A new category of property called “resale restricted properties” (RRP) has been established to allow for the assessment of properties in which either the US government, DC government, or a tax-exempt organization imposes limitations, encumbrances or restrictions, for a period of not less than five years, upon the sale or transfer of property that is intended for a low or moderate income purchaser.

The assessed value of such property shall be computed by:

• First determining the year in which the current property owner received the property.
• The base assessed value for that year is the amount paid by the current property owner for the property, excluding amounts received from government agencies or housing organizations that are not likely to be repaid.
• For subsequent years in which restrictions remain in effect, the assessed value will be the base amount, using Bureau of Labor Statistics for the Washington-Baltimore metro area, adjusted for inflation.
• If the RRP was acquired without significant consideration, the base assessed value for the first year will be the fair market value of the property, taking into account all restrictions, and then in later years under the method described above.

In order to qualify for this preferential tax treatment, the property owner needs to supply to the Office of Tax and Revenue the following information:

1. The name and address of the owner.
2. The premise address and square, suffix, lot of the property.
3. The purchase price of the property.