Hill Center at the Old Naval Hospital; Lot 5, Square 948.

(a)

(1)

(A) The real property, described as Lot 5, in Square 948 (commonly known as Hill Center), and any successor lots or any assessment and taxation lots created within Lot 5, (“property”) shall be exempt for 5 years from real property, recordation, and transfer taxation imposed under this title, so long as the real property continues to be leased by the Old Naval Hospital Foundation (“ONHF”) under and according to the terms of the lease between the District of Columbia and ONHF, dated December 12, 2010, (“2010 lease”) and any holder of a possessory interest in the property shall be exempt from possessory interest taxation imposed under § 47-1005.01 for the length of the 2010 lease, notwithstanding any sublease, license, assignment, or other conveyance of the right to use the property from ONHF to any sub-lessee, licensee, assignee, or other conveyee (“receiving entity”); provided, that the receiving entity uses the property pursuant to, and in conformance with, the use provisions of the 2010 lease and subject to the provisions of §§ 47-1007 and 47-1009 ; provided further, that both the special exemptions from real property tax and the possessory interest tax under this section shall expire upon the expiration of the extension described in paragraph (2) of this subsection.

(B) Upon the expiration of the extension, the property, ONHF, and the possessory interest of a receiving entity that could not qualify for a real property tax exemption under § 47-1002 were it the owner of the property shall be subject, as applicable, to § 47-1005 , and ONHF, additionally, shall be subject to §§ 47-1007 and 47-1009 .

(2) Notwithstanding the 5-year exemption granted in paragraph (1) of this subsection, ONHF shall be given an extension of up to 12 months; provided, that ONHF has applied for its categorical exemption from real property taxation under § 47-1002 no later than 6 weeks after the exhaustion of the tax relief under the Federal Historic Preservation Tax Credit Program.