This subchapter may be cited as the "Tenant Opportunity to Purchase Act of 1980".
(Sept. 10, 1980, D.C. Law 3-86, § 401, 27 DCR 2975.)
(a) Before an owner of a housing accommodation may sell the accommodation, or issue a notice of intent to recover possession, or notice to vacate, for purposes of demolition or discontinuance of housing use, the owner shall give the tenant an opportunity to purchase the accommodation at a price and terms which represent a bona fide offer of sale.
(b) For the purposes of subchapters IV and V of this chapter, the terms "sell" or "sale" include, but are not limited to, the execution of any agreement pursuant to which the owner of the housing accommodation agrees to some, but not all, of the following:
(1) Relinquishes possession of the property;
(2) Extends an option to purchase the property for a sum certain at the end of the assignment, lease, or encumbrance and provides that a portion of the payments received pursuant to the agreement is to be applied to the purchase price;
(3) Assigns all rights and interests in all contracts that relate to the property;
(4) Requires that the costs of all taxes and other government charges assessed and levied against the property during the term of the agreement are to be paid by the lessee either directly or through a surcharge paid to the owner;
(5) Extends an option to purchase an ownership interest in the property, which may be exercised at any time after execution of the agreement but shall be exercised before the expiration of the agreement; and
(6) Requires the assignee or lessee to maintain personal injury and property damage liability insurance on the property that names the owner as the additional insured.
(c)(1) For the purposes of subchapters IV and V of this chapter, the term "sell" or " sale" shall include:
(A) A master lease which meets some, but not all, of the factors described in subsection (b) of this section or which is similar in effect; and
(B)(i) The transfer of an ownership interest in a corporation, partnership, limited liability company, association, trust, or other entity which owns an accommodation as its sole or principal asset, which, in effect, results in the transfer of the accommodation pursuant to subsection (a) of this section.
(ii) For the purposes of sub-subparagraph (i) of this subparagraph, the term "principal asset" means the value of the accommodation relative to the entity's other holdings.
(2) For the purposes of subchapters IV and V of this chapter, and notwithstanding anything to the contrary herein, the term "sell" or "sale" shall not include:
(A)(i) A transfer, even though for consideration, by a decedent's estate to members of the decedent's family if the consideration arising from the transfer will pass from the decedent's estate to, or solely for the benefit of, charity.
(ii) For purposes of sub-subparagraph (i) of this subparagraph, the term "member's of the decedent's family" means:
(I) A surviving spouse, or domestic partner as defined in § 32-701(3), of the decedent, lineal descendants of the decedent, or spouses of lineal descendants of the decedent;
(II) A trust for the primary benefit of the persons referred to in sub-sub-subparagraph (I) of this sub-subparagraph; and
(III) A partnership, corporation, or other entity controlled by the individuals referred to in sub-sub-subparagraphs (I) and (II) of this sub-subparagraph;
(B) An inter-vivos transfer, even though for consideration, between spouses, parent and child, siblings, grandparent and grandchild, or domestic partners as defined in § 32-701(3);
(C) A transfer of legal title or an interest in an entity holding legal title to a housing accommodation pursuant to a bona fide deed of trust or mortgage, and thereafter any transfer by foreclosure sale or deed in lieu of foreclosure pursuant to a bona fide deed of trust or mortgage;
(D) A tax sale or transfer pursuant to tax foreclosure;
(E) A bankruptcy sale;
(F) Any transaction involving accommodations otherwise subject hereto expressly contemplated by a registration statement filed with the Securities and Exchange Commission prior to February 22, 1994;
(G) Any transfer of a property directly caused by a change in the form of the entity owning the property; provided, that the transfer is without consideration, including a transfer of interests in an entity to a limited liability company as contemplated by § 29-1013;
(H) The transfer of interests in a partnership or limited liability company that owns an accommodation as its sole or principal asset; provided, that the sole purpose of the transfer is to admit one or more limited partners or investor members who will make capital contributions and receive tax benefits pursuant to section 42 of the United States Internal Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2189; 26 U.S.C. § 42), or a comparable District program;
(H-i)(i) A conveyance or re-conveyance for a project that improves or renovates the real property located at 733 15th Street, N.W. (Lot 22, Square 222), commonly known as "The Woodward Building," if:
(I)(aa) It was operated as an office building until being vacated by commercial tenants to accommodate rehabilitation of the building;
(bb) It was or is being redesigned for residential tenants, having previously not been designed for such use; and
(cc) It was not occupied by residential tenants at the commencement of the project or as of October 18, 2007;
(II) Its zoning is appropriate for its proposed residential use;
(III) There is a conveyance by 15th and H Street Associates, LLP to the Master Tenant by entering into a master lease with the Master Tenant for the purpose of utilization of historic tax credits for the improvement or the renovation;
(IV) 15th and H Street Associates, LLP:
(aa) Submits a complete application for historic tax credits to the U.S. Department of Interior, National Park Service;
(bb) Receives approval of part 1 and part 2 of the application; and
(cc) Pursues approval of part 3 of the application in good faith;
(V) There is a re-conveyance of the ownership interests within 120 months of the commencement of the project to 15th and H Street Associates, LLP, which re-conveyance restores the ownership interests in 15th and H Street Associates, LLP as existing at the commencement of the project (subject to any other transfers otherwise exempt under this section) and terminates the interest of the Master Tenant in the real property;
(VI) 15th and H Street Associates, LLP does not sell the real property to the Investor Member except as permitted by this subparagraph;
(VII) A Notice of Transfer is issued in accordance with subsection (d)(1)(A) of this section; and
(VIII) Prior to the execution of a residential lease for the building, which execution occurs prior to the re-conveyance provided for in sub-sub-subparagraph (IV) of this sub-subparagraph, the proposed tenant receives a written notice, on a single page, in a minimum 14-point bold Times Roman font, that:
(aa) 15th and H Street Associates, LLP has entered into a master lease with the Master Tenant for the purpose of utilizing historic tax credits;
(bb) Within 120 months of the execution of the master lease, there may be a re-conveyance of the interest held by the Master Tenant to 15th and H Street Associates, LLP, which re-conveyance restores the ownership interests in 15th and H Street Associates, LLP as existing at the commencement of the project (subject to any other transfers otherwise exempt under this section) and terminates the interest of the Master Tenant in the real property; and
(cc) The conveyances and re-conveyances, with respect to the real property only, are exempt from the provisions of this act if the requirements of this subparagraph are met, including the requirement that 15th and H Street Associates, LLP:
(1) Submits a complete application for historic tax credits to the U.S. Department of Interior, National Park Service;
(2) Receives approval of part 1 and part 2 of the application; and
(3) Pursues approval of part 3 of the application in good faith.
(ii) For the purposes of this subparagraph, the term:
(I) "Conveyance" or "re-conveyance" means a transfer of interests in real property or an entity, including by sale, exchange, or execution or termination of a master lease, or a combination thereof.
(II) "Historic tax credits" means tax credits under section 47 of the Internal Revenue Code of 1986, approved October 16, 1962 (76 Stat. 966; 26 U.S.C. § 47).
(III) "Investor Member" means an investor in the Master Tenant.
(IV) "Master Tenant" means a limited partnership or limited liability company that will:
(aa) Be primarily owned by Investor Members who will have a noncontrolling interest; and
(bb) Own a noncontrolling interest in 15th and H Street Associates, LLP.
(V) "Noncontrolling interest" means an equity interest under which the Investor Member shall not, notwithstanding the Investor Member's customary consent rights, and absent a default or breach by the managing partner:
(aa) Exercise management or control over any aspect of the project, including acting as directors, officers, managers, or decision-makers in the project; or
(bb) Play a role in selecting, recommending, or choosing directors, officers, managers, or decision-makers in the project.
(iii) For the purposes of this subparagraph, failure to comply with the requirements of sub-subparagraph (I) through (VIII) of this subparagraph shall require 15th and H Street Associates, LLP to comply anew with the requirements of this chapter as though this subparagraph had not been enacted.
(I) A transfer of title to the housing accommodation to a limited liability company pursuant to § 29-1013;
(J) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust pursuant to § 42-1102(17);
(K) A transfer of the housing accommodation to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust, pursuant to § 42-1102;
(L) A transfer of the housing accommodation by the trustee of a revocable trust if the transfer would otherwise be excluded under this act if made by the grantor of the revocable trust, pursuant to § 42-1102(19);
(M) A transfer pursuant to court order or court-approved settlement; and
(N) A transfer by eminent domain or under threat of eminent domain.
(3) An owner who is uncertain as to the applicability of this chapter shall be deemed to be an aggrieved party for the purposes of seeking declaratory relief under §§ 42-3405.03 and 42-3405.03a. The tenant or tenant organization in such an accommodation shall be deemed to be an aggrieved party, for these purposes.
(d)(1)(A) In addition to any other notice required by subchapters IV and V of this chapter, if an opportunity to purchase is not provided under this section, the owner shall provide each tenant and the Mayor written notice ("Notice of Transfer") of the transfer of an interest in a housing accommodation or of any ownership interest in a corporation, partnership, limited liability company, association, trust, or other entity which owns a housing accommodation.
(B) Notwithstanding any other provision in this chapter, an owner shall not be required to file a Notice of Transfer for a transfer exempt under subsection (c)(2)(A), (D), (E), (F), (I), (J), (K), (L), (M), or (N) of this section; provided, that a notice of the transfer shall be filed with the Mayor in a form prescribed by the Mayor.
(C) Notwithstanding any other provision in this chapter, a owner shall not be required to a Notice of Transfer for a transfer exempt under subsection(c)(2)(C) of this section.
(2) The Notice of Transfer shall be sent by registered or certified mail, return receipt requested, by commercial overnight delivery service that maintains proof of delivery, or by personal service, at least 90 days prior to the proposed date of transfer. Notice to tenants shall be sent to their address at the housing accommodation unless a tenant has supplied in writing to the owner a different address for notice.
(3)(A) The Notice of Transfer shall be substantially in the form prescribed by the Mayor and shall provide, at a minimum, a statement of the tenant or tenant organization's rights under this chapter, an accurate description of the transfer containing all material facts, the date of the proposed transfer, and the reason, if any, why the owner asserts the transfer may not constitute a sale.
(B) In addition to any other requirements for the form of the Notice of Transfer prescribed pursuant to subparagraph (A) of this paragraph, a Notice of Transfer for a housing accommodation to be transferred for the purposes of receiving tax benefits pursuant to section 42 of the United States Internal Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2189; 26 U.S.C. § 42), or a comparable District program, shall include a description of the applicable federal or District subsidy, and a description of the steps in the transaction employed by the developer to avail itself of the subsidy.
(4) The owner's failure to provide the Notice of Transfer, or the provision of a notice that is fraudulent or contains material misrepresentations or material omissions, shall create a rebuttable presumption that the transfer constitutes a sale for purposes of subchapters IV and V of this chapter.
(5)(A) An aggrieved tenant or tenant organization duly organized under § 42- 3404.11 and meeting pursuant to its by laws, whichever shall be applicable, may, within 45 days of the Mayor's receipt of the Notice of Transfer, file a notice indicating an intent to file a petition for relief pursuant to § 42- 3405.03 or § 42-3405.03a.
(B) A Notice of Intent to File Petition shall be delivered by registered or certified mail, return receipt requested, by commercial overnight delivery service that maintains proof of delivery, or by personal service to the Mayor and simultaneously to the owner. The owner's address shall be that set forth in the Notice of Transfer.
(C) Failure of an aggrieved tenant or tenant organization to file timely the Notice of Intent to File Petition shall preclude the tenant or tenant organization from asserting any rights under subchapters IV and V of this chapter relating to the transfer identified in the Notice of Transfer.
(6) Within 30 days of the receipt by the Mayor of the Notice of Intent to File, a tenant or tenant organization shall have 30 days to file a petition for relief under § 42-3405.03 or § 42-3405.03a. A copy of the petition shall be delivered to owner by registered or certified mail, return receipt requested, or by personal service. Failure of a tenant or tenant organization to file timely the petition for relief shall preclude the tenant or tenant organization from asserting any rights under subchapters IV and V of this section relating to the transfer identified in the Notice of Transfer.
(7)(A) Notwithstanding the time requirements for notice in subsection (e)(5)(A) of this section, an aggrieved tenant or tenants, whichever shall be applicable, may, within 30 days of the Mayor's receipt of the notice of transfer of an accommodation pursuant to an exemption in subsection (b)(3) of this section ("Notice of Transfer Pursuant to an Exemption"), file a Notice of Intent to File Petition.
(B)(i) Failure of a tenant or tenants, pursuant to paragraph (7)(A) of this subsection, or a tenant or tenant organization pursuant to paragraph (7)(B) of this subsection, to file timely the Notice of Intent to File Petition shall preclude the tenant or tenant organization from asserting any rights under subchapters IV and V of this chapter relating to the transfer identified in the Notice of Transfer Pursuant to an Exemption of an accommodation pursuant to an exemption.
(ii) A tenant or tenant organization shall be precluded from asserting any rights under subchapters IV and V of this chapter for a transfer exempt under subsection(c)(2)(C) of this section.
(C) Any change in the transfer agreement that would invalidate a claim of exemption shall be reported in writing to the Mayor and proper notice shall be provided to the tenant or tenant organization.
(8) For the purposes of providing notice under this subsection, the term "tenant" shall mean the person or persons who, under the terms of the lease or any amendment or consent executed pursuant thereto, are entitled to occupy the rental unit.
(9)(A) Upon 5 days of request by any person, the Mayor shall provide:
(i) Written certifications, including date of receipt or non-receipt, of any notices received under subchapters IV and V of this chapter; and
(ii) Copies of the notices.
(B) The certifications may be recorded among the records of the Recorder of Deeds and shall be exempt from filing fees.
(10) Notice of Transfer, Notice of Transfer Pursuant to an Exemption, Notice of Intent to File, and the petition for relief pursuant to § 42-3405.03 or § 42-3405.03a shall be referred to as "Time Certain Notices".
(Sept. 10, 1980, D.C. Law 3-86, § 402, 27 DCR 2975; Oct. 19, 1989, D.C. Law 8-49, § 2, 36 DCR 5790; Feb. 5, 1994, D.C. Law 10-68, § 37, 40 DCR 6311; Sept. 6, 1995, D.C. Law 11-31, § 3(i), 42 DCR 3239; Sept. 8, 2004, D.C. Law 15-176, § 3, 51 DCR 5707; July 22, 2005, D.C. Law 16-15, § 2(b), 52 DCR 6885; Mar. 2, 2007, D.C. Law 16-191, § 101(a), 53 DCR 6794; Oct. 18, 2007, D.C. Law 17-40, § 2, 54 DCR 8050; Sept. 12, 2008, D.C. Law 17-231, § 37, 55 DCR 6758.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1631.
Effect of Amendments
D.C. Law 15-176, in subsec. (c), substituted "spouse, or domestic partner as defined in § 32-701(3)," for "spouse".
D.C. Law 16-15, in subsec. (b), substituted "subchapters IV and V of this chapter, the terms 'sell' or 'sale' include, but are not limited to, the execution of any agreement pursuant to which the owner of the housing accommodation agrees to some, but not all, of the following:" for "this subchapter, the terms 'sell' or 'sale' include the execution of any agreement that assigns, leases, or encumbers property, pursuant to which the owner"; rewrote subsec. (c); and added subsec. (d). Prior to amendment, subsec. (c) read as follows:
"(c) For the purposes of this subchapter, the term "sell" or "sale" includes the transfer of 100% of all partnership interests in a partnership which owns the accommodation as its sole asset to 1 transferee or of 100% of all stock of a corporation which owns the accommodation as its sole asset to 1 transferee in 1 or more transactions occurring during a period of 1 year from the date of the first such transfer, and a master lease which meets some, but not all, of the factors described in subsection (b) of this section or which is similar in effect. For the purposes of this subchapter, the term "sell" or "sale" does not include a transfer, even though for consideration, by a decedent's estate to members of the decedent's family if the consideration arising from such transfer will pass from the decedent's estate to, or solely for the benefit of, charity. For purposes of the preceding sentence, the term "member's of the decedent's family" means (i) a surviving spouse, or domestic partner as defined in § 32-701(3), of the decedent, lineal descendants of the decedent, or spouses of lineal descendants of the decedent, (ii) a trust for the primary benefit of the persons referred to in clause (i), and (iii) a partnership, corporation, or other entity controlled by the individuals referred to in clauses (i) and (ii). The term "sell" or "sale" does not include a foreclosure sale, a tax sale, or a bankruptcy sale. An owner who is uncertain as to the applicability of this subchapter is deemed to be an aggrieved owner for the purposes of seeking declaratory relief under §§ 42-3405.03 and 42-3405.03a. The tenant or tenant organization in such an accommodation is deemed to be an aggrieved tenant or tenant organization, as applicable, for these purposes. This subsection shall not apply to any transaction involving accommodations otherwise subject hereto expressly contemplated by a registration statement filed with the Securities and Exchange Commission prior to February 22, 1994."
D.C. Law 16-191, in subsecs. (b), (c)(3), and (d)(5)(A), validated previously made technical corrections.
D.C. Law 17-40, in subsec. (c)(2), added subpar. (H-i).
D.C. Law 17-231, in subsec. (c)(2)(B), substituted "spouses" for "husband and wife".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 3(i) of Rental Housing Conversion and Sale Act of 1980 Temporary Extension Amendment Act of 1994 (D.C. Law 10-176, September 22, 1994, law notification 41 DCR 6706).
Emergency Act Amendments
For temporary amendment of section, see § 3(i) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1994 (D.C. Act 10-285, July 8, 1994, 41 DCR 4904).
For temporary amendment of section, see § 3(i) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1995 (D.C. Act 11-47, May 4, 1995, 42 DCR 2410) and § 3(i) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Congressional Recess Emergency Act of 1995 (D.C. Act 11-96, July 19, 1995, 42 DCR 3837).
For temporary (90 day) amendment of section, see § 2 of Historic Preservation Tax Credit Partnership and Limited Liability Company Clarification Emergency Act of 2007 (D.C. Act 17-111, July 27, 2007, 54 DCR 8227).
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
Law 8-49, the "Tenant Opportunity to Purchase Clarification Amendment Act of 1989," was introduced in Council and assigned Bill No. 8-188, which was referred to the Committee on Consumer and Regulatory Affairs. The Bill was adopted on first and second readings on June 27, 1989 and July 11, 1989, respectively. Signed by the Mayor on August 1, 1989, it was assigned Act No. 8-82 and transmitted to both Houses of Congress for its review.
D.C. Law 10-68, the "Technical Amendments Act of 1993," was introduced in Council and assigned Bill No. 10-166, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on June 29, 1993, and July 13, 1993, respectively. Signed by the Mayor on August 23, 1993, it was assigned Act No. 10-107 and transmitted to both Houses of Congress for its review. D.C. Law 10-68 became effective on February 5, 1994.
For legislative history of D.C. Law 10-144, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 11-31, see Historical and Statutory Notes following § 42-3405.03b.
For Law 15-176, see notes following § 42-1102.
For Law 16-15, see notes following § § 42-3401.03.
For Law 16-191, see notes following § 42-1102.
Law 17-40, the "Historic Preservation Tax Credit Partnership and Limited Liability Company Clarification Amendment Act of 2007", was introduced in Council and assigned Bill No. 17-182 which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on June 21, 2007, and July 10, 2007, respectively. Signed by the Mayor on July 27, 2007, it was assigned Act No. 17-102 and transmitted to both Houses of Congress for its review. D.C. Law 17-40 became effective on October 18, 2007.
For Law 17-231, see notes following § 42-516.
Miscellaneous Notes
Reenactment of Law 3-86: See Historical and Statutory Notes following § 45- 1601.
Application of Law 8-49: Section 3 of D.C. Law 8-49 provided that the act shall apply to any sale of a rental housing accommodation that occurs after June 23, 1988.
Amendment of section by Law 10-144: Section 2(i) of D.C. Law 10-144 purported to amend this section by adding (c) to read as follows:
"(c) For the purposes of this subchapter, the term 'sell' or 'sale' includes the transfer of 100% of all partnership interests in a partnership which owns the accommodation as its sole asset to 1 transferee or of 100% of all stock of a corporation which owns the accommodation as its sole asset to 1 transferee in 1 or more transactions occurring during a period of 1 year from the date of the first such transfer, and a master lease which meets some, but not all, of the factors described in subsection (b) of this section or which is similar in effect. For the purposes of this subchapter, the term 'sell' or 'sale' does not include a transfer, even though for consideration, by a decedent's estate to members of the decedent's family if the consideration arising from such transfer will pass from the decedent's estate to, or solely for the benefit of, charity. For purposes of the preceding sentence, the term 'member's of the decedent's family' means: (1) a surviving spouse of the decedent, lineal descendants of the decedent, or spouses of lineal descendants of the decedent, (2) a trust for the primary benefit of the persons referred to in clause (1), and (3) a partnership, corporation, or other entity controlled by the individuals referred to in clauses (1) and (2). The term 'sell' or 'sale' does not include a foreclosure sale, a tax sale, or a bankruptcy sale. An owner who is uncertain as to the applicability of this subchapter is deemed to be an aggrieved owner for the purposes of seeking declaratory relief under §§ 45-1653 and 45-1653.1. The tenant or tenant organization in such an accommodation is deemed to be an aggrieved tenant or tenant organization, as applicable, for these purposes. This subsection shall not apply to any transaction involving accommodations otherwise subject hereto expressly contemplated by a registration statement filed with the Securities and Exchange Commission prior to February 22, 1994."
Applicability of D.C. Law 15-176: Section 7 of D.C. Law 15-176 provides:
"Sections 2 through 6 shall apply as of October 1, 2003."
Expiration of Law 17-40: Section 3 of D.C. Law 17-40 provides: "This act shall expire 120 months after its effective date."
In a housing accommodation of 5 or more units, the tenants may form and register the tenant organization with the Mayor, pursuant to § 42-3404.11, at any time; provided, that this section shall not be construed to alter the time periods within which a tenant organization may exercise the rights afforded by this chapter. A tenant organization may file a petition for relief pursuant to § 42-3405.03 or § 42-3405.03a.
(Sept. 10, 1980, D.C. Law 3-86, § 402a, formerly § 402b, as added July 22, 2005, D.C. Law 16-15, § 2(c), 52 DCR 6885; renumbered Mar. 2, 2007, D.C. Law 16-191, § 101(b), 53 DCR 6794.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-191 renumbered the section.
Legislative History of Laws
For Law 16-15, see notes following § § 42-3401.03.
For Law 16-191, see notes following § 42-1102.
The owner shall provide each tenant a written copy of the offer of sale by certified mail and post a copy of the offer of sale in a conspicuous place in common areas of the housing accommodation if it consists of more than one unit. The owner shall provide the Mayor with a written copy of the offer of sale by certified mail or by filing it with the Conversion and Sale Administrator within the Department of Housing and Community Development. The owner shall certify to the Mayor that the Mayor and each tenant were provided copies of the offer of sale on the same day. An offer includes, at a minimum:
(1) The asking price and material terms of the sale;
(2) A statement that the tenant has the right to purchase the accommodation under this chapter and a summary of tenant rights and sources of technical assistance as published in the D.C. Register by the Mayor; Provided, however, that if no such statement and summary have been published, the owner will be deemed in compliance with this paragraph;
(3) A statement as to whether a contract with a third party exists for sale of the accommodation and that the owner shall make a copy available to the tenant within 7 days after receiving a request; and
(4) A statement that the owner shall make available to the tenant a floor plan of the building and an itemized list of monthly operating expenses, utility consumption rates, and capital expenditures for each of the 2 preceding calendar years within 7 days after receiving a request. The statement shall also indicate that the owner shall, at the same time, make available the most recent rent roll, list of tenants, and list of vacant apartments. If the owner does not have a floor plan, the owner may meet the requirement to provide a floor plan by stating in writing to the tenant that the owner does not have a floor plan.
(Sept. 10, 1980, D.C. Law 3-86, § 403, 27 DCR 2975; Nov. 5, 1983, D.C. Law 5-38, § 2(i), 30 DCR 4866; Sept. 6, 1995, D.C. Law 11-31, § 3(j), 42 DCR 3239; Oct. 21, 2008, D.C. Law 17-234, § 2(a), 55 DCR 9014.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1632.
Effect of Amendments
D.C. Law 17-234 rewrote the lead-in language, which had read as follows:
"The owner shall provide each tenant and the Mayor a written copy of the offer of sale by first class mail and post a copy of the offer of sale in a conspicuous place in common areas of the housing accommodation if it consists of more than 1 unit. An offer includes, at a minimum:".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 3(j) of Rental Housing Conversion and Sale Act of 1980 Temporary Extension Amendment Act of 1994 (D.C. Law 10-176, September 22, 1994, law notification 41 DCR 6076).
Emergency Act Amendments
For temporary amendment of section, see § 3(j) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1994 (D.C. Act 10-285, July 8, 1994, 41 DCR 4904).
For temporary amendment of section, see § 3(j) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1995 (D.C. Act 11-47, May 4, 1995, 42 DCR 2410) and § 3(j) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Congressional Recess Emergency Act of 1995 (D.C. Act 11-96, July 19, 1995, 42 DCR 3837).
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 5-38, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 10-144, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 11-31, see Historical and Statutory Notes following § 42-3405.03b.
Law 17-234, the "Tenant Opportunity to Purchase Notification Amendment Act of 2008", was introduced in Council and assigned Bill No. 17-640 which was referred to the Committee on Housing and Urban Affairs. The Bill was adopted on first and second readings on July 1, 2008, and July 15, 2008, respectively. Signed by the Mayor on July 28, 2008, it was assigned Act No. 17-475 and transmitted to both Houses of Congress for its review. D.C. Law 17-234 became effective on October 21, 2008.
Miscellaneous Notes
Reenactment of Law 3-86: See Historical and Statutory Notes following § 42- 3401.01.
Amendment of section by Law 10-144: Section 2(j) of D.C. Law 10-144 purported to amend (4) of this section to read as follows:
"The owner shall provide each tenant and the Mayor a written copy of the offer of sale by first class mail and post a copy of the offer of sale in a conspicuous place in common areas of the housing accommodation if it consists of more than 1 unit. An offer includes, at a minimum:
"(4) A statement that the owner shall make available to the tenant a floor plan of the building and an itemized list of monthly operating expenses, utility consumption rates, and capital expenditures for each of the 2 preceding calendar years within 7 days after receiving a request. The statement shall also indicate that the owner shall, at the same time, make available the most recent rent roll, list of tenants, and list of vacant apartments. If the new owner does not have a floor plan, the owner may meet the requirement to provide a floor plan by stating in writing to the tenant that the owner does not have a floor plan."
The right of a third party to purchase an accommodation is conditional upon exercise of tenant rights under this subchapter. The time periods for negotiation of a contract of sale and for settlement under this subchapter are minimum periods, and the owner may afford the tenants a reasonable extension of such period, without liability under a third party contract. Third party purchasers are presumed to act with full knowledge of tenant rights and public policy under this subchapter.
(Sept. 10, 1980, D.C. Law 3-86, § 404, 27 DCR 2975.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1633.
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
Miscellaneous Notes
Reenactment of Law 3-86: See Historical and Statutory Notes following § 42- 3401.01.
(a) Bargaining in good faith. -- The tenant and owner shall bargain in good faith. The following constitute prima facie evidence of bargaining without good faith:
(1) The failure of an owner to offer the tenant a price or term at least as favorable as that offered to a third party, within the periods specified in §§ 42-3404.09(4), 42-3404.10(4), and 42-3404.11(4), respectively, without a reasonable justification for so doing;
(2) The failure of an owner to make a contract with the tenant which substantially conforms with the price and terms of a third party contract within the time periods specified in §§ 42-3404.09(4), 42-3404.10(4), and 42-3404.11(4), respectively, without a reasonable justification for so doing; or
(3) The intentional failure of a tenant or an owner to comply with the provisions of this subchapter.
(a-1) Reduced price. -- If the owner sells or contracts to sell the accommodation to a third party for a price more than 10% less than the price offered to the tenant or for other terms which would constitute bargaining without good faith, the owner shall comply anew with all requirements of §§ 42-3404.09, 42-3404.10, and 42-3404.11, as applicable.
(a-2) Financial assurances. -- The owner may not require the tenant to prove financial ability to perform as a prerequisite to entering into a contract. The owner may not require the tenant to pay the purchase price in installments unless the owner provides deferred purchase money financing on terms reasonably acceptable to the tenant. The owner may require the tenant to prove that the tenant, either alone or in conjunction with a third party, has comparable financial ability to the third-party contractor before the owner will be required to grant deferred purchase money financing to the tenant on the same terms and conditions agreed between the owner and the third-party contractor. If the tenant can prove comparable financial ability alone, the owner may not require the tenant to secure a third-party guarantor. This proof cannot be required as a prerequisite to contracting. It may be required only as a prerequisite to the owner granting deferred purchase money financing at settlement.
(a-3) Transfers of interest in a partnership or corporation and master leases. -- In the event of a transfer of interest in a partnership or corporation or in the event of a master lease or agreement that is considered a sale within the meaning of § 42-3404.02, but which does not involve a transfer of record title to the real property, the owner shall be bargaining in good faith if the owner offers the tenant the opportunity to acquire record title to the real property or offers the tenant the opportunity to match the type of transfer or agreement entered into with the third party. With respect to either type of offer, all provisions of this subchapter apply.
(b) Deposit. -- The owner shall not require the tenant to pay a deposit of more than 5% of the contract sales price in order to make a contract. The deposit is refundable in the event of a good faith failure of the tenant to perform under the contract.
(Sept. 10, 1980, D.C. Law 3-86, § 405, 27 DCR 2975; Sept. 26, 1980, D.C. Law 3-106, § 3(a), 27 DCR 3758; Sept. 29, 1988, D.C. Law 7-154, § 2(e), 35 DCR 5715; Sept. 6, 1995, D.C. Law 11-31, § 3(k), 42 DCR 3239.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1634.
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 3(k) of Rental Housing Conversion and Sale Act of 1980 Temporary Extension Amendment Act of 1994 (D.C. Law 10-176, September 22, 1994, law notification 41 DCR 6076).
Emergency Act Amendments
For temporary amendment of section, see § 3(k) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1994 (D.C. Act 10-285, July 8, 1994, 41 DCR 4904).
For temporary amendment of section, see § 3(k) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1995 (D.C. Act 11-47, May 4, 1995, 42 DCR 2410) and § 3(k) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Congressional Recess Emergency Act of 1995 (D.C. Act 11-96, July 19, 1995, 42 DCR 3837).
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
Law 3-106, the "Rental Housing Act of 1977 Extension Act of 1980," was introduced in Council and assigned Bill No. 3-326, which was referred to the Committee on Housing and Economic Development. The Bill was adopted on first and second readings on July 15, 1980, and July 29, 1980, respectively. Signed by the Mayor on July 31, 1980, it was assigned Act No. 3-231 and transmitted to both Houses of Congress for its review.
For legislative history of D.C. Law 7-154, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 10-144, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 11-31, see Historical and Statutory Notes following § 42-3405.03b.
Miscellaneous Notes
Reenactment of Law 3-86: See Historical and Statutory Notes following § 42- 3401.01.
Amendment of section by Law 10-144: Section 2(k) of D.C. Law 10-144 purported to insert new (a-1), (a-2) and (a-3) of this section to read as follows:
"(a-1) Reduced price. If the owner sells or contracts to sell the accommodation to a third party for a price more than 10% less than the price offered to the tenant or for other terms which would constitute bargaining without good faith, the owner shall comply anew with all requirements of §§ 45- 1638, 45-1639, or 45-1640 as applicable.
"(a-2) Financial assurances. The owner may not require the tenant to prove financial ability to perform as a prerequisite to entering into a contract. The owner may not require the tenant to pay the purchase price in installments unless the owner provides deferred purchase money financing on terms reasonably acceptable to the tenant. The owner may require the tenant to prove that the tenant, either alone or in conjunction with a third party, has comparable financial ability to the third party contractor before the owner will be required to grant deferred purchase money financing to the tenant on the same terms and conditions agreed between the owner and the third party contractor. If the tenant can prove comparable financial ability alone, the owner may not require the tenant to secure a third party guarantor. This proof cannot be required as a prerequisite to contracting. It may be required only as a prerequisite to the owner granting deferred purchase money financing at settlement.
"(a-3) Transfers of interest in a partnership or corporation and master leases. In the event of a transfer of interest in a partnership or corporation or in the event of a master lease or agreement that is considered a sale within the meaning of § 45-1631(c) but which does not involve a transfer of record title to the real property, the owner shall be bargaining in good faith if the owner offers the tenant the opportunity to acquire record title to the real property or offers the tenant the opportunity to match the type of transfer or agreement entered into with the third party. With respect to either type of offer, all provisions of this subchapter apply."
The tenant may exercise rights under this subchapter in conjunction with a third party or by assigning or selling those rights to any party, whether private or governmental. The exercise, assignment, or sale of tenant rights may be for any consideration which the tenant, in the tenant's sole discretion, finds acceptable. Such an exercise, assignment, or sale may occur at any time in the process provided in this subchapter and may be structured in any way the tenant, in the tenant's sole discretion, finds acceptable.
(Sept. 10, 1980, D.C. Law 3-86, § 406, 27 DCR 2975; Sept. 6, 1995, D.C. Law 11-31, § 3(l), 42 DCR 3239.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1635.
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 3(l) of Rental Housing Conversion and Sale Act of 1980 Temporary Extension Amendment Act of 1994 (D.C. Law 10-176, September 22, 1994, law notification 41 DCR 6076).
Emergency Act Amendments
For temporary amendment of section, see § 3(l) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1994 (D.C. Act 10-285, July 8, 1994, 41 DCR 4904).
For temporary amendment of section, see § 3(l) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1995 (D.C. Act 11-47, May 4, 1995, 42 DCR 2410) and § 3(l) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Congressional Recess Emergency Act of 1995 (D.C. Act 11-96, July 19, 1995, 42 DCR 3837).
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 10-144, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 11-31, see Historical and Statutory Notes following § 42-3405.03b.
Miscellaneous Notes
Reenactment of Law 3-86: See Historical and Statutory Notes following § 42- 3401.01.
Amendment of section by Law 10-144: Section 2(l) of D.C. Law 10-144 purported to amend this section to read as follows:
"The tenant may exercise rights under this subchapter in conjunction with a third party or by assigning or selling those rights to any party, whether private or governmentaL. The exercise, assignment, or sale of tenant rights may be for any consideration which the tenant, in the tenant's sole discretion, finds acceptable. Such an exercise, assignment, or sale may occur at any time in the process provided in this subchapter and may be structured in any way the tenant, in the tenant's sole discretion, finds acceptable."
An owner shall not request, and a tenant may not grant, a waiver of the right to receive an offer of sale under this subchapter. An owner shall not require waiver of any other right under this subchapter except in exchange for consideration which the tenant, in the tenant's sole discretion, finds acceptable.
(Sept. 10, 1980, D.C. Law 3-86, § 407, 27 DCR 2975; Sept. 6, 1995, D.C. Law 11-31, § 3(m), 42 DCR 3239.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1636.
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 3(m) of Rental Housing Conversion and Sale Act of 1980 Temporary Extension Amendment Act of 1994 (D.C. Law 10-176, September 22, 1994, law notification 41 DCR 6076).
Emergency Act Amendments
For temporary amendment of section, see § 3(m) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1994 (D.C. Act 10-285, July 8, 1994, 41 DCR 4904).
For temporary amendment of section, see § 3(m) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1995 (D.C. Act 11-47, May 4, 1995, 42 DCR 2410) and § 3(m) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Congressional Recess Emergency Act of 1995 (D.C. Act 11-96, July 19, 1995, 42 DCR 3837).
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 10-144, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 11-31, see Historical and Statutory Notes following § 42-3405.03b.
Miscellaneous Notes
Reenactment of Law 3-86: See Historical and Statutory Notes following § 42- 3401.01.
Amendment of section by Law 10-144: Section 2(m) of D.C. Law 10-144 purported to amend this section to read as follows:
"An owner shall not request, and a tenant may not grant, a waiver of the right to receive an offer of sale under this subchapter. An owner shall not require waiver of any other right under this subchapter except in exchange for consideration which the tenant, in the tenant's sole discretion, finds acceptable."
In addition to any and all other rights specified in this subchapter, a tenant or tenant organization shall also have the right of first refusal during the 15 days after the tenant or tenant organization has received from the owner a valid sales contract to purchase by a third party. If the contract is received during the negotiation period pursuant to § 42-3404.09(2), § 42- 3404.10(2), or § 42-3404.11(2), the 15-day period will begin to run at the end of the negotiation period. In exercising rights pursuant to this section, all rights specified in this subchapter shall apply except the minimum negotiation periods specified in §§ 42-3404.09(2), 42-3404.10(2), and 42-3404.11(2).
(Sept. 10, 1980, D.C. Law 3-86, § 408, 27 DCR 2975; Nov. 5, 1983, D.C. Law 5-38, § 2(j), 30 DCR 4866; Sept. 29, 1988, D.C. Law 7-154, § 2(f), 35 DCR 5715.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1637.
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 5-38, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 7-154, see Historical and Statutory Notes following § 42-3401.01.
Miscellaneous Notes
Reenactment of Law 3-86: See Historical and Statutory Notes following § 42- 3401.01.
The following provisions apply to single-family accommodations:
(1) Written statement of interest. -- Upon receipt of a written offer of sale from the owner that includes a description of the tenant's rights and obligations under this section, or upon the Mayor's receipt of a copy of the written offer of sale, whichever is later, the tenant shall have 30 days to provide the owner and the Mayor, by hand or by sending by certified mail, with a written statement of interest. The statement of interest shall be a clear expression of interest on the part of the tenant to exercise the right to purchase as specified in this subchapter;
(2) Negotiation period. -- If a tenant has provided a written statement of interest in accordance with paragraph (1) of this section, the owner shall afford the tenant a reasonable period to negotiate a contract of sale, and shall not require less than 60 days, not including the 30 days provided by paragraph (1) of this section. For every day of delay in providing information by the owner as required by this subchapter, the negotiation period is extended by 1 day;
(3) Time before settlement. -- The owner shall afford the tenant a reasonable period prior to settlement in order to secure financing and financial assistance, and shall not require less than 60 days after the date of contracting. If a lending institution or agency estimates in writing that a decision with respect to financing or financial assistance will be made within 90 days after the date of contracting, the owner shall afford an extension of time consistent with that written estimate;
(4) Lapse of time. -- If 180 days elapse from the date of a valid offer under this subchapter and the owner has not sold or contracted for the sale of the accommodation, the owner shall comply anew with the terms of this subchapter.
(Sept. 10, 1980, D.C. Law 3-86, § 409, 27 DCR 2975; Sept. 29, 1988, D.C. Law 7-154, § 2(g), 35 DCR 5715; Oct. 21, 2008, D.C. Law 17-234, § 2(b), 55 DCR 9014; July 23, 2010, D.C. Law 18-193, § 2(a), 57 DCR 4510.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1638.
Effect of Amendments
D.C. Law 17-234, in par. (1), rewrote the first sentence, which had read as follows: "Upon receipt of a written offer of sale from the owner that includes a description of the tenant's rights and obligations under this section, the tenant shall have 30 days to provide the owner and the Mayor with a written statement of interest."
D.C. Law 18-193, in par. (1), substituted "and the Mayor, by hand or by sending by certified mail," for "and the Mayor".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(a) of Tenant Opportunity to Purchase Preservation Clarification Temporary Amendment Act of 2009 (D.C. Law 18-23, July 7, 2009, law notification 56 DCR 6125).
For temporary (225 day) amendment of section, see § 2(a) of Tenant Opportunity to Purchase Preservation Clarification Temporary Amendment Act of 2010 (D.C. Law 18-177, May 27, 2010, law notification 57 DCR 6039).
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2(a) of Tenant Opportunity to Purchase Preservation Clarification Emergency Amendment Act of 2009 (D.C. Act 18-38, March 21, 2009, 56 DCR 2668).
For temporary (90 day) amendment of section, see § 2(a) of Tenant Opportunity to Purchase Preservation Clarification Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-109, June 18, 2009, 56 DCR 4934).
For temporary (90 day) amendment of section, see § 2(a) of Tenant Opportunity to Purchase Preservation Clarification Emergency Amendment Act of 2010 (D.C. Act 18-327, March 18, 2010, 57 DCR 2544).
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 7-154, see Historical and Statutory Notes following § 42-3401.01.
For Law 17-234, see notes following § 42-3404.03.
Law 18-193, the "Tenant Opportunity to Purchase Preservation Clarification Amendment Act of 2010", was introduced in Council and assigned Bill No. 18-179, which was referred to the Committee on Housing Safety and Workforce Development. The Bill was adopted on first and second readings on April 20, 2010, and May 4, 2010, respectively. Signed by the Mayor on May 19, 2010, it was assigned Act No. 18-404 and transmitted to both Houses of Congress for its review. D.C. Law 18-193 became effective on July 23, 2010.
Miscellaneous Notes
Reenactment of Law 3-86: See Historical and Statutory Notes following § 42- 3401.01.
The following provisions apply to accommodations with 2 through 4 units:
(1) Joint and several response. -- The tenants may respond to an owner's offer first jointly, then severally. Upon receipt of a written offer of sale from the owner that includes a description of the tenant's rights and obligations under this section, or upon the Mayor's receipt of a copy of the written offer of sale, whichever is later, a group of tenants acting jointly shall have 15 days to provide the owner and the Mayor, by hand or by sending by certified mail, with a written statement of interest. Following that time period, if the tenants acting jointly have failed to submit a written statement of interest, an individual tenant shall have 7 days to provide a statement of interest to the owner and the Mayor, by hand or by sending by certified mail,. Each statement of interest must be clear expression of interest on the part of the tenant or tenant group to exercise the right to purchase as specified in this subchapter;
(2) Negotiation period. -- (A) Upon receipt of a letter of intent from a tenant or a tenant group, the owner shall afford the tenants a reasonable period to negotiate a contract of sale, and shall not require less than 90 days. For every day of delay in providing information by the owner as required by this subchapter, the negotiation period is extended by 1 day. If more than 1 individual tenant submits a written statement of interest, the owner shall negotiate with each tenant separately, or jointly if the tenants agree to negotiate jointly;
(B) If, at the end of the 90-day period or any extensions thereof, the tenants jointly have not contracted with the owner, the owner shall provide an additional 30-day period, during which any 1 of the current tenants may contract with the owner for the purchase of the accommodation;
(C) If the owner is required to negotiate with more than one tenant pursuant to this section, the owner may decide which contract is more favorable without liability to the other tenants.
(3) Time before settlement. -- The owner shall afford the tenant a reasonable period prior to settlement in order to secure financing and financial assistance, and shall not require less than 90 days after the date of contracting. If a lending institution or agency estimates in writing that a decision with respect to financing or financial assistance will be made within 120 days after the date of contracting, the owner shall afford an extension of time consistent with that written estimate;
(4) Lapse of time. -- If 240 days elapse from the date of a valid offer under this subchapter and the owner has not sold or contracted for the sale of the accommodation, the owner shall comply anew with the terms of this subchapter.
(Sept. 10, 1980, D.C. Law 3-86, § 410, 27 DCR 2975; Nov. 5, 1983, D.C. Law 5-38, § 2(k), 30 DCR 4866; Sept. 29, 1988, D.C. Law 7-154, § 2(h), 35 DCR 5715; Sept. 6, 1995, D.C. Law 11-31, § 3(n), 42 DCR 3239; Oct. 21, 2008, D.C. Law 17-234, § 2(c), 55 DCR 9014; July 23, 2010, D.C. Law 18-193, § 2(b), 57 DCR 4510.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1639.
Effect of Amendments
D.C. Law 17-234, in par. (1), rewrote the second sentence, which had read as follows: "Upon receipt of a written offer of sale from the owner that includes a description of the tenant's rights and obligations under this section, a group of tenants acting jointly shall have 15 days to provide the owner and the Mayor with a written statement of interest."
D.C. Law 18-193, in par. (1), substituted "and the Mayor, by hand or by sending by certified mail," for "and the Mayor".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 3(n) of Rental Housing Conversion and Sale Act of 1980 Temporary Extension Amendment Act of 1994 (D.C. Law 10-176, September 22, 1994, law notification 41 DCR 6076).
For temporary (225 day) amendment of section, see § 2(b) of Tenant Opportunity to Purchase Preservation Clarification Temporary Amendment Act of 2009 (D.C. Law 18-23, July 7, 2009, law notification 56 DCR 6125).
For temporary (225 day) amendment of section, see § 2(b) of Tenant Opportunity to Purchase Preservation Clarification Temporary Amendment Act of 2010 (D.C. Law 18-177, May 27, 2010, law notification 57 DCR 6039).
Emergency Act Amendments
For temporary amendment of section, see § 3(n) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1994 (D.C. Act 10-285, July 8, 1994, 41 DCR 4904).
For temporary amendment of section, see § 3(n) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1995 (D.C. Act 11-47, May 4, 1995, 42 DCR 2410) and § 3(n) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Congressional Recess Emergency Act of 1995 (D.C. Act 11-96, July 19, 1995, 42 DCR 3837).
For temporary (90 day) amendment of section, see § 2(b) of Tenant Opportunity to Purchase Preservation Clarification Emergency Amendment Act of 2009 (D.C. Act 18-38, March 21, 2009, 56 DCR 2668).
For temporary (90 day) amendment of section, see § 2(b) of Tenant Opportunity to Purchase Preservation Clarification Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-109, June 18, 2009, 56 DCR 4934).
For temporary (90 day) amendment of section, see § 2(b) of Tenant Opportunity to Purchase Preservation Clarification Emergency Amendment Act of 2010 (D.C. Act 18-327, March 18, 2010, 57 DCR 2544).
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 5-38, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 7-154, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 10-144, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 11-31, see Historical and Statutory Notes following § 42-3405.03b.
For Law 17-234, see notes following § 42-3404.03.
For Law 18-193, see notes following § 42-3404.09.
Miscellaneous Notes
Reenactment of Law 3-86: See Historical and Statutory Notes following § 42- 3401.01.
Amendment of section by Law 10-144: Section 2(n) of D.C. Law 10-144 purported to amend (1) and (2) of this section to read as follows:
"The following provisions apply to accommodations with 2 through 4 units:
"(1) Joint and several response. The tenants may respond to an owner's offer first jointly, then severally. Upon receipt of a written offer of sale from the owner that includes a description of the tenant's rights and obligations under this section, a group of tenants acting jointly shall have 15 days to provide the owner and the Mayor with a written statement of interest. Following that time period, if the tenants acting jointly have failed to submit a written statement of interest, an individual tenant shall have 7 days to provide a statement of interest to the owner and the Mayor. Each statement of interest must be clear expression of interest on the part of the tenant or tenant group to exercise the right to purchase as specified in this subchapter;
"(2) Negotiation period. (A) Upon receipt of a letter of intent from a tenant or a tenant group, the owner shall afford the tenants a reasonable period to negotiate a contract of sale, and shall not require less than 90 days. For every day of delay in providing information by the owner as required by this subchapter, the negotiation period is extended by 1 day. If more than 1 individual tenant submits a written statement of interest, the owner shall negotiate with each tenant separately, or jointly if the tenants agree to negotiate jointly.
"(B) If, at the end of the 90-day period or any extensions thereof, the tenants jointly have not contracted with the owner, the owner shall provide an additional 30-day period, during which any 1 of the current tenants may contract with the owner for the purchase of the accommodation;
"(C) If the owner is required to negotiate with more than 1 tenant pursuant to this section, the owner may decide which contract is more favorable without liability to the other tenants."
The following provisions apply to accommodations with 5 or more units:
(1) Tenant organization. -- In order to make a contract of sale with an owner, the tenants shall: (A) form a tenant organization with the legal capacity to hold real property, elect officers, and adopt bylaws, unless such a tenant organization exists in a form desired by the tenants; (B) file articles of incorporation; and (C) deliver an application for registration to the Mayor and the owner by hand or by certified mail within 45 days of receipt of a valid offer or the Mayor's receipt of a copy of a valid offer, whichever is later. If, at the time of receipt of the valid offer, a tenant organization exists in a form desired by the tenants, the delivery of the application for registration to the Mayor and the owner by hand or by certified mail shall be within 30 days of receipt of a valid offer or the Mayor's receipt of a valid offer, whichever is later. The application shall include the name, address, and phone number of tenant officers and legal counsel (if any); a copy of the articles of incorporation, as filed; a copy of the bylaws; documentation that the organization represents at least a majority of the occupied rental units as of the time of registration and such other information as the Mayor may require. Upon registration, the organization constitutes the sole representative of the tenants, and the prior offer of sale is deemed an offer to the organization;
(2) Negotiation period. -- The owner shall afford the tenant organization a reasonable period to negotiate a contract of sale, and shall not require less than 120 days from the date of receipt of the statement of registration. For every day of delay in providing information by the owner as required by this subchapter, the negotiation period is extended by 1 day;
(3) Time before settlement. -- (A) The owner shall afford the tenant organization a reasonable period prior to settlement in order to secure financing and financial assistance, and shall not require less than 120 days after the date of contracting. If a lending institution or agency estimates in writing that a decision with respect to financing or financial assistance will be made within 240 days after the date of contracting, the owner shall afford an extension of time consistent with that written estimate;
(B) If the tenant organization articles of incorporation provide, by the date of contracting, that the purpose of the tenant organization is to convert the accommodation to a nonprofit housing cooperative with appreciation of share value limited to a maximum of the annual rate of inflation, the owner shall require not less than 180 days after the date of contracting or such additional time as required by this section;
(4) Lapse of time. -- If 360 days elapse from the date of a valid offer under this subchapter and the owner has not sold or contracted for the sale of the accommodation, an owner shall comply anew with the terms of this subchapter. In such a case, the tenant organization shall also comply anew with respect to delivery of a registration statement; the original tenant articles of incorporation, officers and bylaws remain effective unless defective under their own terms or other provisions of law.
(Sept. 10, 1980, D.C. Law 3-86, § 411, 27 DCR 2975; Aug. 1, 1981, D.C. Law 4-27, § 2(e), 28 DCR 2824; Oct. 21, 2008, D.C. Law 17-234, § 2(d), 55 DCR 9014; July 23, 2010, D.C. Law 18-193, § 2(c), 57 DCR 4510.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1640.
Effect of Amendments
D.C. Law 17-234, in par. (1), inserted "or the Mayor's receipt of a copy of a valid offer, whichever is later" in the first sentence, and inserted "or the Mayor's receipt of a valid offer, whichever is later" in the second sentence.
D.C. Law 18-193, in par. (1), substituted "certified" for "first class".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(c) of Tenant Opportunity to Purchase Preservation Clarification Temporary Amendment Act of 2009 (D.C. Law 18-23, July 7, 2009, law notification 56 DCR 6125).
For temporary (225 day) amendment of section, see § 2(c) of Tenant Opportunity to Purchase Preservation Clarification Temporary Amendment Act of 2010 (D.C. Law 18-177, May 27, 2010, law notification 57 DCR 6039).
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2(c) of Tenant Opportunity to Purchase Preservation Clarification Emergency Amendment Act of 2010 (D.C. Act 18-327, March 18, 2010, 57 DCR 2544).
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 4-27, see Historical and Statutory Notes following § 42-3402.03.
For Law 17-234, see notes following § 42-3404.03.
For Law 18-193, see notes following § 42-3404.09.
Miscellaneous Notes
Reenactment of law 3-86: See Historical and Statutory Notes following § 42- 3401.01.
Sections 42-3404.02, 42-3404.04, 42-3404.05, 42-3404.06, 42- 3404.07, 42-3404.09(3) and (4), 42-3404.10(3) and (4) and 42- 3404.11(3) and (4) apply to any sale of a housing accommodation for which a contract is not fully ratified prior to June 3, 1980, and the period for contracting pursuant to § 601 or § 602 of the Rental Housing Act is not expired prior to the effective date of this subchapter. This subchapter applies in its entirety to any sale of a housing accommodation for which a notice pursuant to § 601 or § 602 of the Rental Housing Act is not received by the tenants in at least 50% of the occupied rental units in the housing accommodation prior to June 3, 1980. This subchapter shall remain in effect until the Mayor declares that a housing crisis no longer exists pursuant to § 42-3405.12. This subchapter does not apply to accommodations for which a vacancy exemption is approved, as provided in § 42-3402.10.
(Sept. 10, 1980, D.C. Law 3-86, § 412, 27 DCR 2975; Sept. 26, 1980, D.C. Law 3-106, § 3(b), 27 DCR 3758; Mar. 4, 1981, D.C. Law 3-131, § 801(e), 28 DCR 326; Nov. 5, 1983, D.C. Law 5-38, § 2(l), 30 DCR 4866; Sept. 29, 1988, D.C. Law 7-154, § 2(i), 35 DCR 5715; Sept. 6, 1995, D.C. Law 11-31, § 3(o), 42 DCR 3239.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1641.
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(d) of Rental Housing Conversion and Sale Act of 1980 Temporary Extension Amendment Act of 1988 (D.C. Law 7-140, September 21, 2008, law notification 35 DCR 7279).
For temporary (225 day) amendment of section, see § 2(d) of Rental Housing Conversion and Sale Act of 1980 Temporary Extension Amendment Act of 1993 (D.C. Law 10-13, September 11, 1993, law notification 40 DCR 6835).
For temporary (225 day) amendment of section, see § 2(d) of Rental Housing Conversion and Sale Act of 1980 Temporary Extension Amendment Act of 1994 (D.C. Law 10-176, September 22, 1994, law notification 41 DCR 6706).
Emergency Act Amendments
For temporary amendment of section, see § 2(d) of the Rental Housing Conversion and Sale Act of 1980 Extension Emergency Amendment Act of 1994 (D.C. Act 10- 235, April 28, 1994, 41 DCR 2599).
For temporary amendment of section, see § 3(o) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1994 (D.C. Act 10-285, July 8, 1994, 41 DCR 4904).
For temporary amendment of section, see § 3(o) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1995 (D.C. Act 11-47, May 4, 1995, 42 DCR 2410) and § 3(596) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Congressional Recess Emergency Act of 1995 (D.C. Act 11-96, July 19, 1995, 42 DCR 3837).
Legislative History of Laws
For legislative history of D.C. Law 3-86, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 3-106, see Historical and Statutory Notes following § 42-3404.05.
For legislative history of D.C. Law 3-131, see Historical and Statutory Notes following § 42-3401.03.
For legislative history of D.C. Law 5-38, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 7-154, see Historical and Statutory Notes following § 42-3401.01.
For legislative history of D.C. Law 10-144, see Historical and Statutory Notes following § 42-3405.03a.
For legislative history of D.C. Law 11-31, see Historical and Statutory Notes following § 42-3405.03b.
References in Text
The "Rental Housing Act", referred to in the second sentence, is the Rental Housing Act of 1977, D.C. Law 2-54, which had formerly been codified as Chapter 16 of this title, and which was subsequently superseded by the Rental Housing Act of 1980, D.C. Law 3-131. See also § 42-3401.03(15).
Miscellaneous Notes
Reenactment of Law 3-86: See Historical and Statutory Notes following § 42- 3401.01.
Amendment of section by Law 10-144: Section 2(o) of D.C. Law 10-144 purported to amend this section to read as follows:
"Sections 45-1631, 45-1633, 45-1634, 45-1635, 45-1636, 45-1638 (3) and (4), 45- 1639 (3) and (4) and 45-1640 (3) and (4) apply to any sale of a housing accommodation for which a contract is not fully ratified prior to June 3, 1980, and the period for contracting pursuant to § 601 or § 602 of the Rental Housing Act is not expired prior to the effective date of this subchapter. This subchapter applies in its entirety to any sale of a housing accommodation for which a notice pursuant to § 601 or § 602 of the Rental Housing Act is not received by the tenants in at least 50% of the occupied rental units in the housing accommodation prior to June 3, 1980. This subchapter shall remain in effect until the Mayor declares that a housing crisis no longer exists pursuant to § 45-1662 [§ 42-3405.12, 2001 Ed.]. This subchapter does not apply to accommodations for which a vacancy exemption is approved, as provided in § 45- 1639 [§ 42-3404.10, 2001 Ed.]."
(a) Every tenant of a housing accommodation which the declarant seeks to convert from a rental basis to a cooperative shall be notified in writing of the declarant's intent to convert the housing accommodation to a cooperative not less than 120 days before the conversion thereof. The declarant shall also make to each tenant of the housing accommodation a bona fide offer to sell such tenant such shares or membership interest in the cooperative as will enable the tenant to continue to reside in his or her unit after conversion. The offer shall include, but not be limited to, the asking price for the shares or membership interest and a statement of the tenant's rights to provide such shares or membership interest under the provisions of this section. The tenant shall be afforded not less than 60 days in which to contract with the landlord for the purchase of the shares or membership interest at a mutually agreeable price and under mutually agreeable terms, which shall be at least as favorable as those offered to the general public.
(b) Repealed.
(Sept. 10, 1980, D.C. Law 3-86, § 413(b), as added Aug. 1, 1981, D.C. Law 4-27, § 2(f), 28 DCR 2824; Nov. 5, 1983, D.C. Law 5-38, § 3, 30 DCR 4866.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 45-1642.
Legislative History of Laws
For legislative history of D.C. Law 4-27, see Historical and Statutory Notes following § 42-3402.03.
For legislative history of D.C. Law 5-38, see Historical and Statutory Notes following § 42-3405.03a.
