D.C. Law 21-267. Land Disposition Transparency and Clarification Amendment Act of 2016.

D.C. Law 21-267. Land Disposition Transparency and Clarification Amendment Act of 2016.

AN ACT

To amend An Act Authorizing the sale of certain real estate in the District of Columbia no longer required for public purposes to require the Mayor's analysis of whether real property is no longer required for public purposes to include a description of each public use considered and an accompanying narrative explaining why the real property will not satisfy each public use considered, to require the Mayor to hold a public hearing to obtain community input on potential public uses of real property before submitting a surplus resolution and at least 60 days before the Mayor issues a request for proposals or competitive sealed proposals, to require the Mayor to hold a public hearing or hearings in connection with a proposed disposition, including in the affected community of any off-site redevelopment related to the disposition, to require the Mayor to provide the Council with a description of the difference between the value of property to be disposed of and the purchase or lease price to be paid by a developer, a pre-disposition economic impact statement, and a valuation of the property to be disposed of, to be prepared by a licensed appraiser no earlier than 5 months before the submission of a disposition resolution, and to require that units dedicated as affordable housing remain so dedicated for the life of the ground lease, or, if not disposed of by ground lease, in perpetuity and secured by a covenant that runs with the land.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Land Disposition Transparency and Clarification Amendment Act of 2016".

Amend § 10-801

Sec. 2. Section 1 of An Act Authorizing the sale of certain real estate in the District of Columbia no longer required for public purposes, approved August 5, 1939 (53 Stat. 1211; D.C. Official Code § 10-801), is amended as follows:

(a) Subsection (a) is amended by adding a new paragraph (3) to read as follows:

"(3) The Mayor shall submit to the Council a semiannual report explaining the status of each disposition approved by the Council during the previous 2 years, including a schedule for project completion of each disposition, an explanation of impediments, if any, to completion of the project, and a description of the steps that are being taken to resolve them.".

(b) Subsection (a-1) is amended as follows:

(1) Paragraph (1) is amended by striking the phrase "and a detailed explanation as to why the real property is no longer required for public purposes".

(2) Paragraph (2) is amended as follows:

(A) Subparagraph (A) is amended to read as follows:

"(A) Whether the real property could have any use by the District, including a description of the District's current needs for real property, a description of potential public uses considered by the Mayor, and a narrative explaining why the real property is unsuited for each public use considered;".

(B) Subparagraph (B) is amended by striking the word "Why" and inserting the phrase "A detailed explanation as to why the real property is no longer required for public purposes, and why" in its place.

(3) Paragraph (4) is amended to read as follows:

"(4) Before submitting a proposed resolution pursuant to this subsection, and at least 60 days before seeking proposals for the disposition of the real property or otherwise proceeding to negotiate the disposition of the real property, the Mayor shall hold at least one public hearing to obtain community input on potential public uses of the real property to inform the Mayor's determination whether the real property is no longer required for public purposes. This surplus hearing shall be held at an accessible evening or weekend time and in an accessible location in the vicinity of the real property. The Mayor shall provide at least 30 days written notice of the public hearing to the affected Advisory Neighborhood Commissions and shall publicize the hearing by posting a written notice at the site and placing a notice in the District of Columbia Register at least 15 days before the hearing.".

(4) Paragraph (5) is repealed.

(c) Subsection (a-3) is repealed.

(d) Subsection (b) is amended as follows:

(1) The lead-in language is amended to read as follows:

"(b) If the Mayor seeks to dispose of real property that is determined to no longer be required for public purposes pursuant to subsection (a-1) of this section, the Mayor shall submit to the Council a proposed resolution that contains the following:".

(2) Paragraph (5) is amended by striking the phrase "(a-3)" both times it appears and inserting the phrase "(b-3)" in its place.

(3) Paragraph (8)(C) is amended by striking the number "20" and inserting the number "15" in its place.

(4) Paragraph (9) is amended to read as follows:

"(9) The following statement:

""The Land Disposition Agreement for the disposition of the real property shall not be inconsistent with the substantive business terms of the transaction submitted by the Mayor with this resolution, unless revisions to those substantive business terms are approved by the Council."".

(e) Subsection (b-1) is amended as follows:

(1) Paragraph (1) is amended as follows:

(A) Subparagraph (B) is amended by striking the phrase "; and" and inserting a semicolon in its place.

(B) Subparagraph (C) is amended by striking the period and inserting the phrase "; and" in its place.

(C) A new subparagraph (D) is added to read as follows:

"(D) A pre-disposition economic impact statement in the form of a quantitative analysis that estimates the economic benefits, including revenues, tax receipts, and job creation, that will result from the disposition, including the anticipated benefits of any development project to be undertaken at the property and any offsite property, including direct, indirect, or induced outcomes.".

(2) Paragraph (2)(A) is amended by striking the word "major" and inserting the word "substantive" in its place.

(3) Paragraphs (3) and (4) are amended to read as follows:

"(3)(A) An appraisal report of the value of the property prepared by an independent licensed appraiser performed no earlier than 5 months before the transmission of the proposed resolution to the Council. The report shall analyze both the highest and best use value of the property and the value of the property under the development proposed pursuant to the disposition. For the purposes of this subparagraph, the term "highest and best use" shall mean the reasonably probable and legal use that is physically possible, appropriately supported, and financially feasible, and that results in the highest value.

"(B) An explanation of the difference, if any, between the appraised value (determined pursuant to subparagraph (A) of this paragraph) and the purchase or lease price to be paid pursuant to the disposition.

"(4) An itemization, together with an explanation, of any government assistance to be received, or contemplated to be received, by the purchaser or lessee under the disposition, including any discount on the price or rent, grants, loans, tax credits, tax abatements, tax increment financing, affordable housing subsidies, land exchange, and negotiated contributions.".

(4) Paragraph (5)(B) is amended by striking the phrase "at the time the resolution is transmitted." and inserting the phrase "at the time the resolution is transmitted; provided, that ifdocuments transmitted with the proposed resolution are revised during the pendency of Council consideration of the proposed resolution, the revised documents shall be clearly marked and transmitted promptly to the Council." in its place.

(5) Paragraph (6) is repealed.

(f) New subsections (b-2), (b-3), and (b-4) are added to read as follows:

"(b-2)(1) Before proceeding to negotiate the disposition of real property pursuant to subsection (b) of this section, and after holding the hearing required under subsection (a-1) of this section, the Mayor shall hold at least one public hearing to obtain community comment and suggestions on the proposed use of the property. The hearing shall be held at an accessible evening or weekend time and in an accessible location in the vicinity of the real property. The Mayor shall provide at least 30 days written notice of the public hearing to the affected Advisory Neighborhood Commissions and shall publicize the hearing by posting written notice at the site and placing a notice in the District of Columbia Register at least 15 days before the hearing.

"(2) To the extent that redevelopment related to the disposition occurs offsite of the real property, the Mayor shall hold at least one public hearing in the affected off-site community of such proposed redevelopment to obtain community comment. The hearing shall be held at an accessible evening or weekend time and in an accessible location in the vicinity of the off-site real property. The Mayor shall provide at least 30 days written notice of the public hearing to the affected Advisory Neighborhood Commissions and shall publicize the hearing by posting written notice at the site and placing a notice in the District of Columbia Register at least 15 days before the hearing.

"(b-3)(1) If a proposed disposition of real property will result in the development of multifamily residential property consisting of 10 or more units ("multifamily units"), the following affordable-housing requirements shall apply:

"(A) If the multifamily units are located in the following areas, at least 30% of the units shall be dedicated as affordable housing:

"(i) Within ½ mile of a Metrorail station that is in operation or for which a construction contract has been awarded on or before the date of the disposition; or

"(ii) Within ¼ mile of a Priority Corridor Network Metrobus Route, as designated by the Washington Area Metropolitan Transit Authority, located entirely or partially within the District of Columbia;

"(B) If the multifamily units are located outside of the areas described in subparagraph (A) of this paragraph, at least 20% of the units shall be dedicated as affordable housing;

"(C) The units dedicated as affordable housing pursuant to subparagraphs (A) and (B) of this paragraph shall remain affordable-housing units for the life of the ground lease if the land disposition is by ground lease, or shall remain affordable-housing units in perpetuity, secured by a covenant running with the land that may be extinguished at the sole discretion of the District; and

"(D) The purchase price for the second and subsequent sales of the units dedicated as affordable housing described in subparagraphs (A) and (B) of this paragraph shall be determined by a formula established by the Mayor.

"(2) The units dedicated as affordable housing pursuant to subparagraphs (A) and (B) of this paragraph shall be made available at the following affordability levels:

"(A) In the case of rental units, at least 25% of the units shall be housing for which a very low-income household will pay no more than 30% of its income toward housing costs, and the remainder of such units shall be housing for which a low-income household will pay no more than 30% of its income toward housing costs; and

"(B) In the case of ownership units, 50% of the units shall be housing for which a low-income household will pay no more than 30% of its income toward housing costs, and 50% of the units shall be housing for which a moderate-income household will pay no more than 30% of its income toward housing costs.

"(3) The Mayor shall take into account the affordable-housing requirements of this subsection when establishing the terms and conditions under which real property is to be disposed of. The Mayor may provide subsidies to a developer, as necessary, to ensure that the affordable-housing requirements imposed by this subsection are met.

"(4) The Mayor may waive the affordable-housing requirements of this subsection; provided, the Mayor certifies that:

"(A) The appraised value of the property to be disposed of is insufficient to support the affordable-housing requirements, taking into account all other available sources of public funding for affordable housing, whether provided by the District of Columbia or the federal government;

"(B) The terms and conditions under which the real property is to be disposed of satisfy the affordable-housing requirements to the maximum extent possible; and

"(C) The Chief Financial Officer has provided to the Mayor and the Council a financial analysis that shall consist of:

"(i) A review and analysis of the financial condition of disposed-of land; and

"(ii) An advisory opinion stating whether or not it is likely that the developer reasonably could be expected to satisfy the affordable-housing requirements set forth in paragraph (1) of this subsection.

"(5) Paragraph (4) of this subsection shall not apply to the disposition of the building and property owned by the District and located at 425 2nd Street, N.W., unless the District commits to using all of the proceeds from the disposition of the property for the construction of one or more new homeless shelters and affordable housing to serve a homeless population of comparable size to the homeless population at 425 2nd Street, N.W.

"(6) The Mayor may reduce the affordable-housing requirements of this section if the proposed disposition of real property finances the development of a significant public facility. For the purposes of this paragraph, the term "public facility" means a building, structure, or system that is an asset of the District government eligible for capital spending and subject to depreciation. A public facility may include a fire station, public library, public school, stadium, or homeless shelter. Notwithstanding the priority to finance a significant public facility, the Mayor shall nevertheless endeavor to provide affordable housing, consistent with this section, to the extent economically feasible.

"(7) Notwithstanding the provisions of this subsection, the Mayor may waive the affordable-housing requirements of this subsection if the District-owned real property is less than 5,000 square feet, even though the property may be consolidated with a private development of multifamily housing consisting of 10 or more units.

"(b-4)(1) If a substantive change is made to the business terms of the transaction described in the term sheet or Memorandum of Understanding, referenced in subsection (b-1)(2) of this section, after the resolution was transmitted to and approved by the Council pursuant to this section, a proposed resolution describing the change and accompanied by the amended documents in redline format shall be transmitted to Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed amendments to the documents, in whole or in part, by resolution within the 45-day review period, the proposed amendments shall be deemed approved.

"(2) For the purposes of this subsection, the term:

"(A) "Redline format" means the changes that are deletions have a line through them and the changes that are additions are underlined.

"(B) "Substantive change" means a change that makes the agreement inconsistent with the executed Memorandum of Understanding or term sheet transmitted with the originally approved resolution.".

(g) Subsection (d) is amended to read as follows:

"(d) Approval of the disposition of the real property by the Council shall expire 2 years after the effective date of the resolution of approval. If the Mayor determines subsequent to Council approval that the property cannot be disposed of within the 2-year period, the Mayor may submit to the Council a resolution to extend the time for the disposition of the property, and shall include with the transmittal a detailed status report on efforts made toward disposition of the property as well as the reasons for the inability to dispose of the property within the 2-year period. The resolution may extend the time for any specified period up to 2 years. If the Council does not take action to approve or disapprove the resolution within 45 days of receipt of the resolution, not including Saturdays, Sundays, legal holidays, or days of Council recess, the resolution shall be deemed disapproved.".

(h) Subsections (h), (i), (j), (k), and (l) are repealed.

Sec. 3. Fiscal impact statement.

The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).

Sec. 4. Effective date.

This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), a 30-day period of congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of Columbia Register.