Creating Affordable and Diverse Housing Bill of 2001
Bill 14-263

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A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

To provide for affordable housing in mufti-unit housing projects which involve public land or a public subsidy.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Creating Affordable and Diverse Housing Bill of 2001".

For the purposes of this act, the term:

(2) "Project" means the construction or renovation of residential housing consisting of 20 or more dwelling units. The term "project" shall include the real property improved or to be improved.

(3)(A) "Public Land" means improved or unimproved land:

(i) Owned by the District of Columbia or any of its instrumentalities;

(ii) Sold to its owner by the District of Columbia or any of its instrumentalities; or

(B) Subparagraph (A)(ii) shall apply to sales occurring after the effective date of this act. For the purposes of this subparagraph, the date of sale shall be the date of settlement.

(4) "Public subsidy" means any financial assistance, services, or statutory or administrative relief or benefit provided by the District of Columbia, including cash; loans, guarantees, or other financing assistance; tax abatements, exemptions, or waivers; fee abatements, exemptions, or waivers; alley or street closings; road improvements; or debt forgiveness. The term "public subsidy" shall not include any matter related to zoning.

(a) The owner of a project involving public land or a public subsidy shall offer, for sale or rent, 10% of units of the project shall be set aside for persons defined in subsection (b) of this section. The number of units required under this section shall be rounded to the nearest whole number. 

(b) One-half of the units allocated under subsection (a) of this section shall be affordable to families of 4 with a total income of no more than 60°% of AMI and one-halt of the units allocated under subsection (a) of this section shall be affordable to families of 4 with a total income of no more than 30% of AMI; provided, that if an odd number of units is required under this subsection, the last, odd-numbered unit shall be affordable to a family of 4 with a total income of no more than 60% of AMI.

(c) If the unit allocated under this section is a rental unit, the limitations under subsection (b) of this section shall:

(1) Survive a sale or other transfer of the project or a renovation of the project and shall apply to all rentals of the unit; and

(2) Apply to all subleases and assignments of the lease. For the purposes of this paragraph, any consideration received for a sublease or an assignment in addition to the payment of the amount required under the prime lease shall be included in the computation of the rent limitation.

(e) If the unit allocated under this section is sold and subsequently re-sold by the purchaser, the limitations under subsection (b) of this section, determined as of the date of the contract, shall apply to the sale of the unit.

(f)(1) The owner of a project involving public land or a public subsidy shall record in the land records of the Recorder of Deeds covenants which set forth the requirements and restrictions of this section. The requirements and restrictions of this section shall be superior to all other liens, restrictions, and claims.

(2) A deed conveying title to the ownership to the project or a unit allocated under subsection (a) of this section shall set forth the requirements and restrictions of this section.

(g) In lieu of the allocation under subsection (a) of this section, the owner of a project involving public land or a public subsidy may:

(1) Offer, for sale or rent, a number of dwelling units equal to 15% of the number of the units of the project at another location for the persons defined in subsection (b) of this section. The number of units required under this section shall be rounded to the nearest whole number. Subsections (c), (d), (e), and (f) of this section shall apply to these units; or

(2) Contribute 15% of the greater of the fair market value or the cost of the project to the Housing Production Trust Fund established by section 3 of the Housing Production Trust Fund Act of 1988, effective March 16, 1989 (D.C. Law 7-202; D.C. Code § 45-3101 et seq.).

Sec. 4. Penalties.

An owner of a project who violates the provisions of this act shall be liable to the District of Columbia for a penalty equal to:

(1) The excess of the sales price or rent received over the allowable sales price or rent, with interest at the rate of 18% per year on such excess from the date received;

(2) Twenty thousand dollars for each violation; and

(3) Reasonable attorneys' fees for the enforcement of this act.

The Mayor shall promulgate regulations to carry out the purposes of this act. The regulations shall include the amount of the sales price and rental limitations under section 3, which limitations shall be revised annually, and the method for determining total income under section 3. 

Sec. 6. Applicability. This act shall not apply to a project for which:

(1) Construction commenced prior to the effective date of this act and is diligently pursued to completion; or

(2)(A) The District government has accepted a request for proposals or offer, or has entered into a contract, for development of public land prior to the effective date of this act; and

(B) Is diligently pursued to completion.

Provided that the project was diligently pursued to completion.

Sec. 7. 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 District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(3)).

Sec. 8. Effective date.

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. 116; 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)(I)), and publication in the District of Columbia Register.