D.C. Code tit. 42 § 42-3508.02
Tax abatement for new or rehabilitated vacant rental housing.
Operative Text
(a) There shall be an 80% reduction of the property tax liability during the first year newly constructed rental housing accommodations become available for rental. Tax for succeeding years shall be increased by increments of 16% of the full tax liability, until the time the full liability absent this provision, is reached. (b) When vacant rental accommodations which have been rehabilitated become available for rental, the provisions of subsection (a) of this section shall apply to the amount by which the tax assessment was increased due to rehabilitation. (c) When vacant rental accommodations are being rehabilitated under this subchapter, the Mayor may defer or forgive any indebtedness owed the District or defer or forgive outstanding tax liens. (d) A project eligible for tax abatement or deferral or forgiveness of any indebtedness to the District or deferral or forgiveness of tax liens under subsections (a), (b), and (c) of this section shall be subject to certification by the Mayor that it is in the best interest of the District and is consistent with the District’s rental property needs in terms of its location, type, and variety of sizes or rental units. (e) Repealed. (f) This section shall not apply to property which receives tax relief pursuant to §§ 47-857.03 through 47-857.10 .
D.C. Code § 42-3508.02 establishes a phased property tax relief program for newly constructed or rehabilitated vacant rental housing in the District of Columbia. In the first year a new rental property becomes available, the owner's property tax liability is reduced by 80%, with that reduction stepping down by 16 percentage points each subsequent year until the full tax liability is restored. Rehabilitated vacant rentals receive similar relief, but only on the portion of the assessment attributable to the rehabilitation work. The Mayor retains authority to defer or forgive outstanding tax debts or liens during rehabilitation, provided the project is certified as consistent with the District's rental housing needs.
Plain English — not legal advice.
Property owners developing or rehabilitating vacant rental housing in the District should be aware that D.C. Code § 42-3508.02 provides a structured tax abatement that begins at 80% in the first year of availability and phases out over subsequent years. To access this benefit, a project must receive Mayoral certification confirming it serves the District's interests in terms of location, unit type, and size variety. Operators of rehabilitated properties should note that the abatement applies only to the incremental increase in assessed value resulting from the rehabilitation, and that properties already receiving tax relief under D.C. Code §§ 47-857.03 through 47-857.10 are not eligible under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
D.C. Code § 42-3508.02 is relevant to tenants because tax abatement programs for new or rehabilitated rental housing can influence the supply and affordability of rental units in the District. Tenants living in newly constructed or recently rehabilitated buildings may be in properties that benefited from this phased tax relief, which was conditioned on Mayoral certification that the housing meets the District's rental needs. Tenants with questions about how this provision may relate to their housing situation can consult the D.C. Office of the Tenant Advocate or a local tenant-rights organization for general guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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