Housing Opportunity, Mobility, Equity, and Stability (HOMES) Omnibus Amendment Act of 2026

COUNCIL OF THE DISTRICT OF COLUMBIA
OFFICE OF COUNCILMEMBER BROOKE PINTO
THE JOHN A. WILSON BUILDING
1350 PENNSYLVANIA AVENUE, N.W., SUITE 106
WASHINGTON, D.C. 20004

April 10th, 2026
Nyasha Howard, Secretary
Council of the District of Columbia
1350 Pennsylvania Avenue, N.W.
Washington, DC 20004
Dear Secretary Howard,
Today, I am introducing the “Housing Opportunity, Mobility, Equity, and Stability (HOMES)
Omnibus Amendment Act of 2026 .” This legislation provides a comprehensive housing
package designed to expand housing production, preserve existing affordable housing units ,
create additional pathways to homeownership, reduce barriers to small-scale infill development,
and improve the systems through which housing development and rehabilitation is financed,
approved, and delivered in the District.
The District continues to face a severe housing affordability and supply challenge across
multiple income levels.1 Addressing that challenge requires more than a single policy tool . It
requires a broader, creative housing framework that both increases the production of new
homes and strengthens the District’s ability to preserve affordable units, support neighborhood
stabilization, and help residents remain in and access housing in communities across the city.
This omnibus bill is intended to advance that framework by bringing together a set of
complementary reforms that address housing finance, vacant property reuse, homeownership
access, infill housing opportunities, and administrative barriers within the development
and permitting process.
The HOMES Amendment Act will:
1. Modernize the District’s tax increment financing authority to allow a new
noncontiguous renewal District model that can support housing, infrastructure, resident
stabilization, and anti-displacement strategies across multiple areas under a single
financing plan.
2. Establish a vacant and blighted property acquisition and affordable housing disposition
program to return these properties to productive use with priority transfer to community
land trusts and mission-driven affordable housing nonprofit providers, with the ability
for the District-held taxes and liens attached to the property to be forgiven.
3. Create a lease-purchase homeownership opportunity pilot to help households who are
not yet mortgage -ready, lack necessary financial savings, are impacted by low credit
scores, or simply need a buffer, transition into homeownership through structured lease-

1 Washington D.C. Economic Partnership, DC Development Report, (2025/2026), available here

purchase agreements backed by homeownership counseling services, credit repair
opportunities and supports, escrow matching funds, and consumer protections.
4. Create a first-time homebuyer mortgage interest tax credit for qualifying households to
reduce the burdens of early homeownership and help low- and moderate-income first-
time homebuyers afford their mortgage payments.
5. Establish a residential infill program to streamline the subdivision process for zoning
confirming residential lots and support homeowners that participate in the program with
predevelopment assessment grants and low - to no-cost loans for the development of
new affordable housing.
6. Create a revolving housing financing tool to accelerate the production of mixed-income
multifamily housing by providing subordinate construction loans and mezzanine
financing as gap -closing mechanisms for shovel -ready or near -shovel ready projects
that are unable to close because of a shortfall in senior debt, interest-rate conditions, or
equity constraints that have left the development undercapitalized.
7. Establish a Building Permit Advisory Council to make policy recommendations for
improving the efficiency, transparency, and predictability of the District’s permitting
process.
Together, these reforms are intended to provide the District with a broader and more
coordinated set of tools to support housing growth, affordability, and stability. This omnibus
reflects the understanding that the District’s housing challenges exist across the full continuum:
from vacant and blighted properties that could contribute to the suppl y of affordable housing,
to renters and prospective homeowners facing barriers to stable housing access, to multifamily
developments delayed by capital stack gaps, to smaller infill opportunities constrained by
process barriers, and to the need for more predicable permitting and implementation. By
combining supply-side, preservation, and access -oriented strategies into one legislative
package, this bill aims to further advance durable housing policies for the District.
Should you have any questions about this legislation, please contact my Legislative Counsel,
Isaiah Boyd, at iboyd@dccouncil.gov.
Thank you,

Brooke Pinto
Councilmember, Ward 2
Chairwoman, Committee on the Judiciary and Public Safety
Council of the District of Columbia

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_____________________________2
Councilmember Brooke Pinto 3
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A BILL 6
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 10
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To amend the Tax Increment Financing Authorization Act of 1998 to create a modernization lane 15
for the certification and approval of noncontiguous renewal district financing plans, to 16
authorize renewal district specific bond caps, sunset issuances, and termination dates for 17
renewal districts, and to authorize affiliated development projects, district-level eligible 18
uses, anti-displacement and affordability requirements, resident stabilization 19
programming, public participation, advisory oversight, and monitoring and ex post 20
assessment; to amend Title IV of the Abatement and Condemnation of Nuisance 21
Properties Omnibus Amendment Act of 2000 to establish a Department of Housing And 22
Community Development program for the acquisition and affordable disposition of a 23
vacant and blighted residential properties, including priority transfer to community land 24
trusts and affordable housing nonprofit providers; to establish a Lease-Purchase 25
Homeownership Opportunity Program to provide a structured pathway to 26
homeownership for eligible households through lease-purchase agreements, to authorize 27
financial assistance, an escrow matching program, counseling, and consumer protections 28
in connection with that program, to authorize coordination with existing District 29
homeownership assistance programs, to require reporting on program outcomes; to 30
amend Chapter 18 of Title 47 of the District of Columbia Official Code to establish first-31
time homebuyer mortgage interest tax credit for qualifying first-time homebuyers with a 32
household income at or below 150% of area median income; to amend An Act To 33
establish a code of law for the District of Columbia to establish a streamlined 34
administrative pathway for conforming residential low subdivision, buildability and 35
design review, anti-displacement protections, reporting requirements, and 36
recommendations for future zoning and planning amendments; to establish a Housing 37
Acceleration Fund to provide revolving subordinate acquisition and construction 38
financing for shovel-ready or acquisition-ready mixed-income multifamily rental housing 39
developments through a designated administering agency and to originate loans directly 40
or through qualified co-lenders, to establish eligibility criteria, underwriting standards, 41
and project priorities, to require repayment and recycling of Fund capital, and to require 42

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transparency and annual reporting; and to establish the Building Permit Advisory Council 43
for the Department of Buildings. 44
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TABLE OF CONTENTS 46
TITLE I. TAX INCREMENT FINANCING MODERNIZATION ................................................3 47
Sec. 101. Short title ......................................................................................................................3 48
Sec. 102. Section 2 amended ........................................................................................................3 49
Sec. 103. Section 3 amended ........................................................................................................5 50
Sec. 104. New sections 4a through 4i ..........................................................................................6 51
Sec. 105. Section 5 amended ......................................................................................................13 52
Sec. 106. Section 6 amended ......................................................................................................14 53
TITLE II. VACANT PROPERTY ACQUISITION AND AFFORDABLE DISPOSITION 54
PROGRAM. ...................................................................................................................................14 55
Sec. 201. Short title ....................................................................................................................14 56
Sec. 202. Amendments ...............................................................................................................14 57
TITLE III. LEASE-PURCHASE HOMEOWNERSHIP OPPORTUNITY PILOT......................20 58
Sec. 301. Short title ....................................................................................................................20 59
Sec. 302. Definitions ..................................................................................................................20 60
Sec. 303. Lease-purchase Homeownership Opportunity Program established ..........................21 61
Sec. 304. Eligible households, eligible properties, and participating entities ............................22 62
Sec. 305. Financial assistance and eligible uses ........................................................................22 63
Sec. 306. Required terms of lease-purchase agreements............................................................24 64
Sec. 307. Escrow accounts .........................................................................................................25 65
Sec. 308. Counseling and mortgage-readiness requirements .....................................................26 66
Sec. 309. Consumer protections. ................................................................................................26 67
Sec. 310. Conversion to ownership. ...........................................................................................27 68
Sec. 311. Treatment of escrow funds if purchase option is not exercised .................................27 69
Sec. 312. Sunset .........................................................................................................................28 70
TITLE IV. FIRST-TIME HOMEBUYER MORTGAGE INTEREST TAX CREDIT .................28 71
Sec. 401. Short title ....................................................................................................................28 72
Sec. 402. Amendments ...............................................................................................................28 73
TITLE V. RESIDENTIAL INFILL OPPORTUNITY PROGRAM .............................................30 74
SUBTITLE A. AMENDATORY LANGUAGE........................................................................30 75
Sec. 501. Short title ....................................................................................................................31 76
Sec. 502. Amendments ...............................................................................................................31 77
SUBTITLE B. SMALL-SITE AFFORDABLE HOUSING SUPPORT PROGRAM ..............33 78
Sec. 503. Small-Site Affordable Housing Support Program established ...................................33 79
Sec. 504. Predevelopment grants ...............................................................................................33 80
Sec. 505. Small infill loans .........................................................................................................33 81
Sec. 506. Fee waivers or reimbursements ..................................................................................33 82
Sec. 507. Affordability covenants and recapture .......................................................................33 83
Sec. 508. Eligible property inventory and recommendations ....................................................34 84
Sec. 509. Anti-displacement protections ....................................................................................34 85

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TITLE VI. HOUSING ACCELERATION FUND ........................................................................36 86
Sec. 601. Short title ....................................................................................................................36 87
Sec. 602 Definitions ...................................................................................................................36 88
Sec. 603 Housing acceleration fund established ........................................................................37 89
Sec. 604 Administration of the fund ..........................................................................................38 90
Sec. 605 Eligible uses of the fund ..............................................................................................39 91
Sec. 606 Eligible sponsors and projects .....................................................................................39 92
Sec. 607 Underwriting and loan terms .......................................................................................40 93
Sec. 608 Conditions before closing ............................................................................................42 94
Sec. 609 Fund priorities .............................................................................................................42 95
Sec. 610 Revolving use of funds ................................................................................................43 96
Sec. 611 Reporting .....................................................................................................................43 97
TITLE VII. BUILDING PERMIT ADVISORY COUNCIL ........................................................44 98
Sec. 701. Short title ....................................................................................................................44 99
Sec. 702. Amendments ...............................................................................................................44 100
TITLE VIII. STANDARD PROVISIONS ....................................................................................48 101
Sec. 801. Rulemaking .................................................................................................................48 102
Sec. 802. Fiscal Impact Statement..............................................................................................48 103
Sec. 803. Effective Date .............................................................................................................48 104
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 105
act may be cited as the “Housing Opportunity, Mobility, Equity, and Stability (HOMES) 106
Omnibus Amendment Act of 2026”. 107
TITLE I. TAX INCREMENT FINANCING MODERNIZATION. 108
Sec. 101. Short title. 109
This title may be cited as the “Tax Increment Financing Modernization Amendment Act 110
of 2026”. 111
Sec. 102. Section 2 amended 112
Section 2 of the Tax Increment Financing Authorization Act of 1998, effective 113
September 11, 1998 (D.C. Law 12-143; D.C. Official Code §§ 2-1217.01 et seq.), is amended as 114
follows: 115
(a) New paragraphs (33) through (39) are added to read as follows: 116

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“(33) “Affiliated development project” means a project located within or in proximity to 117
a renewal district area and identified in, or later added to, an approved renewal district financing 118
plan pursuant to section 4d. 119
“(34) “Anti-displacement strategy” means the set of policies, programs, covenants, 120
investments, and protections contained in a renewal district financing plan to minimize the 121
displacement of residents, tenants, small businesses, and community-serving uses already present 122
in a renewal district area. And shall, at a minimum, address: 123
“(1) housing affordability preservation or production objectives; 124
“(2) tenant protections or relocation measures where occupied housing is affected; 125
“(3) measures to support low-income homeowners, renter-serving housing, or 126
small businesses where District investment may increase displacement pressure; 127
“(4) any affordability covenants, replacement requirements, or preservation 128
commitments applicable to assisted housing; and 129
“(5) any reserve, subaccount, or dedicated allocation for resident stabilization 130
activities or affordability-protection purposes. 131
“(35) “Renewal district financing plan” means a plan certified pursuant to section 4a for a 132
renewal district area and may include one or more projects, phases, public improvements, 133
affiliated development projects, grant programs, reserves, and other eligible uses. 134
“(36) “Renewal district” means a noncontiguous TIF area approved pursuant to sections 135
4a and 5 for one or more combined purposes, including housing, community revitalization, 136
transit-supportive infrastructure, resident stabilization, or anti-displacement activities. 137

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“(37) “Noncontiguous TIF area” means 2 or more separate geographic areas, parcels, 138
corridors, subareas, or project clusters designated and established under a single renewal 139
financing plan approved pursuant to this act. 140
“(38) “Resident stabilization activity” means a grant, forgivable loan, preservation 141
investment, 80% AMI affordability commitments, or other approved intervention designed to 142
preserve long-term housing affordability, support low-wealth homeowners, stabilize renter-143
serving housing, reduce utility burden, or mitigate displacement pressure. 144
“(39) “Transit-supportive infrastructure” means public improvements, transportation 145
improvements, bus-priority improvements, station-area access improvements, utility relocations, 146
streetscape improvements, sidewalks, bridges, and other infrastructure that supports mobility, 147
access, redevelopment, or housing opportunity within or serving a renewal district. 148
Sec. 103. Section 3 amended 149
Section 3 of the Tax Increment Financing Authorization Act of 1998, effective 150
September 11, 1998 (D.C. Law 12-143; D.C. Official Code §§ 2-1217.01 et seq.), is amended as 151
follows: 152
(a) Subsection (b) is amended by striking the phrase “eligible projects approved pursuant 153
to this act” and inserting the phrase “eligible projects approved pursuant to this act or renewal 154
financing plans approved pursuant to section 4a” in its place.”. 155
(b) A new subsection (f) is added to read as follows: 156
“(f)(1) For a renewal financing plan approved pursuant to section 4a, the Mayor shall 157
specify in the proposed resolution transmitted to the Council: 158
“(A) the maximum aggregate principal amount of TIF bonds or other 159
obligations authorized for the modernization district; 160

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“(B) the final date by which such bonds or other obligations may be 161
issued; 162
“(C) the termination date for the allocation of tax increment revenues to 163
the modernization district; 164
“(D) any district-specific reserves or limitations applicable to housing, 165
infrastructure, resident stabilization activities, anti-displacement measures, grant programming, 166
affiliated development projects, or transit-supportive infrastructure; and 167
“(E) any other district-specific financing limitation required by the Chief 168
Financial Officer. 169
“(2) The Chief Financial Officer shall not issue bonds or other obligations for a 170
renewal financing plan unless the district-specific financing limitations required under paragraph 171
(1) of this subsection are included in the approved resolution transmitted to the Council and the 172
Chief Financial Officer has certified that the issuance is consistent with applicable District debt-173
limit requirements.”. 174
Sec. 104. New sections 4a through 4i. 175
The Tax Increment Financing Authorization Act of 1998, effective September 11, 1998 176
(D.C. Law 12-143; D.C. Official Code §§ 2-1217.01 et seq.), is amended by adding new sections 177
4a through 4h to read as follows: 178
“Sec. 4a. Certification of noncontiguous renewal financing plan. 179
“(a) In addition to certification of an individual development project under section 4, the 180
Chief Financial Officer (“CFO”) may certify a renewal financing plan for a Renewal district. 181
“(b) An application under this section shall include: 182

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“(1) The boundaries of the proposed noncontiguous TIF area and each proposed 183
subarea, parcel group, lot number, or project cluster; 184
“(2) A description of the proposed land uses, public improvements, housing 185
activities, revitalization activities, transit-supportive infrastructure, resident stabilization 186
activities, and any affiliated development projects; 187
“(3) A description of the use of financing proceeds and projected tax increment 188
revenues; 189
“(4) A pro forma projection of revenues and expenses for the renewal financing 190
plan; 191
“(5) An assessment of the financial feasibility of the renewal financing plan; 192
“(6) A general description of the anticipated timing, phasing, and implementation 193
of the renewal financing plan; 194
“(7) A description of the plan’s compatibility with the Comprehensive plan’ 195
“(8) A description of the zoning consistency or anticipated zoning plan where 196
applicable; 197
“(9) An analysis of the projected tax revenues and public benefits to be generated 198
by the renewal financing plan. 199
“(10) An analysis demonstrating that the renewal financing plan would not 200
proceed in the same scope, timing, affordability mix, or public-benefit form without the renewal 201
district designation. 202
“(11) An anti-displacement strategy; and 203
“(12) A summary of public participation conducted before final certification and 204
submission to the Council. 205

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“(c) Not later than 180 days after receipt of a completed application under this section, 206
the Chief Financial Officer shall certify or reject the renewal district financing plan. 207
“(d) In determining whether to certify a renewal financial plan, the Chief Financial 208
Officer shall consider: 209
“(1) Whether the renewal financing plan is financially feasible; 210
“(2) Whether the plan is likely to result in a new increase in taxes payable to the 211
district, taking into account anticipated increments and other District revenues; 212
“(3) Whether the plan is consistent with the Comprehensive Plan and will advance 213
development priorities identified in the Comprehensive plan for the affected area or areas; 214
“(4) whether the total anticipated public and financial benefits to the District 215
exceed the total anticipated costs to the District; 216
“(5) Whether the requested allocation of increment would substantially compete 217
with or supplant benefits from other sources otherwise reasonably available for the goals of the 218
renewal financing plan; 219
“(6) Whether the proposed renewal district is characterized by one or more of the 220
following: underinvestment, inadequate housing supply, infrastructure deficiency, weak transit 221
access, fragmented development patterns, corridor distress, or other barriers impeding equitable 222
growth; and 223
“(7) Whether the renewal financing plan includes adequate affordability for 224
current residents, anti-displacement, public participation, and monitoring provisions; 225
“(e) Upon certification, the Chief Financial Officer may negotiate with the Mayor or the 226
designated applicant agency concerning the boundaries of the renewal district, the amount and 227
type of tax increment allocation, the renewal area-specific bond caps and issuance sunset, the 228

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termination date of the district, reserve requirements, and the terms and conditions of 229
implementation agreements or financing documents. 230
“Sec. 4b. Eligible uses under a renewal district financing plan. 231
“(a) In addition to any development costs authorized elsewhere in this act, an approved 232
renewal financing plan may authorize the use of TIF proceeds, tax increment revenues, or both, 233
for the following renewal district-level uses: 234
“(1) housing production, preservation, rehabilitation, or acquisition; 235
“(2) community revitalization, including corridor improvement, façade 236
improvement, neighborhood commercial stabilization, and public space improvements; 237
“(3) transit-supportive infrastructure; 238
“(4) resident stabilization activities, including low-wealth homeowner repair 239
grants, weatherization, energy-efficiency improvements, and renter-serving preservation 240
investments; 241
“(5) anti-displacement s and affordability-preservation activities; 242
“(6) grants or forgivable loans to eligible households, nonprofit entities, 243
community-serving uses, or small businesses where authorized by the renewal financing plan; 244
“(7) implementation, monitoring, and administrative costs directly related to the 245
renewal district financing plan; and 246
“(8) any other use determined by the Chief Financial Officer to fall within the 247
scope of development costs under section 2(13) of the act and specifically approved by 248
resolution of the Council for the renewal district. 249
“Sec. 4c. Renewal financing plan requirements. 250

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“(a) Each renewal financing plan certified under section 4a shall include renewal area-251
specific financing limitations, including: 252
“(1) The maximum aggregate principal amount of TIF bonds or obligations for 253
the renewal district; 254
“(2) The final date by which bonds or obligations may be issued for the renewal 255
district; 256
“(3) the termination date for the allocation of tax increment revenues to the 257
renewal district; 258
“(4) Any secondary caps on revenue funds applicable to affiliated development 259
projects, grants, resident stabilization activities, or transit-supportive infrastructure; and 260
“(5) Any reserve requirements, coverage requirements, or other fiscal safeguards 261
required by the Chief Financial Officer. 262
“(b) The Council shall approve the renewal district specific financing limitations by 263
resolution pursuant to section 5, and no bond or other obligation may be issued in excess of those 264
limits. 265
“Sec. 4d. Affiliated development projects. 266
“(a) An approved renewal financing plan may authorize the later inclusion of an affiliated 267
development project or expansion parcel if the project or parcel: 268
“(1) is located within a proximity zone, corridor, station area, or plan area 269
identified in the renewal financing plan; 270
“(2) advances one or more purposes of the renewal district; and 271
“(3) is approved in accordance with the procedures established under this act 272

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“(b) An affiliated development project may receive assistance under an approved renewal 273
district financing plan even if it has not yet been added to the revenue-contributing boundaries of 274
the modernization district, if the Council resolution approving the renewal district financing plan 275
expressly authorizes such assistance and the Chief Financial Officer certifies that the assistance 276
is fiscally compatible with the renewal district financing plan. 277
“Sec. 4e. Advisory board. 278
“(a) There is established a Renewal District Advisory Board for each renewal district 279
approved under this act. 280
“(b) The Mayor shall appoint members of the Advisory Board, which shall include 281
residents of affected communities, representatives or relevant District agencies, and persons or 282
entities with expertise in housing, community development, transportation, small business, or 283
public finance. 284
“(c) The Advisory Board shall review the renewal district financing plan, monitor its 285
implementation, review annual reports required in section 4h, advise on material amendments 286
where necessary, and provide recommendations biannually for renewal district activities to the 287
Mayor or designee and the Council. 288
“(d) The Advisory Board shall be advisory only and shall not exercise independent 289
authority to approve or disapprove bonds, financing documents, or subsidies. 290
“Sec. 4f. Public participation. 291
“(a) Before final Council approval of a renewal district financing plan a public hearing 292
shall be required on the proposed renewal district delineation and on the proposed renewal 293
district financing plan. 294

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“(b) The hearing shall not occur less than 14 days before final Council approval and the 295
proposed renewal district financing plan shall be made publicly available no later than seven 296
days before the scheduled hearing. 297
“(c) The Council shall prepare a public participation summary describing the comments 298
received and any revisions made in response. 299
“(d) Any material amendment to an approved district financing plan shall require public 300
notice and at least one additional public hearing. Minor or technical amendments shall not 301
require a public hearing. 302
“Sec. 4g. Annual reporting and ex post assessment. 303
“(a) The Chief Financial Officer shall prepare and submit to the Council, for each 304
renewal district approved under this act, an annual report for each fiscal year during which tax 305
increment revenues are allocated or otherwise used to support the renewal district. 306
“(b) The annual report shall include, at a minimum, information concerning increment 307
generated, debt service coverage, use of proceeds, project status, affordability performance, 308
resident stabilization activities where applicable, transit or infrastructure improvements where 309
applicable, and any affiliated development projects or expansion parcels added or assisted during 310
the reporting period. 311
“(c) Not later than 3 years after substantial completion of the principal improvements 312
financed by a renewal district financing plan, or 10 years after the first issuance of bonds for the 313
renewal district, whichever comes first, the Chief Financial Officer shall prepare an ex post 314
assessment comparing the actual fiscal, housing, infrastructure, affordability, anti-displacement, 315
and revitalization outcomes of the renewal district to the projections and commitments contained 316
in the renewal district financing plan. 317

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“Sec. 4h. Rules. 318
“The Chief Financial Officer may issue rules, guidelines, or bulletins consistent with this 319
act concerning fiscal certification, district-specific financing limitations, reporting formats, and 320
reserve or allocation requirements.”. 321
Sec. 105. Section 5 amended. 322
Section 5 of the Tax Increment Financing Authorization Act of 1998, effective 323
September 11, 1998 (D.C. Law 12-143; D.C. Official Code § 2-1217.01 et seq.), is amended as 324
follows: 325
(a) The first sentence is amended by striking the phrase “with the development sponsor” 326
and inserting the phrase “with the Mayor or designee agency” in its place. 327
(a) The first sentence is amended by striking the phrase “the project” and inserting the 328
phrase “the project or renewal district financing plan” in its place. 329
(b) The second sentence is amended by striking the phrase “a proposed resolution to 330
approve the project, the TIF area, the development agreement, and the amount to be financed” 331
and inserting the phrase “either: a proposed resolution to approve the project, the TIF area, the 332
development agreement, and the amount to be financed; or the renewal district financing plan 333
and the renewal district, together with the applicable implementation agreements and the amount 334
to be financed” in its place. 335
(c) The third sentence is amended by striking the phrase “The proposed resolution shall 336
define the TIF area for the eligible project” and inserting the phrase “The proposed resolution 337
shall define the TIF area for the eligible project, or the noncontiguous TIF area for the renewal 338
district,” in its place. 339

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(d) A new sentence is added at the end to read as follows: “For a district financing plan 340
approved pursuant to section 4a, the proposed resolution shall also specify the renewal district 341
specific financing limitations required by section 4c. 342
Sec. 106. Section 6 amended. 343
Section 6 of the Tax Increment Financing Authorization Act of 1998, effective 344
September 11, 1998 (D.C. Law 12-143; D.C. Official Code § 2-1217.01 et seq.), is amended as 345
follows: 346
(a) Subsection (a) is amended by striking the phrase “When a TIF area for a project is 347
established pursuant to sections 4 and 5” and inserting the phrase “When a TIF area for a project 348
is established pursuant to sections 4 and 5, or when a renewal district is established pursuant to 349
sections 4a and 5,” in its place. 350
(b) Subsection (b) is amended by striking the phrase “within each TIF area” and inserting 351
the phrase “within each TIF area or renewal district” in its place. 352
TITLE II. VACANT PROPERTY ACQUISITION AND AFFORDABLE DISPOSITION 353
PROGRAM. 354
Sec. 201. Short title. 355
This title may be cited as the “Vacant Property Acquisition and Affordable Disposition 356
Amendment Act of 2026”. 357
Sec. 202. Amendments. Title IV of the Abatement and Condemnation of Nuisance 358
Properties Omnibus Amendment Act of 2000, effective April 27, 2001 (D.C. Law 13-281; D.C. 359
Official Code § 42-3171.01 et seq.), is amended as follows: 360
(a) Section 401 is amended by adding new paragraphs to read as follows: 361

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“(4) “Affordable housing nonprofit provider” means a nonprofit organization in 362
good standing that is organized primarily to develop, preserve, own, operate, or steward housing 363
units rented to households whose income does not exceed 80% of the area median income and is 364
approved by the Mayor pursuant to this title. 365
“(5) “Blighted property” shall have the same meaning as "blighted vacant 366
building" as provided in section 5 of An Act To provide for the abatement of nuisances in the 367
District of Columbia by the Commissioners of said District, approved April 14, 1906 (34 Stat. 368
114; D.C. Official Code § 42-3131.01 et seq.). 369
“(6) “Community land trust” shall mean a nonprofit organization that: 370
(A) Acquires and holds land for the purpose of providing and maintaining 371
affordable housing for low- and moderate-income families in perpetuity; and 372
(B) Employs land leases as a method to secure the affordability of 373
housing. 374
“(7) “Program” means the District Vacant Property Acquisition and Affordable 375
Disposition Program established by this title. 376
“(8) “Qualified affordability developer” means a private developer approved by 377
the Mayor that agrees to recorded affordability restrictions of not less than 15 years and satisfies 378
additional criteria established by rulemaking. 379
“(9) “Qualified transferee” means a community land trust, affordable housing 380
nonprofit provider, or qualified affordability developer approved to receive property under this 381
title. 382
“(10) “Department” means the Department of Housing and Community 383
Development. 384

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(b) A new section 411A is added to read as follows: 385
“Sec. 411A. District Vacant Property Acquisition and Affordable Disposition Program. 386
“(a) There is established within the Department a District Vacant property Acquisition 387
and Affordable Disposition program, which may be administered through the Property 388
Acquisition and Disposition Division or any successor office designated by the Mayor. 389
“(b) The program shall: 390
“(1) Create and maintain a dedicated inventory of vacant and blighted residential 391
properties suitable for rehabilitation, affordable homeownership, affordable rental housing, 392
shared-equity reuse, or lease-purchase homeownership; 393
“(2) Acquire, hold, manage, clear title to, and dispose of those properties using 394
existing lawful acquisition channels, including negotiated acquisition, donations, transfers, tax 395
sale foreclosure pathways, eminent domain where otherwise authorized by law, and any other 396
lawful means of acquisition. 397
“(3) Prioritize the productive reuse of distressed residential property for long-term 398
affordable housing and neighborhood stabilization; 399
“(4) Facilitate the transfer of suitable properties to qualified transferees under 400
affordability and rehabilitation conditions. 401
(c) A new section 411B is added to read as follows: 402
“Sec. 411B. Inventory and priority disposition. 403
“(a) The Department shall create and maintain an inventory of vacant and blighted 404
residential properties held or controlled through the program. 405

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“(b) To the greatest extent practicable, and except where the Mayor determines another 406
disposition is necessary to protect the public interest, the Department shall offer suitable program 407
properties in the following order of priority: 408
“(1) First, to community land trusts; 409
“(2) Second, to affordable housing nonprofit providers; and 410
“(3) Third, to qualified affordability developers. 411
“(c) The Department may dispose of program properties for long-term affordable 412
homeownership, long-term affordable rental housing, shared-equity homeownership, lease-413
purchase homeownership under a Department-approved program, and other housing uses 414
approved by the Mayor that further the purposes of this title. 415
“(d) A disposition under this title shall not be based solely on highest price. The 416
Department shall consider affordability, rehabilitation feasibility, organizational capacity, 417
community service use, speed to productive reuse, and long-term stewardship capacity in 418
determining the appropriate transferee. 419
(d) A new section 411C is added to read as follows: 420
“Sec. 411C. Conditional relief authority. 421
“(a) Subject to appropriations and any other applicable law, the Mayor may reduce, 422
compromise, defer, or forgive, in whole or in part, District-held taxes, fees, penalties, interest, 423
special assessments, costs, liens, or other charges specified in this section that would otherwise 424
make transfer or rehabilitation infeasible when a vacant or blighted property is transferred 425
through the program to a qualified transferee. 426
“(b) Relief authorized under this section may include: 427
“(1) Tax-sale arrears; 428

18

“(2) Delinquent real property taxes, to the extent permitted by law; 429
“(3) Penalties and interest associated with delinquent real property taxes; 430
“(4) Unpaid vacant-building registration fees; 431
“(5) Costs, fees, and liens assessed by the District in connection with nuisance 432
abatement, or related vacant property enforcement activity; and 433
“(6) Other District-held charges determined by the Mayor by rule to be directly 434
related to the vacancy, blight, nuisance, or tax-delinquency status of the property. 435
“(c) Relief under this section shall be conditioned on: 436
“(1) Transfer of the property to a qualified transferee; 437
“(2) Execution and recordation of affordability restrictions required by this title; 438
“(3) Completion of rehabilitation within the period established by section 411D; 439
“(4) Compliance with any use, occupancy, or stewardship conditions imposed by 440
the Mayor; and 441
“(5) Additional requirements that the Mayor shall establish 442
“(d) The Mayor may structure relief under this section as immediate, staged, or earned 443
relief, including immediate forgiveness of penalties and interest and conditional or partial 444
forgiveness of base tax liabilities upon completion of rehabilitation and recordation of 445
affordability restrictions.“(e) Relief under this section shall not extinguish or impair any 446
privately held mortgage, lien, security interest, utility obligation, judgement, or other non-447
District claim. 448
(e) A new section 411D is added to read as follows: 449
“Sec. 411D. Rehabilitation deadline, affordability restrictions, and recapture. 450

19

“(a) A qualified transferee receiving property or relief under this title shall complete 451
rehabilitation of the property within 24 months after transfer, unless the Mayor grants an 452
extension for good cause shown. 453
“(b) Before or at final disposition, the qualified transferee shall execute and record 454
affordability restrictions in the form approved by the Mayor. 455
“(c) Affordability restrictions shall require, as applicable: 456
“(1) Long-term affordability for community land trust projects; 457
“(2) Affordability for not less than 15 years for nonprofit affordable housing 458
projects; or 459
“(3) Affordability for not less than 15 years for qualified affordability developers. 460
“(d) The Mayor may require principal-residence occupancy, shared-equity resale 461
restrictions, lease-purchase program participation, rental affordability restrictions, or other 462
conditions necessary to carry out the purposes of this title. 463
“(e) If a qualified transferee fails to complete rehabilitation within the required period 464
and any approved extension, fails to record or maintain required affordability restrictions, 465
transfers the property in violation of this title, or otherwise fails to comply with material 466
conditions of relief or disposition, the Mayor shall recapture all or part of the value of any relief 467
provided under this title and may impose additional remedies authorized by agreement or by 468
rule. 469
(f) A new section 411E is added to read as follows: 470
“Within one year after the effective date of this act, and annually thereafter, the 471
Department shall submit a report to the Council on the implementation of the Program, including 472
the number of properties in Program inventory, the number of properties acquired and disposed 473

20

of, the number of properties transferred to community land trusts, affordable housing nonprofit 474
providers, and qualified affordability developers, the amount and type of liabilities reduced, 475
compromised, deferred, or forgiven, and the number of properties rehabilitated and returned to 476
occupancy.” 477
TITLE III. LEASE-PURCHASE HOMEOWNERSHIP OPPORTUNITY PILOT. 478
Sec. 301. Short title. 479
This title may be cited as the “Lease-Purchase Homeownership Opportunity Pilot Act of 480
2026”. 481
Sec. 302. Definitions. 482
For the purposes of this title, the term: 483
(1) “Lease-purchase agreement” means a written agreement for the lease of residential 484
real property that grants a program participant a right or option to purchase the leased property, 485
or another approved ownership interest in the leased property, pursuant to the terms of this title. 486
(2) “Department” means the Department of Housing and Community Development. 487
(3) “Eligible household” means a low- or moderate-income household, as defined by 488
rules issued pursuant to this title, that is not yet prepared to complete a home purchase with 489
conventional mortgage financing but is reasonably likely to become mortgage-ready during the 490
applicable program term. 491
(4) “Eligible property” means a residential property approved by the Department for 492
participation in the Program, including a single-family dwelling, condominium unit, community 493
land trust home, or other residential units approved by rule. 494

21

(5) “Escrow account” shall have the same meaning as provided in section 18 of the 495
District of Columbia real Estate Licensure Act of 1982, effective March 10, 1983 (D.C. Law 4-496
209; D.C. Official code 42–1704). 497
(6) “Program” means the Lease-Purchase Homeownership Opportunity Program 498
established by section 304 of this title. 499
(7) “Program administrator” means the Department or a nonprofit organization, 500
community land trust, affordable housing provider, or other entity approved by the Department 501
to administer or operate the Program. 502
(8) “Program Participant” means an eligible household admitted to the Program. 503
(9) “Affordable housing nonprofit provider” means a nonprofit organization in good 504
standing that is organized primarily to develop, preserve, own, operate, or steward housing units 505
rented to households whose income does not exceed 80% of the area median income and is 506
approved by the Mayor pursuant to this title. 507
Sec. 303. Lease-purchase Homeownership Opportunity Program established. 508
(a) There is established a Lease-Purchase Homeownership Opportunity Program to 509
provide a structured pathway to homeownership for eligible households through lease-purchase 510
agreements and other ownership-transition models approved by the Department. 511
(b) The Department shall administer the Program and may directly administer the 512
Program or contract with one or more program administrators. 513
(c) The Program shall be designed to supplement existing District homeownership 514
programs by assisting households that are not yet prepared to complete a conventional home 515
purchase but are reasonably likely to become mortgage-ready within a defined period of 516
occupancy, savings accumulation, and counseling. 517

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Sec. 304. Eligible households, eligible properties, and participating entities. 518
(a) The Department shall establish eligibility criteria for households participating in the 519
Program, including income standards, occupancy requirements, and mortgage-readiness criteria. 520
(b) The Department shall establish criteria for eligible properties and may prioritize 521
homes subject to long-term affordability restrictions, community land trust properties, properties 522
owned or developed by nonprofit affordable housing providers, homes acquired or rehabilitated 523
with District assistance, and other properties that further the purposes of this title. 524
(c) The Department may approve community land trusts, nonprofit affordable housing 525
providers, and other mission-driven housing entities as program administrators or participating 526
lessors. 527
Sec. 305. Financial assistance; sources and eligible uses of funds. 528
(a) Subject to authorization in an approved budget and financial plan, the Mayor shall 529
provide financial assistance for the Program from appropriated District funds, federal funds to 530
the extent permitted by law, and other public and private funds lawfully available for the 531
purposes of this title. 532
(b) Financial assistance under this title may be used for: 533
(1) Acquisition of eligible property, including single-family homes, condominium 534
units, community land trust homes, scattered-site residential properties, and other residential 535
units approved by the Department; 536
(2) Rehabilitation, repair, preservation, modernization, code-compliance work, 537
accessibility improvements, environmental remediation, and habitability repairs necessary to 538
prepare eligible property for occupancy or conveyance through the Program; 539

23

(3) Predevelopment costs, due diligence costs, legal costs, title costs, appraisal 540
costs, environmental review costs, financing costs, closing costs, and other transaction costs 541
approved by the Department; 542
(4) Construction, reconstruction, or improvement of eligible property, where 543
approved by the Department as consistent with the purposes of this title; 544
(5) Carrying costs, operating costs, and maintenance during the lease-purchase 545
term, to the extent approved by the Department and limited to costs reasonably necessary to 546
preserve the property and maintain the property in decent, safe, sanitary, and habitable condition; 547
(3) Administrative costs of approved program administrators; 548
(4) Counseling, financial education, homebuyer counseling, case management, 549
and mortgage-readiness services, and credit repair activities connected to the lease-purchase 550
conversion of the eligible property under the Program; 551
(5) credit repair activities, including credit counseling, budget and debt-552
management assistance, credit report review, dispute assistance, payment-plan assistance, 553
savings coaching, and other services designed to improve mortgage readiness; 554
(6) Down payment assistance, closing cost assistance, escrow matching 555
contributions, and other direct homebuyer assistance tied to an eligible property participating in 556
the Program;; and 557
(7) Other uses approved by rule that further the purposes of this title. 558
(c) Financial assistance may be awarded to: 559
(1)_A program administrator approved pursuant to this title; 560
(2) A community land trust; 561
(3) An affordable housing nonprofit provider; 562

24

(4) A mission-driven housing entity approved by the Department; or 563
(5) A for-profit housing developer, owner, or sponsor approved by the 564
Department. 565
(c) Services authorized under subsection (b)(4) and (5) of this section may be provided 566
directly by the Department or through nonprofit organizations, HUD-approved housing 567
counseling agencies, approved program administrators, or other entities approved by the 568
Department. 569
(d) The Department shall prioritize funds used for purposes described in subsection (b)(5) 570
of this section for program participants who have confirmed an intent to purchase an eligible 571
property but require additional credit or financial-readiness support to qualify for mortgage 572
financing. 573
(e) There shall be a dedicated fund for escrow matching contributions by the Department 574
for program participants; escrow matching contributions may be structured as grants, loans, 575
deferred loans, forgivable loans, direct homebuyer assistance, or other forms of financial 576
assistance permitted by District and federal law. 577
(f) Assistance under this title may be combined with assistance available under other 578
District homeownership programs, including the Home Purchase Assistance Program, to the 579
extent permitted by law and program rules. 580
Sec. 306. Required terms of lease-purchase agreements. 581
(a) A lease-purchase agreement under this title shall be in writing and shall be on a 582
standard form approved by the Department. 583
(b) A lease-purchase agreement shall include, at a minimum: 584
(1) The initial lease term and any permitted renewal periods; 585

25

(2) The conditions under which the program participant may exercise the 586
purchase option; 587
(3) The purchase price, or a clear formula for determining the purchase price; 588
(4) The amount of the monthly payment and the portion of that payment that shall 589
be deposited into the escrow account; 590
(5) A description of all fees that are charged under the lease-purchase agreement 591
separately, including any other charges such as taxes, late payment fees, default fees, processing 592
fees, reinstatement fees, or other charges required of the program participant; 593
(6) The rights of the participant in the event of a default, including any cure 594
period or reinstatement right; 595
(7) The treatment of escrowed funds if the participant does not exercise the 596
purchase option; 597
(8) Any affordability, owner-occupancy, resale, or use restrictions applicable to 598
the property; and 599
(9) Any other provisions required by rulemaking. 600
(c) The Department may establish by rulemaking a minimum escrow contribution or a 601
formula for escrow contributions. 602
Sec. 307. Escrow accounts. 603
(a) A program participant’s escrowed funds shall be held in a segregated account 604
maintained by the program administrator, an approved escrow agent, or another entity approved 605
by the Department. 606
(b) The Department shall establish by rulemaking standards for deposits of participant 607
contributions, deposits of District matching contributions or other assistance, accounting and 608

26

periodic statements to participants, permissible uses of escrowed funds, and disbursement of 609
escrowed funds at purchase conversion or nonpurchase. 610
(c) Escrowed funds shall be used primarily for down payment, closing costs, and other 611
approved home purchase expenses. 612
Sec. 308. Counseling and mortgage-readiness requirements. 613
(a) Before entering into a lease-purchase agreement under this title, an eligible household 614
shall complete homeownership counseling approved by the Department. 615
(b) During participation in the Program, a program participant shall receive ongoing 616
counseling or case management designed to support credit improvement, savings accumulation, 617
budgeting and debt management, mortgage readiness, and transition to ownership. 618
(c) Counseling under this section may be provided through entities approved by the 619
Department. 620
(d) The Department shall establish standards by rule for : 621
(1) confirming the participant’s intent to purchase; 622
(2) assessing the participants mortgage readiness; 623
(3) approving savings and credit counselling and coaching providers; and 624
(4) tracking participant progress towards purchase conversion. 625
Sec. 309. Consumer protections. 626
(a) A program participant shall receive clear written disclosures, in a form prescribed by 627
the Department, explaining the legal nature of the lease-purchase agreement, the participant’s 628
rights and obligations during the lease term, the conditions for exercising the purchase option, 629
the treatment of escrowed funds and fees, and the consequences of default or nonpurchase. 630
(b) A lease-purchase agreement under this title shall not: 631

27

(1) require a participant to waive rights or remedies provided by District or 632
federal law; 633
(2) permit automatic forfeiture of escrowed funds except as authorized by rule and 634
clearly disclosed in advance; 635
(3) impose unreasonable fees, penalties, or purchase-option terms; or 636
(4) contain other terms prohibited by rule. 637
(c) Before terminating a participant’s rights under a lease-purchase agreement for 638
nonpayment or other material breach, the owner or program administrator shall provide written 639
notice and a reasonable opportunity to cure, in accordance with rules issued under this title. 640
Sec. 310. Conversion to ownership. 641
(a) Upon the satisfaction of the requirements of the lease-purchase agreement and this 642
title, a program participant may exercise the purchase option and purchase the eligible property. 643
(b) The Department shall establish standards for applying escrowed funds to down 644
payment, closing costs, and other approved home purchases expenses. 645
(c) The Department may coordinate assistance under this title with the Home Purchase 646
Assistance Program and other District homeownership programs at the time of purchase 647
conversion. 648
Sec. 311. Treatment of escrow funds if purchase option is not exercised. 649
(a) If a program participant does not exercise the purchase option, escrowed funds 650
attributable to the participant’s payments shall be disbursed in accordance with the lease-651
purchase agreement and rules issued under this title. 652

28

(b) Rules issued under this section shall be designed to preserve, to the greatest extent 653
practicable, the participant’s accumulated savings for future housing stability, homeownership, 654
debt reduction, relocation, or rental stabilization purposes. 655
Sec. 312. Sunset. 656
This act shall expire on December 31, 2030. 657
TITLE IV. FIRST-TIME HOMEBUYER MORTGAGE INTEREST TAX CREDIT. 658
Sec. 401. Short title. 659
This title may be cited as the “First-Time Homebuyer Mortgage Interest Tax Credit 660
Amendment Act of 2026”. 661
Sec. 402. Amendments. Chapter 18 of Title 47 of the District of Columbia Official Code 662
is amended by adding a new section 47-1806.18 to read as follows: 663
Ҥ 47-1806.18. First-time homebuyer mortgage interest tax credit. 664
“(a) For taxable years beginning after December 31, 2027, a qualitied taxpayer shall be 665
allowed a credit against the tax imposed by this chapter for the taxable year in an amount equal 666
to 10% of the qualified mortgage interest paid by the taxpayer during the taxable year on a 667
qualified principal residence. 668
“(b) The credit allowed under this section shall: 669
“(1) not exceed $2,000 in any taxable year; 670
“(2) not be nonrefundable; 671
“(3) may not exceed the taxpayer’s tax liability for the taxable year; and 672
“(4) A taxpayer shall be eligible to claim the credit under this section for no more 673
than 5 taxable years with respect to the same qualified principal residence. 674
“(c) For the purpose of this section, the term: 675

29

“(1) “Area median income” means the area median income of the Washington 676
Metropolitan Statistical Area as set forth in the periodic calculation provided by the U.S. 677
Department of Housing and Urban Development. 678
“(2) “First-time homebuyer” means a real property purchaser who had no 679
ownership interest in his or her principal residence at any time during the 3 year period ending 680
on the date of his or her application for assistance, but including an applicant who has divorced 681
or separated during the 3 year period where a formal settlement has been made under which the 682
applicant does not receive an ownership interest in a primary residence which had been jointly 683
owned, and who has no other current ownership interest in residential real property. 684
“(3) “Qualified mortgage interest” means interest paid during the taxable year on 685
acquisition indebtedness secured by a qualified principal residence, as verified in the manner 686
prescribed by the Chief Financial Officer; provided, that qualified mortgage interest shall not 687
include prepaid interest, points, penalties, or any amount not properly allocable to the taxable 688
year. 689
“(4) “Qualified principal residence” means a dwelling unit located in the District 690
of Columbia that: 691
“(A) Is purchased by a first-time homebuyer for use as the taxpayer’s 692
principal place of residence; 693
“(B) Is subject to a mortgage loan or deed of trust originated by an 694
institutional lender or other lender approved by the Chief Financial Officer by rule; and 695
“(C) Is occupied by the taxpayer as the taxpayer’s principal residence for 696
the taxable year for which the credit is claimed. 697
“(5) “Qualified taxpayer means a taxpayer who: 698

30

“(A) Is a first-time homebuyer; 699
“(B) Has household income for the taxable year that does not exceed 700
150% of area median income; 701
“(C) Owns and occupies the qualified principal residence; and 702
“(D) Meets any additional documentation and eligibility requirements 703
established by rule. 704
“(d) A taxpayer may claim the credit under this section only for the taxable years in 705
which the taxpayer both owns and occupies the qualified principal residence as the taxpayer’s 706
principal residence. 707
“(e) The Chief Financial Officer shall prescribe the form and manner in which a taxpayer 708
shall claim the credit, including documentation of: 709
“(1) First-time homebuyer status; 710
“(2) Household income; 711
“(3) Principal residence occupancy; 712
“(4) Original mortgage amount; and 713
“(5) Qualified mortgage interest paid during the taxable year. 714
“(f) If the Chief Financial Officer determines that a taxpayer improperly claimed the 715
credit under this section, the amount of the improperly claimed credit may be recaptured in the 716
manner prescribed by rule. 717
“(g) The Chief Financial Officer may issue proposed rules to implement the provisions of 718
this title.” 719
TITLE V. RESIDENTIAL INFILL OPPORTUNITY PROGRAM. 720
SUBTITLE A. AMENDATORY LANGUAGE. 721

31

Sec. 501. Short title. 722
This title may be cited as the “Residential Infill Opportunity Program Amendment Act Of 723
2026”. 724
Sec. 502. Amendments. Chapter 854 of An Act To establish a code of law for the District 725
of Columbia, approved March 3, 1901 (31 Stat. 1425, ch. 854; D.C. Official Code § 1-1320), is 726
amended by adding a new section to subchapter 55 to read as follows: 727
“Sec. 1617. Conforming residential lot subdivisions. 728
“(a) For the purposes of this section, the term: 729
“(1) “Department” means the Department of Buildings. 730
“(2) “Buildable record lot” means a lot of record that may be separately conveyed 731
and lawfully improved with a principal residential building or other permitted residential use 732
under applicable law. 733
“(3) “Conforming residential lot subdivision” means the subdivision of one 734
residential lot into no more than two resulting lots where the parent lot and each resulting lot 735
comply with all applicable subdivision, zoning, access, and development standards in effect on 736
the date of approval, including minimum lot area, minimum lot width, yards, floor area ratio, lot 737
occupancy, parking, and related requirements. 738
“(4) “Resulting lot” means a lot created through a conforming residential lot 739
subdivision approved under this chapter. 740
“(5) “Eligible lot subdivision” means a conforming residential lot subdivision 741
approved or conditionally approved under this chapter. 742
“(b) The Mayor, through the Department, shall establish a consolidated administrative 743
fast-track process for the review and approval of conforming residential lot subdivisions. 744

32

“(c) The Mayor shall establish by rule a process, including: 745
“(1) A completeness determination; 746
“(2) One written deficiency notice identifying objective defects or missing items; 747
“(3) A final written approval, conditional approval, or denial; 748
“(4) Standards for revised plat submissions; and 749
“(5) Procedures to allow concurrent review, where practicable, with related 750
building permit submissions. 751
“(d) A conforming residential lot subdivision may be approved only if: 752
“(1) Each residential lot is capable of independent title and recordation; 753
“(2) Each resulting lot has lawful access as required by applicable law and zoning 754
commission regulation; 755
“(3) The subdivision does not require a variance, special exception, planned unit 756
development approval, or zoning text amendment to become conforming; and 757
“(4) The Department determines that the proposed subdivision satisfies all 758
objective requirements established by this title and other applicable law; this includes 759
confirmation that: 760
“(A) Each resulting lot complies with the dimensional and access 761
requirements applicable to the lot; 762
“(B) Each resulting lot may be recorded as a separate lot of record; 763
“(C) Each resulting lot is separately buildable for a principal residential 764
building or other permitted residential use; 765
“(D) The subdivision does not create a paper lot incapable of lawful 766
development; and 767

33

“(E) Any conditions of approval have been satisfied. 768
“(e) Nothing in this chapter shall be construed to waive, amend, or supersede the Zoning 769
Regulations or to authorize a nonconforming lot subdivision.” 770
SUBTITLE B. SMALL-SITE HOUSING SUPPORT PROGRAM. 771
Sec. 503. Small-Site Housing Support Program established. 772
There is established a Small-Site Housing Support Program to support qualifying 773
affordable housing projects arising from conforming residential lot subdivisions. 774
Sec. 504. Predevelopment grants. 775
The Mayor, through the Department of Housing and Community Development or another 776
designated agency, may award predevelopment grants to owner-occupants, nonprofit affordable 777
housing providers, community land trusts, and other affordable housing driven developers to 778
support surveying, legal work, title work, architectural feasibility, utility planning, permitting, 779
and related predevelopment costs associated with an eligible lot subdivision. 780
Sec. 505. Small infill loans. 781
The Mayor may provide acquisition, construction, bridge, or gap financing for qualifying 782
affordable housing projects arising from conforming lot subdivisions, including projects 783
undertaken by nonprofit affordable housing providers, community land trusts, and owner-784
occupants subject to affordability restrictions outlined in section 507. 785
Sec. 506. Fee waivers or reimbursements. 786
The Mayor may waive or reimburse reasonable subdivision, recordation tax, and related 787
administrative fees for eligible lot subdivisions that will be used for affordability-restricted, 788
owner-occupied, or community land trust housing. 789
Sec. 507. Affordability covenants and recapture. 790

34

As a condition of receiving financial assistance under this title, a recipient shall execute 791
and record an affordability covenant requiring affordability, owner-occupancy, resale, or use 792
restrictions for a period determined by the Mayor. 793
Sec. 508. Eligible property inventory and recommendations. 794
Within 365 days after the effective date of this act, and annually thereafter, the 795
Department and the Office of Planning shall jointly prepare and submit to the Council a report 796
identifying properties reasonably likely to qualify for conforming lot subdivision under current 797
law, common barriers to subdivision, and recommended statutory and administrative changes 798
Sec. 509. Tenant protections for occupied residential property 799
(a) Tenant notice. Before filing an application for a conforming residential lot subdivision 800
for a property containing an occupied residential dwelling unit, the owner shall provide written 801
notice to each tenant and lawful occupant of the property stating: 802
(1) That the owner intends to apply for a conforming residential lot subdivision; 803
(2) That approval of a conforming residential lot subdivision does not, by itself, 804
waive or limit any tenant protections otherwise provided by District law; 805
(3) Whether the owner intends to seek demolition, substantial rehabilitation, 806
conversion, sale, redevelopment, or other action that may affect continued occupancy of the 807
property; and 808
(4) That tenants shall retain any rights and remedies provided under applicable 809
District law. 810
(b) Preservation of tenant protections. Nothing in this section shall be construed to waive, 811
limit, supersede, or impair any tenant protection, notice requirement, right of occupancy, right of 812

35

purchase, relocation right, anti-displacement protection, or other right or remedy available under 813
District law. 814
(c) Certification of compliance. As part of any application involving occupied residential 815
property, the applicant shall certify, in a form prescribed by the Mayor, that: 816
(1) The applicant has complied with the notice requirements of subsection (a) of 817
this section; 818
(2) The proposed subdivision is not being pursued for the purpose of evading 819
tenant protections or facilitating unlawful displacement; and 820
(3) The applicant shall comply with all applicable District laws governing tenants, 821
sales, demolition, discontinuance of housing use, conversion, relocation, and affordability 822
restrictions. 823
(d) Additional review for occupied property. For an application involving occupied 824
residential property, the Department may require additional information reasonably necessary to 825
determine whether the proposed subdivision is being used primarily to facilitate displacement, 826
speculative redevelopment, or circumvention of District tenant-protection laws. 827
(e) Denial or conditional approval. The Department of Buildings may deny, or may 828
condition approval of, an application for a conforming residential lot subdivision if it determines 829
that: 830
(1) The application is being used to evade applicable tenant protections; 831
(2) The proposed subdivision is part of a plan primarily intended to displace 832
current tenants in order to facilitate speculative redevelopment; 833
(3) The applicant has failed to provide the notice required by this section; or 834
(4) The applicant has failed to certify compliance with applicable District law. 835

36

TITLE VI. Housing Acceleration Fund. 836
Sec. 601. Short title. 837
This title may be cited as the “Housing Acceleration Fund Act of 2026”. 838
Sec. 602. Definitions. 839
(1) “Acquisition-ready project” means a project for which the borrower has site control, a 840
purchase contract, an assignment right, or another time-sensitive acquisition opportunity and can 841
demonstrate a credible, path to development or preservation of mixed-income multifamily rental 842
housing. 843
(2) “Administering agency” means the means the agency, instrumentality, or independent 844
agency designated by the Mayor by rule or Mayor's order to administer the Fund pursuant to this 845
act. 846
(3) “Area median income” means the area median income of the Washington 847
Metropolitan Statistical Area as set forth in the periodic calculation provided by the U.S. 848
Department of Housing and Urban Development. 849
(4) “Fund” means the Housing Acceleration Fund established by section 3. 850
(5) “Mixed-income multifamily rental housing” means a multifamily housing 851
accommodation in which 40%-60% of the units are at low-income rents affordable to households 852
earning up to 80% of Area Median Income (AMI) and the other 40%-60% of units have rents 853
affordable to moderate and/or middle-income households earning up to 120% of AMI. 854
(6) “Project loan” means a loan, participation interest, or other extension of credit 855
provided from the Fund in a subordinate or mezzanine position to support the acquisition, 856
preservation, rehabilitation, adaptive reuse, or construction of mixed-income multifamily rental 857
housing. 858

37

(7) “Qualified co-lender” means banks, including but not limited to retail banks, 859
commercial banks, cooperative banks and credit unions, and Community Development Financial 860
Institutions (CDFI) with extensive experience in underwriting, origination, and servicing of 861
multifamily residential construction loans. 862
(8) “Shovel-ready project” means a project that has advanced to a stage at which it can 863
proceed to financial closing and commencement of construction within a timeframe 864
demonstrated by secured funding commitments from equity sponsors and debt lenders, 865
substantial progress on zoning requirement satisfaction, design approval, permitting competition, 866
financing commitments, and other predevelopment project ready milestones; yet, due to changes 867
in construction or capital costs have stalled due to financial gaps that have made financial return 868
expectations are not commensurate with the risk of moving forward with the project. 869
(9) “Single-asset, sole purpose entity” means a borrower entity formed for the ownership, 870
acquisition, development, preservation, rehabilitation, or operation of a single eligible project. 871
Sec. 603. Housing Acceleration Fund established. 872
(a) There is established a non-lapsing special fund the Housing Acceleration Fund 873
(“Fund”), which shall be administered by the agency in accordance with this act. 874
(b) The Fund shall be used to provide revolving subordinate acquisition and construction 875
financing, and closely related credit support, for eligible projects under this act. 876
(c) The Fund shall consist of: 877
(1) Amounts appropriated to the Fund; 878
(2) Repayments of principal, interest, fees, or other returns on project loans made 879
from the Fund; 880

38

(3) Proceeds from bonds, notes, or other obligations authorized for the purposes 881
of the Fund; 882
(4) Gifts, grants, donations, or other contributions from public or private sources 883
accepted by the Mayor in accordance with law; and 884
(5) Other amounts lawfully credited to the Fund. 885
(d) The money deposited into the Fund, but not expended in a fiscal year, shall not revert 886
to the unassigned fund balance of the General Fund at the end of a fiscal year, or at any other 887
time. 888
(e) Subject to authorization in an approved budget and financial plan, money in the Fund 889
shall be continually available without regard to fiscal year limitation. 890
Sec. 604. Administration of the Fund 891
(a) The administering agency shall administer the Fund and is authorized to: 892
(1) Originate project loans directly; 893
(2) Participate in project loans with one or more qualified co-lenders; 894
(3) Allocate Fund capital to qualified co-lenders for the origination of project 895
loans subject to the requirements of this act and rules issued pursuant to this act; 896
(4) Enter into interagency agreements, servicing agreements, participation 897
agreements, risk-sharing agreements, and other agreements necessary to implement the Fund; 898
and 899
(5) Establish underwriting standards, term sheets, notices of funding availability, 900
or requests for applications consistent with this act. 901

39

(b) The administering agency may charge reasonable fees in connection with the 902
origination, participation, servicing, monitoring, and administration of project loans, provided 903
that any fees collected shall be deposited into the Fund. 904
Sec. 605. Eligible uses of the Fund. 905
(a) Money in the Fund may be used for the following purposes: 906
(1) Subordinate acquisition loans for acquisition-ready projects; 907
(2) Bridge acquisition financing for time-sensitive purchase opportunities 908
involving existing or proposed mixed-income multifamily rental housing; 909
(3) Subordinate construction financing for new construction, substantial 910
rehabilitation, or adaptive reuse of mixed-income multifamily rental housing; 911
(4) Construction-period gap financing, including interest reserves or other credit 912
support necessary to close an eligible project loan; 913
(5) Financing related to the preservation and recapitalization of occupied 914
multifamily rental housing, where the borrower demonstrates that acquisition financing or 915
construction-period subordinate financing is necessary to maintain or create mixed-income 916
occupancy; and 917
(6) Other subordinate credit support determined by the administering agency by 918
rule to be necessary to accelerate eligible projects consistent with this act. 919
(b) The Fund shall not be used for unrestricted land banking, speculative site acquisition 920
without a credible housing execution plan, or permanent financing except as may be necessary 921
for a short transition period established by rule to facilitate repayment or conversion of a project 922
loan. 923
Sec. 606. Eligible borrowers and projects. 924

40

(a) A borrower under this act shall be a single-asset, sole-purpose entity approved by the 925
administering agency. 926
(b) For-profit, limited-dividend, nonprofit, joint-venture, and mission-driven borrowers 927
shall be eligible, provided that the sponsor and principal participants are not in default under any 928
mortgage financing or other material financing obligations, and satisfy underwriting, credit, and 929
disclosure requirements established by the administering agency. 930
(c) To be eligible for a project loan, a project shall: 931
(1) Be locating in the District of Columbia; 932
(2) Be a mixed-income multifamily rental housing development or housing 933
accommodation, or a project that will be converted or adapted to multifamily rental housing; 934
(3) Consist of 50 or more dwelling units, unless the administering agency 935
establishes by rule a lower threshold for acquisition or preservation projects that materially 936
advance the purposes of this act; 937
(4) Demonstrate through a project-specific "but for" analysis that, absent the 938
project loan, the project would not proceed in substantially the same timeframe or on 939
substantially the same terms; 940
(5) Include a senior lender, expected senior lender, or another credible primary 941
financing source, together with a realistic plan to assemble the balance of the capital stack; 942
(6) Comply with baseline local inclusionary, affordability, or tax-abatement 943
requirements applicable to the project; and 944
(7) Meet any additional eligibility criteria established by rule. 945
Sec. 607. Underwriting and loan terms. 946

41

(a) Project loans made under this act shall be in a subordinate or mezzanine position to 947
the senior construction loan or senior acquisition financing, as applicable. 948
(b) The administering agency shall establish underwriting standards by rule, including 949
standards governing maximum loan amounts, minimum borrower equity, maximum combined 950
loan-to-cost, debt service assumptions, collateral guarantees, recourse, reserves, appraisals, third-951
party reports, and closing conditions. 952
(c) Unless modified by rule for a particular class of projects, a project loan shall satisfy 953
the following requirements: 954
(1) The combined value of senior debt and the project loan shall not exceed 80% 955
of the total development or acquisition cost, as applicable; 956
(2) The borrower shall contribute not less than 20% equity during the construction 957
or acquisition period, except that the administering agency may establish alternative equity 958
requirements for preservation transactions supported by mission-driven sponsors; 959
(3) A project loan in the construction acceleration lane shall be limited to the 960
construction period and shall not exceed 36 months, except that the Administering agency may 961
grant extensions for good cause shown; 962
(4) A project loan in the acquisition acceleration lane shall have a term not to 963
exceed 24 months, except that the administering agency may grant a limited extension for good 964
cause shown where the borrower demonstrates substantial progress toward a takeout event; 965
(5) Interest may accrue or be paid currently at a rate established by the 966
administering agency, which shall be below market and may vary based on project 967
characteristics, borrower strength, co-lender participation, and market conditions; 968

42

(6) The project loan shall be repaid at construction closing, conversion to 969
permanent financing, sale, refinancing, recapitalization, assignment, or another approved capital 970
event determined by the administering agency; and 971
(7) The borrower shall provide completion guarantees, environmental 972
indemnities, and other credit support as the administering agency requires. 973
Sec. 608. Conditions before closing. 974
(a) Prior to the closing of a project loan, the administering agency shall require 975
documentation sufficient to demonstrate that the project is prepared to proceed on the timetable 976
proposed by the borrower. 977
(b) Required materials may include commitment letters or financing term sheets from 978
senior lenders and equity providers, a final project budget, evidence of site control, permits or 979
entitlement documentation as applicable, an appraisal, market study, insurance, title materials, 980
environmental review materials, and other third-party reports established by rule. 981
(c) For an acquisition-ready project, the administering agency shall require a housing 982
execution plan, a proposed timeline to preservation, rehabilitation, or construction, and 983
documentation of the anticipated takeout financing or other repayment source. 984
Sec. 609. Fund Priorities. 985
(a) In awarding project loans, the administering agency shall give priority to projects that: 986
(1) Are likely to commence construction or close on acquisition quickly after 987
award; 988
(2) Leverage significant private capital relative to the amount of public capital 989
committed; 990
(3) Provide income-restricted units beyond 30%; 991

43

(4) Preserve existing mixed-income multifamily rental housing that is at risk of 992
conversion, substantial disinvestment, or financial distress; 993
(5) Are located near major transit, employment centers, or high-opportunity areas; 994
(6) Convert underutilized commercial, institutional, or vacant property to housing; 995
(7) Add family-sized units or otherwise advance District housing production 996
goals; or 997
(8) Demonstrate that the project loan will materially accelerate the start or 998
preservation of housing in the District. 999
(b) The administering agency may establish additional priorities by rule or by notice of 1000
funding availability, provided that such priorities are consistent with this act. 1001
Sec. 610. Revolving nature of the fund. 1002
(a) All principal, interest, fees, and other returns from project loans shall be deposited 1003
into the Fund. 1004
(b) The administering agency shall administer the Fund in a manner designed to preserve 1005
and recycle capital so that the same public dollars may support multiple projects over time. 1006
(c) The Mayor may seek additional capitalization for the Fund from local funds, bond 1007
proceeds, philanthropy, employer contributions, mission-related investments, federal sources 1008
lawfully available for the purposes of this act, and other public or private sources, subject to 1009
applicable law and budget authority. 1010
Sec. 611. Reporting. 1011
(a) No later than 120 days after the end of each fiscal year, the Mayor shall submit to the 1012
Council and publish on a publicly accessible website a report on the administration of the Fund. 1013
(b) The report shall include: 1014

44

(1) The number of applications received, approved, denied, withdrawn, and 1015
pending; 1016
(2) The amount and type of each project loan awarded; 1017
(3) The number of units in projects assisted, including market-rate units and 1018
income-restricted units; 1019
(4) The ward location and status of each project assisted; 1020
(5) The amount of private capital leveraged by each award, to the extent 1021
practicable; 1022
(6) The amount of Fund capital repaid and revolved during the fiscal year; 1023
(7) The amount of Fund capital outstanding at the end of the fiscal year; and 1024
(8) Any recommendations for statutory or regulatory changes to improve the 1025
operation of the Fund. 1026
(c) The administering agency shall maintain project-level records sufficient to evaluate 1027
compliance with this act and applicable loan documents. 1028
TITLE VII. BUILDING PERMITTING ADVISORY COUNCIL. 1029
Sec. 701. Short title. 1030
This title may be cited as the “Building Permitting Advisory Council Amendment Act of 2026”. 1031
Sec. 702. Amendments. 1032
The Department of Buildings Establishment Act of 2020, effective April 5, 2021 (D.C. 1033
Law 23-269; D.C. Official Code § 10-561.01 et seq.), is amended as follows: 1034
(a) Title II is amended by adding a new section to read as follows: 1035
“Sec. 203. Building Permitting Advisory Council. 1036

45

“(a) The Mayor shall establish a Building Permitting Advisory Council (“BPAC”) to 1037
make policy recommendations designed to continually improve the efficiency, transparency, 1038
predictability, and accountability of the District’s building permitting process. 1039
“(b) The purpose of the BPAC shall be to: 1040
“(1) Advise the Mayor, the Council, and the Director on policies and practices to 1041
improve the efficiency, transparency, predictability, and accountability of the building permitting 1042
process; 1043
“(2) Review the performance of the Department’s permitting-related functions, 1044
including permit intake, plan review, interagency referral and coordination, permit issuance, 1045
inspection-related permitting delays, and related customer service processes; 1046
“(3) Identify administrative, regulatory, technological, staffing, and legal barriers 1047
that contribute to unnecessary delay, duplication, inconsistency, or unpredictability in the 1048
permitting process; 1049
“(4) Develop recommendations to streamline permitting and related development 1050
review processes across the Department and, where applicable, across agencies with review or 1051
approval responsibilities affecting permit issuance; and 1052
“(5) Solicit feedback from affected stakeholders and the public regarding the 1053
operation of the permitting process. 1054
“(c) The BPAC shall: 1055
“(1) Review data and information made available by the Department concerning 1056
permitting timelines, application volume, review times, permit issuance outcomes, resubmission 1057
rates, common sources of delay, and other permitting performance indicators identified by the 1058
Department or the Board; 1059

46

“(2) Evaluate the effectiveness of electronic plan submission, electronic plan 1060
review, permit tracking, and related records systems used in connection with permitting; 1061
“(3) Review recurring issues involving interagency coordination that materially 1062
affect the timeliness or predictability of permit review or issuance; 1063
“(4) Make recommendations regarding process improvements, staffing needs, 1064
service standards, guidance documents, rulemaking, legislation, and agency coordination; and 1065
“(5) Submit an annual report and recommendations in accordance with subsection 1066
(h) of this section. 1067
“(d)(1) The BPAC shall consist of 13 members. 1068
“(2) The Mayor shall appoint the following members, or their designees: 1069
“(A) The Director of the Department of Buildings; 1070
“(B) The Chief Building Official; 1071
“(C) One representative from the Office of Planning; 1072
“(D) One representative from the Department of Energy and Environment; 1073
and 1074
“(E) One representative from the Office of the City Administrator. 1075
“(3) The Mayor shall appoint 7 public members with relevant experience, 1076
including: 1077
“(A) One architect licensed in the District; 1078
“(B) One professional engineer licensed in the District; 1079
“(C) One representative of the residential development or homebuilding 1080
industry; 1081

47

“(D) One representative of an affordable housing developer or affordable 1082
housing nonprofit provider; and 1083
“(E) One representative of a community-based organization, tenant 1084
advocacy organization, or neighborhood association with experience navigating the permitting 1085
process. 1086
“(F) Two representatives of local building trade unions. 1087
“(4) The Mayor shall appoint 1 public member with relevant expertise in 1088
construction, housing, planning, land use, design, permitting, or community development. 1089
“(5) Public members may be reappointed. 1090
“(6) A vacancy in the membership of the BPAC shall be filled in the same manner 1091
as the original appointment. 1092
“(f)(1) The BPAC shall meet at least quarterly. 1093
“(2) The Director, or the Director’s designee, shall convene the initial meeting of 1094
the BPAC not later than 90 days after the applicability date of the act that established the BPAC. 1095
“(3) A majority of the members serving shall constitute a quorum. 1096
“(4) The Chairperson of the BPAC shall be the Director of the Department of 1097
Buildings. 1098
“(g) (1) On or before January 1, 2028, and annually thereafter, the BPAC shall submit to 1099
the Mayor, Council, and Department a report that: 1100
“(A) Assesses the performance of the District’s building permitting 1101
process during the prior fiscal year; 1102
“(B) Identifies major causes of delay, inconsistency, or inefficiency in the 1103
permitting process; 1104

48

“(C) Summarizes stakeholder feedback received by the BPAC; 1105
“(D) Recommends administrative, interagency, regulatory, or legislative 1106
actions to improve permitting performance and transparent communication with permit 1107
applicants; and 1108
“(E) Identifies any data collection or transparency improvements needed 1109
to better evaluate the permitting process. 1110
“(2) The report required by this subsection shall be made publicly available by the 1111
Department online. 1112
“(h) Nothing in this section shall be construed to authorize the BPAC to intervene in, 1113
adjudicate, or direct the outcome of any individual permit application, contested case, 1114
enforcement matter, zoning determination, or licensing action. 1115
TITLE VIII. STANDARD PROVISIONS. 1116
Sec. 801. Rulemaking. 1117
The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure Act, 1118
approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), may issue rules 1119
to implement the provisions of this act 1120
Sec. 802. Fiscal Impact Statement. 1121
The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 1122
statement required by section 4a of the General Legislative Procedures Act of 1975, approved 1123
October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a) 1124
Sec. 804. Effective Date. 1125
This act shall take effect after approval by the Mayor (or in the event of veto by the 1126
Mayor, action by the Council to override the veto) and a 30-day period of congressional review 1127

49

746 as provided in section 602(c)(2) of the District of Columbia Home Rule Act, approved 1128
December 747 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(2)) 1129