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ABILL.
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To amend Chapter 13Aof Title 47 of the D.C. OfficialCode to modernize the tax saleprocess
andenhanceequityprotectionsforDistrictpropertyowners;andtoamendChapter11of
Title42topermitthecollectionofdelinquentrecordationtaxthroughtaxsale,
BEIT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
actmaybecitedasthe“TaxSaleEquityAmendmentActof2026”.
Sec.2.Section308aoftheDistrictofColumbiaDeedRecordationTaxAct,effective
April4,2003(D.C.Law14-282;D.C.OfficialCode§42-1108.01)isamendedbystrikingthe
phrase“chapters41,”andinsertingthephrase“chapters13A,41,”initsplace.
Sec. 3. Title47, Chapter 13Aof the Districtof Columbia OfficialCode isamended as
follows:
(a)ThetableofcontentsisamendedbystrikingthesectiondesignationҤ47-1376.
Validityoftaxesandsalepresumedunlessattackedinanswer.”andinsertingthesection
designationҤ 47-1376. Validityof taxes and salepresumed unlessattackedinanswer;claim for
initsplace.
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(b) D.C. Official Code § 47-1330 is amended as follows: 35
(1) Paragraph (8) is amended by striking the phrase “business improvement 36
district.” and inserting the phrase “business improvement district and the Recorder of Deeds.” in 37
its place. 38
(2) A new paragraph (9) is added to read as follows: 39
“(9)(A) The term “cost-of-living adjustment” for the reasonable attorneys’ fees 40
allowed under § 47-1377(a)(1)(B)(i) means an amount equal to the maximum reimbursable 41
dollar amount of the reasonable attorneys’ fees, as modified by any prior cost-of-living 42
adjustments, multiplied by the difference between the Consumer Price Index for the preceding 43
real property tax year and the Consumer Price Index for the real property tax year beginning 44
October 1, 2024, divided by the Consumer Price Index for the real property tax year beginning 45
October 1, 2024. 46
“(B) For the purposes of this paragraph, the Consumer Price Index for any 47
real property tax year is the average of the Consumer Price Index for the Washington-Baltimore 48
Metropolitan Statistical Area for all urban consumers published by the Department of Labor, or 49
any successor index, as of the close of the 12-month period ending on September 30 of such real 50
property tax year.”. 51
(c) D.C. Official Code § 47-1336(e)(2) is amended by adding a new subparagraph (C-i) 52
to read as follows: 53
“(C-i) An owner or interested party may redeem the real property by 54
making the payments listed in § 47-1361(a), or may claim the equity in the real property under § 55
47-1376(b)(3) within 90 days of being served;”. 56
(d) D.C. Official Code § 47-1353(b)(1)(H) is amended by striking the phrase “periods 57
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and amounts” and inserting the word “amount” in its place. 58
(e) D.C. Official Code § 47-1353.01(b) is amended as follows: 59
(1) Strike the phrase “an additional $381.50” and insert the phrase “an additional 60
$531.50” in its place. 61
(2) Strike the phrase “to obtain title to the property.” and insert the phrase “to 62
obtain title to the property or cause a judicial sale thereof. If you wish for the real property to be 63
sold at a judicial sale and any remaining equity returned to you, you may be required to make a 64
claim for the equity in the lawsuit within 90 days (or 30 days in the case of real property sold 65
under § 47-1353(b)) of being served.”. 66
(f) D.C. Official Code § 47-1361(a) is amended as follows: 67
(1) The lead-in language is amended by striking the phrase “paragraph (6A) of” 68
and insert the phrase “paragraphs (6A) and (9) of” in its place. 69
(2) Paragraph (6A) is amended to read as follows: 70
“(6A) Where an action to foreclose the right of redemption has been properly 71
filed, the person redeeming shall pay directly to the applicable purchaser: 72
“(A) All expenses to which the purchaser is entitled to reimbursement 73
under § 47-1377(a)(1)(B); and 74
“(B) Unless there is fraud in the conduct of the action to foreclose, if 75
judgment of foreclosure of the right of redemption of the sale is reopened after the purchaser 76
received the deed, all expenses reasonably incurred by the purchaser and the purchaser’s 77
successors in interest to improve or maintain the real property, including payments commonly 78
associated with real property ownership.”. 79
(3) Paragraph (8) is amended to read as follows: 80
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“(8) The reasonable expenses due to the District under § 47-1363.”. 81
(4) A new paragraph (9) is added to read as follows: 82
“(9) If judgment of foreclosure of the right of redemption of the sale is reopened 83
or set aside, the reasonable compensation and reasonable expenses due to the trustee or to any 84
other person (including an auctioneer) who provided services relating to the sale of the real 85
property under § 47-1382.01 to the date the judgment is reopened or set aside.”. 86
(g) D.C. Official Code § 47-1370 is amended as follows: 87
(1) Subsection (b) is amended as follows: 88
(A) Paragraph (2) is amended by striking the phrase “purchaser; or” and 89
inserting the phrase “purchaser, subject to the requirements for issuance of a deed in § 47-1382;” 90
in its place. 91
(B) A new paragraph (2-A) is added to read as follows: 92
“(2-A) Appoint a trustee to sell the property and distribute the proceeds pursuant 93
to § 47-1382.01; or”. 94
(2) Subsection (c)(1) is amended as follows: 95
(A) Subparagraph (E) is amended by striking the phrase “property; and” 96
and inserting the phrase “property;” in its place. 97
(B) Subparagraph (F) is amended by striking the semicolon at the end and 98
inserting the phrase “; and” in its place. 99
(C) A new subparagraph (G) is added to read as follows: 100
“(G) The right of an owner or interested party to redeem the real property 101
by making the payments listed in § 47-1361(a), or to claim the equity in the real property under § 102
47-1376(b)(3) by answer within 90 days (or 30 days in the case of real property sold under § 47-103
5
1353(b)) of being served.”. 104
(h) D.C. Official Code § 47-1371 is amended as follows: 105
(1) Subsection (b)(1)(B) is amended to read as follows: 106
“(B) The legal title holder, if different from the record title holder, 107
including reasonably ascertainable heirs of a record or legal title holder known to be deceased for 108
whom no estate was opened or personal representative appointed;”. 109
(2) A new subsection (c) is added to read as follows: 110
“(c) Where a record or legal title holder is known to be deceased and no estate was 111
opened, the purchaser may petition to open a probate proceeding under Title 20 of the D.C. 112
Official Code.”. 113
(i) D.C. Official Code § 47-1374(e)(1) is amended as follows: 114
(1) The lead-in language is amended by striking the word “later” and inserting the 115
word “latest” in its place. 116
(2) Subparagraph (A) is amended to read as follows: 117
“(A) For any unimproved real property that abuts improved real property 118
with common ownership, or improved real property that is Class 1A or 1B Property or Class 2 119
Property on the date of the tax sale, one year following the initial scheduling conference in the 120
foreclosure action;”. 121
(3) New subparagraphs (A-i) and (A-ii) are added to read as follows: 122
“(A-i) For any unimproved real property that does not abut improved real 123
property with common ownership, six months following the initial scheduling conference in the 124
foreclosure action; 125
“(A-ii) For any improved real property that is Class 3 or 4 Property on the 126
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date of the tax sale, three months following the initial scheduling conference in the foreclosure 127
action; or”. 128
(j) D.C. Official Code § 47-1376 is amended as follows: 129
(1) The section title is amended by striking the phrase “answer.” and inserting the 130
phrase “answer; claim for equity.” in its place. 131
(2) Designate the existing language as subsection (a). 132
(3) New subsections (b)-(e) are added to read as follows: 133
“(b) Within 90 days (or 30 days in the case of real property sold under § 47-1353(b)) of 134
being served in the foreclosure action, an owner or interested party may, by answer: 135
“(1) Plead the affirmative defenses listed in subsection (a) of this section or any 136
other affirmative defenses recognized under law; 137
“(2) Respond to the allegations in the complaint consistent with the rules of the 138
Superior Court; and 139
“(3) Claim that the owner or interested party’s equity in the real property exceeds 140
the amounts required to redeem under § 47-1361(a). 141
“(b-1) For any person included as a defendant in the foreclosure action pursuant to § 47-142
1371(b)(4) or § 47-1373(a), the time for filing an answer under subsection (b) of this section 143
shall begin to run from the later of the purchaser’s completing the: 144
“(1) Posting required under § 47-1372(f); or 145
“(2) Publication required under § 47-1375. 146
“(c) The Superior Court may grant an additional period not to exceed 30 days for an 147
owner or interested party to file the answer permitted by subsection (b) of this section upon a 148
showing of good cause for the failure to file within the original answer period. The additional 149
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period is not required to run consecutive to the original answer period. 150
“(d) For any real property that is presumptively subject to sale by a trustee under § 47-151
1382.01, the purchaser may, by motion, rebut the presumption by establishing through a 152
preponderance of the evidence that a trustee sale under § 47-1382.01 would not result in a 153
distribution under § 47-1382.01(d)(4). If the purchaser succeeds in rebutting the presumption, § 154
47-1382 shall apply to the judgment foreclosing the right of redemption. The purchaser may rely 155
on the most recent assessed value for the property under Chapter 8 of Title 47 in rebutting a 156
claim for equity. 157
“(e) Subject to subsection (c) of this section, failure to timely assert the affirmative 158
defenses in subsection (b)(1) of this section or make the claim for equity in subsection (b)(3) of 159
this section shall be deemed a waiver of those defenses or claims.”. 160
(k) D.C. Official Code § 47-1377(a)(1) is amended as follows: 161
(1) Subparagraph (A) is amended as follows: 162
(A) Sub-subparagraph (i) is amended by striking the phrase “$50” and 163
inserting the phrase “$75” in its place. 164
(B) Sub-subparagraph (iii) is amended by striking the phrase “$300” and 165
inserting the phrase “$425” in its place. 166
(2) Subparagraph (B) is amended as follows: 167
(A) Sub-subparagraph (i) is amended as follows: 168
(i) Sub-sub-subparagraphs (I) and (II) are amended to read as 169
follows: 170
“(I) In a case in which the property is redeemed before the 171
3rd status hearing, reasonable attorneys’ fees not to exceed $2,100; 172
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“(II) In a case requiring 3 or more status hearings, 173
reasonable attorneys’ fees not to exceed $2,100 plus $100 for the 3rd status hearing and each 174
additional status hearing thereafter;”. 175
(ii) Sub-sub-subparagraph (III) is amended by striking the phrase 176
“$300” and inserting the phrase “$425” in its place. 177
(iii) New sub-sub-subparagraphs (IV) through (VI) are added to 178
read as follows: 179
“(IV) For each motion filed by an owner or interested party 180
where the purchaser files an opposition and substantially prevails, additional attorneys’ fees in 181
the amount of $425; 182
“(V) For any foreclosure action where the purchaser files a 183
motion under § 47-1376(d) that substantially prevails, additional attorneys’ fees in the amount of 184
$425; and 185
“(VI) The caps on reasonable attorneys’ fees established by 186
this paragraph shall be increased annually, beginning on January 1, 2027, to the cost-of-living 187
adjustment (if the adjustment does not result in a multiple of $25, rounded down to the next 188
multiple of $25). The attorneys’ fees a purchaser may collect from a redeeming party under this 189
subparagraph shall (except for the additional fees as permitted by subsection (a)(1)(B)(ii)) be the 190
cost-of-living adjustment permitted to be collected as of the date of the tax sale.”. 191
(B) Sub-subparagraph (ii) is amended as follows: 192
(i) Strike the phrase “an action” and insert the phrase “a 193
foreclosure action” in its place. 194
(ii) Strike the phrase “§ 47-1382.01(a), other” and insert the phrase 195
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Ҥ 47-1382.01(a) or in other court proceedings directly related to the purchaser holding the 196
certificate of sale or prosecuting the foreclosure action, other” in its place. 197
(iii) Strike the phrase “or where a purchaser” and insert the phrase 198
“or if a purchaser” in its place. 199
(iv) Strike the phrase “subsection (c)” and insert the phrase 200
“subsection (d)” in its place. 201
(C) Sub-subparagraph (iii) is amended as follows: 202
(i) The lead-in language is amended by striking the phrase 203
“actually incurred” and inserting the phrase “actually and reasonably incurred” in its place. 204
(ii) Sub-sub-subparagraph (III) is amended by striking the phrase 205
“$75” and inserting the phrase “$100” in its place. 206
(iii) Sub-sub-subparagraph (VII) is amended by striking the phrase 207
“; and” and inserting a semicolon in its place. 208
(iv) Sub-sub-subparagraph (VIII) is amended by striking the period 209
at the end and inserting a semicolon in its place. 210
(v) New sub-sub-subparagraphs (IX) through (XIII) are added to 211
read as follows: 212
“(IX) Filing fee charged by the Recorder of Deeds for 213
recording a lis pendens; 214
“(X) Fee charged to obtain a death certificate for a person 215
named as a defendant under § 47-1371 (or who would be named if not deceased) and the 216
person’s heirs who are deceased; 217
“(XI) Fee for an heir search for a deceased person named as 218
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a defendant under § 47-1371 (or who would be named if not deceased) and the person’s heirs 219
who are deceased; 220
“(XII) Fees to comply with the Servicemembers Civil 221
Relief Act; and 222
“(XIII) Fee for an appraisal or other property valuation 223
obtained to establish a reasonable estimate of the market value of the real property in support of 224
a motion under § 47-1376(d) that substantially prevails.”. 225
(l) D.C. Official Code § 47-1379 is amended to read as follows: 226
“§ 47–1379. Reopening judgments. 227
“The Superior Court shall not reopen a judgment rendered in an action for foreclosure of 228
the right of redemption, except on the grounds of lack of jurisdiction or fraud in the conduct of 229
the action to foreclose. A motion under this section must be made within a reasonable time—and 230
for the ground of constructive fraud in the conduct of the action to foreclose, within 6 months 231
from the date of the judgment.”. 232
(m) D.C. Official Code § 37-1380 is amended as follows: 233
(1) Subsection (a) is amended to read as follows: 234
“(a) If the Superior Court shall set aside a sale, the amount required to redeem is the 235
amount required by this chapter, as may be adjusted by the court.”. 236
(2) Subsection (c) is amended as follows: 237
(A) Paragraph (2) is amended by striking the semicolon and inserting the 238
phrase “; and” in its place. 239
(B) Paragraph (3) is amended by striking the phrase “; and” and inserting a 240
period in its place. 241
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(C) Paragraph (4) is repealed. 242
(3) A new subsection (e) is added to read as follows: 243
“(e)(1) Except for fraud on the part of the purchaser, and subject to the limitations in 244
paragraph (2) of this subsection, a motion to set aside a sale shall be filed no later than one year 245
after the entry of a judgment of foreclosure of the right of redemption. 246
“(2) Except for fraud on the part of the purchaser, a sale shall not be set aside 247
where: 248
“(A) The purchaser has made the payment for the deed under § 47-1382; 249
or 250
“(B) The trustee has a signed contract for the sale of the real property 251
under § 47-1382.01. 252
“(3) The purchaser shall immediately file notice in the foreclosure action upon 253
making the payment for the deed under § 47-1382. 254
“(4) The trustee shall immediately file notice in the foreclosure action once there 255
is a signed contract for the sale of the real property under § 47-1382.01. The trustee shall 256
immediately file a second notice in the foreclosure action if the parties to the sale fail to 257
complete it.”. 258
(n) D.C. Official Code § 47-1382 is amended as follows: 259
(1) Subsection (c) is amended by adding a new sentence at the end to read as 260
follows: “The payment required by this subsection may be made no earlier than 30 days after the 261
judgment of foreclosure of the right of redemption is entered by the Superior Court.”. 262
(2) Subsection (d) is amended to read as follows: 263
“(d) The deed shall be prepared and recorded by the Mayor.”. 264
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(3) Subsection (e) is amended by striking the phrase “a certified copy” and 265
inserting the phrase “a copy” in its place. 266
(4) Subsection (f) is amended as follows: 267
(A) Paragraph (1) is amended by striking the phrase “30 days” and 268
inserting the phrase “60 days” in its place. 269
(B) Paragraph (2) is repealed. 270
(C) A new paragraph (4) is added to read as follows: 271
“(4) The filing of a motion under § 47-1379 or § 47-1380 shall toll the 272
time for making the payment under this section until the motion is resolved.”. 273
(5) Subsection (g) is amended to read as follows: 274
“(g) Any surplus paid for a real property by a purchaser shall be applied against other 275
taxes, interest thereon, and expenses owing on the real property for which a deed is sought if the 276
application and timely balance payment shall result in the full payment required to obtain the 277
deed. Any remaining surplus after the full payment required to obtain the deed shall be 278
distributed to the person or entity entitled to the equity in the property as determined by the 279
court.”. 280
(o) D.C. Official Code § 47-1382.01 is amended as follows: 281
(1) Subsection (a) is amended to read as follows: 282
“(a) This section shall presumptively apply to any real property sold that is not identified 283
in subsections (a-1)(1)-(4) of this section. For any real property identified in subsections (a-1)(1)-284
(4) of this section, this section shall presumptively apply only where the owner or interested 285
party makes a claim under § 47-1376(b)(3). The purchaser shall bear the burden of establishing 286
that this section is not applicable to the real property.”. 287
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(2) New subsections (a-1) and (a-2) are added to read as follows: 288
“(a-1) Unless a claim is made by the owner or interested party under § 47-1376(b)(3), the 289
presumption in subsection (a) of this section shall not apply to real property that on the date of 290
the tax sale is: 291
“(1) Unimproved and its most recent assessed value under Chapter 8 of Title 47 is 292
less than $100,000; 293
“(2) Class 3 or 4 Property; 294
“(3) Sold under § 47-1353(b); or 295
“(4) Subject to taxes due that are 50% or more of its most recent assessed value 296
under Chapter 8 of Title 47 and is not Class 1A or 1B Property, with 5 or fewer units, that a 297
record owner (or a person with an interest in the real property as heir or beneficiary of the record 298
owner, if deceased) is occupying as his or her principal residence. 299
“(a-2) This section shall not apply to real property where the purchaser rebuts the 300
presumption under § 47-1376(d).”. 301
(3) Subsection (d) is amended as follows: 302
(A) Paragraph (3) is amended by striking the phrase “§ 47-1377” and 303
inserting the phrase “§ 47-1361(a)(6A)” in its place. 304
(B) Paragraph (4) is amended to read as follows: 305
“(4) The remainder to the person or persons (including, when appropriate, a 306
decedent’s estate) entitled to the balance, in proper proportion as determined by the trustee, or, 307
when necessary, a court.”. 308
(4) A new subsection (d-1) is added to read as follows: 309
“(d-1) If a person entitled to a distribution under subsection (d)(4) cannot be located, the 310
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funds shall be deposited into the court registry and be subject to Chapter 1A of Title 41.”. 311
(5) Subsection (e)(2) is amended by striking the phrase “distribution or” and 312
inserting the phrase “distribution of” in its place. 313
(p) D.C. Official Code § 47-1383 is amended by striking the phrase “chapter is” and 314
inserting the phrase “chapter or a trustee appointed under § 47-1382.01 is” in its place. 315
Sec. 4. Fiscal impact statement. 316
The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal 317
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 318
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 319
Sec. 5. Effective date. 320
This act shall take effect following approval by the Mayor (or in the event of veto by the 321
Mayor, action by the Council to override the veto) and a 30-day period of congressional review 322
as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 323
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)) 324