| 28 July 2010
If you're familiar with the Homestead Exemption, you're likely aware that effective immediately, the Office of the Recorder of Deeds (ROD) and the OTR will only accept the June 2010 updated Homestead Application. For your convenience, you may download the updated Homestead Application form from our website.
Note that, with the new application, supporting documents are required at the time of submission: DC driver’s license, car registration and voter registration showing the address of the new DC residence, and DC income tax return (first and signature page only)or D-4 Withholding Allowance Certificate. OTR no longer accepts “pending” responses; the application will be returned to the applicant.
If you undertake to file Homestead Applications for your purchaser clients, you must be aware of the new rules.
Here Thanh-Thuy "Twee" Nguyen, manager of the Homestead Unit, answers questions regarding this new policy:
Q. Will the previous (2009) form still be allowed, or only the June 2010 form? As of what date?
TN: We are still accepting the old applications at present, because the public announcement has not been sent out on the new applications. We anticipate October 1, 2010 to begin sending back applications that are not updated and without supporting documents.
Q. When will your new policy of requiring supportive documentation (voter registration, driver’s license, DC tax return) with the application go into effect?
TN: It has been put into affect since April 1, 2010. We just sent back 1700 applications without supporting documents.
Q. Do you require that the driver’s license and voter registration show the address of the property to which the homestead application applies?
TN: Yes, all supporting documents have to be consistent with the homestead address.
Q. For “new arrivals”, they will not file a DC tax return until 2011. Will an allowance be made for this?
TN: For those who are recent arrivals to DC and do not meet the filing requirements, they do not have to submit an income tax filing.
Q. Whether the applicant is a “new arrival” or a DC resident moving into a new home in DC, is it best to wait until all documentation is in place before filing, or should they file and supply documentation when it is available? Can additional information be supplied by fax or email, or should they file at OTR in person?
TN: Under DC code 47-850, owners have to be domicile in the District in order to be eligible for the homestead deduction. We strongly encourage owners to submit the homestead application when all supporting documents are available. At minimum, a driver’s license and voter registration should be available. As stated in question #4, income tax filing are not required if they do not meet the filing requirement.
Q. Must the application with supportive documentation be filed within 30 days of moving into the new residence?
TN: An owner has up to 6 months to file their homestead deduction to claim their homestead deduction. Under DC Code 47-850.02, (c) “If a properly completed and approved application is filed during the period October 1 through March 31 of the tax year, the real property shall receive the deduction for the entire tax year. [I]f a properly completed and approved application is filed during the period April 1 through September 30, the real property shall receive 1/2 of the deduction for the second installment only.” Owners do not have to submit their homestead applications during closing date, when they do not have any indicators of domicile status.
Comments
Even worse still, the designation of "blighted" is up to the discretion of incompetent DCRA staff. They have already maliciously designated several good looking brick row houses as blighted, where all window & doors are perfect, and the grass is cut bi-weekly.