Source: https://code.dccouncil.us/dc/council/code/titles/42/chapters/34/subchapters/IV/
Timestamp: 2019-05-27 11:35:02
Document Index: 478533723

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D.C. Law Library - Subchapter IV. Opportunity to Purchase.
Subchapter IV-A. District’s Opportunity to Purchase.
§ 42–3404.03. Offer of sale.
§ 42–3404.04. Third party rights.
§ 42–3404.05. Contract negotiation.
§ 42–3404.06. Exercise or assignment of rights.
§ 42–3404.07. Waiver of rights.
§ 42–3404.08. Right of first refusal.
§ 42–3404.09. Single-family accommodations.
§ 42–3404.10. Accommodations with 2 through 4 units.
§ 42–3404.11. Accommodations with 5 or more units.
§ 42–3404.12. Exceptions to coverage of subchapter; expiration provisions.
§ 42–3404.13. Notice to convert; offer to sell.
§ 42–3404.14. TOPA Application Assistance Pilot Program. [Expired]
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.)
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.)
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.)
1981 Ed., § 45-1632.
This section is referenced in § 42-3404.32.
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:”.
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).
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).
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.)
1981 Ed., § 45-1633.
This section is referenced in § 42-3404.12.
(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 §§ 42-3404.10(4) and 42-3404.11(4), respectively, or within 90 days of delivering an offer of sale to an elderly tenant or a tenant with a disability pursuant to § 42-3404.09(c), 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 §§ 42-3404.10(4) and 42-3404.11(4), respectively, or within 90 days of delivering an offer of sale to an elderly tenant or a tenant with a disability pursuant to § 42-3404.09(c), without a reasonable justification for so doing; or
(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(c), 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; July 3, 2018, D.C. Law 22-120, § 2(b), 65 DCR 5077.)
1981 Ed., § 45-1634.
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).
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).
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.)
1981 Ed., § 45-1635.
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).
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).
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.
1981 Ed., § 45-1636.
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).
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).
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(c)(4), § 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(c)(4), 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; July 3, 2018, D.C. Law 22-120, § 2(c), 65 DCR 5077.)
1981 Ed., § 45-1637.
This section is referenced in § 42-2851.04.
(a) The provisions of this subchapter shall not apply to single-family accommodations except as provided in this section.
(b) Notice to all tenants of the potential sale of a single-family accommodation. –
(1) Within 3 calendar days of receiving or soliciting, in writing, an offer to purchase a single-family accommodation, an owner of a single-family accommodation who has an intent to sell the single-family accommodation shall deliver written notice to a tenant of the single-family accommodation or a unit in the single-family accommodation that the owner received or solicited an offer to purchase the single-family accommodation.
(2) For one year after delivering notice to a tenant pursuant to paragraph (1) of this subsection, an owner is not required to provide the same tenant with subsequent notice that the owner has received or solicited offers to purchase the single-family accommodation.
(3)(A) Liability for failure to provide the notice required by this subsection shall lie with the owner and may not attach to the real property that is the subject of the required notice.
(B) A tenant who brings an action in any court of law against an owner for failing to provide the notice required by this subsection may not file a notice of pendency of action pursuant to § 42-1207 with the Recorder of Deeds.
(4) Nothing in this subsection shall be construed as creating rights enforceable under subchapter V of this chapter.
(c) Elderly tenants and tenants with disabilities. –
(1) If a tenant is an elderly tenant or is a tenant with a disability as of the date of the offer of sale, and the tenant signed a rental agreement to occupy a single-family accommodation or a unit in a single-family accommodation by March 31, 2018, and took occupancy by April 15, 2018, the provisions of this subchapter shall apply, as modified by this section.
(2) Written offer of sale. –
(A) A written offer of sale shall comply with the requirements of § 42-3404.03, and in addition, shall include a description of the tenant's rights and obligations under this section, and a list of organizations from which the tenant may seek help to exercise the right to purchase.
(B) The owner shall deliver a copy of a written offer of sale and of any notice of intent delivered pursuant to subsection (d)(1) of this section to the Office of the Tenant Advocate ("OTA"), and shall initiate delivery of the copy on the same date as initiating delivery of the original document.
(C) Within 4 business days of receiving a copy of an offer of sale or notice of intent pursuant to this subparagraph, the OTA shall exercise its best efforts to contact all affected tenants and provide them with the contact information of organizations that provide tenants advice concerning their rights under this subchapter.
(3) Written statement of interest. –
(A) Upon delivery of a written offer of sale from the owner, the tenant shall have 20 days to deliver a written statement of interest to the owner.
(B) The tenant's statement of interest shall be a clear expression of interest on the part of the tenant to exercise the right to purchase the housing accommodation as specified in this subchapter.
(C) A tenant's failure to deliver a written statement of interest to the owner in a timely manner shall be deemed a waiver of the tenant's rights under this section.
(4) Negotiation period. – If a tenant has delivered a written statement of interest in accordance with paragraph (3) of this subsection, the owner shall afford the tenant at least 25 days after delivery of the statement of interest to the owner to negotiate a contract of sale, not including the 20 days provided by paragraph (3) of this subsection. For every day of delay in providing information by the owner as required by this subchapter, the negotiation period is extended by one day.
(5) Time before settlement. –
(A) The owner shall afford the tenant at least 45 days after the date of contracting to go to settlement to secure financing and financial assistance.
(B) If, within 45 days after the date of contracting, the tenant presents the owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 75 days after the date of contracting, the owner shall afford an extension of time consistent with the written estimate.
(6) Assignment of rights. –
(A) The only consideration an elderly tenant or a tenant with a disability may receive for the sale or assignment of the tenant's rights under this subchapter is the right to immediately use and occupy the tenant's unit for a period of 12 months following the sale of the single-family accommodation at the rate of rent charged to the tenant as of the date of the offer of sale.
(B)(i) If a tenant assigns or sells the tenant's rights under this subchapter, the recipient may only further reassign the rights to a private or nonprofit corporation or a partnership of which the assignee or buyer is an owner, managing member, or officer who can legally bind the entity.
(ii) No consideration shall be allowed in exchange for a secondary assignment.
(C) A bargain in which the tenant receives consideration to vacate the tenant's unit before the 12-month period ends so that the owner may use or occupy the unit shall constitute a willful violation of this paragraph.
(d) Determining whether a tenant claims elderly or disability status. –
(1)(A) An owner of a single-family accommodation may determine whether a tenant claims status as an elderly tenant or a tenant with a disability under this section by delivering to the tenant a written notice of intent to sell, demolish, or discontinue the housing use of the single-family accommodation before issuing an offer of sale.
(B) The notice shall include a description of the rights and obligations of elderly tenants and tenants with disabilities under this section, and a list of organizations from which the tenant may seek help to exercise those rights.
(2) The tenant shall have 20 days from the date of delivery of the notice to deliver to the owner, in writing, a response that states the tenant's status as an elderly tenant or a tenant with a disability.
(3) An owner may not serve a tenant with notice of intent to sell, demolish, or discontinue the housing use of the single-family accommodation pursuant to this subsection more than 60 days before issuing the offer of sale.
(4) Failure of the tenant to deliver to the owner a response to notice provided pursuant to paragraph (1) of this subsection in a timely manner shall be deemed a waiver of rights under this subchapter.
(e) Documentation of status as an elderly tenant or tenant with disability. – (1) A tenant who asserts rights under subsection (c) of this section shall deliver documentation of status as an elderly tenant or a tenant with a disability to the Mayor by the same date the tenant's written statement of interest is due to the owner.
(2) The Mayor shall require the minimum documentation necessary to establish status as an elderly tenant or a tenant with a disability. Such documentation may include:
(A) For elderly status, a passport, birth certificate, District-issued driver's license or identification card, or other such documentation the Rental Conversion and Sale Administrator deems sufficient to establish proof of age; or
(B) For disability status, an award letter for disability benefits from the U.S. Social Security Administration, a letter from a physician stating that the tenant is a tenant with a disability, or other such documentation the Rental Conversion and Sale Administrator deems sufficient to establish proof of disability.
(3) In determining whether a tenant qualifies as a tenant with a disability, the Mayor:
(A) Shall limit the inquiry to the minimum information and documentation necessary to establish that the tenant meets the definition of a tenant with a disability under this chapter and shall not inquire further into the nature or severity of the disability; and
(B) Shall not require the tenant to provide a description of the disability; provided, that the Mayor may require that a physician or other licensed healthcare professional verify that the tenant meets the definition of a tenant with a disability under this chapter.
(4)(A) The Mayor shall maintain records of the information compiled under this subsection and shall not disclose information about the disability of a tenant unless the disclosure is required by law.
(B)(i) Within 30 days of receiving from a tenant documentation of status as an elderly tenant or tenant with a disability, the Mayor shall determine whether a tenant qualifies as an elderly tenant or a tenant with a disability.
(ii) Upon the request of one of the following parties, the Mayor shall issue the determination as to whether the tenant qualifies as an elderly tenant or a tenant with a disability to the requesting party, who shall not share the determination with third parties except as necessary to facilitate the transfer of ownership of the single-family accommodation or to pursue rights under this chapter, unless otherwise authorized by the tenant:
(II) Tenant;
(III) A title or settlement company that is conducting a closing on the transfer of ownership of the single-family accommodation; or
(IV) A real estate agent representing the owner in the sale of the single-family accommodation.
(5) The Mayor's timeframe for determining a tenant's status pursuant to this subsection shall run concurrently with other timeframes in this section.
(f) Documentation. –
(1) A document delivered pursuant to this section shall be delivered by:
(B) A delivery service providing delivery tracking confirmation;
(C) Certified mail; or
(D) Hand.
(2) Within 10 days of the initiation of delivery, copies of all documents delivered to a tenant, owner, or OTA pursuant to subsections (c) or (d) of this section shall be delivered to the Mayor with written evidence of the date of delivery of the original document.
(3)(A) The Mayor shall date stamp copies of all documents received pursuant to this subsection.
(B) Upon the request of one of the following parties, the Mayor shall provide written confirmation of receipt or non-receipt of any document required to be delivered to the Mayor pursuant to this subsection to the requesting party:
(g) No tenant who occupies a rental unit pursuant to subsection (c)(6) of this section may be evicted pursuant to § 42-3505.01(d), (e), (g), (h), (i), or (j), during the 12-month period of occupancy following the sale of the single-family accommodation.
(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; July 3, 2018, D.C. Law 22-120, § 2(d), 65 DCR 5077.)
1981 Ed., § 45-1638.
This section is referenced in § 42-3404.05, § 42-3404.08, and § 42-3404.12.
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”.
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).
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).
The following provisions apply to accommodations with 2 through 4 units, other than 2-unit single-family accommodations:
(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; July 3, 2018, D.C. Law 22-120, § 2(e), 65 DCR 5077.)
1981 Ed., § 45-1639.
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.”
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).
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).
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, or in the case of an offer of sale given for the purposes of demolition or discontinuance of housing use, has not issued a notice to vacate for demolition or discontinuance of housing use, pursuant to § 42-3505.01(g) or (i), the owner shall comply anew with the terms of this subchapter; provided, that if the negotiation period has been extended pursuant to § 42-3404.02(a-1)(6) or (a-2)(2)(F), the 360-day limit described in this paragraph may be extended by one day for each day of the extension.
(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; Feb. 26, 2016, D.C. Law 21-63, § 2(c), 62 DCR 16251.)
1981 Ed., § 45-1640.
This section is referenced in § 42-3404.02, § 42-3404.02a, § 42-3404.05, § 42-3404.08, § 42-3404.12, § 42-3404.34, and § 42-3405.07.
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”.
The 2016 amendment by D.C. Law 21-63 substituted “the owner has not sold or contracted . . . the 360-day limit described in this paragraph may be extended by one day for each day of the extension” for “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 (4).
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).
For temporary (90 days) amendment of this section, see § 2(c) of the TOPA Bona Fide Offer of Sale Clarification Emergency Amendment Act of 2015 (D.C. Act 21-95, June 25, 2015, 62 DCR 9225, 21 DCSTAT 1484).
For temporary (90 days) amendment of this section, see § 2(c) of the TOPA Bona Fide Offer of Sale Clarification Congressional Review Emergency Amendment Act of 2015 (D.C. Act 21-151, Aug. 11, 2015, 62 DCR 11441).
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).
For temporary (225 days) amendment of this section, see § 2(c) of the TOPA Bona Fide Offer of Sale Clarification Temporary Amendment Act of 2015 (D.C. Law 21-26, Sept. 23, 2015, 62 DCR 9456).
Sections 42-3404.02, 42-3404.04, 42-3404.05, 42-3404.06, 42-3404.07, [42-3404.09(c)(5)], 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 September 10, 1980. 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; July 3, 2018, D.C. Law 22-120, § 2(f), 65 DCR 5077.)
1981 Ed., § 45-1641.
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).
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).
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).
For exempt from the Tenant Opportunity to Purchase Act of 1980 for the real property described as Lot 818 in Square 240, located at 1338 R Street, N.W., and known as Anna Cooper House, see the Anna Cooper House TOPA Exemption Act of 2018 effective July 17, 2018 (D.C. Law 22-149).
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.
(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.)
1981 Ed., § 45-1642.
(Sept. 10, 1980, D.C. Law 3-86, § 414; as added Oct. 8, 2016, D.C. Law 21-160, §§ 2122, 2124, 63 DCR 10775.)
Pursuant to section 2124 of D.C. Law 21-160, the addition of this section by section 2122 of D.C. Law 21-160 will expire on September 30, 2017.