PR26-0685 • 2025

Reservoir District Tax Exemption Emergency Declaration Resolution of 2026

Housing Land Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Parker
Last action: 2026-05-15
Official status: Approved
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on how the discrepancy between HUD income limits and local IZ rates will be resolved in the long term, which was mentioned as an unknown in the candidate explanation.

Emergency Resolution for Reservoir District Tax Exemptions

This emergency resolution allows the Reservoir District to continue its tax exemption framework based on federal income limits, ensuring financial viability and avoiding delays in development.

What This Bill Does

Declares an emergency situation affecting the Reservoir District's tax exemptions for Parcels 2 and 4.
Allows the project to use federal income limits set by HUD instead of local inclusionary zoning rates to maintain economic feasibility.
Prevents delays or disruptions in the development timeline of the Reservoir District.

Who It Names or Affects

The Reservoir District, which includes Parcels 2 and 4.
Developers and investors involved in the Reservoir District project.

Terms To Know

Tax Abatement Financial Analysis (TAFA): A financial analysis that projects revenue based on income limits set by HUD for tax subsidies.
Inclusionary Zoning (IZ): Local regulations requiring a certain percentage of new housing units to be affordable, often with specific rent or price caps.

Limits and Unknowns

The resolution only addresses the immediate financial and development needs of the Reservoir District.
It does not provide details on how the discrepancy between HUD income limits and local IZ rates will be resolved in the long term.

Bill History

2026-05-15 Council of the District of Columbia LIMS
Resolution R26-0401, Effective from May 05, 2026 Published in DC Register Vol 73 and Page 007317
2026-05-05 Council of the District of Columbia LIMS
Retained by the Council
2026-05-05 Council of the District of Columbia LIMS
Legislative Meeting
2026-05-05 Council of the District of Columbia LIMS
Approved with Resolution Number R26-0401
2026-05-04 Council of the District of Columbia LIMS
PR26-0685 Introduced by Councilmember Parker at Office of the Secretary

Official Summary Text

Reservoir District Tax Exemption Emergency Declaration Resolution of 2026

Current Bill Text

Read the full stored bill text

ENROLLED ORIGINAL

A RESOLUTION

26-401

IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

May 5, 2026

To declare the existence of an emergency with respect to the need to amend section 47-4683 of
the District of Columbia Official Code to ensure the continued financial viability of the
Reservoir District by aligning the project’s tax exemption framework with its financing
assumptions.

RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
resolution may be cited as the “Reservoir District Tax Exemption Emergency Declaration
Resolution of 2026”.

Sec. 2. (a) The Reservoir District is a mixed-use urban community that exemplifies the
District’s public-private partnership model, transforming underutilized land into a vibrant
residential and commercial neighborhood.
(b) Section 47-4683 of the District of Columbia Official Code provides a tax exemption
for Reservoir District Parcels 2 and 4, a critical component of the project’s financing.
(c) The project’s Tax Abatement Financial Analysis (“TAFA”) was structured using the
80 Percent Income Limit Category of the Multifamily Tax Subsidy Project Income Limits
established annually by the United States Department of Housing and Urban Development
(“HUD”) as the basis for projected residential revenue.
(d) The Inclusionary Zoning (“IZ”) rates published by the District of Columbia
Department of Housing and Community Development in February 2026 do not match HUD’s
Multifamily Tax Subsidy Project Income Limits.
(e) Requiring the project to operate under the current IZ rates rather than HUD’s
Multifamily Tax Subsidy Project Income Limits would impact the project’s economic feasibility,
delaying or potentially preventing the delivery of the planned housing and associated community
benefits.
(f) The proposed emergency legislation provides a tailored correction that would allow
the project to operate using the 80 Percent Income Limit Category of the Multifamily Tax
Subsidy Project Income Limits established annually by HUD, as contemplated in its TAFA.
(g) Immediate Council action is necessary to avoid delays and prevent disruption to the
project’s development timeline. Without emergency legislation, the gap between the IZ rents and
the rents assumed in the TAFA will put the project’s financial viability at risk during a critical
stage of development.
ENROLLED ORIGINAL

Sec. 3. The Council of the District of Columbia determines that the circumstances
enumerated in section 2 constitute emergency circumstances making it necessary that the
Reservoir District Tax Exemption Emergency Amendment Act of 2026 be adopted after a single
reading.

Sec. 4. This resolution shall take effect immediately.