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B26-0578 • 2025

Residential Building Permit Classification Temporary Amendment Act of 2025

Residential Building Permit Classification Temporary Amendment Act of 2025

Taxes
Enacted

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

Sponsor
Mendelson
Last action
2026-05-21
Official status
Official Law
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on how long it takes to process an application or appeal after a denial, which was mentioned in the candidate explanation.

Temporary Changes to Residential Building Permit Classification

This act makes temporary changes to the rules for classifying buildings that are being converted from commercial use to residential use in Washington, D.C.

What This Bill Does

  • Changes how properties can be classified as Class IA when they are being used or planned for non-transient residential purposes.
  • Adds a process for property owners to apply and appeal if their application is denied.
  • Sets rules on tax rates based on the time of year when classification changes occur.

Who It Names or Affects

  • Property owners who want to change their property's use from commercial to residential.
  • The District of Columbia government, especially the Chief Financial Officer.

Terms To Know

Class IA Property
A type of real estate classification for properties used exclusively for non-transient residential purposes.
Chief Financial Officer
The official responsible for financial matters in the District of Columbia, including property tax classifications.

Limits and Unknowns

  • This act is temporary and will expire on January 1, 2027.
  • It does not specify how long it takes to process an application or appeal after a denial.

Bill History

  1. 2026-05-21 Council of the District of Columbia LIMS

    Law Number L26-0119 Effective from May 21, 2026, Expires on Jan 01, 2027

  2. 2026-04-09 Council of the District of Columbia LIMS

    Transmitted to Congress

  3. 2026-04-03 Council of the District of Columbia LIMS

    Act A26-0286 Published in DC Register Vol 73 and Page 005745

  4. 2026-03-31 Council of the District of Columbia LIMS

    Returned from Mayor

  5. 2026-03-30 Council of the District of Columbia LIMS

    Signed by the Mayor and Enacted with Act Number A26-0286

  6. 2026-03-17 Council of the District of Columbia LIMS

    Transmitted to Mayor, Response Due on Mar 31, 2026

  7. 2026-03-03 Council of the District of Columbia LIMS

    Legislative Meeting

  8. 2026-02-13 Council of the District of Columbia LIMS

    Notice of Intent to Act on B26-0578 Published in the District of Columbia Register

  9. 2026-02-03 Council of the District of Columbia LIMS

    Retained by the Council

  10. 2026-02-03 Council of the District of Columbia LIMS

    Legislative Meeting

  11. 2026-02-02 Council of the District of Columbia LIMS

    B26-0578 Introduced by Chairman Mendelson at Office of the Secretary

Official Summary Text

Residential Building Permit Classification Temporary Amendment Act of 2025

Current Bill Text

Read the full stored bill text
ENROLLED ORIGINAL.
AN ACT
D.C. ACT 26-286
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA.
MARCH 30, 2026
Toamend,onatemporarybasis,section47-813oftheDistrictofColumbiaOfficialCodetoprovideformoretimelyclassificationchangesforcommercialpropertiesthataretobeputtoresidentialuse,toprovideforanapplicationprocesstomakeclassificationchanges,toprovideforappealrightsifsuchapplicationisdenied,andtoprovideforaclawbackintheeventtherealpropertyisnottimelyputtoresidentialuse.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, Thatthis
actmaybecitedasthe“ResidentialBuildingPermitClassificationTemporaryAmendmentAct
of 2026”.
Sec.2.Section47-813oftheDistrictofColumbiaOfficialCodeisamendedasfollows:(a)Subsection(c-9)(2)isamendedasfollows:
(1)Subparagraph(A)isamendedtoreadasfollows:
“(2)(A)Exceptasotherwiseprovidedinthisparagraphandsubjecttoparagraphs
(4)and(5)ofthissubsection,ClassIAPropertyshallbecomprisedof:
“(i)Residentialrealpropertythatisimprovedanditslegaluseisfornontransientresidentialdwellingpurposes,andthatisnotClass1BProperty;provided,thatsuchpropertymaybeusedtohosttransientguestspursuanttoanunexpiredshort-termrentallicenseendorsementissuedpursuantto§30-201.04;or
“(i)Realpropertyoraportionofrealpropertyforwhichabuildingpermithasbeenissued:
“(D)Toconstructanewimprovementforpredominantlynontransientresidentialdwellingpurpose;or
“(U)Tosubstantiallyrehabilitatethatportionorallofanexistingimprovementforexclusivelynontransientresidentialdwellingpurposes.”
(2)Subparagraph(C)isamendedbystrikingthephrase“designatedas”andinsertingthephrase“designatedsolelyas”initsplace.
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ENROLLED ORIGINAL
(b)Thelead-inlanguageofsubsection(d-2)isamendedbystrikingthephrase“Class3PropertyorClass4 Property,”andinsertingthephrase“Class2Property,Class3Property,orClass4Property,”initsplace.
(©)Anewsubsection(d-4)isaddedtoreadasfollows:
“(d-4)(1)IfrealpropertychangesclassificationtoClass1APropertyasdefinedinsubsection(¢-9)(2)(A)(i)ofthissectionduringtheperiod:
“(A)OctoberIthroughMarch31ofthetaxyear,thenewlyreclassifiedClass1AProperty,ortheportionthereofusedexclusivelyforresidentialpurposesifalreadyimprovedorassessedunder§47-829,shallbetaxedattheClass1APropertytaxratefortheentiretaxyear;or

“(B)April1throughSeptember30ofthetaxyear,thenewlyreclassified
Class1AProperty,ortheportionthereofusedexclusivelyforresidentialpurposesifalready
improvedorassessedunder§47-829,shallbetaxedattheClass1APropertytaxrateforthe
secondinstallmentonly.
“(2)TheownershallapplyforachangeofclassificationtoClass1APropertyas
definedinsubsection(c-9)(2)(A)(ii)ofthissectionandshallpromptlyprovidecomplete
documentationina manner prescribedby theChiefFinancialOfficertosubstantiateany such
classificationchange beforeitshallbe effective.
“(3)A changeinclassificationtoClass1APropertyasdefinedinsubsection(c-
9)(2)(A)(ii)ofthissectionshallbeeffectivebeginninginthehalftaxyearforwhichapplication
ismade underparagraph(2)of thissubsection.
“(4)Ifchange inclassificationtoClass1A Propertyasdefinedinsubsection(c-
9)(2)(A)(ii)ofthissectionisdeterminedtobeerroneousbecausetherealpropertywasnotputto
predominantlyresidentialuse by theearlierof eithertheissuanceof any new oramended
certificateof occupancy (temporaryor permanent)forany partof theimprovement thereon,or 3
yearsfromissuanceofthebuildingpermit,orthebuildingpermitexpiredandwasnotrenewed
withinone year,theChiefFinancialOfficershallreclassifyand taxtherealpropertywithout
limitationforeachtaxyearorhalftaxyearinwhichtherealpropertywasimproperlyclassified
asClass1AProperty,subjectonlytosubsection(d-1)(5)(A-i)ofthissection,ifthepropertyis
determinedto be Class3 Propertyor Class4 Property,or subsection(d-2)of thissection.Inthe
eventofsuchreclassification,penaltyandinterestshallbeaddedbeginningfromthedaythe
correctamountoftaxshouldhavebeenduebutnotpaidifthepropertyhadbeenproperly
classified.
“(5)Within45daysfromthedateofthenoticeofdenialofClass1AProperty
reclassificationunderthissubsection,theowner may petitionforan administrativereviewof the
rescissionor denialand appealfrom afinal determinationthereofto thesame extentasif the
appealwerefiledunder§47-825.01a(d)(2).
*(6)Notwithstandingthetimelimitationsinparagraphs(4)and(5)ofthis
subsection,theChiefFinancialOfficer,inhisor herdiscretion,may grantan extensionof timeto
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ENROLLED ORIGINAL.
complyorwaivepenaltyandinterestassessedpursuanttoparagraph(4)ofthissubsectiontopreventanunduehardshiptotheowner.
“(7)Theprovisionsofthissubsection,subsection(c-9)(2)(A)(ii)ofthissection,and§47-829shallnotsupersedetherequirementtotimelyfileformixed-useclassificationfortheupcomingtaxyearpursuanttosubsection(f)ofthissection,whentheannualassessmentforsuchupcomingtaxyearismadeunder§47-824andthecertificateofoccupancy(inalortemporary)wasissued.”.
Sec.3.Section2(a)of the AvantiReal EstateServices,LLC Real PropertyTax Relief
Emergency Actof 2025, effectiveDecember 3,2025 (D.C.Act 26-213;72 DCR 13682),is
amended by strikingthephrase“AvantiReal EstateServices,LLC; provided,thatthePropertyis
occupiedbyAvantiRealEstateServices,LLCandisusedtofurtherthepurposesofproviding
realestateandbrokerageservices,specializingincreatinggenerationalwealththrough
homeownership,employingDistrictresidents,andprovidingeducationandtrainingfor
employment opportunitiesand careerswithintherealestateindustry”and insertingthephrase
“AvantiReal EstateServices,LLC” initsplace.
Sec.4,Section2(a)oftheAvantiRealEstateServices,LLCRealPropertyTaxRelief‘TemporaryActof2025,effectiveFebruary12,2026(D.C.Law26-93;73DCR68),isamendedbystrikingthephrase“AvantiRealEstateServices,LLC;provided,thatthePropertyisoccupiedbyAvantiRealEstateServices,LLCandisusedtofurtherthepurposesofprovidingrealestate
andbrokerageservices,specializingincreatinggenerationalwealththroughhomeownership,employingDistrictresidents,andprovidingeducationandtrainingforemploymentopportunities
andcareerswithintherealestateindustry”andinsertingthephrase“AvantiRealEstateServices,LLC”initsplace.
Sec.5.Fiscalimpactstatement.
The Counciladoptsthefiscalimpactstatementof theBudget Directorasthefiscalimpact
statementrequiredbysection4aoftheGeneralLegislativeProceduresActof1975,approved
October 16,2006 (120 Stat.2038; D.C. OfficialCode § 1-301.47a).
Sec.6.Effectivedate.
(a)ThisactshalltakeeffectfollowingapprovalbytheMayor(orintheeventofvetobytheMayor,actionbytheCounciltooverridetheveto)anda30-dayperiodofcongressional
ENROLLED ORIGINAL.
review as provided in section602(c)(1)ofthe Districtof Columbia Home Rule Act,approved
December24,1973(87Stat.813;D.C.OfficialCode§1-206.02(c)(1)).
(b)Thisactshallexpireafter225daysofitshavingtakeneffect.
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Councilof theDistrictof Columbia

DistrictofColuntbiaAPPROVED
MARCH 30, 2026

DocketNo,B26-0578
[]ITEMONCONSENTCALENDAR,
COUNCILOF THEDISTRICTOF COLUMBIA
WASHINGTON,DC,20004

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