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 amends section 47-813 of the District of Columbia Official Code to establish a clear application process for property owners seeking to reclassify their properties as Class 1A Property, which is designated for nontransient residential use. It also introduces appeal rights for property owners if their application for reclassification is denied and includes provisions for a "claw back" mechanism if the property is not utilized for residential purposes within a specified timeframe.

Key amendments include the requirement for property owners to apply for a change in classification and provide necessary documentation, as well as the stipulation that properties reclassified during certain periods will be taxed at the Class 1A rate for the entire tax year or for the second installment only, depending on when the application is made. Additionally, the bill allows for administrative review and appeals in case of denial of reclassification, and it grants the Chief Financial Officer discretion to extend deadlines or waive penalties to prevent undue hardship on property owners. The act is set to take effect on April 1, 2025, and will expire after 225 days.