For the purposes of this subchapter, the term:
(1) "Assessor" means the Office of Taxation and Revenue, or such other person or office responsible for assessing the value of real property.
(2) "Authority" means the District of Columbia Financial Responsibility and Management Assistance Authority.
(3) "Available real property tax revenues" means the revenues resulting from the imposition of the tax provided for in Chapter 8 of Title 47 and payments in lieu of real property taxes, exclusive of the special tax provided for in § 1-204.81 and pledged to the payment of general obligation indebtedness of the District.
(4) "Available sales tax revenue" means the revenues resulting from the imposition of the tax imposed pursuant to Chapter 20 of Title 47, including any penalties and interest charges, exclusive of the portion thereof required to be deposited in the Washington Convention Center Fund established pursuant to § 10-1202.08.
(5) "Capital City Business and Industrial Area" means the area beginning at the intersection of New York Avenue, N.E., and 9th Street, N.E., to Montana Avenue, N.E.; north on Montana Avenue, N.E., to W Street N.E.; west on W Street, N.E., to 13th Street, N.E.; northwest on 13th Street, N.E., to Brentwood Road, N.E.; southwest on Brentwood Road, N.E., to 9th Street, N.E.; south on 9th Street, N.E., to New York Avenue, N.E.
(6) "Capital City Market Area" means the area beginning at the intersection of Florida Avenue, N.E., and North Capitol Street; southeast on Florida Avenue, N.E., to 12th Street, N.E.; south on 12th Street, N.E., to H Street, N.E.; west on H Street, N.E., to 9th Street, N.E.; north on 9th Street, N.E., to Florida Avenue, N.E.
(7) "Capital improvement" means the same under generally accepted accounting principles.
(8) "CFO" means the Chief Financial Officer of the District as established by § 1-204.24a(a).
(9) "Collector" means the District of Columbia Treasurer, or such other person or office as is from time to time responsible for the collection of real property taxes and sales taxes.
(10) "Comprehensive Plan" means the Comprehensive Plan of the District of Columbia adopted by the Council, as amended from time to time.
(10A) "Contaminated property" means a property abandoned or underutilized because of perceived or actual contamination by hazardous substances; or when the expansion or redevelopment is complicated by perceived or actual contamination by hazardous substances.
(11) "Current assessed value" means for any tax year, the assessed value of each lot of taxable real property within a TIF area as then recorded on the land records of the District as of January preceding the tax year.
(12) "DD Regulations" means the Downtown Development District Regulations, 11 DCMR § 1700 et seq. (1995).
(13) "Development costs" means any or all of the following costs either actual or estimated for a development project:
(A) Costs of studies, surveys, plans and specifications, including professional service costs for architectural, accounting, engineering, legal, marketing, financial and planning services;
(B) Property assembly costs, including acquisition or leasing of land and other property, real or personal, or rights or interests in property, demolition of buildings and other structures, remediation of environmental hazards, and the clearing and grading of land;
(C) Costs of preservation, rehabilitation, reconstruction, repair or remodeling of existing public or private buildings, structures and fixtures;
(D) Costs of any public works or improvements undertaken by, or at the direction of the District or any other governmental unit;
(E) Costs of parking and transportation facilities, stadia, museums, other cultural institutions, educational institutions, retail, entertainment and recreation facilities, telecommunications infrastructure, public plazas, malls, pedestrian walkways and parks that are owned by the District or any other governmental unit or are privately owned but available for use by the general public;
(F) Costs of construction of new public or privately owned housing units and community facilities and costs of preservation, rehabilitation, reconstruction, repair or remodeling of public and private buildings for use as housing units and community facilities;
(G) Costs of maintaining and operating public works and improvements;
(H) Financing costs, including but not limited to all expenses related to the issuance of TIF bonds, interest on TIF bonds, TIF bond reserves, credit enhancements, and costs related to the performance by the District government of its covenants and agreements with the holders of its TIF bonds;
(I) Working capital and working capital reserves directly related to the development of a project;
(J) Administrative costs of the District in issuing TIF bonds pursuant to this subchapter; and
(K) Relocation, job training, and education costs.
(14) "Development sponsor" means any organization or person that seeks to undertake, or undertakes, a project.
(15) "District" means the District of Columbia.
(16) "Downtown area" means the area of the District addressed by the Downtown Interactive Task Force, being the area with the boundary commencing at the intersection of Pennsylvania Avenue, N.W. and 12th Street, N.W.; north on 12th Street, N.W., to N Street, N.W.; east on N Street, N.W., to New Jersey Avenue, N.W.; southeast on New Jersey Avenue, N.W., to 2nd Street, N.W.; south on 2nd Street, N.W., to Pennsylvania Avenue, N.W.; and northwest on Pennsylvania Avenue, N.W., to the point of commencement.
(17) "Downtown Report" means the Interactive Downtown Task Force Report.
(18) "Eligible project" means a project that has been certified by the CFO as complying with the requirements set forth in this subchapter.
(19) "Georgia Avenue Area" means any square located on or abutting Georgia Avenue, N.W., beginning at the intersection Florida Avenue, N.W., and north on Georgia Avenue, N.W., to Eastern Avenue, N.W.
(20) "Gross floor area" means gross floor area within the meaning of the Zoning Regulations of the District.
(21) "HPRB" means the District of Columbia Historic Preservation Review Board.
(22) "Initial assessed value" means the assessed value of each lot of taxable real property within a tax increment area on the date determined by the Council; provided, that the date shall not be earlier than the date on which the Council initially approves the eligible project within the area for the TIF.
(23) "Initial sales tax amount" means the amount of available sales tax revenues from locations within the tax increment area in the fiscal year determined by the Council; provided, that the fiscal year shall not be earlier than the fiscal year immediately preceding the fiscal year in which the Council initially approves the eligible project within the area for the TIF.
(24) "Priority development area" means the downtown area, Capital City Business and Industrial Area; Capital City Market Area; Georgia Avenue Area; any District-designated Foreign Trade Zones or Free Trade Zones as defined under Federal law; any federally-approved Enterprise Zones, Empowerment Zones, or Enterprise Community; Development Zone Areas; and the Southeast Federal Center/Navy Yard Area; and any housing opportunity area, development area, or new or upgraded commercial center designated on the District of Columbia Generalized Land Use Policies Map that is part of the Comprehensive Plan; the Minnesota Avenue area which shall consist of land within the boundary descriptions beginning from East Capitol Street, N.E., to Nannie Helen Burroughs Avenue, N.E.; the Dix Street area which shall consist of land within the boundary descriptions beginning from 58th Street, N.E. to Eastern Avenue, N.E.; the Nannie Helen Burroughs area which shall consist of land within the boundary descriptions beginning from Eastern Avenue, N.E., to 49th Street, N.E.; the Pennsylvania Avenue area which shall consist of land within the boundary descriptions beginning from Branch Avenue, S.E., to Carpenter Street, S.E.; and the Benning Road area which shall consist of land within the boundary descriptions beginning from East Capitol Street, S.E., to 44th Street, N.E., from Hanna Place, S.E., to Hillside Road, S.E., and from 39th Street, S.E., to 36th Street, S.E.; the Division Avenue area from Eads Street, N.E., to Hayes Street, N.E.; any block, a portion of which is located in the Uptown Arts-Mixed Use Overlay District, as defined in subsection 1900.1 of Title 11 of the District of Columbia Municipal Regulations (11 DCMR § 1900.1); and the census tracts located in the District for which the poverty rate is not less than 10% as determined on the basis of the 1990 census; and contaminated property areas as defined in paragraph (10A) of this section.
(25) "Project" means any capital improvement undertaken within the priority development area.
(26) "Real property tax increment revenues" means the portion of the available real property tax revenues allocable to one or more tax allocation funds pursuant to this subchapter.
(27) "Sales tax increment revenues" means the portion of the available sales tax revenues allocable to one or more tax allocation funds pursuant to this subchapter.
(28) "Southeast Federal Center/Navy Yard Area" means the area beginning at the intersection of Interstate 395/295 (SW/SE Freeway) and the Anacostia River Waterfront, S.W., northwest to 14th Street, S.W.; south on 14th Street, S.W., to the Washington Channel Waterway; east along the Washington Channel Waterway to the Anacostia River eastern banks and adjacent areas encompassing the public housing and residential parcels adjacent to the Navy Yard, 8th Street, S.W., commercial corridor, marine barracks, Buzzard Point area, northern tip of the Naval station, Poplar Point, Anacostia waterfront, portions of the West Campus of Saint Elizabeth's, and the area surrounding the Anacostia Metro Station.
(29) "Special merits" means other economic, cultural, social, or financial factors, apart from the criteria established in this subchapter, that may justify the approval of TIF for a project. The special merits shall be established, by regulation, by the CFO in consultation with the City Administrator or during a control year, as defined in § 47-393, the Chief Management Officer ("CMO"), and the Director of the Department of Housing and Economic Development.
(30) "TIF" means tax increment financing.
(31) "TIF area" means any area designated and established for TIF pursuant to the provisions of this subchapter.
(32) "TIF bonds" means bonds, notes or other obligations issued pursuant to this subchapter.
(Sept. 11, 1998, D.C. Law 12-143, § 2, 45 DCR 3724; Apr. 27, 1999, D.C. Law 12-271, § 2(a), 46 DCR 3615; June 24, 2000, D.C. Law 13-128, § 2, 47 DCR 2682; June 13, 2001, D.C. Law 13-312, § 705(a), 48 DCR 3804; May 22, 2002, D.C. Law 14-144, § 2(a), 49 DCR 3600; Mar. 3, 2010, D.C. Law 18-111, § 2082(f), 57 DCR 181.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.1.
Effect of Amendments
D.C. Law 13-128, in subd. (24), deleted "and" following "36th Street, S.E.;", added a semicolon following "Hayes Street, N.E.", and added "; any block, a portion of which is located in the Uptown Arts-Mixed Use Overlay District, as defined in subsection 1900.1 of Title 11 of the District of Columbia Municipal Regulations (11 DCMR § 1900.1); and the census tracts located in the District for which the poverty rate is not less than 10% as determined on the basis of the 1990 census."
D.C. Law 13-312 added par. (10A); and, in par. (24), inserted "; and contaminated property areas as defined in paragraph (10A) of this section".
D.C. Law 14-144, in par. (22), substituted "on the date determined by the Council; provided, that the date shall not be earlier than the date on which the Council initially approves the eligible project within the area for the TIF" for "on the date the tax increment area is established"; and in par. (23), substituted "the fiscal year determined by the Council; provided, that the fiscal year shall not be earlier than the fiscal year immediately preceding the fiscal year in which the Council initially approves the eligible project within the area for the TIF" for "the calendar year immediately preceding the year in which the tax increment area is established".
D.C. Law 18-111, in par. (4), substituted "Washington Convention Center Fund" for "Washington Convention Center Authority Fund".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(a) of the Tax Increment Financing Temporary Amendment Act of 2002 (D.C. Law 14-139, May 21, 2002, law notification 49 DCR 5056).
Temporary Addition of Section
Section 2 to 15 of D.C. Law 18-268 added sections to read as follows:
"Sec. 2. Definitions.
"For the purposes of this act, the term:
"(1) 'Authorized Delegate' means the City Administrator, the Deputy Mayor for Planning and Economic Development, the Chief Financial Officer, the District of Columbia Treasurer, or any officer or employee of the executive office of the Mayor to whom the Mayor has delegated any of the Mayor's functions under this act pursuant to section 422(6) of the Home Rule Act.
"(2) 'Available Real Property Tax Increment Revenues' means, for any fiscal year of the District, with respect to the Howard Theatre Redevelopment Project TIF Area, the revenues resulting in that fiscal year from the imposition of the tax under Chapter 8 of Title 47 of the District of Columbia Official Code, including any penalties and interest charges, exclusive of the special tax provided for in section 481 of the Home Rule Act, pledged to the payment of general obligation indebtedness of the District, minus those same revenues generated in the Real Property Tax Base Year; provided, that such revenues are not otherwise exclusively committed to another purpose.
"(3) 'Available Sales Tax Increment Revenues' means, for any fiscal year of the District, with respect to the Howard Theatre Redevelopment Project TIF Area, the revenues resulting in that fiscal year from the imposition of the taxes under Chapters 20 and 22 of Title 47 of the District of Columbia Official Code, including any penalties and interest charges, exclusive of the portion thereof required to be deposited in the Washington Convention Center Authority Fund established pursuant to section 208 of the Washington Convention Center Authority Act of 1994, effective September 28, 1994 (D.C. Law 10-188; D.C. Official Code § 10-1202.08), minus those same revenues generated in the Sales Tax Base Year; provided, that such revenues are not otherwise exclusively committed to another purpose.
"(4) 'Available Tax Increment' means the sum of the Available Sales Tax Increment Revenues and Available Real Property Tax Increment Revenue.
"(5) 'Bond Counsel' means a firm or firms of attorneys designated as bond counsel from time to time by the Mayor.
"(6) 'Bonds' means the District of Columbia revenue bonds, notes, or other obligations (including refunding bonds, notes, and other obligations), in one or more series, authorized to be issued pursuant to this act.
"(7) 'Chairman' means the Chairman of the Council of the District of Columbia.
"(8) 'Chief Financial Officer' means the Chief Financial Officer of the District of Columbia.
"(9) 'Closing Documents' means all documents and agreements, other than Financing Documents, that may be necessary and appropriate to issue, sell, and deliver the Bonds, and includes agreements, certificates, letters, opinions, forms, receipts, and other similar instruments.
"(10) 'Council' means the Council of the District of Columbia.
"(11) 'Development Agreement' means the development agreement between the District and the Development Sponsor setting for the terms and conditions upon and pursuant to which the District will issue the Bonds and the Development Sponsor will develop the project.
"(12) 'Development Costs' shall have the same meaning as in section 2(13) of the Tax Increment Financing Authorization Act of 1998, effective September 11, 1998 (D.C. Law 12-143; D.C. Official Code § 2-1217.01(13)).
"(13) 'Development Sponsor' means Howard Theatre Restoration, Inc., a District of Columbia corporation, or a designee or assignee of, or successor to, Howard Theatre Restoration, L.L.C., approved by the Mayor.
"(14) 'District' means the District of Columbia.
"(15) 'Financing Documents' means the documents, other than Closing Documents, that relate to the financing or refinancing of transactions to be effected through the issuance, sale, and delivery of the Bonds, including any offering document, and any required supplements to any such documents.
"(16) 'Home Rule Act' means the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 777; D.C. Official Code § 1-201.01 et seq.).
"(17) 'Howard Theatre Parking Garage' means parking spaces dedicated for the exclusive use by, and in conjunction with, the Howard Theatre Redevelopment Project in Lots 21, 66, 67, 68, 97, 814, 815, 855, 857, 858, and 859, Square 441.
"(18) 'Howard Theatre Redevelopment Project' means the financing, refinancing, or reimbursing of Development Costs incurred for the acquisition, leasing, construction, rehabilitating, installing, and equipping of a new mixed-use facility, consisting of a multi-purpose entertainment venue, museum, restaurant, and educational center within the historic building in Lots 90 and 807, Square 441.
"(19) 'Howard Theatre Redevelopment Project TIF Area' means the area so designated in section 4.
"(20) 'Real Property Tax Base Year' means the tax year preceding the year in which this act becomes effective and the initial assessed value to be used in making the determination of Available Real Property Tax Revenues of each lot of taxable real property in the Howard Theatre Redevelopment Project TIF Area shall be the assessed value in the tax year preceding the year in which this act becomes effective.
"(21) 'Reserve Agreement' means that certain Reserve Agreement, dated as of April 1, 2002, by and among the District, Wells Fargo Bank Minnesota, N.A., and Financial Security Assurance, Inc.
"(22) 'Sales Tax Base Year' means the tax year preceding the year in which this act becomes effective.
"(23) 'TIF' means tax increment financing.
"Sec. 3. Creation of the Howard Theatre Redevelopment Project Fund.
"(a) There is established as a nonlapsing fund the Howard Theatre Redevelopment Project Fund, which shall be used solely as provided in subsection (d) of this section. The Chief Financial Officer shall deposit into the Howard Theatre Redevelopment Project Fund the Available Tax Increment and any other taxes or fees specifically designated by law for deposit in the Howard Theatre Redevelopment Project Fund.
"(b) Except as provided in subsection (e) of this section, all funds deposited into the Howard Theatre Redevelopment Project Fund, and any interest earned on the funds, shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time, but shall be continually available for the uses and purposes set forth in subsection (d) of this section without regard to fiscal year limitation, subject to authorization by Congress.
"(c) The Mayor may pledge and create a security interest in the funds in the Howard Theatre Redevelopment Project Fund, or any sub-account within the Howard Theatre Redevelopment Project Fund, for the payment of the costs of carrying out any of the purposes described in subsection (d) of this section without further action by the Council as permitted by section 490(f) of the Home Rule Act. If Bonds are issued, the payment will be made in accordance with the provisions of the Financing Documents entered into by the District in connection with the issuance of the Bonds.
"(d) The funds deposited in the Howard Theatre Redevelopment Project Fund may be used to:
"(1) Secure the repayment of the Bonds;
"(2) Pay debt service, including principal, premium, if any, and interest on the Bonds; and
"(3) Finance, refinance, or reimburse the District or the Development Sponsor for costs of the Howard Theatre Redevelopment Project.
"(e) If, at the end of any fiscal year of the District following the issuance of the Bonds authorized by this act, the value of cash and investments in the Howard Theatre Redevelopment Fund exceeds the amount of all payments authorized by this act and the Financing Documents, including required deposits into reserve funds, amounts to be set aside for additional series of Bonds issued under this act, and any coverage requirements associated with the sale of the Bonds, during the upcoming fiscal year, the excess shall be transferred to the General Fund of the District of Columbia, unless the District elects to use the excess to redeem Bonds prior to maturity.
"Sec. 4. Creation of the Howard Theatre Redevelopment Project TIF Area.
"There is hereby established the Howard Theatre Redevelopment Project TIF Area, which shall consist of the following real property:
"(1) Lot 90, Square 441 (with a street address of 620 T Street, N.W.);
"(2) Lot 807, Square 441 (with a street address of 1830 Wiltberger Street, N.W.); and
"(3) The Howard Theatre Parking Garage.
"Sec. 5. Bond authorization.
"(a) The Council approves and authorizes the issuance of one or more series of Bonds in an aggregate amount not to exceed $4 million to fund costs of the Howard Theatre Redevelopment Project, including Development Costs, the financing costs and costs of issuance, capitalized interest, establishment of debt service or other reserve funds related to the Bonds, and any other debt program-related costs as determined by the Chief Financial Officer.
"(b) The Mayor may pay from the proceeds of the Bonds, the costs and expenses incurred by the District of Columbia in issuing and delivering the Bonds.
"Sec. 6. Bond details.
"(a) The Mayor may take any action reasonably necessary or appropriate in accordance with this act in connection with the preparation, execution, issuance, sale, delivery, security for, and payment of the Bonds of each series, including, but not limited to, determinations of:
"(1) The final form, content, designation, and terms of the Bonds, including a determination that the Bonds may be issued in certificated or book-entry form;
"(2) The principal amount of the Bonds to be issued and denominations of the Bonds;
"(3) The rate or rates of interest or the method for determining the rate or rates of interest on the Bonds;
"(4) The date or dates of issuance, sale, and delivery of, and the payment of interest on, the Bonds, and the maturity date or dates of the Bonds;
"(5) The terms under which the Bonds may be paid, optionally or mandatorily redeemed, accelerated, tendered, called, or put for redemption, repurchase, or remarketing before their respective stated maturities;
"(6) Provisions for the registration, transfer, and exchange of the Bonds and the replacement of mutilated, lost, stolen, or destroyed Bonds;
"(7) The creation of any reserve fund, sinking fund, or other fund with respect to the Bonds;
"(8) The time and place of payment of the Bonds;
"(9) Procedures for monitoring the use of the proceeds received from the sale of the Bonds to ensure that the proceeds are properly applied and used to accomplish the purposes of the Home Rule Act and this act;
"(10) Actions necessary to qualify the Bonds under blue sky laws of any jurisdiction where the Bonds are marketed; and
"(11) The terms and types of credit enhancement under which the Bonds may be secured.
"(b) The Bonds shall contain a legend, which shall provide that the Bonds are special obligations of the District, are without recourse to the District, are not a pledge of, and do not involve, the faith and credit or the taxing power of the District (other than the Available Tax Increment and any other taxes and fees allocated to the Howard Theatre Redevelopment Project Fund), do not constitute a debt of the District, and do not constitute lending of the public credit for private undertakings as prohibited in section 602(a)(2) of the Home Rule Act.
"(c) The Bonds shall be executed in the name of the District and on its behalf by the manual or facsimile signature of the Mayor, and attested by the Secretary of the District of Columbia by the Secretary's manual or facsimile signature.
"(d) The official seal of the District, or a facsimile of it, shall be impressed, printed, or otherwise reproduced on the Bonds.
"(e) The Bonds of any series may be issued in accordance with the terms of a trust instrument to be entered into by the District and a trustee or paying agent to be selected by the Mayor, and may be subject to the terms of one or more agreements entered into by the Mayor pursuant to section 490(a)(4) of the Home Rule Act.
"(f) The Bonds may be issued at any time or from time to time in one or more issues and in one or more series.
"(g) The Bonds are declared to be issued for essential public and governmental purposes. The Bonds, the interest thereon, and the income therefrom, and all funds pledged or available to pay or secure the payment of the Bonds, shall at all times be exempt from taxation by the District, except for estate, inheritance, and gift taxes.
"(h) The District pledges, covenants, and agrees with the holders of the Bonds that, subject to the provisions of the Financing Documents, the District will not limit or alter the basis on which Available Real Property Tax Increment Revenues or Available Sales Tax Increment Revenues are received, allocated, applied, or pledged, will not impair the contractual obligations of the District to fulfill the terms of any agreement made with the holders of the Bonds, will not in any way impair the rights or remedies of the holders of the Bonds, and will not modify, in any way, the exemptions from taxation provided for in this act, until the Bonds, together with interest thereon, and all costs and expenses in connection with any suit, action, or proceeding by or on behalf of the holders of the Bonds, are fully met and discharged. This pledge and agreement for the District may be included as part of the contract with the holders of the Bonds. This subsection shall constitute a contract between the District and the holders of the Bonds. To the extent that any acts or resolutions of the Council may be in conflict with this act, this act shall be controlling.
"(i) Consistent with section 490(a)(4)(B) of the Home Rule Act and notwithstanding Article 9 of Subtitle I of Title 28 of the District of Columbia Official Code:
"(1) A pledge made and security interest created in respect of the Bonds or pursuant to any related Financing Document shall be valid, binding, and perfected from the time the security interest is created, with or without physical delivery of any funds or any property and with or without any further action;
"(2) The lien of the pledge shall be valid, binding, and perfected as against all parties having any claim of any kind in tort, contract, or otherwise against the District, whether or not such party has notice; and
"(3) The security interest shall be valid, binding, and perfected whether or not any statement, document, or instrument relating to the security interest is recorded or filed.
"Sec. 7. Issuance of the Bonds.
"(a) The Bonds of any series may be sold at negotiated upon terms that the Mayor considers to be in the best interests of the District.
"(b) The Bonds also may be issued as a TIF note to the Development Sponsor and may be held and used as security for debt incurred or to be incurred by the Development Sponsor, an agent of the Development Sponsor, or another party selected by the Development Sponsor.
"(c) The Mayor or an Authorized Delegate may execute, in connection with each sale of the Bonds, offering documents on behalf of the District, may deem final any such offering document on behalf of the District for purposes of compliance with federal laws and regulations governing such matters, and may authorize the distribution of the documents in connection with the sale of the Bonds.
"(d) The Mayor is authorized to deliver executed and sealed Bonds, on behalf of the District, for authentication, and, after the Bonds have been authenticated, to deliver the Bonds to the original purchasers of the Bonds upon payment of the purchase price.
"(e) The Bonds shall not be issued until the Mayor receives an approving opinion from Bond Counsel as to the validity of the Bonds of such series and, if the interest on the Bonds is expected to be exempt from federal income taxation, the treatment of the interest on the Bonds for purposes of federal income taxation.
"(f) The District of Columbia Procurement Practices Act of 1985, effective February 21, 1986 (D.C. Law 6-85; D.C. Official Code § 2-301.01 et seq.), and subchapter III of Chapter 3 of Title 47 of the District of Columbia Official Code shall not apply to any contract that the Mayor may from time to time enter into, or the Mayor may determine to be necessary or appropriate, for purposes of this act.
"Sec. 8. Payment and security.
"(a) Except as may be otherwise provided in this act, the principal of, premium, if any, on, and interest on, the Bonds shall be payable solely from proceeds received from the sale of the Bonds, income realized from the temporary investment of those proceeds, receipts and revenues realized by the District from the Howard Theatre Redevelopment Project Fund, income realized from the temporary investment of those receipts and revenues prior to payment to the Bond owners, and other funds that, as provided in the Financing Documents, may be made available to the District for payment of the Bonds from sources other than the District, all as provided for in the Financing Documents.
"(b) There is further allocated to the payment of debt service on the Bonds the Available Increment. The Available Increment shall be subordinate to the allocation of Available Increment to the Budgeted Reserve (as defined in the Reserve Agreement and as these terms more fully described in the Reserve Agreement) to the extent that the Reserve Agreement continues to apply to the Available Increment and may be used for the payment of debt service on the Bonds to the extent that the revenues allocated in subsection (a) of this section are inadequate to pay debt service on the Bonds. The allocation of Available Increment authorized by this subsection shall be made in compliance with all existing contractual obligations of the District with respect to the Available Increment and shall terminate on the date on which all of the Bonds are paid or provided for and are no longer outstanding pursuant to their terms.
"(c) Payment of the Bonds shall be secured as provided in the Financing Documents and by an assignment by the District for the benefit of the Bond owners of certain of its rights under the Financing Documents and Closing Documents to the trustee for the Bonds pursuant to the Financing Documents.
"(d) The trustee or paying agent is authorized to deposit, invest, and disburse the proceeds received from the sale of the Bonds pursuant to the Financing Documents.
"Sec. 9. Financing and Closing Documents.
"(a) The Mayor is authorized to prescribe the final form and content of all Financing Documents and all Closing Documents to which the District is a party that may be necessary or appropriate to issue, sell, and deliver the Bonds.
"(b) The Mayor is authorized to execute, in the name of the District and on its behalf, the Financing Documents and any Closing Documents to which the District is a party by the Mayor's manual or facsimile signature.
"(c) If required, the official seal of the District, or a facsimile of it, shall be impressed, printed, or otherwise reproduced on the Bonds, the Financing Documents, and the Closing Documents to which the District is a party.
"(d) The Mayor's execution and delivery of the Financing Documents and the Closing Documents shall constitute conclusive evidence of the Mayor's approval, on behalf of the District, of the final form and content thereof.
"(e) The Mayor is authorized to deliver the executed and sealed Financing Documents and Closing Documents, on behalf of the District, prior to or simultaneously with the issuance, sale, and delivery of the Bonds, and to ensure the due performance of the obligations of the District contained in the executed, sealed, and delivered Financing Documents and Closing Documents.
"Sec. 10. Limited liability.
"(a) The Bonds shall be special obligations of the District. The Bonds shall be without recourse to the District. The Bonds shall not be general obligations of the District, shall not be a pledge of, or involve, the faith and credit or the taxing power of the District (other than the Available Tax Increment and any other taxes or fees allocated to the Howard Theatre Redevelopment Project Fund), shall not constitute a debt of the District, and shall not constitute lending of the public credit for private undertakings as prohibited in section 602(a)(2) of the Home Rule Act.
"(b) The Bonds shall not give rise to any pecuniary liability of the District and the District shall have no obligation with respect to the purchase of the Bonds.
"(c) No person, including, but not limited to any Bond owner, shall have any claims against the District or any of its elected or appointed officials, officers, employees, or agents for monetary damages suffered as a result of the failure of the District to perform any covenant, undertaking, or obligation under this act, the Bonds, the Financing Documents, or the Closing Documents, or as a result of the incorrectness of any representation in or omission from the Financing Documents or the Closing Documents, unless the District or its elected or appointed officials, officers, employees, or agents have acted in a willful and fraudulent manner.
"Sec. 11. District officials.
"(a) Except as otherwise provided in section 10 (c), the elected or appointed officials, officers, employees, or agents of the District shall not be liable personally for the payment of the Bonds or be subject to any personal liability by reason of the issuance of the Bonds, or for any representations, warranties, covenants, obligations, or agreements of the District contained in this act, the Bonds, the Financing Documents, or the Closing Documents.
"(b) The signature, countersignature, facsimile signature, or facsimile countersignature of any official appearing on the Bonds, the Financing Documents, or the Closing Documents shall be valid and sufficient for all purposes notwithstanding the fact that the individual signatory ceases to hold that office before delivery of the Bonds, the Financing Documents, or the Closing Documents.
"Sec. 12. Maintenance of documents.
"Copies of the specimen Bonds and of the final Financing Documents and Closing Documents shall be filed in the Office of the Secretary of the District of Columbia.
"Sec. 13. Information reporting.
"Within 3 days after the Mayor's receipt of the transcript of proceedings relating to the issuance of the Bonds, the Mayor shall transmit a copy of the transcript to the Secretary to the Council.
"Sec. 14. Authority of the Chief Financial Officer.
"Notwithstanding any other provision of this act, any action taken by the Mayor to implement the provisions of this act shall be consistent with the Chief Financial Officer's authority under section 424d of the Home Rule Act.
"Sec. 15. Fiscal impact of issuance.
For the purposes of determining the fiscal impact of this act, the Bonds shall be deemed to be issued under the authority of the Retail Incentive Act of 2004, effective September 8, 2004 (D.C. Law 15-185; D.C. Official Code § 2- 1217.71 et seq.), as a project within the 7th Street/Georgia Avenue, N.W., Retail Priority Area established pursuant to the Great Streets Neighborhood Retail Priority Areas Approval Resolution of 2007, effective July 10, 2007 (Res. 17-257; 54 DCR 714)."
Section 17(b) of D.C. Law 18-268 provides that the act shall expire after 225 days of its having taken effect.
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.], see §§ 2-12 of the Tax Increment Financing Authorization Emergency Act of 1998 (D.C. Act 12- 353, May 29, 1998, 45 DCR 3701).
For temporary amendment of section, see § 2(a) of the Tax Increment Financing Emergency Amendment Act of 1998 (D.C. Act 12-562, January 22, 1999, 46 DCR 2104).
For temporary (90 day) amendment of section, see § 2(a) of Tax Increment Financing Emergency Amendment Act of 2002 (D.C. Act 14-282, February 25, 2002, 49 DCR 2305).
For temporary (90 day) amendment of section, see § 2082(f) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 2082(f) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
Legislative History of Laws
Law 12-143, the "Tax Increment Financing Authorization Act of 1998," was introduced in Council and assigned Bill No. 12-498, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on March 3, 1998, and April 7, 1998, respectively. Signed by the Mayor on May 4, 1998, it was assigned Act No. 12-354 and transmitted to both Houses of Congress for its review. D.C. Law 12-143 became effective on September 11, 1998.
Law 12-271, the "Tax Increment Financing Amendment Act of 1998," was introduced in Council and assigned Bill No. 12-829, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on December 1, 1998, and December 15, 1998, respectively. Signed by the Mayor on December 24, 1998, it was assigned Act No. 12-590 and transmitted to both Houses of Congress for its review. D.C. Law 12-271 became effective on April 27, 1999.
Law 13-128, the "Tax Increment Financing Amendment Act of 1998,('TIF Act')" was introduced in Council and assigned Bill No. 13-263, which was referred to the Committees on Economic Developement and Finance and Revenue. The Bill was adopted on first and second readings on February 1, 2000, and March 7, 2000, respectively. Signed by the Mayor on March 2, 2000, it was assigned Act No. 13-298 and transmitted to both Houses of Congress for its review. D.C. Law 13- 128 became effective on June 24, 2000.
Law 13-312, the "Brownfield Revitalization Amendment Act of 2000", was introduced in Council and assigned Bill No. 13-531, which was referred to the Committee on Public Works and the Environment. The Bill was adopted on first and second readings on November 8, 2000, and December 5, 2000, respectively. Signed by the Mayor on January 22, 2001, it was assigned Act No. 13-576 and transmitted to Both Houses of Congress for its review. D.C. Law 13-312 became effective on June 15, 2001.
Law 14-144, the "Tax Increment Financing Amendment Act of 2002", was introduced in Council and assigned Bill No. 14-553, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on March 5, 2002, and March 19, 2002, respectively. Signed by the Mayor on April 2, 2002, it was assigned Act No. 14-321 and transmitted to both Houses of Congress for its review. D.C. Law 14-144 became effective on May 22, 2002.
For Law 18-111, see notes following § 2-218.50.
Miscellaneous Notes
Transfer of powers, duties, and responsibilities from Chief Financial Officer of the District: Section 30(e)(1) of D.C. Law 12-144 provided that the provisions of this subchapter shall continue in full force and effect provided that the Board of Directors of the National Capital Revitalization Corporation shall exercise all functions of the Chief Financial Officer of the District except the duties under § 1-2293.5 [§ 2-1217.05, 2001 Ed.] and after the date of notice from the Board to the Chief Financial Officer that the Board is ready to assume such functions.
Establishment and Appointments - Task Force on Local, Small, and Disadvantaged Business Opportunity Development, see Mayor's Order 2002-62, April 19, 2002 (49 DCR 3720).
Amendment of Mayor's Order 2002-62, dated 3-19-02, Establishment and Appointments - Task Force on Local, Small and Disadvantaged Business Opportunity Development and Appointment, see Mayor's Order 2002-92, May 24, 2002 (49 DCR 4899).
(a) Pursuant to § 1-204.90, the Council authorizes the issuance of TIF bonds. The portions of property tax increment revenues and the portions of the sales tax increment revenues that are declared to be dedicated pursuant to this subchapter, to the payment of debt service on TIF bonds, the provision and maintenance of reserves, and the payment of development costs, shall constitute tax increments as defined in § 1-204.90(m)(6).
(b) TIF bonds may be issued to finance development costs of eligible projects approved pursuant to this subchapter. Refunding bonds may be issued to refund bonds issued pursuant to this subchapter. The aggregate principal amount of TIF bonds, other than refunding bonds shall not exceed $500 million; provided, that the aggregate amount of TIF bonds for projects in the Central Business District, as defined in Title 11 of the District of Columbia Municipal Regulations, shall not exceed $300 million. All TIF bonds issued pursuant to this subchapter shall be issued before January 1, 2014.
(c) The CFO is authorized to enter into such financing documents as may be necessary or appropriate for the issuance, security, and administration of the TIF bonds, investment of proceeds and moneys in the accounts provided for in, or pursuant to this subchapter, and the application of the proceeds of the TIF bonds and the moneys and investments in such accounts, and for the purposes provided in § 2-1217.07, including financing documents with development sponsors. The CFO is authorized to execute and deliver in the name of the District, and on its behalf, any financing documents and any closing documents to which the District is a party, including each trust agreement, trust indenture, secured loan agreement or other instrument entered into by the District pursuant to this subchapter.
(d) The requirements for a project to comply with the applicable eligibility requirements pursuant to § 2-1217.03 shall be set forth in an agreement between the District and the development sponsor. The agreement shall obligate the development sponsor to develop the specified eligible project.
(e) TIF bonds may qualify as tax-exempt enterprise zone facility bonds if the bonds satisfy the applicable requirements of the Internal Revenue Code of 1986, as amended, and applicable laws of the District.
(Sept. 11, 1998, D.C. Law 12-143, § 3, 45 DCR 3724; Oct. 20, 2005, D.C. Law 16-33, § 2012, 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-192, § 2002, 53 DCR 6899; Aug. 16, 2008, D.C. Law 17-219, § 7018, 55 DCR 7598; Mar. 25, 2009, D.C. Law 17-353, § 134, 56 DCR 1117; Sept. 24, 2010, D.C. Law 18-223, § 7192(a), 57 DCR 6242.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.2.
Effect of Amendments
D.C. Law 16-33, in subsec. (b), substituted "August 1, 2006" for "January 1, 2003".
D.C. Law 16-192, in subsec. (b), substituted "$500 million; provided, that the aggregate amount of TIF bonds for projects in the Central Business District, as defined in Title 11 of the District of Columbia Municipal Regulations, shall not exceed $300 million" for "$300 million", and substituted "January 1, 2008" for "January 1, 2003".
D.C. Law 17-219, in subsec. (b), substituted "January 1, 2010" for "January 1, 2008".
D.C. Law 17-353 validated a previously made technical correction in subsec. (b).
D.C. Law 18-223, in subsec. (b), substituted "January 1, 2014" for "January 1, 2010".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2 of the Tax Increment Financing Reauthorization Temporary Act of 2002 (D.C. Law 14-288, Apr. 4, 2003, law notification 50 DCR 5846).
For temporary (225 day) amendment of section, see § 2 of the Tax Increment Financing Reauthorization Date Temporary Act of 2003 (D.C. Law 15-77, Mar. 10, 2004, law notification 51 DCR 3369).
For temporary (225 day) amendment of section, see § 2 of the Tax Increment Financing Reauthorization Date Temporary Amendment Act of 2004 (D.C. Law 15- 198, Dec. 7, 2004, law notification 52 DCR 442).
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.], see note to § 2- 1217.01.
For temporary (90 day) amendment of section, see § 2 of Tax Increment Financing Reauthorization Emergency Act of 2002 (D.C. Act 14-593, January 7, 2003, 50 DCR 641).
For temporary (90 day) amendment of section, see § 2 of Tax Increment Financing Reauthorization Date Emergency Amendment Act of 2003 (D.C. Act 15-187, October 24, 2003, 50 DCR 9492).
For temporary (90 day) amendment of section, see § 2 of Tax Increment Financing Reauthorization Date Congressional Review Emergency Amendment Act of 2004 (D.C. Act 15-293, January 21, 2004, 51 DCR 1077).
For temporary (90 day) amendment of section, see § 2 of Tax Increment Financing Reauthorization Date Emergency Amendment Act of 2004 (D.C. Act 15-448, June 23, 2004, 51 DCR 6565).
For temporary (90 day) amendment of section, see § 2 of Tax Increment Financing Reauthorization Date Congressional Review Second Emergency Amendment Act of 2004 (D.C. Act 15-628, November 30, 2004, 52 DCR 1139).
For temporary (90 day) amendment of section, see §§ 2012, 2013 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2002 of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) amendment of section, see § 2002 of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) amendment of section, see § 2002 of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
For temporary (90 day) amendment of section, see § 7192 of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
For Law 16-33, see notes following § 2-307.01.
Law 16-192, the "Fiscal Year Budget Support Act of 2006", was introduced in Council and assigned Bill No. 16-679, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on May 9, 2006, and June 6, 2006, respectively. Signed by the Mayor on August 8, 2006, it was assigned Act No. 16-476 and transmitted to both Houses of Congress for its review. D.C. Law 16-192 became effective on March 2, 2007.
For Law 17-219, see notes following § 2-218.75.
For Law 17-353, see notes following § 2-218.42.
For Law 18-223, see notes following § 2-218.76.
References in Text
The Internal Revenue Code of 1986, referred to in (e), is codified as Title 26 of the United States Code.
Miscellaneous Notes
Short title of subtitle B of title II of Law 16-33: Section 2011 of D.C. Law 16-33 provided that subtitle B of title II of the act may be cited as the Tax Incremental Financing Re-Authorization Act of 2005.
Section 2013 of D.C. Law 16-33 provides:
"Sec. 2013. Applicability.
"Section 2012 shall apply as of January 1, 2003.".
Short title: Section 2001 of D.C. Law 16-192 provided that subtitle A of title II of the act may be cited as the "Retail Incentive and Tax Increment Financing Re-Authorization and Amendment Act of 2006".
Short title: Section 7017 of D.C. Law 17-219 provided that subtitle H of title VII of the act may be cited as the "Tax Increment Financing Reauthorization Amendment Act of 2008".
Section 7019 of D.C. Law 17-219 provides that this subtitle shall apply as of January 1, 2008.
Short title: Section 7191 of D.C. Law 18-223 provided that subtitle T of title VII of the act may be cited as the "Extension of Tax Increment Financing Authority Amendment Act of 2010".
Section 7192(b) of D.C. Law 18-223 provides:
"This section shall apply as of January 1, 2010."
(a) In order to be eligible for TIF, a development sponsor of any project located in a priority development area shall apply to the CFO for certification that the project complies with the requirements of this subchapter. The application shall consist of a development plan for the project, which shall consist of the following:
(1) A delineation of the proposed TIF area;
(2) A description of the proposed land uses of the project;
(3) The use of the financing proceeds made available pursuant to this subchapter;
(4) A pro forma projection of the revenues and expenses of the project;
(5) An assessment of the financial feasibility of the project;
(6) A general description of the timing and phasing of the project;
(7) A description of the compatibility of the project with the Comprehensive Plan;
(8) A description of the project's compliance with the zoning regulations of the District; and
(9) An analysis of the projected tax revenue and benefits to be generated by the project.
(b) Not later than 120 days after the receipt of an application which meets the criteria set forth in subsection (a) of this section the CFO shall certify or reject the project. In determining whether to certify the project, the CFO shall consider the following criteria:
(1) Whether the project is financially feasible;
(2) Whether the project will likely result in a net increase in the taxes payable to the District, taking into consideration income taxes, franchise taxes, real property taxes, without regard to the real property tax increment revenues to be applied to payment of the TIF bonds, sales taxes, without regard to the sales tax increment revenues to be applied to payment of the TIF bonds, parking taxes, use taxes, and other taxes, over the amount that would have been payable to the District in the absence of the project;
(3) Whether the project is consistent with the Comprehensive Plan and will achieve development priorities identified in the Comprehensive Plan for the priority development area in which the project is located;
(4) Whether the project's total anticipated benefits to the District, including public benefits as well as financial benefits, exceed the total anticipated costs to the District;
(5) Whether an allocation of the project's real property tax increment revenues and sales tax increment revenues will compete with or supplant benefits from other sources or by other means which are otherwise available for the project on reasonable terms and conditions; and
(6) Whether the project is one of special merits and there is a reasonable probability that the special merits of the project will not be achieved without the TIF allocation.
(c) In addition to the criteria enumerated in subsection (b) of this section, for projects located in the Downtown Area, the CFO shall consider whether the project will achieve development priorities identified in the Downtown Report that are consistent with the Comprehensive Plan and that satisfy one of the following:
(1) If located within a Housing Priority Area, whether the project, for the proposed term of the TIF bonds, commits to:
(A) Providing on-site at least 65% of the residential gross floor area required by the DD Regulations for the applicable Housing Priority Area; or
(B) Providing on-site at least 65% of the residential gross floor area required by the DD Regulations for the applicable Housing Priority Area utilizing not less than 90% of the leasable area of the floor at street level, and not less than 75% of the leasable area of the floor immediately above or immediately below the floor at the street level, for one or more of the preferred uses set forth in §§ 1710 or 1711 of the DD Regulations with the preferred use space having a clear ceiling height of not less than 13 feet (unless the project is subject to the HPRB review in which case such 13 feet ceiling height shall not apply).
(2) If not located within a Housing Priority Area, whether the project, for the proposed term of the TIF bonds, commits to:
(A) Making residential housing as its primary use; or
(B) Utilizing not less than 90% of the leasable space on the floor at street level, and not less than 75% of the leasable space on the floor immediately above or below the floor at street level, for one or more of the preferred uses set forth in §§ 1710 and 1711 of the DD Regulations, with all the preferred use space (unless the project is subject to HPRB review) having a clear ceiling height of not less than 13 feet.
(3) Whether located in a housing priority area or in other parts of the downtown area, if a project fails to meet the criteria enumerated in paragraphs (1) or (2) of this subsection, the CFO shall determine whether the project is one of special merits and there is a reasonable probability that the special merits of the project will not be achieved without the TIF allocation.
(d) If, upon consideration of the criteria set forth in subsections (b) and (c) of this section, the CFO determines to certify the project for Council approval, the Mayor shall enter into negotiations with the development sponsor to determine the boundaries of the TIF area for the project, the amount of tax increment allocation, the type of tax to be allocated, the terms and conditions of the agreement between the District and the development sponsor, and the termination dates for the tax increment revenues to be allocated to the project. Upon completion of negotiations, the CFO shall certify the project, and prepare a proposed resolution for the approval of the Council consistent with the results of the negotiations and with § 2-1217.04. If the project does not comply with the criteria, the CFO shall so notify the development sponsor in writing stating in what areas the project fails to meet the criteria. The CFO shall allow the development sponsor up to 60 days to comply and cure any defects.
(e) The Zoning Administrator; the Director, Office of Planning; the Corporation Counsel; the Director, Department of Housing and Community Development; and any other relevant agency of the District government shall furnish to the CFO information and certificates as may be required by the CFO to confirm a project's compliance with the criteria enumerated in subsections (b) and (c) of this section.
(f) Subject to the consent of each development sponsor of a project within the affected TIF areas and the rights of the holders of its TIF bonds, the CFO may abolish a TIF area, merge TIF areas or alter the boundaries of a TIF area.
(g) The CFO shall impose reasonable fees in connection with the issuance of the TIF bonds to defray administrative costs or burdens incurred as a result of the determination of the tax increment allocation and the issuance of such TIF bonds.
(h) The Mayor, pursuant to subchapter I of Chapter 5 of this title, may issue rules to implement the provisions of this section.
(Sept. 11, 1998, D.C. Law 12-143, § 4, 45 DCR 3724; Apr. 27, 1999, D.C. Law 12-271, § 2(b), 46 DCR 3615.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.3.
Emergency Act Amendments
For temporary amendment of section, see § 2(b) of the Tax Increment Financing Emergency Amendment Act of 1998 (D.C. Act 12-562, January 22, 1999, 46 DCR 2104).
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.], see note to § 2- 1217.01.
For temporary (90-day) addition of section, see § 2(a) of the Tax Increment Financing Authorization Emergency Amendment Act of 1999 (D.C. Act 13-134, August 4, 1999, 46 DCR 6788).
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
For legislative history of D.C. Law 12-271, see Historical and Statutory Notes following § 2-1217.01.
Delegation of Authority
Delegation of authority pursuant to D.C. Law 12-143, the "Tax Financing Act of 1998", see Mayor's Order 99-197, December 6, 1999 (46 DCR 10566).
Delegation of Rulemaking Authority Pursuant to DC Law 12-143, the Tax Increment Financing Authorization Act of 1998, see Mayor's Order 2001-108, August 6, 2001 (48 DCR 7798).
Upon completion of negotiations with the development sponsor, the CFO may certify the project and submit such certification and the proposed resolution referred to in § 2-1217.03(d) to the Mayor. If the Mayor determines that the resolution is consistent with the requirements of this section, the Mayor shall transmit to the Council a proposed resolution to approve the project, the TIF area, the development agreement, and the amount to be financed. The proposed resolution shall define the TIF area for the eligible project, a summary description of the eligible project and its compliance with the criteria, a listing of the public benefits to be derived from the eligible project, portion of real property tax or sales revenues increment to be allocated to the project; and a summary of the terms of the TIF bonds to be issued with respect to the project. The Council shall approve or disapprove the proposed resolution within 45 days.
(Sept. 11, 1998, D.C. Law 12-143, § 5, 45 DCR 3724.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.4.
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.], see note to § 2- 1217.01.
For temporary approval of projects by the Council pursuant to this section, see § 5 of the Tax Increment Financing Emergency Amendment Act of 1998 (D.C. Act 12-562, January 22, 1999, 46 DCR 2104).
For temporary (90-day) addition of section, see § 2(b) of the Tax Increment Financing Authorization Emergency Amendment Act of 1999 (D.C. Act 13-134, August 4, 1999, 46 DCR 6788).
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
Delegation of Authority
Delegation of authority pursuant to D.C. Law 12-143, the "Tax Financing Act of 1998", see Mayor's Order 99-197, December 6, 1999 (46 DCR 10566).
Resolutions
Resolution 14-257, the "District of Columbia Tax Increment Revenue Bond Downtown TIF Area Emergency Approval Resolution of 2001", was approved effective November 6, 2001.
Resolution 14-364, the "Tax Increment Revenue Bond Downtown TIF Area Base Year Emergency Approval Resolution of 2002", was approved effective February 5, 2002.
Resolution 15-192, the "Tax Increment Revenue Bonds NJA Development Partners, LP Project Approval Emergency Resolution of 2003", was approved effective July 8, 2003.
Resolution 15-197, the "Tax Increment Revenue Bonds Embassy Suites Hotel Inducement Emergency Resolution of 2003", was approved effective July 8, 2003.
Resolution 15-381, the "Tax Increment Revenue Bonds 1000 K, L.L.C. Project Approval Resolution of 2003", was approved effective December 16, 2003.
Resolution 15-426, the "Tax Increment Revenue Bonds NJA Development Partners, LP Project Technical Amendment Emergency Resolution of 2004", was approved effective January 21, 2004.
Miscellaneous Notes
Application of Law 12-271: Section 5 of D.C. Law 12-271 provided that the provisions of the act shall apply to any project approved by the Council pursuant to this section after September 11, 1998.
Section 4 of D.C. Law 13-128 provides:
"This act shall apply to any project approved by the Council under section 5 of the TIF Act after July 1, 1999."
(a) When a TIF area for a project is established pursuant to §§ 2-1217.03 and 2-1217.04, the Assessor shall promptly determine and certify the initial assessed value of each lot of taxable property within the TIF area and the Collector shall determine and certify the initial sales tax amount for the TIF area. In certifying the initial sales tax amount, the Collector may determine, at the time of issuance of the TIF bonds that are to be secured by the sales tax increment revenues from the TIF area, that a single re-certification of the initial sales tax amount shall be made when the CFO advises that the new financial systems of the District have been implemented. Any re-certified initial sales tax amount shall control, regardless of whether it results in an increase or a decrease from the amount initially certified.
(b) Within 60 days after the approval of a project by resolution of the Council, the CFO shall provide for the allocation of property tax increment revenues or sales tax increment revenues, or both, within each TIF area. The CFO shall establish one or more separate tax increment allocation accounts within the General Fund for the deposit and application of property tax increment revenues and sales tax increment revenues from each tax increment area. Monies shall be transferred from such accounts at the times and in the amounts required pursuant to financing documents under §§ 2-1217.02 and 2-1217.07 to any fund or account established under such documents for the purpose specified in those documents or may, as provided in the bond documents, be transferred directly from the collector to such funds and accounts. Pursuant to subsections (c), (d), and (e) of this section, monies held or to be held in a tax allocation account or such funds and accounts established under financing documents may be used to pay development costs associated with projects in the applicable tax increment area, to pay the principal of and interest on the TIF bonds issued with respect to such tax increment area, and otherwise applied as indicated in subsection (e) of this section consistent with the applicable bond documents. Monies in a tax allocation account or in any fund or account established under the financing documents may be pledged as security for the payment of TIF bonds issued to finance development costs with respect to the applicable tax increment area and to related purposes referred to in subsection (e) of this section.
(c) Notwithstanding any other law, available real property tax revenues from so much of that portion of taxes levied within a TIF area, from the date of the approval of the TIF area, that are attributable to the difference between the current assessed value and the initial assessed value of each lot of taxable real property within the TIF area as have been approved for such allocation by resolution of the Council shall be paid by the Collector to the CFO for deposit into one or more of the tax increment accounts established by the CFO pursuant to subsection (b) of this section.
(d) Notwithstanding any other law, so much of that portion of available sales tax revenues that results from the sales tax levied within a TIF area, from the date of the approval of the TIF area, that are in excess of the initial sales tax amount as have been approved for such allocation by resolution of the Council shall be paid by the Collector to the CFO for deposit into one or more of the tax increment accounts established by the CFO pursuant to subsection (b) of this section.
(e) The amounts, if any, remaining in the tax increment accounts for a TIF area at the end of each tax year, after provision for the payment of principal or interest on TIF bonds, any costs of credit or liquidity enhancement and other costs, fees, and expenses of administering, carrying, and paying the bonds and the funds, trusts, and escrows pertaining to them, and providing for reasonably required reserves, all as provided in the bond documents, shall revert to the General Fund.
(Sept. 11, 1998, D.C. Law 12-143, § 6, 45 DCR 3724; May 22, 2002, D.C. Law 14-144, § 2(b), 49 DCR 3600.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.5.
Effect of Amendments
D.C. Law 14-144, at the end of subsec. (a), added two new sentences to read as follows: "In certifying the initial sales tax amount, the Collector may determine, at the time of issuance of the TIF bonds that are to be secured by the sales tax increment revenues from the TIF area, that a single re-certification of the initial sales tax amount shall be made when the CFO advises that the new financial systems of the District have been implemented. Any re-certified initial sales tax amount shall control, regardless of whether it results in an increase or a decrease from the amount initially certified."
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(b) of the Tax Increment Financing Temporary Amendment Act of 2002 (D.C. Law 14-139, May 21, 2002, law notification 49 DCR 5056).
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.] see note to § 2- 1217.01.
For temporary (90 day) amendment of section, see § 2(b) of Tax Increment Financing Emergency Amendment Act of 2002 (D.C. Act 14-282, February 25, 2002, 49 DCR 2305).
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
For Law 14-144, see notes following § 2-1217.01.
The CFO shall issue the District's TIF bonds for the purposes authorized by this subchapter. The CFO shall exercise such power to authorize and provide for the issuance of TIF bonds by signing financing documents, including those referred to in § 2-1217.07, which shall describe in brief and general terms sufficient for reasonable identification the development costs to be financed or the TIF bonds that are to be funded or refunded and the property tax increment revenues, the sales tax increment revenues and the other revenues, assets and funds that are to be pledged to secure the repayment of such TIF bonds. The TIF bonds may be issued in more than one series, may be executed in such manner, and may bear such date or dates, mature at such time or times (provided, however, that the final maturity date of any TIF bonds payable from property tax increment revenues or sales tax increment revenues derived from a TIF area may not be later than the termination date of that TIF area), bear interest at any fixed or variable rate, be subject to redemption upon such terms and have such other terms and provisions as the financing documents, including any supplemental thereto, a trust agreement or a trust indenture may provide. The CFO may charge a reasonable fee to cover administrative costs.
(Sept. 11, 1998, D.C. Law 12-143, § 7, 45 DCR 3724.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.6.
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.] see note to § 2- 1217.01.
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
(a) A series of TIF bonds may be secured by a trust agreement or trust indenture between the District and a corporate trustee having trust powers, or by a secured loan agreement or other instrument giving power to a corporate trustee by means of which the District may do the following:
(1) Make and enter into any and all covenants and agreements with the trustee or the holders of the TIF bonds that the District may determine to be necessary or desirable including, without limitation, covenants and agreements as to:
(A) The application, investment, deposit, use and disposition of the proceeds of TIF bonds and the other monies, securities, and property of the District;
(B) The terms and conditions of any agreement with any other person concerning the development of the downtown area;
(C) The assignment by the District of its rights in any agreement;
(D) Terms and conditions upon which additional TIF bonds of the District may be issued;
(E) Providing for the appointment of a trustee to act on behalf of bondholders and abrogating or limiting the rights of the bondholders to appoint a trustee; and
(F) Vesting in a trustee, for the benefit of the holders of TIF bonds, or in the bondholders directly, such rights and remedies as the District shall determine;
(2) Pledge, mortgage or assign monies, agreements, property or other assets of the District, either presently in hand or to be received in the future, or both;
(3) Provide for bond insurance and letters of credit, or otherwise enhance the credit of and security for the payment of its TIF bonds; and
(4) Provide for any other matters of like or different character that in any way affect the security for or payment of the TIF bonds.
(b) TIF bonds issued pursuant to this subchapter are declared to be issued for an essential public and governmental purposes. The TIF bonds and the interest thereon and the income therefrom, and all monies pledged or available to pay or secure the payment of the bonds shall at all times be exempt from taxation by the District except for estate, inheritance, and gift taxes.
(c) The District does hereby pledge to and covenant and agree with the holders of any TIF bonds issued pursuant to this subchapter that, subject to the provisions of the financing documents, the District will not limit or alter the basis upon which available real property taxes and available sales taxes are received, allocated, applied and pledged pursuant to this subchapter; will not impair the contractual obligations of the District to fulfill the terms of any agreement made with the holders of the TIF bonds, will not in any way impair the rights or remedies of the holders, and will not modify in any way the exemptions from taxation provided for in this subchapter, until the bonds, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any suit, action or proceeding by or on behalf of the holders, are fully met and discharged. The CFO is authorized to include this pledge and agreement of the District as part of the contract with the holders of any of its bonds. This subchapter shall constitute a contract between the District and the holders of the TIF bonds authorized by this subchapter. To the extent that any acts or resolutions of the Council may be in conflict with this subchapter, this subchapter shall be controlling.
(d) It is the intention of the Council that a pledge made in respect of its TIF bonds shall be valid and binding from the time the pledge is made; that the money or property so pledged and thereafter received shall immediately be subject to the lien of the pledge without physical delivery or further act; and that the lien of the pledge shall be valid and binding as against all parties having any claim of any kind in tort, contract or otherwise against the District irrespective of whether the parties have notice. Neither the bond order, trust agreement, nor any other instrument by which a pledge is created need be recorded or filed under the provisions of the Uniform Commercial Code to be valid, binding, and effective against the parties.
(Sept. 11, 1998, D.C. Law 12-143, § 8, 45 DCR 3724.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.7.
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.] see note to § 2- 1217.01.
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
If there shall be a default in the payment of the principal of or interest on any TIF bonds of a series after the principal or interest shall become due and payable, whether at maturity or upon call for redemption, or if the District government shall fail or refuse to carry out and perform the terms of any agreement with the holders of any of the TIF bonds; then the holders of the TIF bonds, or the trustee appointed to act on behalf of the holders, may, subject to the provisions of the financing documents, do the following:
(1) By action, writ, or other proceeding enforce all rights of the holders of the TIF bonds, including the right to require the District government to carry out and perform the terms of any agreement with the holders of the TIF bonds or its duties under this subchapter;
(2) By action, require the District government to account as if it were the trustee of an express trust;
(3) By action, petition to enjoin any acts or things that may be unlawful or in violation of the rights of the holders of the TIF bonds; and
(4) Declare all the TIF bonds due and payable, whether or not in advance of maturity and, if all the defaults be made good, annul the declaration and its consequences.
(Sept. 11, 1998, D.C. Law 12-143, § 9, 45 DCR 3724.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.8.
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.] see note to § 2- 1217.01.
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
The CFO may cause any bond order to be filed for public inspection and cause to be published in a newspaper of general circulation in the District a notice stating the fact and date of such bond order and the place where such bond order has been filed for public inspection and also the date of the first publication of such notice. The publication also shall contain a notice that any suit, action, or proceeding of any kind or nature in any court questioning the validity of this subchapter or the validity or proper authorization of TIF bonds provided for by the bond order or the validity of any covenants or agreements provided for by said bond order or any financing document securing the TIF bonds authorized by said bond order shall be commenced within 20 days after the first publication of said notice. If any such notice shall at any time be published and if no suit, action, or proceeding questioning the validity of this subchapter or the validity or proper authorization of TIF bonds provided for by the bond order referred to in said notice, or the validity of any covenants or agreements provided for by said bond order or any financing documents securing the TIF bonds authorized by said bond order shall be commenced or instituted within 20 days after the first publication of said notice, then all residents, taxpayers, and owners of property in the District and all other persons whatsoever shall be forever barred and foreclosed from instituting or commencing any proceeding, questioning the validity of this subchapter, or the validity or proper authorization of such TIF bonds, or the validity of any such covenants, and agreements, and this subchapter shall be conclusively deemed to have been validly enacted by the District and the CFO shall be conclusively deemed to have been authorized to exercise the powers delegated to the CFO under this subchapter, and said TIF bonds, covenants, and agreements shall be conclusively deemed to be valid and binding obligations of the District as provided in this subchapter.
(Sept. 11, 1998, D.C. Law 12-143, § 10, 45 DCR 3724.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.9.
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.] see note to § 2- 1217.01.
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
(a) Neither the members of the Council nor any person executing TIF bonds issued pursuant to this subchapter shall be liable personally on the TIF bonds by reason of the issuance thereof.
(b) Notwithstanding any other provision of this subchapter, TIF bonds issued pursuant to this subchapter are not general obligations of the District and shall not be in any way a debt or liability of the District within the meaning of any debt or other limit prescribed by law. Neither the full faith and credit nor the taxing power of the District (other than property tax increment revenues and sales tax increment revenues) may be pledged to secure the payment of any TIF bonds issued pursuant to this subchapter.
(Sept. 11, 1998, D.C. Law 12-143, § 11, 45 DCR 3724.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.10.
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.] see note to § 2- 1217.01.
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
All the authority of the CFO under this subchapter, except the duties of the CFO under § 2-1217.05 shall be transferred to the Board of Directors of the National Capital Revitalization Corporation ("Board") in accordance with subchapter X of this chapter, upon notification to the CFO that the Board is ready to assume the functions.
(Sept. 11, 1998, D.C. Law 12-143, § 12, 45 DCR 3724; Oct. 16, 1998, D.C. Law 12-169, § 201, 45 DCR 5187.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-2293.11.
Emergency Act Amendments
For temporary addition of §§ 1-2293.1 to 1-2293.11 [1981 Ed.] see note to § 2- 1217.01.
Legislative History of Laws
For legislative history of D.C. Law 12-143, see Historical and Statutory Notes following § 2-1217.01.
Law 12-169, the "Bethea-Welch Post 7284, Veterans of Foreign Wars Real Property Tax Exemption and Equitable Real Property Tax Relief Act of 1998, and Tax Increment Financing Authorization and National Capital Revitalization Corporation Technical Amendments Act of 1998," was introduced in Council and assigned Bill No. 12-531, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on June 2, 1998, and June 16, 1998, respectively. Signed by the Mayor on July 8, 1998, it was assigned Act No. 12-412 and transmitted to both Houses of Congress for its review. D.C. Law 12-169 became effective on October 16, 1998.
Miscellaneous Notes
Transfer of powers, duties, and responsibilities from Chief Financial Officer of the District: Section 30(e)(1) of D.C. Law 12-144 provided that the provisions of this subchapter shall continue in full force and effect provided that the Board of Directors of the National Capital Revitalization Corporation shall exercise all functions of the Chief Financial Officer of the District except the duties under § 1-2293.5 and after the date of notice from the Board to the Chief Financial Officer that the Board is ready to assume such functions.
(a) Notwithstanding any other provision of this part, there is hereby created a TIF area denominated as the DC Ballpark TIF Area, the real property tax increment revenues and the sales tax increment revenues from which shall be allocated as provided in this section. The DC Ballpark TIF Area is defined as the area starting at the intersection of Half Street, S.W., and Interstate 395, proceeding in a southerly direction until the intersection of Half Street, S.W., with Water Street, S.W.; proceeding along an east/west line in an easterly direction to the Anacostia River shoreline; proceeding northeast along the Anacostia River shoreline to 1st Street, S.E.; proceeding in a northerly direction to M Street, S.E.; proceeding in an easterly direction along M Street, S.E., to New Jersey Avenue, S.E.; proceeding in a northwesterly direction along New Jersey Avenue, S.E. to Interstate 395; proceeding in a northwesterly direction to the point of origin. The DC Ballpark TIF Area shall not include either:
(1)The ballpark site as defined under § 10-1601.05(a)(2); or
(2)The ballpark as defined under § 47-2002.05(a)(1)(A).
(b) Notwithstanding any other provision of this part, with respect to the DC Ballpark TIF Area, the initial sales tax amount shall mean the available sales tax revenue from locations within the area for the tax year preceding the year in which this section becomes effective and the initial assessed value shall mean the assessed value of each lot of taxable real property on April 8, 2005.
(c) Notwithstanding any other provision of this part, the real property tax increment revenues and the sales tax increment revenues from the DC Ballpark TIF Area shall be allocated and paid into the Community Benefit Fund, established by § 10-1602.02(a), and which is hereby declared to be a tax increment allocation account as described in § 2-1217.05. The revenues so deposited in the Community Benefit Fund shall be used for any of the purposes described in § 10-1602.02(b).
(d) Without limiting the generality of this part, including the ability to apply the real property tax increment revenues and the sales tax increment revenues to the payment of TIF bonds, the funds in the Community Benefit Fund may be used to secure bonds or other evidence of indebtedness issued in accordance with the provisions of § 1-204.90, without regard to any limitations contained in this part.
(e) The $300 million limitation on the issuance of TIF bonds contained in § 2-1217.02(b) and the time limitation on the issuance of TIF bonds contained in such section shall apply to any bonds supported in whole or in part by real property tax increment revenues or sales tax increment revenues allocated to the Community Benefit Fund.
(Sept. 11, 1998, D.C. Law 12-143, § 12a, as added Apr. 8, 2005, D.C. Law 15-320, § 205, 52 DCR 1757; Nov. 30, 2005, D.C. Law 16-91, § 202, 52 DCR 10637.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-91 rewrote subsec. (a), which had read as follows:
"(a) Notwithstanding any other provision of this part, there is hereby created a TIF area denominated as the DC Ballpark TIF Area, the real property tax increment revenues and the sales tax increment revenues from which shall be allocated as provided in this section. The DC Ballpark TIF Area is defined as the area starting at the intersection of Half Street, S.W., and Interstate 395, proceeding in a southerly direction until the intersection of Half Street, S.W., with Water Street, S.W.; proceeding along an east/west line in an easterly direction to the Anacostia River shoreline; proceeding northeast along the Anacostia River shoreline to 1st Street, S.E.; proceeding in a northerly direction to M Street, S.E.; proceeding in an easterly direction along M Street, S.E., to New Jersey Avenue, S.E.; proceeding in a northwesterly direction along New Jersey Avenue, S.E. to Interstate 395; proceeding in a northwesterly direction to the point of origin."
Legislative History of Laws
Law 15-320, the "Ballpark Omnibus Financing and Revenue Act of 2004", was introduced in Council and assigned Bill No. 15-1028, which was referred to the Committee of Finance and Revenue. The Bill was adopted on first and second readings on November 30, 2004, and December 21, 2004, respectively. Signed by the Mayor on December 29, 2004, it was assigned Act No. 15-717 and transmitted to both Houses of Congress for its review. D.C. Law 15-320 became effective on April 8, 2005.
Law 16-91, the "Technical Amendments Act of 2005", was introduced in Council and assigned Bill No. 16-477, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on November 1, 2005, and November 15, 2005, respectively. Signed by the Mayor on November 30, 2005, it was assigned Act No. 16-212 and transmitted to both Houses of Congress for its review. Title II of D.C. Law 16-91 became effective on November 30, 2005, pursuant to Pub. L. 109-115, Div. B, § 136.
Effective Dates
Section 136 of Pub. L. 109-115, Nov. 30, 2005, 119 Stat. 2522, provides: 'Notwithstanding section 602(c)(1) of the District of Columbia Home Rule Act, amendments to the Ballpark Technical Amendments Act of 2005 shall take effect on the date of the enactment by the District of Columbia [Nov. 30, 2005]."
