Tax Increment Financing Amendment Act of 1999
Bill 13-263

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A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

To amend the Tax Increment Financing Authorization Act of 1998 to expand the scope of priority development areas, to authorize a greater portion of available real property tax revenues to be available to support tax increment financing bonds, and to create a housing development fund from tax increment financing bond proceeds to promote housing construction.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Tax Increment Financing Amendment Act of 1999."

Sec. 2. The Tax Increment Financing Authorization Act of 1998, effective September 11, 1998 (D.C. Law 12-143; D.C. Code §1-2293.1 et seq.), as amended, is amended as follows:

(a) Section 2(3) is amended by striking the phrase ", exclusive of the special tax provided for in section 481 of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 807; D.C. Code §47-331) and pledged to the payment of general obligation indebtedness of the District".

(b) Section 2(24) is amended by striking the period at the end of such subsection and replacing such period with the following: "; and the Uptown Arts-Mixed Use Overlay District as defined in Chapter 19 of the Zoning Regulations of the District (11 D.C.M.R. 19); and the census tracts located in the District for which the poverty rate is not less than 10 percent as determined on the basis of the 1990 census."

(c) A new Section 6A is added after Section 6 to read as follows:

"Sec. 6A. Housing Development Fund.

"The Housing Development Fund is established as a special fund to be administered by the Department of Housing and Community Development of the District. If less than an amount equal to 10 percent of the net proceeds of sale of any issue of TIF bonds shall be incurred for development costs associated with new or substantially rehabilitated housing, then a portion of such proceeds equal to the excess of (i) 10% of the net proceeds over (ii) the amount incurred for development costs associated with new or substantially renovated housing, shall be deposited into the Housing Development Fund. Moneys in the Housing Development Fund shall be used for projects that provide new or substantially rehabilitated housing, provided that not less than 60 percent of the moneys in the Housing Development Fund shall be granted to projects that provide new or substantially rehabilitated housing within the downtown area. The provision of housing under this section shall include the construction of apartments for rent or in a condominium regime, which apartment units shall contain one or more habitable rooms to be used for sleeping and living purposes and contain full kitchen facilities. The requirements of this Section 6A shall apply to any project for which the initial application pursuant to Section 4(a) is submitted after May 1, 1999."

Sec. 3. Section 9(a) of the General Obligation Bond for Fiscal Year 1998 Act of 1997 (D.C. Law 12-41) is amended as follows:

(a) The fourth sentence of section 9(a) is amended by striking the period at the end of such sentence and replacing such period with the following: "; provided, however, that to the extent that the proceeds of the special tax are real property tax increment revenues (as defined in section 2(26) of the Tax Increment Financing Authorization Act of 1998, (D.C. Law 12-143, D.C. Code §1.2293.1 et seq.) (as amended, the "TIF Act")), such proceeds shall not be set aside in such special tax fund but shall instead be disbursed in accordance with the TIF Act."

(b) The first sentence of section 9(b) is amended by striking the period at the end of such sentence and replacing such period with the following: ", except for revenue from the special tax that constitutes real property tax increment revenues."

(c) Section 9(f) is amended by adding at the end of such subsection the following: "In calculating the real property special tax rates pursuant to this subsection (f), the Mayor shall take into account the projected amount of real property tax increment revenues for the applicable real property tax year, for projects that have been approved or for projects that reasonably may be expected to be approved for tax increment financing under the TIF Act."

(d) Section 9(g) is amended by adding after the first sentence of such subsection the following: "In establishing the real property special tax rates pursuant to this subsection (g), the Council shall take into account the projected amount of real property tax increment revenues for the applicable real property tax year, for projects that have been approved or for projects that reasonably may be expected to be approved for tax increment financing under the TIF Act."

Sec. 4. Fiscal impact statement. The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 602(c)(3) of the Distinct of Columbia Self-Government and Governmental Reorganization Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(3)).

Sec. 5. Applicability. This act shall apply to any project approved by the Council (as provided in Section 5 of the TIF Act) after [July 1, 1999].

Sec. 6. This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approval by the Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 1 16; D.C. Code §47-392.3(a)), a 30-day period of Congressional review as provided in section 602(c)( 1 ) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)( 1)), and publication in the District of Columbia Register.