Code of the District of Columbia

Subchapter IV. Financial Affairs of the Agency.


§ 42–2704.01. Receipt of funds; disposition thereof.

In connection with the exercise of its powers under this chapter, the Agency may receive gifts, grants, appropriations, loans, bond or note proceeds, or other funds, property or other assets, or any other type of financial assistance from any federal, District, private, or other source and may utilize such funds as determined by rules issued by the Board. Such rules shall also govern the establishment of, administration of, and expenditure from, reserve funds. The source of such funds and the use thereof shall be a part of the annual reporting requirement of § 42-2705.03. The rules shall be submitted to the Chairman of the Council for review on the same day as the rules are transmitted for publication to the District of Columbia Register.


(Mar. 3, 1979, D.C. Law 2-135, § 401, 25 DCR 5008; Aug. 5, 1981, D.C. Law 4-28, § 2(q), 28 DCR 2848.)

Prior Codifications

1981 Ed., § 45-2131.

1973 Ed., § 45-1916.

Editor's Notes

Repayment by D.C. Housing Finance Agency: Section 147 of Pub. Law 104-194 provided that, notwithstanding any other law, the District of Columbia Housing Finance Agency, shall not be required to repay moneys advanced by the District government (including accrued interest thereon) pursuant to Congressional appropriations for fiscal years 1980 through 1992.


§ 42–2704.01a. Repayment of funds.

The Agency shall not be required to repay moneys advanced by the District government (including accrued interest thereon) pursuant to Congressional appropriations for fiscal years 1980 through 1992, and any obligation to repay these moneys shall be forgiven.


(Mar. 3, 1979, D.C. Law 2-135, § 401a; as added Apr. 9, 1997, D.C. Law 11-197, § 3, 43 DCR 4567.)

Prior Codifications

1981 Ed., § 45-2131.1.

Effective Dates

Section 5 of D.C. Law 11-197 provided that the act shall take effect on the latter of: (1) following approval by the Mayor (or the Council in the event of a veto override), approval by the Financial Responsibility and Management Assistance Authority as provided in § 47-392.03(a), and a 30-day period of Congressional review as provided in § 1-233 (c)(1), and publication in the District of Columbia Register; or (2) enactment by Congress of legislation providing that the moneys advanced to the agency pursuant to congressional appropriations need not be repaid to the General Fund of the District of Columbia.

Editor's Notes

Repayment by D.C. Housing Finance Agency: Section 147 of Pub. Law 104-194 provided that, notwithstanding any other law, the District of Columbia Housing Finance Agency, shall not be required to repay moneys advanced by the District government (including accrued interest thereon) pursuant to Congressional appropriations for fiscal years 1980 through 1992.


§ 42–2704.02. Issuance of bonds and notes; renewals and refunds; deemed obligations of Agency; negotiable instruments; director, employer, or agent not personally liable.

(a) Borrowing authority. — The Agency may, by resolution, authorize the issuance of bonds and notes or other obligations (“bonds or notes”) for undertakings authorized by this chapter. In addition, the Agency may issue notes to renew notes and bonds to pay notes, including, the interest thereon. Whenever expedient, the Agency may refund bonds, including bonds previously issued by other than the Agency, by the issuance of new bonds, regardless of whether the bonds to be refunded have matured. The Agency is the successor to any and all District of Columbia Section 11(b) bond issuing authority. The Agency may also issue bonds for a combination of refund, renewal, and financing programs authorized by this chapter.

(b) Obligations of the Agency. — Except as expressly provided otherwise by the Agency, bonds and notes of the Agency are obligations payable solely from revenues derived from the respective housing projects which such obligations are issued to finance, provided that bonds and notes of the Agency issued, in whole or in part, for the purpose of enabling the Agency to make State and Local Government Loans are obligations payable solely, to the extent issued for such purpose, from revenues derived from repayment of State and Local Government Loans made from proceeds of such bonds and notes. The Agency may expressly provide additional security by pledge or contribution from any source in accordance with § 1-204.71.

(c) Negotiable instruments. — Regardless of their form or character, bonds and notes of the Agency are negotiable instruments for all purposes of the Uniform Commercial Code of the District of Columbia (§ 28:1-101 et seq.), subject only to the provisions of the bonds and notes for registration.

(d) No personal liability. — No director, employee or agent of the Agency is personally liable solely because a bond, note or other obligation is issued. The Agency shall indemnify any person who shall have served as a commissioner, officer, or employee of the Agency against financial loss or litigation expense arising out of or in connection with any claim or suit involving allegations that pecuniary harm has been sustained as a result of any transaction authorized by this chapter, unless such person is found by a final judicial determination not to have acted in good faith and for a purpose which he reasonably believed to be lawful and in the best interest of the Agency.

(e) Compliance required. — The issuance and performance of bonds, notes, and other obligations by the Agency as contemplated in this chapter and the adoption of resolutions authorizing such bonds, notes, and other obligations shall be done in compliance with the requirements of this chapter, but shall not be subject to Chapter 5 of Title 2 and, except as otherwise provided in the chapter, shall not be required to comply with the requirements of any legislation passed by the Council. No notice (except as provided in this section), proceeding, consent, or approval shall be required for the issuance or performance of any bond, note, or other obligation of the Agency or the execution of any instrument relating thereto or to the security therefor, except as provided in this chapter or in rules and regulations promulgated by the Agency. Notice of the adoption of a bond resolution shall be given to the Mayor and the Council before the adoption of such resolution.


(Mar. 3, 1979, D.C. Law 2-135, § 402, 25 DCR 5008; Aug. 5, 1981, D.C. Law 4-28, § 2(r), 28 DCR 2848; Apr. 20, 1999, D.C. Law 12-247, § 2(o), 46 DCR 1100.)

Prior Codifications

1981 Ed., § 45-2132.

1973 Ed., § 45-1917.

Section References

This section is referenced in § 42-2705.01.


§ 42–2704.03. Terms for sale of bonds and notes; effect of resolution authorizing sale; pledge of agency and lien thereon; signature valid after officeholder vacates.

(a) General. — The Agency may stipulate by resolution the terms for sale of its bonds and notes in accordance with this chapter, including the following:

(1) The date a bond or note bears;

(2) The date a bond or note matures; provided, that notes shall not mature later than 10 years from the date of original issuance and bonds shall not mature later than 50 years from the date of original issuance;

(3) Whether bonds are issued as serial bonds, as term bonds, or as a combination of the 2;

(4) The denomination;

(5) The interest rate or rates, or variable rate or rates changing from time to time in accordance with a base or formula;

(6) The registration privileges;

(7) The medium and method for payment; and

(8) The terms of redemption.

(b) Public or private sale. — The Agency may sell its bonds or notes at public or private sale and may determine the price for sale.

(c) Additional provisions part of contract. — If the resolution authorizing the sale of bonds or notes contains any of the provisions listed below, the provisions must also be part of the contract with holders of the bonds or notes. The provisions in the resolution may include the following:

(1) The custody, security, expenditure or application of proceeds of the sale of bonds or notes of the Agency (hereinafter “proceeds”), a pledge of the proceeds to secure payment, and the rank or priority of the pledge, subject to preexisting agreements with holders of bonds or notes;

(2) The pledge of revenue securing payment;

(3) A pledge of assets of the Agency, including mortgages and obligations securing mortgages, to secure payment, and the rank or priority of the pledge, subject to preexisting agreements with holders of bonds or notes;

(4) Use of gross income from mortgages owned by the Agency and payment on principal of mortgages owned by the Agency;

(5) Use of reserves or sinking funds;

(6) Use of proceeds from sale of bonds or notes and a pledge of proceeds to secure payment;

(7) Limitation of issuance of additional bonds or notes, including terms of issuance and security, and the refunding of outstanding or other bonds or notes;

(8) Procedure for amendment or abrogation of a contract with holders of bonds or notes, the amount of bonds or notes, the holders of which must consent to the amendment, and the manner in which consent may be given;

(9) Vesting in a trustee property, power and duties, which may include the power and duties of a trustee appointed by holders of bonds or notes under this chapter;

(10) Limitation or abrogation of the right of holders of bonds or notes to appoint a trustee under this chapter;

(11) Defining the nature of default in the obligations of the Agency to the holders of bonds or notes and providing rights and remedies of holders in the event of default, including the right to appointment of a receiver, in accordance with the general laws of the District and this chapter; and

(12) Any other provisions of like or different character which affect the security of holders of bonds or notes.

(d) Pledge of the Agency. — A pledge of the Agency is binding from the time it is made. Any funds or property pledged are subject to the lien of a pledge without physical delivery. The lien of a pledge is binding as against parties having any tort, contract or other claim against the Agency regardless of notice. Neither the resolution nor any other instrument creating a pledge need be recorded.

(e) Signature. — The signature of any officer of the Agency which appears on a bond or note remains valid if that person ceases to hold that office.


(Mar. 3, 1979, D.C. Law 2-135, § 403, 25 DCR 5008; Aug. 5, 1981, D.C. Law 4-28, § 2(s), 28 DCR 2848; Apr. 20, 1999, D.C. Law 12-247, § 2(p), 46 DCR 1100.)

Prior Codifications

1981 Ed., § 45-2133.

1973 Ed., § 45-1918.


§ 42–2704.04. Trust indenture to secure bonds or notes; provisions protecting holders; expenses treated as operating expenses.

(a) Authority. — The Agency may secure bonds, notes, or other obligations by a trust indenture between the Agency and a corporate trustee which has the authority to exercise corporate trust powers within the District.

(b) Provisions. — A trust indenture of the Agency may contain provisions for protecting and enforcing the rights and remedies of holders of bonds or notes in accordance with the provisions of the resolution authorizing the sale of bonds or notes.

(c) Expenses. — The Agency may treat expenses incurred in carrying out a trust indenture as operating expenses.


(Mar. 3, 1979, D.C. Law 2-135, § 404, 25 DCR 5008; Apr. 20, 1999, D.C. Law 12-247, § 2(q), 46 DCR 1100.)

Prior Codifications

1981 Ed., § 45-2134.

1973 Ed., § 45-1919.


§ 42–2704.05. Agency’s purchase of its own bonds and notes; maximum price.

Subject to pre-existing agreements with the holders of bonds, notes, or other obligations, the Agency may purchase its own bonds, notes, or other obligations which may then be cancelled upon such terms and conditions as established by the Agency.

(1) If the bonds, notes, or other obligations are redeemable, the price cannot exceed the redemption price then applicable plus accrued interest to the next interest payment; or

(2) If the bonds, notes, or other obligations are not redeemable, the price cannot exceed the redemption price applicable on the 1st date after the purchase upon which the bonds, notes or other obligations become subject to redemption plus accrued interest to that date.


(Mar. 3, 1979, D.C. Law 2-135, § 405, 25 DCR 5008; Apr. 20, 1999, D.C. Law 12-247, § 2(r), 46 DCR 1100.)

Prior Codifications

1981 Ed., § 45-2135.

1973 Ed., § 45-1920.


§ 42–2704.06. Special or reserve funds; management and investment of funds.

The Agency may establish special or reserve funds in furtherance of its authority under this chapter. Notwithstanding other provisions of District law and subject to agreements with holders of bonds and notes, the Agency shall manage its own funds, and may invest funds not required for disbursement in a manner the Agency determines prudent and in accordance with § 42-2704.13.


(Mar. 3, 1979, D.C. Law 2-135, § 406, 25 DCR 5008; Mar. 8, 1984, D.C. Law 5-50, § 3(a), 30 DCR 5916; Mar. 16, 1993, D.C. Law 9-185, § 3(a), 39 DCR 8221; June 28, 1994, D.C. Law 10-134, § 4(a), 41 DCR 2597; Apr. 18, 1996, D.C. Law 11-110, § 62, 43 DCR 530.)

Prior Codifications

1981 Ed., § 45-2136.

1973 Ed., § 45-1921.

Section References

This section is referenced in § 42-2704.13.

Cross References

Limitation on investment of District of Columbia employees retirement funds, see § 1-721.

Emergency Legislation

For temporary amendment of section, see § 4(a) of the South Africa Sanctions Emergency Repeal Act of 1993 (D.C. Act 10-127, October 25, 1993, 40 DCR 7583) and § 4(a) of the South Africa Sanctions Congressional Recess Emergency Repeal Act of 1994 (D.C. Act 10-176, January 25, 1994, 41 DCR 512).

Temporary Legislation

For temporary (225 day) amendment of section, see § 4(a) of South Africa Sanctions Repeal Act 1993 (D.C. Law 10-75, March 8, 1994, law notification 41 DCR 1518).

Delegation of Authority

Delegation of authority under D.C. Law 9-185, “Public Funds Investment Policy in Financial Institutions and Companies Making Loans to or Doing Business with Northern Ireland Amendment Act of 1992”, see Mayor’s Order 93-76, June 16, 1993.


§ 42–2704.07. No limitation, alteration, or impairment of rights and remedies of bondholders and noteholders.

The District pledges to the holders of any bonds or notes issued under this chapter that the District will not limit or alter rights vested in the Agency to fulfill agreements made with the holders thereof, or in any way impair the rights and remedies of such holders until the bonds and notes, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of such holders are fully met and discharged. The Agency is authorized to include this pledge of the District in any agreement with the holders of bonds or notes.


(Mar. 3, 1979, D.C. Law 2-135, § 407, 25 DCR 5008.)

Prior Codifications

1981 Ed., § 45-2137.

1973 Ed., § 45-1922.


§ 42–2704.08. Faith and credit and taxing power of District not pledged on obligation; statement thereto.

Bonds, notes, and other obligations issued under the provisions of this chapter do not constitute an obligation of the District, but are payable solely from the revenues or assets of the Agency. Each bond, note, or other obligation issued under this chapter must contain on its face a statement that the Agency is not obligated to pay principal or interest except from the revenues or assets pledged and that neither the faith and credit nor the taxing power of the District is pledged to the payment of the principal or interest on a bond, note, or other obligation.


(Mar. 3, 1979, D.C. Law 2-135, § 408, 25 DCR 5008; Apr. 20, 1999, D.C. Law 12-247, § 2(s), 46 DCR 1100.)

Prior Codifications

1981 Ed., § 45-2138.

1973 Ed., § 45-1923.


§ 42–2704.09. Bonds and notes as legal investments and securities.

The bonds and notes of the Agency are legal investments in which public officers and public bodies of the District, insurance companies and associations and other persons carrying on an insurance business, banks, bankers, banking institutions including savings and loan associations, building and loan associations, trust companies, savings banks and savings associations, investment companies and other persons carrying on a banking business, administrators, guardians, executors, trustees, and other fiduciaries and other persons authorized to invest in bonds or in other obligations of the District, may legally invest funds, including capital, in their control. The bonds and notes are also securities which legally may be deposited with and received by public officers and public bodies of the District or any agency of the District for any purpose for which the deposit of bonds or other obligations of the District is authorized by law.


(Mar. 3, 1979, D.C. Law 2-135, § 409, 25 DCR 5008.)

Prior Codifications

1981 Ed., § 45-2139.

1973 Ed., § 45-1924.


§ 42–2704.10. District tax exemptions; payments in lieu; exceptions.

(a) Assets and income of the Agency or of any entity established by the Agency pursuant to § 42-2703.01(20C) are exempt from District taxation. The Agency may make, at its discretion, payment in lieu of taxation.

(b) Bonds and notes issued by the Agency and the interest thereon are exempt from District taxation except estate, inheritance, and gift taxes.


(Mar. 3, 1979, D.C. Law 2-135, § 410, 25 DCR 5008; Mar. 25, 2003, D.C. Law 14-239, § 2(f), 49 DCR 11162.)

Prior Codifications

1981 Ed., § 45-2140.

1973 Ed., § 45-1925.

Effect of Amendments

D.C. Law 14-239, in subsec. (a), substituted “of the Agency or of any entity established by the Agency pursuant to § 42-2703.01(20C)” for “of the Agency”.


§ 42–2704.11. Deposits; payments out of accounts; contracts involving monies held in trust or otherwise for payment of notes or bonds.

(a) All monies of the Agency, except as otherwise authorized in this chapter, shall be deposited as soon as practicable in 1 or more separate accounts in financial institutions regulated or insured by a federal or District agency. Monies in these accounts shall be paid out on checks signed by the Executive Director or other authorized officers or employees of the Agency.

(b) Notwithstanding the provisions of this section, the Agency shall have power to contract with the holders of its notes or bonds as to the custody, collection, securing, investment, and payment of any monies of the Agency and of any monies held in trust or otherwise for the payment of notes or bonds. Monies held in trust pursuant to a contract with holders of notes or bonds may be secured in the same manner as monies of the Agency.


(Mar. 3, 1979, D.C. Law 2-135, § 411, 25 DCR 5008.)

Prior Codifications

1981 Ed., § 45-2141.

1973 Ed., § 45-1926.

Section References

This section is referenced in § 42-2703.01 and § 42-2704.13.


§ 42–2704.12. Investment of funds with financial institution or company doing business with Republic of South Africa. [Repealed]

Repealed.


(June 28, 1994, D.C. Law 10-134, § 4(b), 41 DCR 2597.)

Prior Codifications

1981 Ed., § 45-2142.


§ 42–2704.13. Investment of funds with financial institution or company doing business with Northern Ireland.

(a) For the purposes of this section, the term “agency funds” means all monies managed and all funds established pursuant to §§ 42-2704.06 and 42-2704.11.

(b)(1) Agency funds invested in stocks, securities, or other obligations of any institution or company doing business in or with Northern Ireland or with agencies or instrumentalities of Northern Ireland shall be invested to reflect advances to eliminate discrimination made by these institutions and companies pursuant to paragraph (2) of this subsection.

(2) The Mayor shall consider the following criteria, referred to as the MacBride Principles, to determine the advances to eliminate discrimination made by companies and institutions doing business in or with Northern Ireland or with agencies or instrumentalities of Northern Ireland:

(A) Increasing the representation of individuals from underrepresented religious groups on the work force, including managerial, supervisory, administrative, clerical, and technical jobs;

(B) Providing adequate security for the protection of minority employees both at the workplace and while traveling to and from work;

(C) Banning provocative religious or political emblems from the workplace;

(D) Publicly advertising all job openings and making special recruitment efforts to attract applicants from underrepresented religious groups;

(E) Providing that layoff, recall, and termination procedures should not in practice favor particular religious groups;

(F) Abolishing job reservations, apprenticeship restrictions, and differential employment criteria that discriminate on the basis of religion or ethnic origin;

(G) Developing training programs that will prepare substantial numbers of current minority employees for skilled jobs, including the expansion of existing programs and the creation of new programs to train, upgrade, and improve the skills of minority employees;

(H) Establishing procedures to assess, identify, and actively recruit minority employees with potential for further advancement; and

(I) Appointing senior management staff members to oversee affirmative action efforts and setting up timetables to carry out affirmative action principles.

(3) On or before the 1st day of October of each year, the Mayor shall determine the existence of affirmative action taken by all institutions and companies doing business in or with Northern Ireland, in which agency funds are or will be invested, in adhering to the MacBride Principles as enumerated in paragraph (2) of this subsection and provide an annual report of his or her findings for presentation to the Council, which report shall be made available for public inspection.


(Mar. 3, 1979, D.C. Law 2-135, § 413; as added Mar. 16, 1993, D.C. Law 9-185, § 3(b), 39 DCR 8221.)

Prior Codifications

1981 Ed., § 45-2143.

Section References

This section is referenced in § 42-2704.06.