2208.1 Except as provided in § 2208.3, a Household shall be selected for the initial or subsequent sale and for the initial lease of an Inclusionary Unit through a lottery conducted pursuant to § 2210.

2208.2 No lottery is required for the initial or subsequent sale or the initial lease of an Inclusionary Unit if the Inclusionary Development is to be:

1. (a) Leased or sold to a household displaced from and entitled by law to return to the Inclusionary Unit;
2. (b) Leased or sold as a replacement unit as part of the New Communities Initiative; or
3. (c) Sold by an Inclusionary Unit Owner to the Inclusionary Unit Owner's spouse, domestic partner, parent, trust for the benefit of a child, child who is subject to a guardianship, or child who is eighteen (18) years of age or older, if the spouse, domestic partner, parent, or child submits the information and documents required by § 2213.1.

2208.3 A Household may be selected for the subsequent lease of a Rental Inclusionary Unit through:

1. (a) A lottery conducted pursuant to § 2210;
2. (b) A method described in § 2208.2(b) or (c) (and set forth in the Notice of Availability pursuant to § 2206.6(g)); or
3. (c) A method established by the Owner (and set forth in the Notice of Availability pursuant to § 2206.6(g)), if the method meets the following standards:
4. (1) The Owner maintains a selection list or waiting list ("Owner List") for the Inclusionary Unit or the Inclusionary Development in which the Inclusionary Unit is located that is open to the general public and includes the information listed in § 2209.3;
5. (2) The Owner markets the Inclusionary Unit to the first four (4) Households on the Owner List that qualify for the Inclusionary Unit based on Household size and Household income, as ranked in the following order:
   1. (A) Households residing in the District of Columbia, who shall then be ranked by the length of time each has been

on the Owner List;

(B) Households with a least one (1) member employed in the District of Columbia, who shall then be ranked by the length of time each has been on the Owner List; and

(C) Other Households, who shall then be ranked by the length of time each has been on the Owner List.

(3) The Owner allows each Household at least seventeen (17) days to indicate its interest in leasing the Inclusionary Unit.

(4) The Owner does not lease the Inclusionary Unit before thirty (30) days after the Owner begins to market the Inclusionary Unit to the four (4) Households, unless the Inclusionary Unit is leased to the highest-ranked Household that has indicated its interest in leasing the Inclusionary Unit.

(5) After the thirty (30) day period designated in subparagraph (4) of this subsection, the Owner may lease the Inclusionary Unit to any of the four (4) Households; provided, if there are two (2) or more such Households that are ready and eligible to lease the Inclusionary Unit, and meet the Owner's non-income based rental or sale criteria, the Owner shall lease the Inclusionary Unit to the highest-ranked such Household.

(6) If none of the first four (4) Households leases the unit after a reasonable period of time, the Owner may market the Inclusionary Unit to the next four (4) Households ranked in the same order as set forth in paragraph (b) of this subsection and lease the Inclusionary Unit pursuant to the standards established by subparagraphs (1) through (5) of this subsection.

SOURCE: Notice of Final Rulemaking published at 56 DCR 3907 (May 15, 2009); as amended by Final Rulemaking published at 56 DCR 9295, 9305 (December 11, 2009).