District of ColumbiaB26-0577Council Period 26 (2025-2026)HouseWALLET

Residential Building Permit Classification Emergency Amendment Act of 2026

Sponsored By: Phil Mendelson (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Back taxes and penalties if plans stall

Beginning January 28, 2026, the CFO claws back benefits if a Class 1A change is wrong. The triggers are: a new or amended certificate of occupancy is issued, three years pass after the building permit is issued, or the permit expires and is not renewed within one year. The CFO then reclassifies each affected year or half year and adds penalty and interest from the original due date. If your reclassification is denied or rescinded, you have 45 days to seek administrative review and can appeal a final decision. The CFO may extend deadlines or waive penalties and interest to prevent undue hardship.

Quicker residential tax class for conversions

Beginning January 28, 2026, more properties qualify as Class 1A for property tax. Homes used for nontransient living qualify, and short-term guests are allowed only with a valid short‑term rental license. A building permit to build or substantially rehab for residential use can also qualify the property or the residential portion. You must apply with the CFO; the new class starts with the half tax year you file. If the change is Oct 1–Mar 31, the Class 1A rate applies all year; if Apr 1–Sep 30, it applies only to the second bill, and if a certificate of occupancy exists you must still file the mixed‑use form at the annual assessment.

Avanti property tax relief conditions eased

Beginning January 28, 2026, the law removes the prior requirement that the property be occupied by Avanti and used for specific program purposes. The tax relief now refers only to Avanti Real Estate Services, LLC. This change applies to the 2025 emergency and temporary acts that granted the relief.

Class 2 commercial properties added to rule

Beginning January 28, 2026, an existing property‑tax rule that already covered Class 3 and Class 4 buildings also applies to Class 2 commercial properties. If your building is Class 2, 3, or 4, you now must follow that rule. The change may adjust your filing duties or how your property is treated.

Sponsors & Cosponsors

Sponsor

Phil Mendelson
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 26 • No: 0

House vote • 2/3/2026

Final Reading

Yes: 13 • No: 0

House vote • 2/3/2026

Other