“Far too many low-income residents pay rent for years with no hopes of ever owning their own home. The opportunities for building wealth and security that homeownership offers should not be denied to our residents of public housing,“said Catania.

The Act outlines the District of Columbia Housing Authority's role in implementing the program, provides standards for eligibility for purchasers, sets requirements for the condition of the properties to be sold and for the transfer of the property to the purchaser, and provides certain tax abatements and funding for the purchasers.

The legislation directs DCHA to submit a Homeownership Plan to the U.S. Department of Housing and Urban Development, as permitted by federal regulations, which details how the plan will be implemented. A minimum of 10% of the single-family dwellings within DCHA control must be offered for sale to the purchasers within two years of HUD approval of DCHA's plan.

The eligibility requirements will be set by DCHA and in accordance with the Act must include: 1) Affordability standards so that all monthly costs associated with the purchase of the home do not exceed 35% of the applicants adjusted income and any subsidy available for such payments; 2) Completion of an approved homeownership counseling program; and 3) An occupancy requirement mandating that the purchaser be an occupant of the unit to be purchased for at least two years prior to purchase and intends to remain an occupant after the purchase.

DCHA must ensure that all housing purchased complies with local housing codes and all other applicable laws. This includes complying with the Lead-Based Paint Poisoning Prevention Act and the Residential Lead-Based Paint Hazard Reduction Act of 1992.

Purchasers must agree to own and occupy homes purchased pursuant to this act. DCHA must set forth regulations to ensure that purchasers under this homeownership plan do not realize a windfall profit. This may include shared equity arrangements to last a certain number of years to be determined by DCHA.

Tax abatements will be available for real property taxes, recordation taxes and transfer taxes for qualified participants of this program. Qualified buyers must have purchased the residence after the effective date of the Act, and the individual must permanently reside in the property.

All monies received in payment for the properties purchased under this act that are not necessary to give effect to the act shall be deposited into a Replacement Housing Fund. The fund will help provide public housing to replace the units purchased under the Act. This money will be governed by DCHA who will be responsible for ensuring efficient management of the fund.

The Act will now be referred to the Committee on Consumer and Regulatory Affairs. For more information, contact the Office of Councilmember Catania at 202.724.7772.