The Residential Building Permit Classification Emergency Amendment Act of 2026 aims to streamline the process for changing the classification of commercial properties to residential use. It amends section 47-813 of the District of Columbia Official Code to establish a clear application process for these classification changes, including the right to appeal if an application is denied. Additionally, the bill introduces a "claw back" provision, which allows for reclassification and taxation adjustments if the property is not utilized for residential purposes within a specified timeframe.

Key amendments include the redefinition of Class 1A Property to encompass properties that have received building permits for new construction or substantial rehabilitation for nontransient residential use. The bill also specifies the tax implications based on the timing of the classification change and allows property owners to appeal denials within 45 days. Furthermore, it provides the Chief Financial Officer with discretion to grant extensions or waive penalties in cases of undue hardship. The act is set to take effect on January 28, 2026, following the Mayor's approval.