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 that it will begin on October 1, 2029, and last for 20 years. The property owner, defined as McMillan Parcel 2 Owner, LLC, and McMillan Parcel 4 Owner, LLC, must meet certain conditions to qualify for the exemption, such as operating 449 housing units, designating one-third of those units as affordable for households earning an average of 80% of the Area Median Income, and contracting with certified business enterprises for a minimum of 35% of the construction costs.

Additionally, the bill mandates that the property owner provide annual reports to the Mayor to demonstrate compliance with the eligibility requirements. If the housing unit requirements are not met, the tax exemption will be proportionally reduced. 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 bill ensures that these exemptions are supplementary to any other tax relief available to the property owner.