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B26-0577 • 2025

Residential Building Permit Classification Emergency Amendment Act of 2026

Residential Building Permit Classification Emergency Amendment Act of 2026

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Mendelson
Last action
2026-03-06
Official status
Enacted
Effective date
Not listed

Plain English Breakdown

The official summary does not provide detailed information about all aspects mentioned in the candidate explanation, such as specifics regarding appeals and correction processes.

Residential Building Permit Classification Emergency Amendment Act of 2026

This act changes the rules for classifying buildings that are being turned into homes, creating a new process for property owners to apply for classification changes and setting up an appeals process if applications are denied.

What This Bill Does

  • Changes how properties can be classified as residential when they were previously commercial.
  • Creates a new application process for property owners to request changes in classification.
  • Sets rules for tax rates based on the time of year the property becomes residential.
  • Allows property owners to appeal if their application is denied and provides a way to correct mistakes made by officials.

Who It Names or Affects

  • Property owners who want to convert commercial buildings into residential use.

Terms To Know

Class1A Property
Residential property that is improved and used for non-transient purposes, or a building permit has been issued for new construction or substantial rehabilitation for non-transient residential use.
Chief Financial Officer
The official responsible for managing the District of Columbia's finances and implementing tax policies.

Limits and Unknowns

  • This act is only in effect until May 31, 2026.
  • It does not specify what happens if a property owner fails to comply with the new classification rules.

Bill History

  1. 2026-03-06 Council of the District of Columbia LIMS

    Act A26-0271 Published in DC Register Vol 73 and Page 003143, Expires on May 31, 2026

  2. 2026-03-03 Council of the District of Columbia LIMS

    Returned from Mayor

  3. 2026-03-02 Council of the District of Columbia LIMS

    Signed by the Mayor and Enacted with Act Number A26-0271, Expires on May 31, 2026

  4. 2026-02-17 Council of the District of Columbia LIMS

    Transmitted to Mayor, Response Due on Mar 03, 2026

  5. 2026-02-03 Council of the District of Columbia LIMS

    Retained by the Council

  6. 2026-02-03 Council of the District of Columbia LIMS

    Legislative Meeting

  7. 2026-02-02 Council of the District of Columbia LIMS

    B26-0577 Introduced by Chairman Mendelson at Office of the Secretary

Official Summary Text

Residential Building Permit Classification Emergency Amendment Act of 2026

Current Bill Text

Read the full stored bill text 
ENROLLED ORIGINAL
AN ACT
D.C. ACT 26-271
INTHE COUNCILOFTHEDISTRICTOF COLUMBIA
MARCH 2,2026
Toamend,onanemergencybasis,section47-813oftheDistrictofColumbiaOfficialCodetoprovideformoretimelyclassificationchangesforcommercialpropertiesthataretobeputtoresidentialuse,toprovideforanapplicationprocesstomakeclassificationchanges,toprovideforappealrightsifsuchapplicationisdenied,andtoprovideforaclawbackintheeventtherealpropertyisnottimelyputtoresidentialuse.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, Thatthis
actmay be citedasthe“ResidentialBuildingPermitClassificationEmergency Amendment Act
of 2026”.
Sec.2.Section47-813ofthe Districtof Columbia OfficialCode isamended asfollows:
(a)Subsection(c-9)(2)isamended as follows:
(1)Subparagraph(A)isamendedtoreadasfollows:
“(2)(A)Exceptasotherwiseprovidedinthisparagraphandsubjecttoparagraphs(4)and(5)ofthissubsection,Class1APropertyshallbecomprisedof:
“(i)Residentialrealpropertythatis improved and itslegaluse is
fornontransientresidentialdwellingpurposes,andthatisnotClass1BProperty;provided,thatsuchpropertymay be usedtohosttransientguestspursuanttoan unexpiredshort-termrental
licenseendorsementissuedpursuantto§30-201.04;or
“(i)Realpropertyoraportionofrealpropertyforwhicha
buildingpermithas been issued:
“()Toconstructanewimprovementforpredominantlynontransientresidentialdwellingpurpose;or
“(I1)To substantiallyrehabilitatethatportionor allof an.
existingimprovementforexclusivelynontransientresidentialdwellingpurposes.”.
(2)Subparagraph(C)isamended by strikingthephrase“designatedas”and
insertingthephrase“designatedsolelyas”initsplace.

ENROLLED ORIGINAL
(b)Thelead-inlanguageofsubsection(d-2)isamendedbystrikingthephrase“Class3PropertyorClass4Property,”andinsertingthephrase“Class2Property,Class3Property,orClass4Property,”initsplace.
(©)A newsubsection(d-4)isaddedtoreadasfollows:
“(¢-4)(1)IfrealpropertychangesclassificationtoClass1APropertyasdefinedinsubsection(¢-9)(2)(A)Gi)duringtheperiod:
“(A)October1throughMarch31ofthetaxyear,thenewlyreclassifiedClass1AProperty,ortheportionthereofusedexclusivelyforresidentialpurposesifalreadyimprovedorassessedunder§47-829,shallbetaxedattheClass1APropertytaxratefortheentiretaxyear;or
“(B)April|throughSeptember30ofthetaxyear,thenewlyreclassifiedClass1AProperty,ortheportionthereofusedexclusivelyforresidentialpurposesifalreadyimprovedorassessedunder§47-829,shallbetaxedattheClass1APropertytaxrateforthesecondinstallmentonly.
“(2)TheownershallapplyforachangeofclassificationtoClass1APropertyasdefinedinsubsection(c-9)(2)(A)(ii)ofthissectionandshallpromptlyprovidecompletedocumentationinamannerprescribedbytheChiefFinancialOfficertosubstantiateanysuchclassificationchangebeforeitshallbeeffective.
“(3)AchangeinclassificationtoClass1APropertyasdefinedinsubsection(c-9)(2)(A)()ofthissectionshallbeeffectivebeginninginthehalftaxyearforwhichapplicationismadeunderparagraph(2)ofthissubsection.
“(4)LfchangeinclassificationtoClass1APropertyasdefinedinsubsection(c-9}(2)(A)Gi)ofthissectionisdeterminedtobeerroneousbecausetherealpropertywasnotputtopredominantlyresidentialusebytheearlierofeithertheissuanceofanyneworamendedcertificateofoccupancy(temporaryorpermanent)foranypartoftheimprovementthereon,or3yearsfromissuanceofthebuildingpermit,orthebuildingpermitexpiredandwasnotrenewedwithinoneyear,theChiefFinancialOfficershallreclassifyandtaxtherealpropertywithoutlimitationforeachtaxyearorhalftaxyearinwhichtherealpropertywasimproperlyclassifiedasClass1AProperty,subjectonlytosubsection(d-1)(5)(A-i)ofthissection,ifthepropertyisdeterminedtobeClass3PropertyorClass4Property,orsubsection(d-2)ofthissection.Intheeventofsuchreclassification,penaltyandinterestshallbeaddedbeginningfromthedaythecorrectamountoftaxshouldhavebeenduebutnotpaidifthepropertyhadbeenproperlyclassified.
“(5)Within45daysfromthedateofthenoticeofdenialofClass1APropertyreclassificationunderthissubsection,theownermaypetitionforanadministrativereviewoftherescissionordenialandappealfromafinaldeterminationthereoftothesameextentasiftheappealwerefiledunder§47-825.01a(d)(2).
(6)Notwithstandingthetimelimitationsinparagraphs(4)and(5)ofthissubsection,theChiefFinancialOfficer,inhisorherdiscretion,maygrantanextensionoftimeto
2

ENROLLED ORIGINAL
complyorwaivepenaltyandinterestassessedpursuanttoparagraph(4)ofthissubsectiontopreventanunduehardshiptotheowner.
“(7)Theprovisionsofthissubsection,subsection(c-9)(2)(A)(ii)ofthissection,and§47-829shallnotsupersedetherequirementtotimelyfileformixed-useclassificationfortheupcomingtaxyearpursuanttosubsection(f)ofthissection,whentheannualassessmentforsuchupcomingtaxyearismadeunder§47-824andthecertificateofoccupancy(finalortemporary)wasissued.”.
Sec.3.Section2(a)oftheAvantiRealEstateServices,LLCRealPropertyTaxReliefEmergencyActof2025,effectiveDecember3,2025(D.C.Act26-213;72DCR 13682),isamendedbystrikingthephrase“AvantiRealEstateServices,LLC;provided,thatthePropertyisoccupiedbyAvantiRealEstateServices,LLCandisusedtofurtherthepurposesofprovidingrealestateandbrokerageservices,specializingincreatinggenerationalwealththroughhomeownership,employingDistrictresidents,andprovidingeducationandtrainingforemploymentopportunitiesandcareerswithintherealestateindustry”andinsertingthephrase“AvantiRealEstateServices,LLC”initsplace.
See.4.Section2(a)oftheAvantiRealEstateServices,LLCRealPropertyTaxReliefTemporaryActof2025,enactedonDecember19,2025(D.C.Act26-237;73DCR68),isamendedbystrikingthephrase“AvantiRealEstateServices,LLC;provided,thatthePropertyisoccupiedbyAvantiRealEstateServices,LLCandisusedtofurtherthepurposesofprovidingrealestateandbrokerageservices,specializingincreatinggenerationalwealththroughhomeownership,employingDistrictresidents,andprovidingeducationandtrainingforemploymentopportunitiesandcareerswithintherealestateindustry”andinsertingthephrase“AvantiRealEstateServices,LLC”initsplace.
Sec.5.Applicability.
ThisactshallapplyasofJanuary28,2026.
Sec.6.Fiscalimpactstatement.
‘TheCounciladoptsthefiscalimpactstatementof theBudget Directorasthefiscalimpact
statementrequiredbysection4aoftheGeneralLegislativeProceduresActof1975,approved
October 16,2006 (120 Stat.2038; D.C. OfficialCode§ 1-301.47a).
Sec.7.Effectivedate,
ThisactshalltakeeffectfollowingapprovalbytheMayor(orintheeventofvetobytheMayor,actionbytheCounciltooverridetheveto),andshallremainineffectfornolongerthan90days,asprovidedforemergencyactsoftheCounciloftheDistrictofColumbiainsection

ENROLLED ORIGINAL
412(a)of the DistrictofColumbia Home RuleAct,approvedDecember 24, 1973 (87Stat.788;
D.C. OfficialCode § 1-204.12(a)).
‘hairman
Councilofthe Districtof Columbia

APPROVED
MARCH 2, 2026

COUNCILOF THEDISTRICTOF COLUMBIA
WASHINGTON,DC,20004

[IITEMONCONSENTCALENDAR
[xyacrion FinalReading
[X]VOTEDATE February3,2026
{X]VOICEVOTE ‘Approved
RECORDEDVOTEONREQUEST
ABSENT
[]ROLLCALLVOTE—Resuit
CouncMember [Aye|Nay|Nv[AB[Rec|CounciMember[Aye|Nay|Nv [AB[Ree]CouncMember[Aye[Nay[NV[AB[ReeChairmanMendelson]X Frumin x Pinto
Allen x Henderson x R.White
Bonds x LewisGeorge_| x T.White
Doni x Nadeau x
Felder x Parker x
X-IndicateVote ‘AB~Absent NV.Present,NotVoting Rec-Recused
CERTIFICATIONRECORD
210° We‘SecretaryTotheCounc Date