________________________________
From: Chairman Phil Mendelson <lwalton@xxxxxxxxxxxx>
Sent: Wednesday, June 23, 2021 3:40 PM
To:
Subject: June Chairman's Update: The Monthly Newsletter from Phil Mendelson
The Latest From the Desk of the Chairman
[https://r20.rs6.net/on.jsp?ca=e698691e-7da4-46c3-ba6c-78339bdd00b4&a=1132587006269&c=f1227ee4-71c7-11e9-ab3a-d4ae527599c4&ch=f199f44c-71c7-11e9-ab3a-d4ae527599c4]
Volume 36 | June 2021
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<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fr20.rs6.net%2Ftn.jsp%3Ff%3D001xVMwKkJeh3btdDeDiRRyuLrjdfVlbf3i68uKZr5Ppjl_90-yOOwqLuVhZEtlH2gTf58UwPPUVzuv3Bx1RYix7Xk-fp2AYDiSQULFCe4UCeTfUX-Gx6EgeMjAWLsCP0MIu1CVZiz1l1Yxjpti56V17g%3D%3D%26c%3DWfFakKeYXtDqgfeJu_Z6XOcJYPFCbRKI8Nf4EjEVecW0B7BGYP4IlA%3D%3D%26ch%3Dp7PAyzDlmW7OeBCYEeAwdZUaA4gmsvudUYZXY32Ehjpa2cB3TN_b_g%3D%3D&data=04%7C01%7C%7Cda749173514744a55c1808d9367ec216%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637600740320451635%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=ObT09S53Je2dwHcWG%2Bnz39r3Shp8AUI2ISdnf1SxbiU%3D&reserved=0>
VACANT PROPERTY SPOTLIGHT
Our continuing focus on vacant properties is part of our oversight strategy of
the Department of Consumer and Regulatory Affairs. DCRA is responsible for
identifying vacant properties and then classifying them for tax purposes as
either vacant (Class 3) or blighted (Class 4). The Council has established
higher real property tax rates for Classes 3 & 4 properties as a financial
incentive to put these properties back into use. While homeowners pay 85 cents
per $100 valuation, vacant properties are taxed at $5 and blighted at $10.
Classifying vacant properties is usually relatively simple: one can tell from
the street whether a building is vacant, and confirm it with an exterior
inspection front and rear. But this is the fourth newsletter where we have
highlighted buildings improperly classified. DCRA’s ineffectiveness with vacant
properties is a window into how and why it is ineffective with housing code
enforcement and stopping illegal construction.
The point is not that the District is losing hundreds of thousands of dollars
on these properties. Rather, it is that these houses have been vacant for years
– while we’re in the midst of a housing shortage – and neighbors complain over
and over, to no avail.
Fundamentally, DCRA’s enforcement lacks focus or mission. A property owner
determined to evade the higher tax rates can do so easily. Let’s look at three
properties.
[https://files.constantcontact.com/d393273b701/e085e46c-f4ee-486b-95ff-300e2f0b4faa.jpg]
[https://files.constantcontact.com/d393273b701/4ddf6928-678d-40bf-9d5e-8d58d873afbc.png]
1000 C Street, NE has been vacant for at least two decades. Yet the owner
(10thand C Streets Associates, LLC) has repeatedly told the District government
that it is occupied. The property was one of 31 vacant properties looked at by
the DC Auditor in a September 21, 2017
report<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fr20.rs6.net%2Ftn.jsp%3Ff%3D001xVMwKkJeh3btdDeDiRRyuLrjdfVlbf3i68uKZr5Ppjl_90-yOOwqLlZ02ANXqXgyW3zsabd2D2Vkd4NMA_nE1euAS8V8_SLhAR5g0eMCo7eO8OaXYBunSz6gZgwyNAKqqItDq794Jxfm61PF0NI89By0MmdJigO7vBL1cNkEcqBOxEMArNPj2KgHPye6e5hO6Ax2zAZ6N6Cn-PArGQrnf2K7L72ZeFEEQAxbtHOnO2W7pE25GQHBh_O6ha0BgoRsRtNMnIxhTwnRekn91Qg8iA%3D%3D%26c%3DWfFakKeYXtDqgfeJu_Z6XOcJYPFCbRKI8Nf4EjEVecW0B7BGYP4IlA%3D%3D%26ch%3Dp7PAyzDlmW7OeBCYEeAwdZUaA4gmsvudUYZXY32Ehjpa2cB3TN_b_g%3D%3D&data=04%7C01%7C%7Cda749173514744a55c1808d9367ec216%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637600740320461595%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=uwYX3rVQ5zH2U6D06Q%2BotYWfr%2BEVFdGbKKn%2B2TuoNLI%3D&reserved=0>.
The owner’s flagrant manipulation of DCRA has become neighborhood legend –
indeed, there is an anonymous twitter account devoted to this property
(@1000CstNE<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fr20.rs6.net%2Ftn.jsp%3Ff%3D001xVMwKkJeh3btdDeDiRRyuLrjdfVlbf3i68uKZr5Ppjl_90-yOOwqLpT3GvnjxsP0JP-qs776IMBu15xQfn-cOIazocI9HCJTQZPsnY3iArDZT_JlY8mAFTG84_JSlo9PVZwriYKf0kEb_ANZcKkdLQYwLLHo35Mo%26c%3DWfFakKeYXtDqgfeJu_Z6XOcJYPFCbRKI8Nf4EjEVecW0B7BGYP4IlA%3D%3D%26ch%3Dp7PAyzDlmW7OeBCYEeAwdZUaA4gmsvudUYZXY32Ehjpa2cB3TN_b_g%3D%3D&data=04%7C01%7C%7Cda749173514744a55c1808d9367ec216%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637600740320471548%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=Y07NPqXR7dmc9GWo7FaUrjcJrkqTsUZNxMlcsE4nJhc%3D&reserved=0>).
[https://files.constantcontact.com/d393273b701/59c4f8f7-9506-40b8-accd-359037359e9b.png]
According to the Office of Tax and Revenue, this property has been taxed as
vacant only 6 months in the last 14 years. (DCRA recently asked OTR to tax it
retroactively as vacant for 2018 & 2019 – after our inquiries.) It is currently
Class 1 even though my recent inspection found it to be sealed. A reverse
look-up in Whitepages.com indicates no one lives there. News articles in 2010
and 2020 describe the property as longstanding vacant. I believe a review of
gas, electric, and water bills will substantiate that it is unoccupied, and
that the owner has misrepresented for more than a decade the property’s
occupancy status to evade the higher real property tax rate.
But DCRA fails to do the work to make the case that this house is vacant. DCRA
inspectors repeatedly find the house to be vacant. But then DCRA reverses
itself. Or, a few years ago when the owner went to the Real Property Tax
Appeals Commission (see our last newsletter about RPTAC), DCRA failed to submit
sufficient evidence to make its case.
Meanwhile, this appears to be tax fraud. On May 24th I asked Attorney General
Karl Racine to investigate and take legal and punitive action under the False
Claims Act. DCRA could have done that.
[https://files.constantcontact.com/d393273b701/e4214841-2d76-431b-beb1-01aa4127b236.jpg]
5504 Nebraska Avenue, NW: This neat little house on a quiet stretch of Nebraska
Avenue in Chevy Chase has been continuously vacant for years. The ANC testified
about this property at our hearing May 25th: “The front yard is overgrown, the
front door has an accumulation of mail, and the back yard and deck are covered
with trash and weeds.” Since then DCRA has inspected the property, affixed a
neon-green VACANT PROPERTY notice on the front door, and the yard has been
cleaned up. Well, sort of.
[https://files.constantcontact.com/d393273b701/45fc410b-8c75-4a4d-af20-32cf538d4d09.jpg]
If you peek through a front window, you will see an unbelievable accumulation
of rubbish filling the living and dining rooms. It is so obvious that the house
is vacant, arguably blighted, and yet for at least four years DCRA has failed
to list the property as either.
This appears to be another instance of tax fraud, with DCRA an abettor. The
owner has repeatedly applied for construction permits. Active construction is
grounds for exemption from the vacant property tax. But I ask you, how many
years does it take to repair an existing front porch? Permit B1705180 was
issued May 1, 2017. And again in 2018, and 2019, in fact, earlier this month he
applied again!
[https://files.constantcontact.com/d393273b701/1ec89869-3aed-4dc4-baf5-31df3454143f.jpg]
[https://files.constantcontact.com/d393273b701/7e659f81-62be-44d7-b264-9c700f0ff4bc.jpg]
Cornelius Donnelly, the property owner, also owns 3216 Morrison Street, NW,
around the corner. This is how ANC 3/4G describes it: “Neighbors advised DCRA
in August 2015 that this house was vacant, had broken windows, and had dozens
of unopened bags of fertilizer and mulch scattered across the yard. … The owner
obtained multiple ‘construction/alteration/repair’ permits in 2015, 2016, 2017,
2018, and 2019. The only permit currently posted at the house expired on
December 4, 2019. DCRA denied permit extensions in December 2018 and June 2020.
The property has remained in essentially the same dilapidated condition since
2015 with no visible construction work undertaken.”
[https://files.constantcontact.com/d393273b701/3a75b202-3a53-45d4-8ca2-af8b684e560c.jpg]
[https://files.constantcontact.com/d393273b701/eed108b6-fac6-4534-85e0-e3f65a88e0cf.jpg]
Nevertheless, this property has remained Class 1 every year for which tax
records are available online. The current assessed value is $926,440. Instead
of paying the vacant Class 3 rate ($46,320) he will pay the non-vacant Class 1
rate ($7,874). The same is true for his Nebraska Avenue house assessed at
$930,540. The owner is evading almost $77,000 in taxes. And the houses remain
vacant.
DCRA checks the box. There is no sense of mission. Whether the problem is
vacant houses, illegal construction, or housing code violations, DCRA may send
an inspector. But that’s just about it. There is no follow through. No effort
to ensure compliance. And so the problem persists.
Council Legislative Update
FY 2022 Budget: Fiscal Year 2022 starts this October 1st. In
the meantime, the Council’s committees are pouring over the Mayor’s proposal
that she submitted May 27th. Starting next week the committees will be adopting
their recommendations. My sense is that we will preserve the Mayor’s
initiatives with regard to affordable housing: substantial investments in the
Housing Production Trust Fund and the Housing Preservation Fund. However, there
will be an effort to increase or redirect funding to reduce homelessness.
Although the Committee of the Whole will make recommendations
next week concerning education, I expect that the significant moves will come
when I propose the committee print July 19th. I am concerned that no school
sees a cut to its budget and that there is adequate funding for resources such
as early childhood education, tutoring for reading and math, counseling for
social/emotional issues, and out of school time activities (such as aftercare).
Tax Increase: It’s hard to believe, but even with an infusion
of almost $3.3 billon in federal funds, and local tax revenues once again
growing, several Councilmembers are talking about raising taxes. Some
progressive social policy groups are leading the charge, proposing to increase
income and real property tax. The top rate on income would go from just under
9% to almost 12%. And they propose raising the property tax on any home with an
assessed value over $2 million.
It’s not clear whether their goal is to fund programs, since
there is so much federal money right now to do the same thing, or to increase
“equity,” since they claim the wealthiest Washingtonians pay in taxes a lesser
percentage of their income than do middle income residents.
I have countered that if equity is the issue, then redirect the
tax revenue from the wealthy to create new, lower brackets for the middle
class. But that’s reached a tin ear. Regardless, the Council unanimously
approved creating a new tax revision commission and tax changes should wait for
them.
Last Council Meeting: The Council met June 14th. Three measures
got the most attention.
First, approval of the Mayor’s nomination of Reggie Van Lee to
be the new Chairman of the Commission on the Arts and Humanities. Mr. Van Lee
is a corporate executive who has been active in the arts for years. He was
appointed by Barrack Obama to the Board of Trustees of the Kennedy Center and
was formerly on the President’s Committee on the Arts and Humanities. He
replaces Kay Kendall, whom I thank for her service.
Second, by 9-3 vote (Councilmembers Lewis George, Trayon White
and myself voting no; Councilmember McDuffie “present”) the Council
preliminarily approved a prohibition on the sale of flavored tobacco products.
While fruit and mint flavors are widely controversial, the legislation also
bans menthol which has existed in some brands of cigarettes for at least half a
century. Not only did I not support that, but I find an irony in the Council’s
trend toward banning tobacco while lifting the ban on marijuana.
The third measure getting attention was an emergency bill to
approve an advance payment to DCPS and the public charter schools to begin the
new school year this summer.
The next two meetings of the Council are June 29th and July 13th.
Eviction Moratorium: A month ago I tried unsuccessfully to move
legislation that would restructure the current moratorium on evictions. My goal
was to lift the moratorium on middle and upper income residents who can afford
their housing, and to encourage lower income residents to access the $352
million in federal assistance that is available to pay their housing and
utility bills. Unfortunately, the assistance is tied to an online portal called
“STAY-DC,” and there have been problems with its roll out. I will continue to
work with advocates and the Executive to resolve the bugs. It would be better
for the government to design the transition from the public health emergency
back to normal (or “new normal”) life. Otherwise the transition could be rough,
and the public health emergency may end soon.
Upcoming Hearings
of the Committee of the Whole
Public Hearing:
PR
24-229<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fr20.rs6.net%2Ftn.jsp%3Ff%3D001xVMwKkJeh3btdDeDiRRyuLrjdfVlbf3i68uKZr5Ppjl_90-yOOwqLpT3GvnjxsP0iZcYKxZvJH_icd9SYcghU7sHDM1_dWZEYW7fNQ6wFTKmdRMcTz6zeohpkhTvXeQbvfTPyl2b9fbMEVQf5zMOOi2nowiS809nAbVu6FQUmo6WcPBrnKXTOw%3D%3D%26c%3DWfFakKeYXtDqgfeJu_Z6XOcJYPFCbRKI8Nf4EjEVecW0B7BGYP4IlA%3D%3D%26ch%3Dp7PAyzDlmW7OeBCYEeAwdZUaA4gmsvudUYZXY32Ehjpa2cB3TN_b_g%3D%3D&data=04%7C01%7C%7Cda749173514744a55c1808d9367ec216%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637600740320481509%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=isHR%2FC5N5B9qvTlqmyZFkvefa8NkDqxAoQENxI7AuIM%3D&reserved=0>,
“Zoning Commission Robert Miller Confirmation Resolution of 2021”
June 24, 2021
12 p.m. via Virtual Meeting Platform
Public Hearing:
PR
24-225<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fr20.rs6.net%2Ftn.jsp%3Ff%3D001xVMwKkJeh3btdDeDiRRyuLrjdfVlbf3i68uKZr5Ppjl_90-yOOwqLpT3GvnjxsP0730XkB4xMf3nTJs_vg9Hm6dq1WzvN4RMFx8u1fa61cYcYRfbYnEiGWHkEsSmiEJKRRNFx__JtcmgjkrTz6md4jZHOEv9OCYNmqk4HoZrqsP3HnqDjNgOww%3D%3D%26c%3DWfFakKeYXtDqgfeJu_Z6XOcJYPFCbRKI8Nf4EjEVecW0B7BGYP4IlA%3D%3D%26ch%3Dp7PAyzDlmW7OeBCYEeAwdZUaA4gmsvudUYZXY32Ehjpa2cB3TN_b_g%3D%3D&data=04%7C01%7C%7Cda749173514744a55c1808d9367ec216%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637600740320491473%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=mthu78CvsOU48iKSANOAF82JpOpmod2idTQ%2FhElenBw%3D&reserved=0>,
“Historic Preservation Review Board
Carisa Stanley Confirmation Resolution of 2021”
PR
24-226<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fr20.rs6.net%2Ftn.jsp%3Ff%3D001xVMwKkJeh3btdDeDiRRyuLrjdfVlbf3i68uKZr5Ppjl_90-yOOwqLpT3GvnjxsP0JawK1MwKB7RUlBVL53Sp6hDfU8KZ00MlBIeSlvvznfO4Bhp7TkxsbhU0s1M02d-yIwTnc8ILH05r9nGRwH7spSP7N_wcwwhUDvuOwgI0MZ6PeDRRVmy9fg%3D%3D%26c%3DWfFakKeYXtDqgfeJu_Z6XOcJYPFCbRKI8Nf4EjEVecW0B7BGYP4IlA%3D%3D%26ch%3Dp7PAyzDlmW7OeBCYEeAwdZUaA4gmsvudUYZXY32Ehjpa2cB3TN_b_g%3D%3D&data=04%7C01%7C%7Cda749173514744a55c1808d9367ec216%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637600740320491473%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=jOiaIJ8LMTaNS53XVs6FXJNp%2BHTBD2OfFajCq0d9GgQ%3D&reserved=0>,
“Historic Preservation Review Board
Alexandra Jones Confirmation Resolution of 2021”
PR
24-227<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fr20.rs6.net%2Ftn.jsp%3Ff%3D001xVMwKkJeh3btdDeDiRRyuLrjdfVlbf3i68uKZr5Ppjl_90-yOOwqLpT3GvnjxsP0F_cCdJ5m-7JiWR4gTzVWrMISXshKd88LFR9Dho_MZuNI0K_biULQad4ovtcsoWeaGoKV02SX6-94DlnwXHdYk6zE18Dp892YY408NStnVJDlAW4MEmk3lA%3D%3D%26c%3DWfFakKeYXtDqgfeJu_Z6XOcJYPFCbRKI8Nf4EjEVecW0B7BGYP4IlA%3D%3D%26ch%3Dp7PAyzDlmW7OeBCYEeAwdZUaA4gmsvudUYZXY32Ehjpa2cB3TN_b_g%3D%3D&data=04%7C01%7C%7Cda749173514744a55c1808d9367ec216%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637600740320501425%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=x0sNiMsH4NbYqE0AihQkcdK7WA%2BbMhCz0YCp2Bs%2F16U%3D&reserved=0>,
“Historic Preservation Review Board
Andrew Aurbach Confirmation Resolution of 2021”
PR
24-228<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fr20.rs6.net%2Ftn.jsp%3Ff%3D001xVMwKkJeh3btdDeDiRRyuLrjdfVlbf3i68uKZr5Ppjl_90-yOOwqLpT3GvnjxsP0xL1Q-nW5f8k8itsAYdXoRxDaDjsnownCzuUkT0Zzg0Vbsg0Fwj1BnbvHW22Y4whqdN6L_jXMu0m9xKzPzHyn_8OOxRuyPuyJAFibn4seSxAFToUZRGUMqQ%3D%3D%26c%3DWfFakKeYXtDqgfeJu_Z6XOcJYPFCbRKI8Nf4EjEVecW0B7BGYP4IlA%3D%3D%26ch%3Dp7PAyzDlmW7OeBCYEeAwdZUaA4gmsvudUYZXY32Ehjpa2cB3TN_b_g%3D%3D&data=04%7C01%7C%7Cda749173514744a55c1808d9367ec216%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637600740320511379%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=gnv%2Bwe0M9DBccs3N3tdy0KVCmo7QmCfLfsvNLQgqCww%3D&reserved=0>,
“Historic Preservation Review Board
Gretchen Pfaehler Confirmation Resolution of 2021”
June 24, 2021
1 p.m. via Virtual Meeting Platform
Public Hearing:
PR24-238<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fr20.rs6.net%2Ftn.jsp%3Ff%3D001xVMwKkJeh3btdDeDiRRyuLrjdfVlbf3i68uKZr5Ppjl_90-yOOwqLpT3GvnjxsP0uwb0Vkd50nACzSvgI6TrrcKSUL3aZdS4AiiJJkQFBKvDXnEB3zE3KiFPG5dMMpK7tOCiWqTkk8bnWz4_AtszRURccADXJNAkwEigIMP-CiOL51mFBZNp4w%3D%3D%26c%3DWfFakKeYXtDqgfeJu_Z6XOcJYPFCbRKI8Nf4EjEVecW0B7BGYP4IlA%3D%3D%26ch%3Dp7PAyzDlmW7OeBCYEeAwdZUaA4gmsvudUYZXY32Ehjpa2cB3TN_b_g%3D%3D&data=04%7C01%7C%7Cda749173514744a55c1808d9367ec216%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637600740320511379%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=z2PYpEwFd8AAh%2FuerXtWpd4%2BH6%2BXvcL8UpFA3LuPKNo%3D&reserved=0>
African American Civil War Museum Installation of the Abraham Lincoln Spirit
of Freedom Emancipation Statue Approval Resolution of 2021
June 24, 2021
2 p.m. via Virtual Meeting Platform
Budget Oversight Hearing:
“Fiscal Year 2022 Local Budget Act of 2021”
“Fiscal Year 2022 Federal Portion Budget Request Act of 2021”
“Fiscal Year 2022 Budget Support Act of 2021”
“Fiscal Year 2021 Revised Local Budget Emergency Adjustment Act of 2021”
June 25, 2021
9 a.m. via Virtual Meeting Platform
Legislative Meeting
June 28, 2021
12 p.m. or following the Council Breakfast
via Virtual Meeting Platform
For More Information on How to 'Attend' a Virtual Public Hearing & Meeting or
to Testify for Public Hearings visit ChairmanMendelson.com/Testify
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CHAIRMAN MENDELSON'S STAFF
The majority of the Chairman's Staff has shifted to telework during this public
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DC Council Chairman Phil Mendelson | 1350 Pennsylvania Ave NW, Suite 504,
Washington, DC 20004
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