Future Land Use Map designation shall be 526
exempt from the requirements of this subsection. 527
SUBTITLE D. MISCELLANEOUS PROVISIONS. 528
Sec. 131. Conforming Amendments. 529
(a) Section 26a(b) of the District of Columbia Housing Authority Act of 1999, effective 530
May 9, 2000 (D.C. Law 13-105; D.C. Official Code § 6-226(b)), is amended to read as follows: 531
"(b) The Authority shall allocate the funds appropriated for the program annually toward 532
project-based and sponsor-based voucher assistance, as described in section 26b, and tenant-533
based assistance, as described in section 26c.". 534
(b) Section 6(a) of the District of Columbia Community Development Act of 1975, 535
effective December 16, 1975 (D.C. Law 1-39; D.C. Code § 6-1005(a)), is amended to read as 536
follows: 537
"(a) Real property acquired for the purposes of this subchapter may be acquired pursuant 538
to subchapter II of Chapter 13 of Title 16 of the District of Columbia Official Code.". 539
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(c) Section 104(c) of the Inclusionary Zoning Implementation Amendment Act of 2006, 540
effective March 14, 2007 (D.C. Law 16-275; D.C. Official Code § 6-1041.04(c)) is amended by 541
striking the phrase "Housing Production Trust Fund" and inserting the phrase "Housing 542
Opportunity Fund" in its place. 543
(d) The Workforce Housing Production Program Approval Act of 2006, effective March 544
14, 2007 (D.C. Law 16-278; D.C. Official Code § 6-1061.01 et seq.) is repealed. 545
(e) Section 322 of the District of Columbia Real Estate Deed Recordation Tax Act, 546
approved March 2, 1962 (76 Stat. 17; D.C. Official Code § 42-1122) is amended by adding a 547
new subsection (d) to read as follows: 548
“(d) In Fiscal Year 2026 and each fiscal year thereafter: 549
“(1) The lesser of the following amounts shall be deposited into the Housing 550
Opportunity Fund pursuant to section 105 of the Housing Opportunity Fund Act of 2026, 551
introduced February 17, 2026 (Bill 26-___): 552
“(A) 15% of the monies collected under this chapter; or 553
“(B) 102% of the amount deposited into the Housing Opportunity Fund in 554
the prior fiscal year pursuant to this section.” 555
(f) Section 301(15A) of the District of Columbia Housing Finance Agency Act, effective 556
March 3, 1979 (D.C. Law 2-135; D.C. Official Code § 42-2703.01(15A)) is amended to read as 557
follows: 558
“(15A) To acquire, own, lease, clear, construct, reconstruct, rehabilitate, improve, repair, 559
maintain, manage, operate, assign, encumber, or sell or otherwise dispose of any real property.”. 560
(g) Section 207(b) of the Housing Act of 2002, effective April 19, 2002 (D.C. Law 14-561
114; D.C. Official Code § 42-2851.07(b)) is amended to read as follows: 562
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"(b) All fines collected pursuant to this section shall be paid into the Housing 563
Opportunity Fund pursuant to section 105 of the Housing Opportunity Fund Act of 2026, 564
introduced February 17, 2026 (Bill 26-___).". 565
(h) Section 910(d) of the Rental Housing Act of 1985, effective April 16, 2020 (D.C. 566
Law 23-72; D.C. Official Code § 42-3509.10(d)), is amended to read as follows: 567
“(d) The Mayor shall deposit into the Housing Opportunity Fund, pursuant to section 104 568
of the Housing Opportunity Fund Act of 2026, introduced February 17, 2026 (Bill 26-___), all 569
fees paid pursuant to this section.”. 570
(i) § 47-392.02(j-5)(1) is amended to read as follows: 571
“(1) 50% shall be deposited in the Housing Opportunity Fund pursuant to section 105 of 572
the Housing Opportunity Fund Act of 2026, introduced February 17, 2026 (Bill 26-___); and”. 573
(j) The Housing Production Trust Fund Act of 1988, effective March 16, 1989 (D.C. Law 574
7-202; D.C. Official Code § 24-2801.01 et seq.) is repealed. 575
(k) Chapter 27 of Title 14 of the District of Columbia Municipal Regulations (14 DCMR 576
§ 2700 et seq.) is repealed. 577
(l) Chapter 45 of Subtitle B of Title 10 of the District of Columbia Municipal Regulations 578
(10 DCMR § B4500 et seq.) is repealed. 579
Sec. 132. Transfers; continuation. 580
(a) All functions, authority, programs, positions, personnel, property, records, and 581
unexpended balances of appropriations, allocations, and other funds available or to be made 582
available to the Housing Production Trust Fund, as established by the Housing Production Trust 583
Fund Act of 1988, effective March 16, 1989 (D.C. Law 7-202; D.C. Official Code § 24-2801.01 584
et seq.) are transferred to the Housing Opportunity Fund. 585
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(b) All rules, orders, obligations, determinations, grants, contracts, licenses, and 586
agreements of the Housing Production Trust Fund, as established by the Housing Production 587
Trust Fund Act of 1988, effective March 16, 1989 (D.C. Law 7-202; D.C. Official Code § 24-588
2801.01 et seq.) shall continue in effect according to their terms until lawfully amended, 589
repealed, or modified. 590
TITLE II. HOUSING PRODUCTION. 591
Sec. 201. Retirement fund real property investment. 592
The District of Columbia Retirement Reform Act of 1979, approved November 17, 1979 593
(93 Stat. 866; D. C. Official Code § 1-701 et seq.) is amended as follows: 594
(a) Section 141 (D.C. Official Code § 1-721) is amended as follows: 595
(1) Subsection (a)(1) is repealed. 596
(2) Subsection (d) is repealed. 597
(b) A new section 141a is added to read as follows: 598
"Sec. 141a. Real Property Investment Policy. 599
"(a) The Board is authorized to issue amendments to its rules and procedures, including 600
Investment Objectives, the Investment Policy Statement for Real Assets, and target asset 601
allocations, in order to establish goals and procedures for investment in real property in the 602
District of Columbia, with an emphasis on multifamily real estate and affordable housing. 603
"(b) Rules and procedures established pursuant to this section shall not provide the Board 604
with direct discretionary authority for investment decisions in individual properties.". 605
Sec. 202. Condemnation authority for housing development. 606
Section 16-1311 of the District of Columbia Official Code is amended as follows: 607
(a) Designate the existing text as subsection (a). 608
29
(b) A new subsection (b) is added to read as follows: 609
"(b) Housing production and preservation in high-need areas shall be considered an 610
authorized municipal use for the purposes of subsection (a).". 611
Sec. 203. Land Purchase Partnership Program. 612
(a) There is hereby authorized the Land Purchase Partnership Program ("Program"). 613
(b) Under the Program, the Mayor may acquire land on which privately-owned rental, 614
ownership, or cooperative housing is located, or on which privately-owned rental, ownership, or 615
cooperative housing is to be constructed, for the purposes of assisting a tenant purchase pursuant 616
to the Tenant Opportunity to Purchase Act of 1980, effective September 10, 1980 (D.C. Law 3-617
86; D.C. Official Code § 42-3404.01 et seq.), or to facilitate the production or preservation of 618
affordable housing. The land acquisition may be effectuated by means of: 619
(1) Direct purchase or transfer of the land from an owner-applicant; 620
(2) Acceptance of assignment of an applicant's right to purchase the property from 621
a third party; or 622
(3) Purchase of land or land and improvements from an applicant immediately 623
following the applicant's purchase of property from a third party. 624
(c) The Mayor may thereafter enter into a ground lease of the land to the owner or 625
developer of the rental or homeownership housing, provided that: 626
(1) As a condition of any ground lease entered into under this section, the Mayor 627
shall require that the owner of the land file a covenant in the land records of the District requiring 628
that during the term of the ground lease at least 50% of the housing units on the land shall be 629
Tier 3 affordable housing, as that term is defined in section 102 of the Housing Opportunity 630
Fund Act of 2026, introduced February 17, 2026 (D.C. Law 26-___), or better; 631
30
(2) A lease entered into under this section for the purposes of assistant tenant 632
purchase shall have a term of no less than 40 years. 633
(d) A lease entered into under this section shall not be subject to An Act Authorizing the 634
sale of certain real estate in the District of Columbia no longer required for public purposes, 635
approved August 5, 1939 (53 Stat. 1211; D.C. Official Code § 10-801 et seq.). 636
(e) Section 6(c) of the District of Columbia Community Development Act of 1975, 637
effective December 16, 1975 (D.C. Law 1-39; D.C. Code § 6-1005(c)) shall not apply to the 638
disposition of real property that was acquired by the District for the purposes of this section. 639
Sec. 204. Revolving public construction loan fund for affordable housing. 640
The District of Columbia Housing Finance Agency Act, effective March 3, 1979 (D.C. 641
Law 2-135; D.C. Official Code § 42-2701.01 et seq.) is amended as follows: 642
(a) Section 102 (D.C. Official Code § 42-2701.02) is amended by inserting a new 643
paragraph (6A) to read as follows: 644
"(6A) “DCLF” has the meaning set forth in section 309(a) of this act.". 645
(b) A new section 309 is inserted to read as follows: 646
"Sec. 309. Revolving public construction loan fund for affordable housing. 647
"(a) The Agency may establish and administer a District Construction Loan Fund 648
("DCLF") from which it may provide housing project construction loans subject to the 649
requirements of this section. 650
"(b) Notwithstanding any provision to the contrary in this act, the Agency may issue a 651
construction loan from the balance of the DCLF to support a project under the following 652
circumstances: 653
31
"(1) The property is under the majority ownership and control of the District 654
government, including any independent agency or instrumentality, or a subsidiary under the 655
majority ownership and control thereof. 656
"(2) The project applicant agrees that no less than 30% of units are Tier 2 and Tier 657
3 affordable units, as those terms are defined in section 102 of the Housing Opportunity Fund 658
Act of 2026, introduced February 17, 2026 (D.C. Law 26-___), not including any housing units 659
subsidized through a federal public housing annual contributions contract or project-based 660
voucher that may otherwise be included in the project. 661
“(3) The loan term does not exceed 5 years. 662
"(4) The Agency charges interest at a rate calculated to cover the Agency’s 663
administrative costs for the loan and maintain the DCLF as a revolving fund. 664
"(5) The applicant presents a plan for takeout financing and repayment of the loan 665
at the time of application. 666
"(c)(1) The Agency may capitalize the DCLF with proceeds from one or more taxable 667
bond issuances. 668
"(2) Notwithstanding anything to the contrary in this act, for purposes of 669
capitalizing the DCLF using bond proceeds, the Agency and Mayor may enter into one or more 670
agreements for the District to provide security in forms other than project-specific proceeds, 671
including District revenues and debt service appropriations up to a specified annual maximum, 672
provided, that bonds issued pursuant to this subsection shall not be general obligation bonds of 673
the District. 674
32
"(d) Nothing in this section, including the reiteration of specific authorities for purposes 675
of administering the DCLF, shall be construed to limit general authorities of the Agency 676
enumerated in this act.". 677
Sec. 205. District opportunity to purchase certain properties. 678
The Rental Housing Conversion and Sale Act of 1980 (D.C. Law 3-86; D.C. Official 679
Code § 42-3401.01 et seq.) is amended as follows: 680
(a) Section 402b(20) (D.C. Official Code § 42-3404.02b(b)(20)) is amended as follows: 681
(1) The existing text is designated sub-paragraph (A). 682
(2) Strike the phrase "A sale or transfer" and insert the phrase "Except as provided 683
in sub-paragraph (B), a sale or transfer". 684
(3) A new sub-paragraph (B) is added to read as follows: 685
"(B) Notwithstanding section 432(a), for any transaction involving a 686
housing accommodation exempt under this paragraph that would otherwise be considered a sale 687
as defined in subsection (a) of this section, the owner of the housing accommodation shall 688
provide the Mayor, on behalf of the District, an opportunity to purchase the housing 689
accommodation pursuant to Title IV-A.". 690
(b) Section 432(a) (D.C. Official Code § 42-3404.32(a)) is amended to read as follows: 691
"(a) Except as provided in section 402b(b)(20)(B), the District’s opportunity to purchase 692
shall be subordinate to the right of a tenant.". 693
(c) Section 433 (D.C. Official Code § 42-3404.33) is amended as follows: 694
(1) Subsection (b) is amended as follows: 695
(A) Paragraph (1) is amended to read as follows: 696
33
"(1) After the purchase of a property pursuant to this subchapter, rents for units 697
not governed by an existing affordability covenant or other local or federal affordability program 698
shall be governed by Title II of the Rental Housing Act of 1985, effective July 17, 1985 (D.C. 699
Law 6-10; D.C. Official Code § 42-3502.01 et seq.). 700
(B) Paragraph (2) is repealed. 701
(C) Paragraph (3) is repealed. 702
(D) Paragraph (4) is repealed. 703
(E) Paragraph (5) is repealed. 704
(2) Subsection (c) is repealed. 705
(3) Subsection (d) is repealed. 706
(d) Section 436 (D.C. Official Code § 42-3404.36) is amended by striking the phrase "to 707
a qualified purchaser" and inserting the phrase "to an instrumentality of the District or to a 708
qualified purchaser" in its place. 709
Sec. 206. Nonprofit Workforce Housing Properties eligibility clarification. 710
§ 47-1005.03 is amended as follows: 711
(a) Subsection (a)(1) is repealed. 712
(b) Subsection (b) is amended to read as follows: 713
"(b) Subject to the provisions of this section, land and improvements owned and used by 714
a nonprofit owner to provide rental housing shall be exempt from District of Columbia real 715
property taxation, provided, that no less than 50% of the housing accommodation is comprised of 716
Tier 3 affordable units, as that term is defined in section 102 of the Housing Opportunity Fund 717
Act of 2026, introduced February 17, 2026 (Bill 26-___), or higher.". 718
(c) Subsection (c) is repealed. 719
34
(d) Subsection (d) is repealed. 720
(e) Subsection (f)(2) is amended to read as follows: 721
"(2) For purposes of the certification required under paragraph (1), a 722
determination of whether a particular property or unit is eligible for an exemption under this 723
section shall be based upon the recording of a covenant in the land records of the District of 724
Columbia that units shall be rent- and income-restricted as set forth in subsection (b).". 725
TITLE III. STANDARD PROVISIONS. 726
Sec. 301. Rulemaking. 727
The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure Act, 728
approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), may issue rules 729
to implement the provisions of this act. 730
Sec. 302. Applicability. 731
(a) This act shall apply upon the date of inclusion of its fiscal effect in an approved 732
budget and financial plan. 733
(b) The Chief Financial Officer shall certify the date of the inclusion of their fiscal effect 734
in an approved budget and financial plan and provide notice to the Budget Director of the 735
Council for certification. 736
(c) The Budget Director shall cause the notice of the certification to be published in the 737
District of Columbia Register. 738
Sec. 303. Fiscal impact statement. 739
The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 740
statement required by section 4a of the General Legislative Procedures Act of 1975, approved 741
October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 742
35
Sec. 304 Effective date. 743
This act shall take effect after approval by the Mayor (or in the event of veto by the 744
Mayor, action by the Council to override the veto) and a 60-day period of congressional review 745
as provided in section 602(c)(2) of the District of Columbia Home Rule Act, approved December 746
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(2)). 747