Category: Legislation

PRESS RELEASE: Councilmember Bonds Advances Two Critical Bills to Expand Limited Equity Cooperatives in the District

June 13, 2022
FOR IMMEDIATE RELEASE
Contact: Kevin B. Chavous | kchavous@dccouncil.us | 202-724-8064

 

Councilmember Bonds Advances Two Critical Bills to Expand Limited Equity Cooperatives in the District

The two bills establish the Limited Equity Cooperative Advisory Council and expand tax exemptions available to cooperatives in the District.

Washington, D.C. – Today, At-Large Councilmember Anita Bonds held a hearing on two bills that support the creation of an additional 3,000 Limited Equity Cooperative (LEC) units in the District.

Limited equity cooperatives provide a critical source of affordable homeownership, stable community networks, and political power in neighborhoods across the District of Columbia. Additionally, studies show that limited equity cooperatives are a critical resource for ongoing affordability and community stability and prevent displacement across the District.

The first bill, the Limited Equity Cooperative Advisory Council Act of 2021, establishes the Limited Equity Cooperative Advisory Council to address the affordable housing crisis in the District. The Advisory Council will implement the Limited Equity Cooperative Task Force’s recommendations, which aim to preserve existing cooperatives, encourage more conversions through the Tenant Opportunity to Purchase Act, and strengthen the cooperative ecosystem.

The second bill, the Limited Equity Cooperative Property Tax Assistance Amendment Act of 2020, will also strengthen the cooperatives financial status and make them more attractive to lenders. This bill makes permanent the property tax abatement for LECs with a large number of households that make less than 80% FMI while emphasizing homeownership for households below 50% FMI.

“These bills will help us preserve existing cooperatives and expand the cooperative ecosystem here in the District,” said Councilmember Bonds. “Homeownership is a key to stable communities and creating generational wealth. My hope is that this bill helps us reach our goal of creating 3,000 new LEC units in the District prior to the next US Census.”

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‌Office of At-Large Councilmember Anita Bonds | 1350 Pennsylvania Avenue NW, Suite 404, Washington, DC 20004 202-724-8064

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JUNE 24th, 2022: Public Hearing Announced on Pending Legislation for DC Housing Co-ops

VIEW NOTICE: https://dccouncil.us/event/housing-executive-administration-public-hearing-6/

 

 

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Limited Equity Cooperative Property Tax Assistance Amendment Act of 2021

BILL SUMMARY – As introduced Bill 24-431 would clarify the definition of a limited equity cooperative (LEC) to include those that have membership limitations in its articles of incorporation or organization, limit the household income of a buyer, and requires a vote of at least 2/3 of its membership to amend its articles of incorporation or organization. It would also make the property tax abatement for LECs permanent for those households that meet certain income levels.

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Limited Equity Cooperative Advisory Council Act of 2021

BILL SUMMARY – As introduced Bill 24-430 would establish a permanent Limited Equity Cooperative Advisory Council to provide continuity and oversight on the issues that the LEC Task Force cited in its 2019 report and to implement the recommendations in the report.

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