B 26-0040 Legislature · 26th Council Period (2025-2026)

1333 M Street, SE Tax Abatement Amendment Act of 2025

This bill provides a 15-year tax abatement for the 1333 M Street, SE development project (River’s Edge) in Ward 6, starting in 2029. It reduces real property taxes on the site by covering amounts exceeding $150,000 annually, but only if the developer sets aside 12% of residential units for households earning ≤60% of median income and completes specific neighborhood improvements. These include a greenway on Water Street, reconstructed bike trails, pedestrian plazas, and 52 public bicycle spaces. The tax relief directly benefits the developer (FRF Land Owner LLC) and aims to support affordable housing and public infrastructure in the Anacostia River neighborhood.

Sub-Topics: Property Development Affordable Housing Tax Incentives Bicycle Infrastructure Pedestrian Safety

Bill status signed all 4 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Council Passage

Jun 2025

Signed into Law

Sep 2025

Introduced Jan 10, 2025 Signed Sep 12, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossment → Enrollment · 4 edits

MODERATE

The bill was finalized as an enrolled act, adding new sections to clarify fiscal impacts and the effective date. The most significant policy change is the addition of a new requirement for the developer to make a $25,000 contribution to the Seafarer's Yacht Club, alongside the existing donation to the Department of Parks and Recreation. Several formatting and phrasing adjustments were made to improve clarity, such as specifying that the property description includes future subdivisions and clarifying the Mayor's certification process.

Scope change

The scope of the bill remains focused on tax abatement for the 1333 M Street, SE development project, but the conditions for receiving this abatement have been expanded.

FISCAL

A new requirement was added mandating a one-time $25,000 monetary contribution to the Seafarer's Yacht Club to support its operations and preservation.

REQUIREMENT

New sections were added to formally adopt a fiscal impact statement and to specify the bill's effective date following mayoral approval and congressional review.

DEFINITION

The definition of 'Property' was slightly expanded to explicitly include future subdivisions of the land into record lots, assessment lots, or condominium lots.

ENFORCEMENT

The language regarding the Mayor's certification to the Office of Tax and Revenue was refined to include a specific instruction to specify the date the property became ineligible if conditions are not met.

Introduction → Engrossment · 7 edits

MODERATE

The bill was reorganized and expanded to include specific definitions for the project and developer, detailed requirements for public space improvements, and new conditions for tax abatement eligibility. The text was updated to clarify that the tax relief is contingent on the Mayor's annual certification that the developer has met specific construction and financial contribution milestones.

Scope change

The bill's scope was expanded to include explicit definitions of the 'Project' and 'Developer' and to list specific public improvements (such as a neighborhood greenway and reconstructed bicycle trail) that must be completed to qualify for tax abatement.

DEFINITION

Added specific definitions for 'Developer' (FRF Land Owner LLC), 'Inclusionary Units', 'Orders' (listing specific Zoning Commission orders), 'Project', and 'Property'.

REQUIREMENT

Changed the required public space improvements from a list of five items to a more specific list of five distinct improvements, including a reconstructed Virginia Avenue with bioretention facilities.

Added a new requirement for the Developer to provide a one-time $25,000 monetary contribution to the Department of Parks and Recreation for senior programming at the Arthur Capper Recreation Center.

Added a new requirement for the Developer to provide a one-time $25,000 monetary contribution to the Seafarer's Yacht Club for operations and preservation.

ENFORCEMENT

Established a new enforcement mechanism requiring the Developer to submit an annual certification by October 31 to the Mayor, who then certifies eligibility to the Office of Tax and Revenue by December 31.

TIMELINE

Clarified that the tax abatement applies for 15 consecutive years beginning October 1, 2029, contingent on meeting all conditions in each year.

ELIGIBILITY

Added specific eligibility criteria requiring 12% of residential floor area to be set aside as inclusionary units, including 3 two-bedroom units for households earning 50% or less of the median family income.

Floor votes · Council Jun 3, 2025

How they voted

10–1

Passed · 1 other

Total votes 12

Jun 3, 2025

D Democratic10

8 Yea 1 Nay 1

80% Yea

I Independent2

2 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 3, 2025

Council · Passed

Council Vote: pass (10-1-1)

council

Mar 20, 2025

Legislature · Passed

Committee Mark-up of B26-0040 by the Business and Economic Development Committee

legislature

Jan 21, 2025

Committee

Referred to Committee on Business and Economic Development

legislature

Jan 10, 2025

Introduced

B26-0040 Introduced by Councilmember Allen at Office of the Secretary

legislature

1 primary · 0 co-sponsors