2602.1 Except as provided in § 2602.3, the requirements and incentives of this Chapter shall apply to developments that:

(a) Are mapped within the R-2 through R-5-D, C-1 through C-3-C, CR, SP, and W-1 through W-3 Zone Districts, unless exempted pursuant to § 2602.3;

(b) Have ten (10) or more dwelling units (including off-site inclusionary units); and

(c) Are either:

(1) New multiple-dwellings;

(2) New one-family dwellings, row dwellings, or flats constructed concurrently or in phases on contiguous lots or lots divided by an alley, if such lots were under common ownership at the time of construction; or

(3) An existing development described in subparagraph (i) or (ii) for which a new addition will increase the gross floor area of the entire development by fifty percent (50%) or more.

2602.2 A new development with less than ten (10) dwelling units shall become subject to this Chapter upon the filing of an application for a building permit to add one or more dwelling units to the development within a two-year period after the issuance of the last certificate of occupancy, if the construction for which application has been filed would result in the development having ten (10) or more dwelling units.

2602.3 This Chapter shall not apply to:

(a) Hotels, motels, inns, or dormitories;

(b) Housing developed by or on behalf of a local college or university exclusively for its students, faculty, or staff;

(c) Housing that is owned or leased by foreign missions exclusively for diplomatic staff;

(d) Rooming houses, boarding houses, community-based residential facilities, single room occupancy developments; or

(e) Properties located in any of the following areas:

(1) The Downtown Development or Southeast Federal Center Overlay Districts;

(2) The Downtown East, New Downtown, North Capitol, Southwest, or Capitol South Receiving Zones on February 12, 2007;

(3) The W-2 zoned portions of the Georgetown Historic District;

(4) The R-3 zoned portions of the Anacostia Historic District;

(5) The C-2-A zoned portion of the Naval Observatory Precinct District; and

(6) The Eighth Street Overlay.

2602.4 Except as provided in §§ 2602.5, 2603.5, and 2607.1 (c), of the Act, all inclusionary units created pursuant to this Chapter shall be leased or sold only to eligible households for so long as the inclusionary development exists.

2602.5 An owner/occupant of an inclusionary unit may not sell the unit at a price greater than that established by the Mayor pursuant to § 103 of the Act unless the price is offered by the Mayor or a Housing Trust authorized by the Mayor.

2602.6 No eligible household shall be offered an inclusionary unit for rental or sale at an amount greater than that established by the Mayor pursuant to § 103 of the Act.

SOURCE: Final Rulemaking published at 53 DCR 7013 (August 25, 2006); as amended by Final Rulemaking published at 54 DCR 6943 (July 20, 2007); as amended by Final Rulemaking published at 55 DCR 2604 (March 14, 2008); as corrected by Errata Notice published at 58 DCR 4314, 4317 (May 20, 2011).