The Reservoir District Tax Exemption Amendment Act of 2025 proposes to amend Chapter 46 of Section 47 of the District of Columbia Official Code to establish a real property tax exemption for specific properties located at Lots 809, 810, 814, and 815 in Square 3128. The bill introduces a new section, 47-4682, which outlines the terms of the exemption, including the definition of the "Owner" as McMillan Parcel 2 Owner, LLC, and McMillan Parcel 4 Owner, LLC, and the "Property" as the real estate at Parcel 2 West and Parcel 4 within the Reservoir District. The exemption will begin on October 1, 2029, and will last for 20 years, provided that the Owner meets certain conditions, such as operating 449 housing units, designating one-third of those units as affordable for households earning 80% of the Area Median Income, and contracting with certified business enterprises for construction.

Additionally, the bill stipulates that the Owner must report annually to the Mayor on compliance with these requirements, and the tax exemption will be proportionally reduced if the housing unit requirements are not met. The Mayor is responsible for certifying the percentage of the tax exemption each year and must notify the Office of Tax and Revenue if the Property becomes ineligible for the exemption. The exemptions provided by this section are in addition to any other tax relief applicable to the Owner or Property.