The Residential Building Permit Classification Temporary Amendment Act of 2025 aims to streamline the process for changing the classification of commercial properties to residential use in the District of Columbia. The bill introduces an application process for property owners seeking to reclassify their properties as Class 1A, which is designated for nontransient residential purposes. It establishes specific tax rates based on the timing of the classification change and includes provisions for property owners to appeal if their application is denied. Additionally, the bill includes a clawback mechanism that allows the Chief Financial Officer to reclassify properties back to their original classification if they are not utilized for residential purposes within a specified timeframe.

Key amendments to the existing law include the addition of a new subsection that outlines the application process and the conditions under which a property can be reclassified. The bill also modifies existing language regarding property classifications and clarifies the tax implications for newly classified properties. The act is set to take effect on April 1, 2025, and will expire after 225 days unless further action is taken.