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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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(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.
‘rman
Councilof theDistrictof Columbia
DistrictofColuntbiaAPPROVED
MARCH 30, 2026
DocketNo,B26-0578
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