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 a new application process for property owners seeking to reclassify their properties as Class 1A, which is designated for nontransient residential purposes. It establishes specific timelines for when properties must be put to residential use and outlines the tax implications based on the timing of the classification change. Additionally, the bill provides property owners with appeal rights if their application for reclassification is denied and includes provisions for a clawback mechanism if the property is not utilized as intended.

Key amendments include the addition of a new subsection that details the application process and the conditions under which a property may be reclassified to Class 1A. It specifies that if a property is not used predominantly for residential purposes within a certain timeframe, the Chief Financial Officer can reclassify it back to its original classification and impose penalties for unpaid taxes. The bill also allows for administrative reviews of denied applications and grants the Chief Financial Officer discretion to extend deadlines or waive penalties to alleviate undue hardship on property owners.