WASHINGTON, DC
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Legislative and Regulatory Issues Impacting Washington, DC
November 2022
“Bill - Protecting Adjacent and Adjoining Property Owners from Construction Damage Amendment Act of 2022.” This legislation will require property owners, contractors, or persons applying for a permit for construction work to obtain liability insurance to insure adjacent and adjoining property owners for loss or damage arising out of the proposed work. Currently, District law requires general contractors, construction managers and home improvement contractors to furnish certificates of liability insurance before they may be issued a license. The DC Council has referred the Mayor's bill since they are in summer recess until September 15th they are not holding any hearings and I don't anticipate this bill will move anytime soon. Update: MBIA met with the Chairs office to discuss our concerns, staff agreed mostly and sent an amended version that would put in place a vetting process to seek the applicant has proper insurance. The committee will take up the draft version on December 6th. MBIA will support the amended version of the bill OCTOBER 2022 DCRA to Split - the Department of Buildings (DOB) and the Department of Licensing and Consumer Protection (DLCP). On October 1, 2022, the Department of Consumer and Regulatory Affairs (DCRA) will transition into the District's newest agencies, the Department of Buildings (DOB) and the Department of Licensing and Consumer Protection (DLCP). DOB and DLCP will serve residents, businesses, and visitors of the District of Columbia, taking on responsibilities previously under DCRA's purview. This transition will allow each agency to enhance their customers’ experiences. “Bill - Protecting Adjacent and Adjoining Property Owners from Construction Damage Amendment Act of 2022.” This legislation will require property owners, contractors, or persons applying for a permit for construction work to obtain liability insurance to insure adjacent and adjoining property owners for loss or damage arising out of the proposed work. Currently, District law requires general contractors, construction managers and home improvement contractors to furnish certificates of liability insurance before they may be issued a license. The DC Council has referred the Mayor's bill since they are in summer recess until September 15th they are not holding any hearings and I don't anticipate this bill will move anytime soon. Update: The public hearing took place on October 4th, MBIA testified along w/ DCBIA in opposition. The bill now will go before COW for work sessions, we have scheduled a meeting with Chair Mendelson to discuss our testimony. SEPTEMBER 2022 Washington DC: DCRA to Split - the Department of Buildings (DOB) and the Department of Licensing and Consumer Protection (DLCP). On October 1, 2022, the Department of Consumer and Regulatory Affairs (DCRA) will transition into the District's newest agencies, the Department of Buildings (DOB) and the Department of Licensing and Consumer Protection (DLCP). DOB and DLCP will serve residents, businesses, and visitors of the District of Columbia, taking on responsibilities previously under DCRA's purview. This transition will allow each agency to enhance their customers’ experiences. “Bill - Protecting Adjacent and Adjoining Property Owners from Construction Damage Amendment Act of 2022.” This legislation will require property owners, contractors, or persons applying for a permit for construction work to obtain liability insurance to insure adjacent and adjoining property owners for loss or damage arising out of the proposed work. Currently, District law requires general contractors, construction managers and home improvement contractors to furnish certificates of liability insurance before they may be issued a license. The DC Council has referred the Mayor's bill since they are in summer recess until September 15th they are not holding any hearings and I don't anticipate this bill will move anytime soon. DC to offer more than $200K to incentivize residents to buy homes Prospective homebuyers in Washington, D.C., can now receive more than $200,000 to help with their mortgage down payments, marking the latest effort by the city government to incentivize district residents to purchase homes. When the new fiscal year begins on Oct. 1, the maximum down payment D.C. residents can receive through the district’s Home Purchase Assistance Program will raise to $202,000, a massive increase from the $80,000 previously available through the program. Those eligible for the program can receive funds to help with purchasing single-family homes, condominiums, or cooperative housing units located in the district. JULY 2022 DC Proposed Penalties – Noncompliance w/ BEPS The District of Columbia Department of Energy & Environment (DOEE) has published a Notice of Proposed Rulemaking (Proposed Rule) to adopt Building Energy Performance Standards (BEPS) Program Infractions as amendments to Chapter 40 of Title 16 of the D.C. Municipal Regulations (DCMR). The Proposed Rule, issued on April 14, 2022, would establish a schedule of civil infractions for violations of the District's BEPS Program. New D.C. Homeowner Assistance Fund Now Open To Applicants D.C. homeowners struggling with housing costs can now apply for help from the District’s new $50 million Homeowner Assistance Fund. The program, aimed at preventing displacement and helping residents hit by pandemic-related hardships, offers up to a total of $120,000 per eligible household. This includes up to $100,000 assistance with past-due mortgage payments, current mortgage payments for up to 3 months, as well as help with homeowner’s insurance, property taxes, and housing association fees. To qualify for assistance, households must be at or below 100% of area median income. That income limit is $99,650 for a one-person household, $113,850 for a two-person household, $128,100 for a three-person household, $142,300 for a four-person household, all the way up to $187,850 for a household of eight. JUNE 2022 DC Proposed Penalties – Noncompliance w/ BEPS The District of Columbia Department of Energy & Environment (DOEE) has published a Notice of Proposed Rulemaking (Proposed Rule) to adopt Building Energy Performance Standards (BEPS) Program Infractions as amendments to Chapter 40 of Title 16 of the D.C. Municipal Regulations (DCMR). The Proposed Rule, issued on April 14, 2022, would establish a schedule of civil infractions for violations of the District's BEPS Program. MAY 2022 District of Columbia FY23 Budget Mayor Muriel Bowser presented her Fiscal Year 2023 (FY23) Budget and Financial Plan to the Council of the District of Columbia as part of the District’s annual budget process. The $19.5 billion FY23 Budget makes significant increased investments in public safety, housing and ending homelessness, affordability programs, and city services. -Housing Affordability - •Historic $500M contribution to the Housing Production Trust Fund (HPTF) •$41M for project-sponsor vouchers to make housing deeply affordable to low-income residents •$110M to rehabilitate or replace more than 1,500 units of public housing over three years, much of it $219M to bring back public housing units at Barry Farm, Park Morton, Bruce Monroe and Northwest One •$120M in rent and utility assistance across two years, plus $12M for a new Housing Provider fund •$26M to help low-income first-time homebuyers with down payment and closing cost assistance Two DC Bills – “Green Housing Deals” The first bill, titled “The Green New Deal for Housing Amendment Act of 2022,” would create the city’s first “social housing,” which is public housing for both working and middle-class people. Popularized by European cities like Vienna, the idea is for higher-income, market-rent tenants to subsidize their neighbors who are lower income and live in designated affordable units. Because this type of housing is publicly-owned, the government has more control and sets the rent rates. Most energy in the District is consumed by buildings, with residential buildings accounting for 28% of total consumption in 2015. New developments will be built to net-zero emissions standards, and older properties will be retrofitted to become more energy efficient. Properties will rely on solar power to the maximum extent possible, as well as the minimal use of off-street parking. Buildings will be near public transit whenever possible. The second bill would accelerate the removal of lead service lines at public and private properties. D.C.- owned or – leased buildings would have to remove lead pipes by 2028, while private properties will have until 2030. APRIL 2022 District of Columbia FY23 Budget Mayor Muriel Bowser presented her Fiscal Year 2023 (FY23) Budget and Financial Plan to the Council of the District of Columbia as part of the District’s annual budget process. The $19.5 billion FY23 Budget makes significant increased investments in public safety, housing and ending homelessness, affordability programs, and city services. -Housing Affordability - •Historic $500M contribution to the Housing Production Trust Fund (HPTF) •$41M for project-sponsor vouchers to make housing deeply affordable to low-income residents •$110M to rehabilitate or replace more than 1,500 units of public housing over three years, much of it $219M to bring back public housing units at Barry Farm, Park Morton, Bruce Monroe and Northwest One •$120M in rent and utility assistance across two years, plus $12M for a new Housing Provider fund •$26M to help low-income first-time homebuyers with down payment and closing cost assistance JANUARY 2022 New Laws in DC DC’s rent increase moratorium that has bene in effect since early 2020 will end on December 31st, Additionally Gas-powered leaf blowers: As of Jan. 1, 2022, they are no longer legal to buy or use in the District. Lawn care companies and individuals will have to use electric leaf blowers, or else risk a fine of $500. OCTOBER 2021 Redistricting Process Starting in DC The redistricting process that will determine the boundaries for DC’s wards and Advisory Neighborhood Commissions ahead of the November 2022 election cycle. DC’s subcommittee on redistricting held its first hearing May 24. The process has been delayed several months due to COVID - That means DC will have to work quickly to get ward boundaries drawn in time for the primary elections in June, and ANC boundaries drawn in time for the general election in November 2022. DC hasn’t, of course, grown equally in all eight wards. The District has to redraw its ward boundaries in order to make sure the population of each ward remains relatively equal. Redistricting will involve an extensive public input process, starting with multiple council hearings in late September through October, according to Silverman’s staff. The Council will then vote on ward-level boundaries in December. AUGUST 2021 DC City Council to End Eviction Moratorium The council unanimously approved legislation last week that would begin gradually phasing out tenant evictions, the legislation comes as the 60 days following a state of emergency expires. The legislation creates a new set of eviction rules that will last until late February of next year, or 225 days after the measure is passed.
DC Announces New Safety Reviews of Commercial and Multi Family Buildings Mayor Bowser and the Department of Consumer and Regulatory Affairs (DCRA) announced several new initiatives to enhance safety reviews of multifamily and commercial properties in the District. These initiatives include mandating proactive reporting of unsafe structural conditions, increasing the scrutiny of engineering, and implementing real-time reporting of required inspections. These actions are in response to the recent building collapses in Surfside, Florida and 916 Kennedy Street NW DCRA is taking the following actions:
JULY 2021 DC City Council Approves Comprehensive Plan Update The DC City Council unanimously approved the Comprehensive Plan update. Those years of work concluded in a unanimous vote on an update to the document, which dates back to 2006. The Comprehensive Plan doesn’t change DC’s zoning, but it does guide decisions about land use and zoning, shaping the direction of DC’s growth. Density advocates, as well as Mayor Muriel Bowser, say boosting DC’s housing construction is vital for addressing housing affordability. Planning staff said the amendments could allow for increasing housing stock by as much as 15%.The changes also add language encouraging fewer cars, and explore implementing congestion pricing. APRIL 2021 First RF-4 Zone in the City A section of Ward 5 could be the city's first to use a pre-existing, but unmapped, zone identification aimed at maintaining the appearance of the area's existing housing stock. There has been pushback from the Realtors Association, along with local business leaders. The local ANC (neighborhood advisory commission) is turning nearly half of all single family homes in the Trinidad neighborhood that are currently zoned RA-2 (a very flexible zone for apartment/condo building) into the much more restrictive RF-4 zone, which among other things will limit the number of units allowed from unlimited to only three. First RF-4 Zone in the City
A section of Ward 5 could be the city's first to use a pre-existing, but unmapped, zone identification aimed at maintaining the appearance of the area's existing housing stock. There has been pushback from the Realtors Association, along with local business leaders. The local ANC (neighborhood advisory commission) is turning nearly half of all single family homes in the Trinidad neighborhood that are currently zoned RA-2 (a very flexible zone for apartment/condo building) into the much more restrictive RF-4 zone, which among other things will limit the number of units allowed from unlimited to only three. The change is already in effect as a so-called "Pending Zone" but the DC zoning office is having a final public hearing on September 17th – Calling for more High Rises in DC and Tysons Corner High-rise housing is often portrayed as places for the young and childless. Housing for transient young adults before they move out to the suburbs to start families. But Tysons shows that this stereotype leaves out a large number of families who live in high-rises. Where many new high-rises might have a lounge with a pool table, amenities in buildings like the Kingston include a playroom. Tysons shows that high-rise housing can be an appealing home for all ages. In Tysons, 21.4% of residents are under 20 years old, an increase of about 20% since Tysons’ redevelopment plan for more housing was implemented in 2010. The majority of Tysons’ housing stock consists of mid- to high-rise, elevator buildings. DCRA Service Updates Around COVID-19
The Department of Consumer and Regulatory Affairs (DCRA) remains operational, but their office located at 1100 4th Street SW will be unavailable to the public for in-person services from Wednesday, March 25 until Monday, April 27. In the meantime, they are encouraging residents and businesses to utilize their online services. Should you have any questions about how to use any of their services online, please utilize the live chat feature on the DCRA website during normal business hours, call (202) 442-4400, or email us at dcra@dc.gov. On Tuesday, March 17, Mayor Bowser signed legislation to help the District respond to the current public health emergency. There are a couple of items from the legislation relevant to the services DCRA provides:
Construction continues to be allowed in the District Monday – Saturday from 7:00 am to 7:00 pm without any special permits. DCRA inspectors are continuing to investigate reports of illegal construction throughout the District. Construction continues to be allowed in the District Monday – Saturday from 7:00 am to 7:00 pm without any special permits. DCRA inspectors are continuing to investigate reports of illegal construction throughout the District. To protect our employees and the general public, DCRA will also be contacting customers with previously scheduled in-person meetings to reschedule these meetings virtually, via WebEx. |