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 action is deemed necessary due to a recent policy change by the Office of Tax and Revenue that restricts tax classification benefits 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 contradicts the objectives of the Housing in Downtown Program, which aims to revitalize the area by encouraging the transformation of vacant office buildings into residential spaces. The Council has determined that the circumstances warrant immediate emergency action to clarify the reclassification process for developers, allowing for a more efficient transition from commercial to residential use. The resolution is set to take effect immediately upon adoption.