The Residential Building Permit Classification 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 implications based on the timing of the classification change and mandates that property owners provide complete documentation to substantiate their application. Additionally, the bill allows for appeal rights if an application for reclassification is denied.

Key provisions include a clawback mechanism that allows the Chief Financial Officer to reclassify properties back to their original classification if they are not utilized for predominantly residential purposes within a specified timeframe. The bill also includes a provision for property owners to appeal a denial of reclassification within 45 days. The changes are set to take effect on April 1, 2025, following the necessary approvals and review periods.