D.C. Council Chairman Phil Mendelson introduced the Vacant to Vibrant Amendment Act of 2024 (B25-1003) on Oct. 15, 2024. The legislation proposes several measures to help the District of Columbia (District) combat and remedy systemic issues associated with vacant and blighted properties.
Over the last year, the chairman's office assembled a diverse group of stakeholders to examine the District's vacant and blighted property law and how it is being applied. In doing so, the working group found a number of deficiencies and gaps including, but not limited to: 1) some current definitions in the law are ill-defined, 2) some exemptions lack appropriate time frames and 3) there is a lack of specific incentives for the redevelopment or rehabilitation of vacant and blighted properties.
The working group also found that the current tax rates for vacant and vacant blighted properties are overly burdensome. Today, vacant properties (Class 3) are subject to a tax rate of $5 per $100 of assessed value, and vacant blighted properties (Class 4) are subject to a tax rate of $10 per $100 of assessed value.
To address the deficiencies and gaps identified by the working group, the proposed bill would, among other things:
- revise definitions in D.C. Code related to vacant and blighted properties
- reconfigure time frames allotted for exemptions available to owners from having to register a property as vacant or blighted vacant
- increase penalties for failure to register a vacant or blighted vacant property, particularly in instances where a property owner has demonstrated a recurring failure to register
- restructure Class 3 and Class 4 tax rates so that the tax rate increases each year over a period of four years, allowing some relief to struggling property owners
- create a vacant and blighted home revitalization tax credit program
- establish a tax abatement for the renovation or rehabilitation of vacant or blighted properties that are used for commercial purposes
According to the chairman's Statement of Introduction, although the Department of Buildings has increased staff resources and enhanced enforcement efforts, vacant and blighted properties continue to plague District neighborhoods. "Taken together, the proposals in this bill will ensure that the District will be better positioned to prevent vacancy and blight, address violations of the law, and get vacant and blighted properties back into productive use."
A public hearing on the proposed legislation has been scheduled before the D.C. Council Committee of the Whole on Nov. 15, 2024. The public is permitted to testify at the hearing or submit written statements to the record. Information on how to testify or submit a written statement is provided in the Notice of Public Hearing.
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