Vacant Real Property Designation in DC
The District of Consumer and Regulatory Affairs (DCRA) is charged with designating properties as “vacant” if the property is perceived as vacant and abandoned. It is the responsibility of the property owner to file an exemption once DCRA has designated the property as vacant. If an exemption is not filed and granted, the Office of Tax and Revenue (OTR) will changed the tax designation and the real estate taxes assessed will be tripled — which really, really adds up.
There are several basis that a property can be exempt from vacant property designation, including:
Property is under active construction. Generally, you will need to provide a DCRA issued permit as evidence that the property under active construction.
Owner is ACTIVELY seeking to sell or rent the property. Generally, this is established by attaching a MLS listing to the exemption application.
Property is subject to pending application before a DC development board. This would include Zoning Commission, Board of Zoning Adjustment, and Historic Preservation Review Board application.
Property is subject to active probate litigation. This exemption is limited to 24 months.
Owner has a hardship. The owner must show evidence circumstances and the period of exemption cannot exceed 12 months.
It is also very important for property owners to pay attention to DCRA notices because it is possible that DCRA will retroactively apply vacant property status, which can result OTR assessing taxes to periods a new owner did not own the property.