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Deputy Mayor Alpert outlines GrowDC FY2027 package: capital projects, targeted incentives and new federal-property fund
Summary
Deputy Mayor Nina Alpert presented the Mayor's FY2027 GrowDC proposal to the Committee on Human Services: approximately $297M in capital for selected projects, $40M operating for DEMPd, new workforce-housing and federal-property tax tools, and $7M for Vitality/Tech funds; council members pressed DEMPd on cuts, project timelines and program design.
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Deputy Mayor Nina Alpert framed the Mayor's FY2027 GrowDC package as an effort to grow the economy, keep families and create a business environment that attracts investment. She said DEMPd's FY2027 operating request is roughly $39–40 million and the capital program is about $297 million. Key components she highlighted included a permanent, dedicated $6 million hotel-tax-backed allocation for the Washington, D.C. Economic Partnership; $7 million combined for the Vitality Fund and Tech Ecosystem Fund to support business attraction and incubators; $6.5 million for Great Streets and citywide grants; and $2 million for special events and activations.
Alpert also described new tools in the Budget Support Act. Beginning 10/01/2026, property tax and possessory interest taxes from former federal properties will flow into a federal-property tax fund intended for revitalization and may be used for long-term abatement eligibility for large former federal buildings. The administration proposed a workforce-housing opportunity abatement (a geographically-unlimited program focused on workforce affordability between 60% and 100% of area median income) intended to bridge financing gaps on projects that can deliver mixed-income units. Alpert said many FY27 operating reductions reflect the expiration of federal grant dollars and one-time council appropriations in FY26; she emphasized DEMPd's priority is preserving core programs while making targeted investments to ready projects for when private capital returns to the market.
Committee members tested specifics throughout a multi-hour Q&A: they asked about timing for the WHO abatement (officials said program set-up and market readiness drove an FY29 implementation projection for program awards), the treatment of inclusionary zoning in Metro and WMATA joint-development projects, re-programming of Capital One Arena capital amounts because the developer accelerated construction, supermarket incentive boundaries and criteria, and Office-to-Anything/HID technical edits. Alpert and agency staff answered with a mix of data (capital allotments and project lists) and commitments to return with requested follow-up materials and financial analyses.
