Tax Relief and Tax Credits Limited-Equity Cooperative Tax Fairness Limited-Equity Cooperative Tax Fairness is a new program for tax year 2006 that was passed by the DC Council to recognize the nature of limited-equity co-ops (LEC) and their valuation.   The assessed value of residential real property owned by LECs is the lesser of the following three approaches to value: The aggregate estimated market value of proprietary lease, stock, or other interests in the co-op association as of January 1 preceding the date of assessment, or If information is insufficient, the estimated market value of the property is assessed as if it were a condominium determined under the comparable sales approach multiplied by 70 percent, or The annual amount residents pay in carrying charges (excluding subsidies), divided by an appropriate capitalization rate as determined by OTR. If property ceases to be an LEC, then it will be assessed under either (1) or (2) above. “Carrying charge subsidies” are any payments originating, directly or indirectly, with a federal or local government housing agency and used to supplement the monthly housing payments of a co-op member.   Interested LEC owners should submit the Limited-Equity Cooperative Tax Fairness application found in the Tax Forms/Publications section under “Real Property,” or call the Customer Service Center at (202) 727-4TAX (727-4829) for more information.