The resolution, titled the Residential Building Permit Classification Emergency Declaration Resolution of 2025, addresses an urgent need to amend section 47-813 of the District of Columbia Official Code. The amendment aims to facilitate more timely classification changes for commercial properties being converted to residential use. It proposes an application process for these classification changes, establishes appeal rights for denied applications, and includes a provision for clawbacks if the property is not promptly utilized for residential purposes. This emergency declaration is prompted by a recent policy change from the Office of Tax and Revenue that restricts developers from benefiting from a tax classification change until construction is fully completed and the property is in use, which could hinder new residential developments.

The resolution highlights that the updated policy could adversely affect commercial-to-residential conversion projects, which often take years to complete, as the tax rates for Class 2 properties are significantly higher than those for Class 1A properties. This situation contradicts the objectives of the Housing in Downtown Program, which aims to revitalize the downtown area by encouraging the conversion of vacant or underutilized office buildings into residential spaces. The Council of the District of Columbia recognizes the urgency of these circumstances and has determined that immediate action is necessary, allowing the amendment to be adopted after a single reading. The resolution is set to take effect immediately.