The Fiscal Accountability and Homeownership Opportunity Act of 2026 aims to enhance fiscal responsibility and accountability in the District of Columbia's economic development initiatives, particularly regarding tax abatements and incentives. The bill introduces clawback provisions for downtown conversion tax abatements, ensuring that developers only receive public benefits if they fulfill their commitments. It mandates the cancellation of eligibility for projects that do not commence in a timely manner and redirects uncommitted tax abatement authority towards more impactful uses. Additionally, the bill proposes reinvesting recaptured resources into the Home Purchase Assistance Fund to improve access to homeownership, addressing affordability issues that hinder economic mobility for residents.

Furthermore, the legislation enhances oversight of tax expenditures by requiring more frequent and timely Tax Expenditure Reviews, which will provide policymakers with updated information on the effectiveness of tax incentives. It also establishes a regional economic competitiveness dashboard to compare key economic indicators with neighboring jurisdictions, ensuring that the District's policies are informed by regional dynamics. The bill includes provisions for comparative fiscal analysis for significant legislative measures, promoting informed decision-making based on regional comparisons. Overall, the act seeks to make smarter use of public funds, strengthen accountability, and invest in the long-term prosperity of District residents.