The D.C. Council has approved the fiscal 2025 budget, introducing the Central Washington Activation Program to transform office buildings into hotels, retail spaces, and restaurants. This new initiative is separate from the existing residential conversion program and offers a 15-year property tax abatement for eligible projects.
Under this program, properties must be at least 50,000 square feet and undergo significant renovations in order to qualify for an abatement cap of $5 million in 2027, $6 million in 2028,and $8 million in 2029 with a yearly growth rate of4%. The expansion of this program to areas such as Shaw and Capitol Hill aims to decrease office vacancy rates while promoting downtown revitalization. The final approval rests on Mayor Bowser’s signature.
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