Building Connections: The blight stuff

Welcome, loyal readers, to the third edition of Building Connections, the column that explains the District of Columbia Department of Buildings (DOB), brick by metaphorical brick. Before going further, you may want to review the first column, which gives background information on DOB, and the second column, which has information about illegal construction enforcement. Today’s topic is vacant and blighted buildings.

Mayor Muriel Bowser is focused on filling properties—especially those downtown—with “vibrant and dynamic” activities for residents, businesses, and visitors to the District. But what does it really mean for a property to be “vacant?” What must property owners do if their property is empty? And how does DOB work with the owners of vacant properties to catalyze responsible, environmentally sustainable economic development? In this column, we’ll attempt to answer those questions.

DOB’s dashboard and vacant and blighted properties

DOB can classify buildings as “vacant” and “blighted.” A vacant building may or may not be blighted. A building deemed “blighted” may or may not be vacant.

A “vacant building” is one that nobody is occupying. For a single-family house, half of a duplex, or similar structure, that means nobody is living there. For a larger building, it means no one is occupying it, either residential or commercial; even a single person living in a large building is enough to avoid vacancy. Similarly, DOB doesn’t track individual vacant units within a multi-unit building. There is no minimum time required for a building to become vacant; an owner is within compliance unless they fail to register the building as vacant or apply for an exemption within thirty days of it becoming empty.

When DOB determines that a property is vacant, we’re making a reality-based decision about whether somebody is actually living or working there. In addition, DOB is empowered to determine that there is a resident with an “intent to return” as part of classifying a building as occupied. So, vacancy is a question about how a building is used.

Whether a building is “blighted” is an entirely different analysis that hinges on the condition of the building. The law allows DOB to consider a variety of things in determining blight, including whether the building is boarded up, whether the roof and exterior envelope of the building are sound, and whether it has been referred to the Board for Condemnation of Insanitary Buildings (BCIB) which we’ll discuss further below. One simple factor to consider is whether or not the building envelope has been compromised and is open to the elements. Obvious cracks in masonry which appear to have compromised a wall’s stability may also be considered.

Just because a building looks bad, or is aesthetically unpleasing to some, doesn’t mean it is “blighted” under the law. In fact, while DOB does use this term, as defined by law, the casual and inexact use of the word blight can be problematic. DOB’s inspectors are trained to review the condition of the building and make the call as to whether it is legally blighted.

Members of DOB’s team are well-versed in evaluating vacant and blighted buildings. There are more than 3,400 vacant, blighted, or exempt buildings or lots displayed on the “Vacant Properties” tab of DOB’s public dashboard. DOB performed about 200 vacant building inspections per week in fiscal year 2023 (DOB’s fiscal year goes from October 1 to September 30) and is on track to perform even more this year. The first thing you should do if you see a building that may be vacant is to check the dashboard—most vacant buildings are already logged there. If it’s not on the dashboard, report it using this form, or use the “1, 2, 3” menu on dob.dc.gov.

The dashboard also has a wealth of information about each property. You can see when the property was first determined to be vacant, whether it is blighted, when DOB last visited the property and confirmed it vacant and/or blighted, and what its tax status is per the Office of Tax and Revenue (OTR).

Vacant properties and taxes

Vacant buildings are taxed at 5% of their assessed value, and blighted buildings are taxed at 10%. This is compared to the normal tax rate of less than 2%, depending on the type of property. These elevated tax rates can quickly become a significant burden to an owner, especially considering a building that is vacant is not generating any income for the owner. The principle behind these increased taxes is to incentivize owners to bring their property back into productive use. DOB can help by guiding customers through the permitting process, as we will discuss in a future column.

Property owners are required by law to register their property as vacant with DOB after 30 days. Failure to register properties results in a fine of $2,358, so it’s best to be proactive about registering promptly. Additionally, there are several categories of properties that are exempt from higher tax rates, and registering them allows the owner to claim one of these exemptions. Reasons for an exemption include: the owner is trying to sell the property; the property is under construction; the property is in probate; the owner is waiting for a ruling from the Board of Zoning Adjustment (BZA), Zoning Commission, or similar District board; or unusual financial hardship. Property does not qualify automatically for these exemptions! Owners must register and provide DOB with evidence to secure tax relief. Registration, or exemptions, must also be renewed at the beginning of each fiscal year.

Owners may only receive up to three years of exemptions. If a building is vacant for more than three years, the owner will be required to pay the higher tax rates. However, if you are willing to pay the 5% rate, and maintain your building under the vacant building property maintenance standards, owners are legally allowed to let a property remain vacant in perpetuity. This is not always what the neighbors want, but the law must balance the needs of the community with the individual rights of the property owner. If you are the owner of a property that is vacant and want to work with DOB to make sure you are compliant, you may register online using the Citizen Access Portal, or call (202)671-3500 between 8:30 am and 4:30 pm. More information is available on DOB’s website.

Non-compliance and escalation

If an owner stops maintaining a vacant property, several other enforcement mechanisms kick into gear. First, when a vacant property’s condition deteriorates from lack of maintenance, DOB will designate it blighted, and it will be taxed at 10%. Blighted properties are not allowed to qualify for tax exemptions.

Second, DOB has limited capability to conduct emergency repairs on properties to protect the safety of the public, or perform some limited superficial maintenance, such as cutting grass and weeds. If this happens, DOB issues a “special assessment” that bills the absent owner for the District’s cost incurred through abatement. The special assessment immediately becomes a tax lien on the property.

Third, if the owner stops paying their taxes or liens, the property will eventually go through a tax sale administered by OTR. The goal of a tax sale is to sell the property to a new owner who will pay the tax debt to the District and return the property to productive use. However, tax sales can take a long time—two or more years is common.

Fourth, vacant buildings in the worst condition may be referred to the BCIB. This Board has members of several different District agencies and meets monthly. The BCIB can compel the owner to appear and present a plan for rehabilitating the building. The BCIB can also order the owner to repair the building, and if issues remain unabated, can “condemn” it. Condemnation, like blight, is a term that can be confusing. It is important to note that the BCIB does not routinely order a condemned building to be demolished at the District’s expense. In this time of Strategic Investments and Shared Sacrifice, there are limited District resources to invest heavily in demolishing properties. Further, even blighted buildings may retain architectural elements of value or historic interest. Thus, instead of mandating the building be demolished, the “Certificate of Condemnation” that the Board issues is filed on the property record at the Recorder of Deeds. This alerts a potential purchaser that problems leading to the condemnation require repair.

Fifth, DOB routinely works with the Office of the Attorney General (OAG) to bring lawsuits against owners who abuse the system or lie to DOB about the status of their properties. One such lawsuit recently resulted in a $1.8 million verdict against a long-time vacant property that the owner claimed to the District was occupied. Lying doesn’t pay!

The possibilities of productive use

The primary challenge around vacant and blighted properties is that it takes money to return them to productive use. Somebody has to bear this cost. In addition, some properties would cost more to return to productive use than their anticipated value after problems are fixed, which can discourage private investment. Solving this problem is complicated.

One item that DOB anticipates will help is the new Pop-Up Permits (PUPs) program that is part of Mayor Bowser’s commitment to revitalize downtown. Changing the use of buildings and liberalizing zoning to increase the potential value of rehabilitated properties are also options to consider. As these larger discussions play out, DOB’s vacant and blighted property teams will continue to classify, monitor, and help maintain the District’s vacant building stock for future neighbors to occupy.

Questions can be directed to keith.parsons@dc.gov, and we look forward to discussing another topic in a few weeks. Thanks for reading!