(a) In order to qualify as a lower income homeownership household in the District of Columbia, a lower income household must meet the following conditions:
(1) The income of the household shall not be in excess of 120% of the lower income guidelines established pursuant to 42 U.S.C. § 1437f, for the Washington Standard Metropolitan Statistical Area (SMSA), as the median is determined by the United States Department of Housing and Urban Development and adjusted yearly by historic trends of that median, and as further may be adjusted by an interim census of District of Columbia incomes by local or regional government agencies; and
(2) The household shall occupy the unit and shall either:
(A) Become an owner in fee simple; or
(B) Receive, pursuant to a shared equity financing agreement which complies with the requirements of 26 U.S.C. § 280A(d)(3), at least a 5% qualified ownership interest, the right to occupy the unit, and an option to purchase the remaining ownership interest at a specified later date.
(b) Notwithstanding the requirements of subsection (a) of this section, a household may qualify as a lower income household in the District of Columbia if it meets each of the following requirements:
(1) The household occupies a residential property including a single-family home, condominium, or cooperative, located in an economic development zone approved pursuant to § 6-1501;
(2) The property is the principal place of residence of its owner;
(3) The property is owned in fee simple, or the equivalent with respect to occupancy rights in a cooperative, by a first time home buyer; and
(4) The household income does not exceed 110% of the area median income guidelines established pursuant to § 42-2604.
(c) This chapter shall not apply if the fair market value of the unit or residential property exceeds 80% of the median sale price for homes within the District of Columbia in the prior year as of the date that the application for exemption is filed.
CREDIT(S)
(Oct. 8, 1983, D.C. Law 5-31, § 3, 30 DCR 3879; Oct. 20, 1988, D.C. Law 7-177, § 11, 35 DCR 6158; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 4, 2003, D.C. Law 14-282, § 11(uu), 50 DCR 896; Oct. 20, 2005, D.C. Law 16-33, § 1281(b), 52 DCR 7503.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-3502.
Effect of Amendments
D.C. Law 14-282 added subsec. (c).
D.C. Law 16-33, in subsec. (c), substituted “80% of the median sale price for homes within the District of Columbia in the prior year” for “$250,000”.
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 12(ccc) of Tax Clarity and Recorder of Deeds Temporary Act of 2002 (D.C. Law 14-191, October 5, 2002, law notification 49 DCR 9549).
For temporary (225 day) amendment of section, see § 12(ccc) of Tax Clarity and Related Amendments Temporary Act of 2003 (D.C. Law 14-228, March 23, 2003, law notification 50 DCR 2741).
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 12(bbb) of Tax Clarity and Recorder of Deeds Emergency Act of 2002 (D.C. Act 14-381, June 6, 2002, 49 DCR 5674).
For temporary (90 day) amendment of section, see § 12(ccc) of Tax Clarity and Related Amendments Emergency Act of 2002 (D.C. Act 14-456, July 23, 2002, 49 DCR 8107).
For temporary (90 day) amendment of section, see § 12(ccc) of Tax Clarity and Related Amendments Congressional Review Emergency Act of 2002 (D.C. Act 14-510, October 23, 2002, 49 DCR 10247).
For temporary (90 day) amendment of section, see §§ 1281(b), 1282, 1283 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For legislative history of D.C. Law 5-31, see Historical and Statutory Notes following § 47-3501.
Law 7-177, the “Economic Development Zone Incentives Amendment Act of 1988,” was introduced in Council and assigned Bill No. 7-208, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on June 28, 1988 and July 12, 1988, respectively. Signed by the Mayor on August 2, 1988, it was assigned Act No. 7-237 and transmitted to both Houses of Congress for its review.
For Law 14-282, see notes following § 47-902.
For Law 16-33, see notes following § 47-308.01.
Miscellaneous Notes
Mayor authorized to issue rules: Section 13 of D.C. Law 7-177 provided that the Mayor shall issue rules to implement the provisions of the act.
Applicability and expiration of subtitle HH of title I, §§ 1280 to 1284, of D.C. Law 16-33: Sections 1282 and 1283 of D.C. Law 16-33, as amended by D.C. Law 17-219, § 7068(f), (g), provide:
“Sec. 1282. Applicability; conditional effect.
“(a) Section 1281 shall apply for taxable years beginning after September 30, 2005.
“(b) Repealed.
“Sec. 1283. Repealed.”