Bill > B26-0577

This bill, the Residential Building Permit Classification Emergency Amendment Act of 2026, aims to expedite the process for changing the property tax classification of commercial buildings that are being converted for residential use. It introduces an application process for property owners to request this change, specifically for properties where a building permit has been issued to construct new residential dwellings or substantially rehabilitate existing ones for residential purposes. The bill clarifies that properties designated as "Class 1A Property" are primarily residential, including those used for short-term rentals under specific licenses. It also establishes rules for when the new residential classification takes effect for tax purposes, depending on when the permit is issued and the tax year's billing cycle. Crucially, the bill includes a "claw back" provision, meaning if the property is not actually put to predominantly residential use within a specified timeframe (either by obtaining a certificate of occupancy or within three years of the permit's issuance, with extensions for permit renewal), the property will be reclassified to its previous tax status, and back taxes, penalties, and interest will be assessed. Property owners have the right to appeal a denial of their classification change application. Additionally, the bill makes minor amendments to existing laws concerning tax relief for a specific entity, Avanti Real Estate Services, LLC, by removing detailed conditions previously attached to their tax benefits. This emergency act is intended to be in effect for a limited period, up to 90 days, to address immediate needs.

https://lims.dccouncil.gov/Legislation/B26-0577