*NOTE: This section includes amendments by emergency legislation that will expire on August 26, 2026. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Past Permanent Version.*

1. (a) For the purpose of this section, the term:

   1. (1) "Owner" means McMillan Parcel 2 Owner, LLC, and McMillan Parcel 4 Owner, LLC, affiliates of LDP Holdings, LLC d/b/a Jair Lynch Real Estate Partners, and its successors, affiliates, and assigns.
   2. (2) "Property" means the real property, including any improvements constructed thereon, at Parcel 2 West and Parcel 4 within the Reservoir District; known for tax and assessment purposes as Lots 814 and 815 in Square 3128, and Lots 809 and 810 in Square 3128, respectively.

2. (b) Beginning on October 1, 2029, 100% of the real property tax imposed on the Property pursuant to Chapter 8 of this title shall be exempted for 20 real property tax years; provided, that the Owner shall:

   1. (1) Operate or cause to be operated 449 units of housing at the Property;
   2. (2) Set aside 1/3 of the operating rental housing units in the Property as affordable as defined by 26 U.S.C. § 42(g)(2)(A). The units designated as affordable will be available to households qualifying for the 80 Percent Income Limit Category of the Multifamily Tax Subsidy Project Income Limits for the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro Fair Market Rent Area as reported annually by the US Department of Housing and Urban Development and made in a manner consistent with 26 U.S.C. § 142(d)(2)(B).
   3. (3) Enter into an agreement with the District government that requires the Owner, or its designee or assignee, to, at a minimum, contract with certified business enterprises for at least 35% of the contract dollar volume of the construction of the project on the Property, in accordance with Subchapter IX-A of Chapter 2 of Title 2; and
   4. (4) By September 30 of the year immediately preceding each tax year in the exemption period set forth in this subsection, provide the Mayor with information showing what percentage of each of the requirements for eligibility for the exemption provided in paragraphs (1) through (3) of this subsection has been met. If the total number of units of housing required to be provided pursuant to paragraph (1) of this subsection has not been met, the amount of the real property tax exemption shall be reduced in equal proportion to the percentage of units of housing that are not currently operating in the given real property tax year.
3. (c) By December 31 of each tax year of the exemption period provided in subsection (b) of this section, the Mayor shall certify to the Office of Tax and Revenue what percentage of tax exemption the Property is eligible to receive under this section for that tax year. The Mayor shall notify the Office of Tax and Revenue if the Property ceases to be eligible for the exemption and the date such eligibility ceased.
4. (d) The exemptions provided by this section shall be in addition to, and not in lieu of, any other tax relief or assistance from any other source applicable to the Owner or Property.

Emergency Legislation

For temporary (90 days) creation of this section, see § 47-4682 of Fiscal Year 2026 Budget Support Emergency Act of 2025 (D.C. Act 26-146, Sept. 3, 2025, 72 DCR 9623).

For temporary (90 days) creation of this section, see § 47-4682 of Fiscal Year 2026 Budget Support Congressional Review Emergency Act of 2025 (D.C. Act 26-210, Nov. 24, 2025, 72 DCR 13514).

For temporary (90 days) amendment of this section, see § 2(c) of Reservoir District Tax Exemption Emergency Amendment Act of 2026 (D.C. Act 26-319, May 28, 2026, 0 DCR 0).

History

Dec. 6, 2025, D.C. Law 26-55, § 7172(b)

May 28, 2026, D.C. Act 26-319, § 2