Park 7 could receive a capped tax reduction for major repairs

The owner could receive a real property tax reduction. The reduction would apply only to the Park 7 property at 4020 Minnesota Avenue, N.E., identified as Lot 811 in Square 5052. The Mayor must approve the improvement plan and certify the property's eligibility for each tax year. The owner must spend at least $1 of qualifying costs from non-District funds for each $1 of tax reduced. The seven consecutive tax years would begin October 1, 2027. A year without approval or eligibility would not extend that period.

The owner would have to preserve affordability and protect residents during qualifying repairs. These requirements would apply to the Park 7 property and its residents throughout the tax reduction period. The owner must keep existing affordability restrictions and may not reduce the number of affordable homes, except temporarily when needed for repairs. No resident may be permanently displaced solely because of a repair counted toward the spending match. If a temporary move is needed, the owner must follow applicable law on notice, expenses, suitable housing, and return rights. The owner may not separately charge tenants to recover the portion of a qualifying repair counted toward the spending match. These duties would apply throughout the tax reduction period; temporary moves may occur only when needed to complete repairs and must follow applicable law.

The owner would have to document spending and compliance, and the Mayor could suspend or recover tax relief for violations. These reporting and enforcement rules would apply to the owner and the Park 7 property seeking the tax reduction. The owner must report qualifying spending, funding sources, affordability compliance, and requested tax relief each year, and report repair progress to the Mayor and Council by April 1 after a tax year in which the property receives relief. For most violations, the Mayor must give written notice and at least 60 days to fix the problem before suspending eligibility. This time to fix does not apply to fraud, intentional misrepresentation, an immediate health or safety threat, or a violation that cannot reasonably be fixed. Improperly reduced taxes could be restored with interest. Fraud or a serious affordability violation could lead to recovery of some or all relief, which would become a tax debt secured by the property. The Mayor would determine and certify the eligible amount by December 31 of each tax year. The owner would report by April 1 after each tax year in which the property receives a reduction.