A provision in Mayor Bowser's proposed fiscal year 2021 budget that was released yesterday would trade property tax abatements, lobbied for by developer-led organization DC2021, with DC's larger affordable housing production goals.
The abatement would be applicable to developments of at least 350 units, where at least one-third of the units are affordable to households earning up to 80% of area median income. Only developments that meet that criteria and are located in areas where affordable housing is sparse would be eligible, and the mayor would select which projects are awarded the abatement.
The eligible planning areas identified as "high-need" per last year's Housing Equity Report are Rock Creek West, Rock Creek East, Capitol Hill, and Upper Northeast. If selected, the developer would be required to enact a land covenant and meet hiring and Certified Business Enterprise thresholds in order to be eligible.
The proposed abatement would kick in starting in fiscal year 2024, when it will cost $200,000 in revenue. It is expected to cost $4 million annually for every fiscal year afterward. Approved eligible developments would secure the tax abatement for up to 40 years.
See other articles related to: property taxes, housing production targets, housing production, dc tax abatement, dc property taxes, dc budget, budget, affordable housing distribution, affordable housing dc
This article originally published at http://dc.urbanturf.com/articles/blog/dc-mayors-proposed-budget-includes-tax-break-for-affordable-housing/16856
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