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District of ColumbiaB26-0578Council Period 26 (2025-2026)HouseWALLET

Residential Building Permit Classification Temporary Amendment Act of 2025

Sponsored By: Phil Mendelson (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Residential tax rates with owner deadlines

District of Columbia property owners can apply for Class 1A residential tax treatment before qualifying building work is finished. Permits must cover new construction mainly for permanent housing, or major repairs to existing buildings solely for permanent housing. Owners must apply and give the Chief Financial Officer complete supporting records before the change takes effect. The change starts in the half-year requested. Changes from October 1 through March 31 receive the Class 1A rate for the whole tax year. Changes from April 1 through September 30 receive that rate only for the second installment. For already improved or specially assessed properties, the rate applies only to the part used solely for housing. Mainly residential use must begin by the earlier of a new or changed occupancy certificate or three years after permit issuance. The certificate deadline applies even when the certificate covers only part of the improvement. Expired permits must be renewed within one year to avoid reassessment. Failure to meet these conditions triggers back taxes, penalties, and interest for affected years or half-years, without a time limit. Interest and penalties run from the original tax due date. Owners have 45 days after a classification denial to seek administrative review and can appeal the final decision. The Chief Financial Officer can extend deadlines or waive penalties to prevent undue hardship. Owners must still file on time for next year's mixed-use classification when an annual assessment and occupancy certificate require it. Existing permanent housing outside Class 1B also qualifies, but transient guests require an unexpired short-term rental license endorsement. Classification review now also covers Class 2 property, and the related designation rule requires a sole designation. These temporary changes expire 225 days after the law takes effect following approval and a 30-day congressional review.

Fewer property tax conditions for Avanti

The law simplifies property tax relief rules for Avanti Real Estate Services, LLC, a named company. It replaces a detailed occupancy and real-estate-services condition with the company's name. The changes cover Avanti's emergency relief law, effective December 3, 2025, and temporary relief law, effective February 12, 2026. No dollar amount of relief is stated. These amendments took effect after approval and a 30-day congressional review and expire 225 days after taking effect.

Sponsors & Cosponsors

Sponsor

  • Phil Mendelson

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 39 • No: 0

House vote • 3/3/2026

Final Reading, CC

Yes: 13 • No: 0

House vote • 2/3/2026

Other

Yes: 13 • No: 0

House vote • 2/3/2026

First Reading

Yes: 13 • No: 0

Actions Timeline

  1. Law Number L26-0119 Effective from May 21, 2026, Expires on Jan 01, 2027

    5/21/2026House

  2. Transmitted to Congress

    4/9/2026House

  3. Act A26-0286 Published in DC Register Vol 73 and Page 005745

    4/3/2026House

  4. Returned from Mayor

    3/31/2026House

  5. Signed by the Mayor and Enacted with Act Number A26-0286

    3/30/2026House

  6. Transmitted to Mayor, Response Due on Mar 31, 2026

    3/17/2026House

  7. Legislative Meeting

    3/3/2026House

  8. Notice of Intent to Act on B26-0578 Published in the District of Columbia Register

    2/13/2026House

  9. Legislative Meeting

    2/3/2026House

  10. Retained by the Council

    2/3/2026House

  11. B26-0578 Introduced by Chairman Mendelson at Office of the Secretary

    2/2/2026House

Bill Text

  • Enrollment

    3/3/2026

    PDF

  • Amendment

    2/3/2026

    PDF

  • Engrossment

    2/3/2026

    PDF

  • Introduced

    2/2/2026

    PDF

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