Real Property, Taxation & Parking FAQ

PROPERTY ACQUISITION

 

1.  The Embassy wants to purchase or lease apartments in its own name for staff use.  Do we have to obtain prior authorization from OFM?

 

A - Yes.  In addition to property for office use, OFM must approve in advance the purchase or lease of residential property by diplomatic missions and consular posts.  Requests may be submitted via diplomatic note to the Property Section of OFM in Washington or by letter to one of OFM's Regional Offices.  Correspondence should be mailed or delivered by courier and may also be faxed to expedite processing.  Please see the end of this section for contact information.

 

Requests should include the full address and proposed use of the property. For more information, please refer to

Diplomatic Note 02-01. 

 

2. How long does the approval process take?

 

A - The law allows OFM to take up to 60 days.  In practice, however, the approval process usually takes 10 business days.

 

3. What are some reasons OFM might disapprove a mission's request to acquire property?

 

A - Generally, requests may be disapproved for reciprocity or national security reasons.  Zoning and land use issues can also be the basis for disapproval. 

 

4. Can the Office of Foreign Missions assist the missions in identifying properties available for purchase or lease?

 

A - No.  OFM does not maintain a list of available properties.  Contacting a local real estate agent who specializes in property for diplomatic missions may be useful.

 

5. The Embassy needs a new office facility.  How do we go about finding a property?

 

A - The Embassy should obtain the services of a reputable realtor with expertise in working with foreign missions.

 

6.  Prior to receiving OFM approval, can we sign a contract or a lease "contingent on Department of State approval"?

 

A - Yes.  The mission may enter into a contractual or lease agreement prior to OFM's approval, so long as the agreement contains an explicit contingency clause that states that the execution of the agreement is contingent on Department of State approval.

 

7. The Embassy wants to open a new consulate in the United States.  What is the process?

 

A - The Embassy should first contact the Office of the Chief of Protocol. .  Once the Embassy receives authorization from Protocol to establish a consular post, the Embassy needs to contact OFM for approval of a particular location.

 

TAXATION

 

8. Are foreign government-owned diplomatic or consular residences exempt from property taxes?

 

A - It depends.  The Ambassador's residence and the residence of the head of a consular post are exempt on the basis of international law.  In addition, subject to reciprocal treatment of comparable property belonging to the U.S., other diplomatic staff residences may also be granted exemption.

 

Absent a bilateral agreement, consular staff residences are not tax exempt.

 

In the Washington metropolitan area, property tax exemption is obtained through OFM.  For more information, please refer to the latest circular diplomatic note on property tax issues.

 

For more information, please refer to Diplomatic Note 02-01.

 

 

9. The Embassy recently purchased a property in the Washington, DC area with OFM approval.  How do we obtain a tax exemption?  How is tax exemption obtained for other locations?

 

A - The District of Columbia requires completion of a form (Foreign Government Information Request Form) that can be obtained from the OFM Property Section.  If OFM approves the request, it will forward the form to the Government of the District of Columbia, Office of Tax and Revenue with a request that the exemption be granted. 

 

For properties in Virginia and Maryland, the Embassy must write a letter to the OFM Property Section requesting the exemption. OFM will contact the appropriate taxing authority in these states.

 

OFM will inform the missions when the exemption is granted.

 

10. We have received a tax bill from Montgomery County, Maryland.  I thought the property was exempt from property taxes.

 

A - First check the bill to see if the charge is the FFBC amount.   This "Front Foot Benefit Charge" is separately stated on property tax bills in Montgomery County, Maryland, and is a fee for service which must be paid by foreign missions.   If you still think the bill is for property taxes and you have obtained a tax exemption, please fax a copy of the tax bill to OFM at 202-647-1919.  OFM will contact the local jurisdiction. 

 

RENOVATION and PERMITS

 

11. We want to perform renovations to the interior of our chancery.  Do we need approval?

 

A - Generally yes. If the project requires a building permit from the local government, it will also need prior authorization of OFM. If in doubt, call OFM for advice.  

 

12. Are the applications for local permits available online?

 

A - Yes.  Additionally, the DC tax exemption form should be available soon.

 

Application for DC property tax exemption (known as the Foreign Government Information Request Form). 

 

Construction Permit/Application

http://dcra.dc.gov/services/permits/index.shtm

 

Certificate of Occupancy

http://www.dcra.dc.gov/services/permits/cert_occu.shtm

 

Public Space Permit

http://dcra.dc.gov/services/permits/public_space.shtm

 

13. Do we have to pay fees for building permits?

 

A - Based on reciprocity, OFM will request the District of Columbia to exempt a mission from construction permit fees.  Other jurisdictions may allow for such exemption.

 

14. The Embassy is undergoing a major renovation.  Is there a way to obtain exemption from taxes associated with the materials our contractors buy for the project?

 

A - The tax relief, referred to as Purchasing Agent Arrangement or "PAA" is granted to missions on the basis of reciprocity.  The mission should contact the Property Section of the Office of Foreign Missions at 202-647-4554 for further assistance.  

 

PARKING

 

15. How does an Embassy request reserved on street parking at its chancery or chancery annex in the District of Columbia?

 

A - Street parking is extremely limited in the District of Columbia.   However, DC regulations permit a limited amount of reserved parking around property used as a chancery or chancery annex.    The whole process takes several months.   The Embassy can begin by submitting a written request to the Property Section of OFM that includes the property address and a name and telephone number of the contact person familiar with the request.  If the property is leased, the request should include a letter from the landlord or management company stating that they do not have any objection to the request.  Requests can be mailed or faxed - see Contract Information Section

 

16.   OFM will then make the request to the DC authorities.

 

A - Consulates outside the Washington D.C. metropolitan area should consult with their servicing OFM Regional Office for procedures.

 

17.  How many reserved on street parking spaces are allotted to each Embassy?

 

A - D.C. regulations allow for a maximum of 60 feet or the frontage of the property, whichever is less.     

 

For more information, please refer to Diplomatic Note 02-01.

 

18.  What do the reserved on street parking signs say?

 

A - Normally they say:  "NO PARKING, EMBASSY OF XXX, 7:00 AM TO 6:30 PM, MONDAY-FRIDAY".   The signs may include other parking restrictions at the location such as rush hour restrictions.

 

19. How long does it take to have reserved parking signs installed?

 

A - Approximately 180 days.

 

20. Is reserved on street parking available in front of or around diplomatic residences?

 

A - Due to the limited availability of parking in the residential areas of the District of Columbia, the Department limits requests for reserved diplomatic parking to the chancery facilities of foreign missions.   The Office of Diplomatic Security on a case-by-case basis will consider temporary parking restrictions for security reasons.

 

OFM CONTACT INFORMATION

 

21. How can I contact the Property Section of the Office of Foreign Missions?

 

A - You can reach the Property Section via phone at 202-647-4554 or by fax at 202-647-1919.  Mail may be sent to:

U.S. Department of State

Office of Foreign Missions

Property Section, Rm. 2238

2201 C Street NW

Washington, DC  20520