Tax abatement for WMATA is a bad deal for Ward 3

Testimony in opposition to the WMATA Joint Development Properties Tax Abatement Act of 2026 before the Committee of the Whole

May 13, 2026

The WMATA Joint Development Properties Tax Abatement Act of 2026 would grant WMATA a 20-year tax abatement for approved joint development projects that WMATA undertakes that are near Metro stops, that provide at least 10% of the rental housing units as affordable to households earning on average 60% or less of  MFI, and that provide at least 10% of for-sale housing as affordable to household earning on average 80% or less MFI.

This is not a deal. It is a gift to WMATA in exchange for nothing. As a public entity, WMATA could be asked to provide 30% affordable housing. Ward 3 Housing Justice strongly opposes this giveaway for several reasons.

First, this is an end run around community and ANC opposition to WMATA’s having sought relaxed IZ/IZ+ setasides during debate on the proposed new zoning of the Wisconsin Avenue corridor. WMATA had sought but abandoned special exemptions when there was strong opposition, including from ANC 3E. 

Second, this largesse is unwarranted at a time of financial contraction. The District already pays 38% of the dedicated regional support to WMATA, more than either Virginia or Maryland. A tax abatement on top of our already ample support is double dipping and should not be allowed. Furthermore, in Ward 3, where WMATA owns two huge properties that will be redeveloped at the Friendship Heights Metro stop, WMATA has shown next to no interest in meeting with the community or in revealing its development plans, holding only one community meeting in the three years that it has controlled the vacant Lord & Taylor site and has allowed it to deteriorate. They should pay taxes like everyone else, contribute to the General Fund for DC and engage with the community

Third, language in the proposal flirts with changing the legal requirements of the Inclusionary Zoning Program. This should not be allowed in a budget amendment. OP’s  map amendment  for upzoning the Ward 3 corridors now being considered by the Zoning Commission requires IZ+. Council should not lower the requirement or nullify it.

The language of the amendment also includes a subtle but unacceptable change to the structure of the IZ Program. Instead of up to 60% MFI, the BSA amendment specifies an average of 60% MFI.  IZ has always allowed some income eligibility below 60% but nothing above.  This provision would for the first time offset lower income eligibility by allowing IZ units for households with incomes above 60%. Changing the language to an average of 60% decreases the IZ benefit for lower income households and undermines racial and economic diversity. (This type of changed language and intent is also evident in the setasides for any ownership units.) 

Fourth, two of the major WMATA sites that would be eligible for tax abatement are in Ward 3, the part of the city that has the least affordable housing in the district. More should be asked of the developments, not less. For years, the Mayor’s Office of Planning has told housing justice activists that redevelopments of the Ward 3 corridors would unleash IZ+ to create substantial amounts of affordable housing. But OP’s upzoning envisions redevelopment of these corridors with no plan for the inclusion of housing for households earning less than 50% MFI, thus excluding most Black households.

This is a bad deal for the District, and a bad deal for Ward 3, and it should not be approved.