Reservoir District Tax Exemption Emergency Declaration Resolution of 2026

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1 _____________________________ 2 Councilmember Zachary Parker 3 4 5 6 A PROPOSED RESOLUTION 7 8 ______________ 9 10 11 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 12 13 __________________ 14 15 16 To declare the existence of an emergency with respect to the need to amend section §47–17 4683 of the District of Columbia Official Code to ensure the continued financial viability of the 18 Reservoir District by aligning the project’s tax exemption framework with its financing 19 assumptions. 20 21 RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 22 resolution may be cited as the “Reservoir District Tax Exemption Emergency Declaration 23 Resolution of 2026”. 24 Sec. 2. (a) The Reservoir District is a mixed-use urban community that exemplifies the 25 District’s public-private partnership model, transforming underutilized land into a vibrant 26 residential and commercial neighborhood. 27 (b) Section §47–4683 of the District of Columbia Official Code provides a tax exemption 28 for Reservoir District Parcels 2 and 4, a critical component of the project’s financing. 29 (c) The project’s Tax Abatement Financial Analysis (“TAFA”) was structured using the 30 80 Percent Income Limit Category of the Multifamily Tax Subsidy Project Income Limits 31 established annually by the United States Department of Housing and Urban Development 32 (“HUD”) as the basis for projected residential revenue. 33

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(d) The Inclusionary Zoning (“IZ”) rates published by the District of Columbia 34 Department of Housing and Community Development in February 2026 do not match HUD’s 35 Multifamily Tax Subsidy Project Income Limits. 36 (e) Requiring the project to operate under the current IZ rates rather than HUD’s 37 Multifamily Tax Subsidy Project Income Limits would impact the project’s economic feasibility, 38 delaying or potentially preventing the delivery of the planned housing and associated community 39 benefits. 40 (f) The proposed amendment provides a tailored correction that would allow the project 41 to operate using 80 Percent Income Limit Category of the Multifamily Tax Subsidy Project 42 Income Limits established annually by HUD, as contemplated in its TAFA. 43 (g) Immediate Council action is necessary to avoid delays and prevent disruption to the 44 project’s development timeline. Without emergency legislation, the gap between the IZ rents and 45 the rents assumed in the TAFA will put the project’s financial viability at risk during a critical 46 stage of development. 47 Sec. 3. The Council of the District of Columbia determines that the circumstances in 48 section 2 constitute emergency circumstances, making it necessary that the Fidelity in 49 Compliance of Contracting and Procurement Emergency Amendment Act of 2021 be adopted 50 after a single reading. 51 Sec. 4. This resolution shall take effect immediately. 52