NHA and vacancy exemptions: two paths, different costs
Most small DC conversions reach eligibility through one of two paths. Which one fits your property depends on its occupancy history, and the difference can be measured in dollars.
Not a Housing Accommodation
The NHA path is for properties that have not been functioning as rental housing, such as those that were owner-occupied or have been vacant for an extended period. A project that qualifies as NHA is exempt from DC's 5% conversion fee.
Vacancy Exemption
The VE path applies where there is recent tenant history. A project that converts under a vacancy exemption is generally subject to the 5% conversion fee, and where tenants are still living in the property they have a formal say through a Tenant Election to Convert.
Why the label matters
On a small project, the gap between the two paths can be the largest single cost the conversion adds or removes. It is decided by facts that already exist when you buy the building, and by whether those facts can be proven to the District's satisfaction.
That is why the right time to ask which path applies is before the purchase contract is signed. A property that looks vacant is not always a property the District will treat as exempt.
Where it goes wrong
- Assuming that an empty building automatically qualifies for the fee-free path.
- Relying on a seller's verbal account of how the property was used.
- Discovering which path applies after the budget and sale prices have been set.