Bill
B 26-0657
The act creates a multi-tool framework to accelerate housing supply and affordability by expanding production, preserving units, simplifying financing and permitting, and prioritiz
Purpose and overall aim
- The HOMES Omnibus Amendment Act of 2026 is a broad District of Columbia housing package designed to expand housing production, preserve existing affordable units, broaden pathways to homeownership, reduce barriers to infill development, and improve financing, approval, and delivery of housing projects.
- It combines supply-side tools (production and preservation), access-focused measures (homeownership pathways), and administrative reforms to streamline permitting and financing. The package targets the full housing continuum: vacant/blighted properties, renters facing displacement risk, potential homeowners, and multifamily developments facing capital stack gaps.
Key provisions and changes
Title I. Tax Increment Financing (TIF) Modernization
- Modernizes TIF authority to create a new “noncontiguous renewal district” model that can finance housing, infrastructure, resident stabilization, and anti-displacement strategies across multiple areas under one plan.
- Adds new definitions for affiliated development projects, anti-displacement strategies, renewal districts/plans, noncontiguous TIF areas, resident stabilization, and transit-supportive infrastructure.
- Requires renewal district financing plans to include district-specific financing limitations (bond caps, issuance sunset, termination dates, reserves, and other district-specific constraints) and mandates CFO certification for bond issuance against those limits.
- Establishes new sections (4a–4h) for certification, eligible uses (housing, preservation, infrastructure, stabilization, anti-displacement, grants/loans, administration), plan requirements, affiliated projects, an Advisory Board, public participation, annual reporting, and ex post assessment.
- Expands TIF uses at the district level and requires explicit Council approval for district financing limits.
Title II. District Vacant Property Acquisition and Affordable Disposition Program
- Creates the District Vacant Property Acquisition and Affordable Disposition Program within the Department of Housing and Community Development (DHCD).
- Establishes a data-driven inventory of vacant/blighted residential properties and prioritizes transfer to community land trusts (CLTs) and mission-driven affordable housing nonprofits; allows forgiveness of District-held taxes/liens to facilitate transfer.
- Prioritizes disposition to CLTs first, then affordable housing nonprofits, then qualified affordability developers; permits long-term affordable and other housing outcomes (e.g., shared-equity, lease-purchase).
- Provides a conditional relief authority to reduce/forgive certain District-held charges (taxes, penalties, fees, liens) to enable transfer/rehabilitation, with required conditions and potential staged relief.
- Sets rehabilitation deadlines, requires affordability restrictions (long-term or not less than 15 years for certain mechanisms), and establishes monitoring and potential recapture if conditions are violated.
- Requires annual reporting on program activity.
Title III. Lease-Purchase Homeownership Opportunity Pilot
- Establishes a Lease-Purchase Homeownership Opportunity Program to provide a structured path to homeownership for eligible households not yet mortgage-ready.
- Program administered by DHCD or a designated administrator (including CLTs, nonprofits, or other approved entities).
- Defines eligible households and properties, escrow, counseling, and protections.
- Financing supports include acquisition, rehabilitation, predevelopment costs, carrying costs, counseling, down payment assistance, and escrow matching.
- Requires standard lease-purchase terms, escrow management, ongoing counseling, consumer protections, and conversion to ownership upon meeting specified criteria.
- Sunset: program expires December 31, 2030.
Title IV. First-Time Homebuyer Mortgage Interest Tax Credit
- Establishes a 10% tax credit on qualified mortgage interest for first-time homebuyers with income at or below 150% of AMI, eligible for up to $2,000 per taxable year and limited to 5 years per qualifying residence.
- Credit is nonrefundable and limited to the taxpayer’s liability; definitions provided for AMI, first-time homebuyer, qualified mortgage interest, and qualified principal residence.
Title V. Residential Infill Opportunity Program (RIOP)
- Amends existing residential lot subdivision law to create a streamlined, conforming residential lot subdivision process through the Department of Buildings (DOB) with a fast-track administrative route.
- Allows concurrent review with building permits, subject to objective completeness standards and defined submittal requirements.
- Sets criteria for conforming subdivisions (no variances or zoning amendments required; each resulting lot is buildable and independently titled).
- Establishes a Small-Site Housing Support Program to assist projects arising from conforming subdivisions, including predevelopment grants, small infill loans, and fee waivers/reimbursements.
- Requires affordability covenants and recapture for funded projects; mandates annual reporting on eligible properties and barriers.
- Adds tenant protections for occupied properties undergoing subdivision, including notice requirements and certification of compliance to guard against displacement.
Title VI. Housing Acceleration Fund
- Creates a non-lapsing Housing Acceleration Fund to provide revolving subordinate acquisition and construction financing and related credit support for eligible projects.
- Defines eligible uses (subordinate acquisition/construction loans, bridge financing, construction-period gap financing, preservation of occupied housing, and other supporting credit tools).
- Sets eligibility criteria for borrowers (including single-asset, sole-purpose entities) and projects (DC location, 50+ units, inclusion of senior lender, adherence to affordability requirements).
- Establishes underwriting standards, loan terms (subordinate/mezzanine position, leverage limits, timelines, interest rate flexibility), and closing requirements.
- Funds are non-reverting within a budget framework and may be used across multiple fiscal years; includes administration and potential fees to support ongoing operations.
Titles VII–VIII. Administrative Provisions
- Title VII establishes a Building Permit Advisory Council within the Department of Buildings to improve permitting efficiency, transparency, and predictability.
- Title VIII contains standard provisions: rulemaking authority, fiscal impact, and effective date.
Who is affected
- District residents, particularly renters at risk of displacement and first-time/homebuyers with incomes up to 150% AMI.
- Nonprofit housing providers, community land trusts, and mission-driven developers.
- Financial institutions and lenders participating in TIFs and the Housing Acceleration Fund.
- Property owners of vacant/blighted parcels eligible for disposition and rehabilitation.
- Builders and developers engaged in infill/subdivision activities.
- City agencies (DHCD, DOB, the Mayor’s office) and those involved in permitting, financing, and administration of housing programs.
Timeline and process notes
- New TIF policies and renewal district processes involve a finite certification period (CFO certification within 180 days for renewal plans) and district-specific financing limitations with sunset/termination dates.
- The Vacant Property Program includes a 24-month rehabilitation deadline for transferred properties, with potential extensions.
- The Lease-Purchase Pilot runs for a defined term with a sunset in 2030.
- The Tax Credit becomes available for tax years beginning after 2027, with annual eligibility rules.
- The conforming lot subdivision reforms and Small-Site program establish near-term review processes and reporting requirements (annual/periodic reporting).
- The Housing Acceleration Fund is ongoing, subject to appropriation, with revolving loan mechanics and annual reporting.
Impact takeaway
- The HOMES Act 2026 seeks to create a cohesive, multi-tool framework that accelerates housing supply, preserves affordability, expands homeownership pathways, and reduces barriers across zoning, financing, disposition of vacant properties, and permitting. It emphasizes anti-displacement measures, community land trust prioritization, and measured, transparent oversight through advisory boards and annual reporting.
Compiled from official sources — confirm details with the bill’s official record.
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