Opinion ID: 1540617
Heading Depth: 1
Heading Rank: 6

Heading: Sale Act of 1980

Text: We first examine whether the Master Lease Agreement would constitute a sale under the terms of the Sale Act of 1980 absent consideration of the later Clarification Act of 1989. The Sale Act of 1980 is the culmination of a long history of restrictions on conversion of rental housing which have been enacted since 1974. Hornstein v. Barry, 560 A.2d 530, 532 (D.C.1989) (en banc). See District of Columbia v. Washington Home Ownership Council, Inc., 415 A.2d 1349, 1360-64 (D.C.1980) (en banc); Silverman v. Barry, 269 U.S.App.D.C. 327, 330-32, 845 F.2d 1072, 1075-77, cert. denied, 488 U.S. 956, 109 S.Ct. 394, 102 L.Ed.2d 383 (1988). In enacting the Sale Act of 1980, the Council made several findings: 1. There exists a continuing housing crisis in this city, with a severe shortage of rental housing and a low vacancy rate, particularly in relation to units which lower income tenants can afford. See D.C.Code § 45-1601(2) (1990 Repl. & 1993 Supp.). 2. The conversion of rental units to condominiums or cooperatives depletes the rental housing stock. See D.C.Code § 45-1601(3) (1990 Repl. & 1993 Supp.). 3. Lower income tenants are affected most severely for post-conversion costs are usually beyond their means, a condition which results in forced displacement, serious overcrowding, and disproportionately high housing costs. See D.C.Code § 45-1601(4) (1990 Repl. & 1993 Supp.). 4. Experience with prior conversion controls has demonstrated that such restrictions have not been sufficiently effective, and tenants who are most directly affected by conversion should be given a voice in the determination whether their rental housing should be converted. See D.C.Code § 45-1601(7) (1990 Repl. & 1993 Supp.). [12] The Sale Act provides, in relevant part, that [b]efore 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. D.C.Code § 46-1631(a) (1990 Repl.). [13] Moreover, [i]n 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 3rd party. D.C.Code § 45-1637 (1990 Repl.). Here, the trial court found that the [Master] Lease [does not] violate the Sale Act.... Under the Lease, GWU is not obligated to purchase the buildings; to the contrary, GWU has the option not to purchase as well.