Chapter 34. Rental Housing Conversion and Sale.
Subchapter I. Findings; Purposes; Definitions.
§ 42–3401.01. Findings.
(a) The Council of the District of Columbia finds that:
(1) There is a continuing housing crisis in the District of Columbia.
(2) There is a severe shortage of rental housing available to the citizens of the District of Columbia. The percentage of all rental housing units within the District of Columbia which are vacant, habitable, and available for occupancy is less than 5% which is generally considered an indication of a serious shortage of rental housing units. The vacancy rate is substantially lower among units which can be afforded by lower income tenants as evidenced by serious overcrowding in private units and waiting lists for public housing in excess of 5,000 households.
(3) Conversion of rental units to condominiums or cooperatives depletes the rental housing stock. Since 1977, more than 8,000 rental units in the District of Columbia have been converted to condominiums or cooperatives, more than 9,000 additional units have not yet been converted but have been declared eligible to do so and applications for 6,000 more units are pending. The 8,000 units which have been converted represent 4.5% of the District of Columbia’s 1977 rental stock, and the 15,000 units subject to conversion represent an additional 8.3%. These trends have been thoroughly investigated and documented by two legislative study commissions: The D.C. Legislative Commission on Housing and the Emergency Commission on Condominium and Cooperative Conversion. The latter Commission reported policy proposals, many of which are contained in this chapter.
(4) Lower income tenants, particularly elderly tenants and tenants with disabilities, are the most adversely affected by conversions since the after conversion costs are usually beyond their ability to pay, which results in forced displacement, serious overcrowding, disproportionately high housing costs, and the loss of additional affordable rental housing stock. The threat of conversion has caused widespread fear and uncertainty among many tenants, particularly lower income tenants, elderly tenants and tenants with disabilities.
(5) The District of Columbia housing assistance plan shows that 43,521 renter households and 14,215 homeowner households are in need of housing assistance in the District.
(6) Very few rental units are being constructed or vacant units being made available for rental occupancy. More units are being converted to other uses or demolished than are being made available for rent.
(7) Experience with conversions since passage of the Condominium Act of 1976 and the Condominium and Cooperative Stabilization Act of 1979 (D.C. Law 3-53) has demonstrated that the previous conversion controls have not been sufficiently effective in preserving rental housing, particularly for those who cannot afford homeownership. Based on that experience and the conclusions of the legislative study commissions, tenants who are most directly affected by the conversion should be provided with sufficient accurate information about the relative advantages and disadvantages to conversion of rental housing and should have a voice in the decision whether or not their rental housing should be converted. These controls are necessary to more effectively assure that housing will be preserved at a cost which can be afforded by current tenants who would otherwise be involuntarily displaced and forced into overcrowded or otherwise substandard housing conditions.
(8) These additional conversion controls are required to preserve the public peace, health, safety, and general welfare.
(b) In enacting the Rental Housing Conversion and Sale Act of 1980 Amendments and Extension Act of 1983, the Council of the District of Columbia finds that:
(1) A housing crisis continues in the District of Columbia that has not substantially improved since the passage of this chapter.
(2) The chapter, as amended by the Rental Conversion and Sale Act of 1980 Amendment Act of 1982 (D.C. Law 4-196), the Rental Housing Conversion and Sale Act Amendment Act of 1981 (D.C. Law 4-27), the Rental Housing Act of 1980 (D.C. Law 3-131), and the Rental Housing Act of 1977 Extension Act of 1980 (D.C. Law 3-106), has generally been successful in meeting its stated purposes.
(3) The chapter, with additional amendments to address minor problems which have been identified since its passage, should be extended for 5 more years.
(4) This extension is required to preserve the public peace, health, safety, and general welfare.
(c) In enacting the Rental Housing Conversion and Sale Act of 1980 Extension Amendment Act of 1988, the Council of the District of Columbia finds that:
(1) A housing crisis continues in the District of Columbia that has not substantially improved since passage of this chapter.
(2) The chapter, as amended by the Rental Housing Act of 1985 (D.C. Law 6-10), the Rental Housing Conversion and Sale Act of 1980 Amendments and Extension Act of 1983 (D.C. Law 5-38), the Rental Conversion and Sale Act Amendment Act of 1982 (D.C. Law 4-196), the Rental Housing Act of 1980 (D.C. Law 3-131), and the Rental Housing Act of 1977 Extension Act of 1980 (D.C. Law 3-106), has generally been successful in meeting its stated purposes.
(3) The chapter should be extended until September 6, 1995, and thereafter by subsection (d)(4) of this section.
(4) This extension is required to preserve the public peace, health, safety, and general welfare.
(d) In enacting the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Act of 1995, the Council of the District of Columbia finds that:
(1) The District of Columbia continues to face an ongoing housing crisis and will continue to face such a crisis for the foreseeable future. The well publicized and well documented District budget crisis has meant that the limited ability of the District government to meaningfully address the housing crisis has been further eroded.
(2) The Rental Housing Conversion and Sale Act of 1980, as amended (“this chapter”), has generally been successful in meeting its stated purposes and needs to be continued in effect in light of the ongoing housing and budget crises.
(3) A number of assumptions upon which this chapter was based have changed in light of the almost 15 years of experience since this chapter first went into effect. In continuing this chapter, the Council intends the amendments reflected in this extension to address these changes.
(4) This chapter should be continued into the future so long as the underlying housing crisis continues as declared annually by the Mayor pursuant to § 42-3405.12.
(5) This extension is required to preserve the public peace, health, safety, and general welfare.
§ 42–3401.02. Purposes.
In enacting this chapter, the Council of the District of Columbia supports the following statutory purposes:
(1) To discourage the displacement of tenants through conversion or sale of rental property, and to strengthen the bargaining position of tenants toward that end without unduly interfering with the rights of property owners to the due process of law;
(2) To preserve rental housing which can be afforded by lower income tenants in the District;
(3) To prevent lower income elderly tenants and tenants with disabilities from being involuntarily displaced when their rental housing is converted;
(4) To provide incentives to owners, who convert their rental housing, to enable lower income non-elderly tenants and tenants without disabilities to continue living in their current units at costs they can afford;
(5) To provide relocation housing assistance for lower income tenants who are displaced by conversions;
(6) To encourage the formation of tenant organizations;
(6a) To balance and, to the maximum extent possible, meet the sometimes conflicting goals of creating homeownership for lower income tenants, preserving affordable rental housing, and minimizing displacement; and
(7) To authorize necessary actions consistent with the findings and purposes of this chapter.
§ 42–3401.03. Definitions.
As used in this chapter, the term:
(1) "Accessory dwelling unit" means a rental unit that is secondary to the principal single-family dwelling in terms of gross floor area, intensity of use, and physical character, but which has kitchen and bath facilities separate from the principal dwelling, and may have a separate entrance.
(1A) “Appraised value” means the value of a housing accommodation as of the date of the appraisal, based on an objective, independent property valuation, performed according to professional appraisal industry standards.
(2) “Bona fide offer of sale” means an offer of sale for a housing accommodation or the interest in the housing accommodation that is either:
(A) For a price and other material terms that are at least as favorable as those accepted by a purchaser in an arm’s length third-party contract; or
(B) In the absence of an arm’s length third-party contract, an offer of sale with a price and other material terms comparable to that at which a willing seller and a willing buyer would sell and purchase the housing accommodation, or the appraised value.
(2A) “Condominium” has the same meaning as in § 42-1901.02(4).
(2B) “Condominium Act” means the Condominium Act of 1976 (§ 42-1901.01 et seq.).
(3) “Condominium conversion” is the issuance of notice of filing pursuant to § 42-1904.06(a).
(4) “Conversion” shall include cooperative conversions and condominium conversions as defined in this chapter.
(5) “Cooperative” means a cooperative legally incorporated pursuant to the District of Columbia Cooperative Association Act (§ 29-901 et seq.) or a cooperative corporation incorporated in another jurisdiction for the primary purpose of owning and operating real property in which its members reside.
(6) “Cooperative Act” means the District of Columbia Cooperative Association Act (§ 29-901 et seq.).
(7) “Cooperative conversion” is the filing of articles of incorporation pursuant to the Cooperative Act, or the comparable act of another jurisdiction and compliance with the requirements of this chapter, in either order.
(8) “District” means the District of Columbia government.
(9) “Division” means the Rental Accommodations Division established by § 42-3502.03 or the Rental Conversion and Sale Division established by § 42-3502.04a.
(9A) "Elderly tenant" means a tenant who is 62 years of age or older.
(10) “Head of household” means a tenant who maintains the affected rental unit as the tenant’s principal place of residence, is a resident and domiciliary of the District of Columbia, and contributes more than one-half of the cost of maintaining the rental unit. If no member of a household contributes more than one-half of the cost of maintaining the rental unit, the members of the household who maintain the affected rental unit as their principal place of residence are residents and domiciliaries of the District of Columbia, and contribute to the cost of maintaining the rental unit, may designate one of themselves as the head of household. An individual may be considered a head of household for the purposes of this chapter without regard to whether the individual would qualify as a head of household for the purpose of any other law.
(10A) “Highest and best use” means the reasonably probable legal use of a property that is physically possible, appropriately supported, and financially feasible and that results in the highest value of the property.
(11) “Housing accommodation” or “accommodation” means a structure in the District of Columbia containing 1 or more rental units and the appurtenant land. The term does not include a hotel, motel, or other structure used primarily for transient occupancy and in which at least 60 percent of the rooms devoted to living quarters for tenants or guests are used for transient occupancy if the owner or other person or entity entitled to receive rents is subject to the sales tax imposed by § 47-2001(n)(1)(C) and the occupant of the rental unit has been in occupancy for less than 15 days.
(12) “Low-income” means a household with a combined annual income, in a manner to be determined by the Mayor, which may include federal income tax returns where applicable, totaling less than the following percentages of the lower income guidelines established pursuant to § 8 of the United States Housing Act of 1937 (42 U.S.C. § 1437f) for a family of 4 for the Washington Standard Metropolitan Statistical Area (SMSA), as the median is determined by the United States Department of Housing and Urban Development and adjusted yearly by historic trends of that median, and as may be further adjusted by an interim census of District of Columbia incomes by local or regional government agencies:
one-person household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50%
two-person household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60%
three-person household or a 1 or 2 person household containing a person
who is 62 years of age or olderor who has a disability . . . . . . . . . . . . . . . . . . . . . 90%
four-person household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100%
five-person household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110%
more than 5 person household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120%
(12A) “Matter-of-right” means a land use, development density, or structural dimension to which a property owner is entitled by current zoning regulations or law.
(13) “Mayor” means the Mayor of the District of Columbia or the designated representative of the Mayor.
(14) “Owner” means an individual, corporation, association, joint venture, business entity and its respective agents, who hold title to the housing accommodation unit or cooperative share.
(15) “Rental Housing Act” means the Rental Housing Act of 1985, effective July 17, 1985 (D.C. Law 6-10; § 42-3501.01 et seq.), or any successor rent control act.
(16) “Rental unit” or “unit” means only that part of a housing accommodation which is rented or offered for rent for residential occupancy and includes an apartment, efficiency apartment, room, suite of rooms, and single-family home or duplex, and the appurtenant land to such rental unit.
(16A) "Single-family accommodation" means:
(A) A housing accommodation, whether freestanding or attached, and the appurtenant land that contains:
(i) One single-family dwelling; or
(ii) One single-family dwelling with one accessory dwelling unit; or
(B) A single rental unit in a condominium, cooperative, or homeowners association, as that term is defined in § 47-871(2).
(16B) "Single-family dwelling" means a structure, whether freestanding or attached, that contains a room or group of rooms forming a single living space, which includes a kitchen, that is used or intended to be used for living, eating, and sleeping, and the structure's appurtenant land.
(17) “Tenant” means a tenant, subtenant, lessee, sublessee, or other person entitled to the possession, occupancy or benefits of a rental unit within a housing accommodation. If the names of 2 or more persons appear on a rental agreement, those persons shall determine which person may exercise a vote under this chapter. The singular term “tenant” includes the plural.
(18) “Tenant organization” means an organization that represents at least a majority of the heads of household in the housing accommodation excluding those households in which no member has resided in the housing accommodation for at least 90 days and those households in which any member has been an employee of the owner during the preceding 120 days.
(19) "Tenant with a disability" means a tenant who has a disability as defined in section 3(1)(A) of the Americans with Disabilities Act of 1990, approved July 26, 1990 (104 Stat. 329; 42 U.S.C. § 12102(1)(A)).
§ 42–3401.04. Applicability of Rental Housing Act of 1985.
For purposes of this chapter, the provisions of § 42-3505.01(n) shall apply.
Subchapter II. Conversion Procedures.
§ 42–3402.01. Short title.
This subchapter may be cited as the “Conversion of Rental Housing to Condominium or Cooperative Status Act of 1980‘.
§ 42–3402.02. Conversions.
(a) Prerequisite. —
(1) An owner shall not convert a housing accommodation into a condominium or a cooperative until the Mayor certifies compliance with the provisions of this chapter.
(2) Only an owner may request a tenant election to convert, send notice of intent to convert, or convert an accommodation. Certification of a conversion by the Mayor is not transferable to a subsequent owner. An owner who has issued a notice to vacate for the immediate purpose of discontinuing the housing use and occupancy of a rental unit pursuant to § 42-3505.01(i)(1)(A), or a purchaser from such owner or successor in interest to such owner, may not request a tenant election to convert the housing accommodation in which the rental units are located.
(3) Certification by the Mayor is effective for 180 days; provided, that the Mayor shall extend the certification if a majority of the qualified voters consent. If the owner receives certification by the Mayor and does not convert within this period, the owner may not request another tenant election or certification by the Mayor for that accommodation for 1 year from the date of expiration of the prior certification.
(4) Once converted or established as a condominium or cooperative in a newly constructed building, the owner need not comply anew with the requirements of this chapter even if the condominium units or cooperative units have been occupied by tenants partially or exclusively, provided that each tenant has been given written notice, prior to occupying the unit, of the fact that the unit being rented is part of a condominium or cooperative or each tenant who was not given notice waives the right in writing before or after occupancy or vacating the unit.
(b) Exemption. — With the Mayor’s approval, owners who certify their intent to convert a housing accommodation to a nonprofit cooperative, with an appreciation of share value limited to a maximum of the annual rate of inflation, for low and moderate income persons as defined from time to time by the United States Department of Housing and Urban Development for the Washington Standard Metropolitan Statistical Area (SMSA) may be exempt from this subchapter. “Share value”, for the purposes of this subsection, means the actual initial membership price plus the actual cost of any improvement to the unit paid by the member after board approval. Upon application, the Mayor may exempt owners described in this subsection prior to their taking title to the accommodations, provided that they have a valid contract to purchase the accommodation. The Mayor may exempt the owner from some or all the provisions of this subchapter.
§ 42–3402.03. Tenant election.
(a) Notice by owner. — An owner who seeks to convert shall provide each tenant and the Mayor a written request for a tenant election by first class mail and post the request for an election in conspicuous places in common areas of the housing accommodation. The written request shall include, at a minimum, a summary of tenant rights and obligations, a list of tenant voter qualifications and disqualifications, and sources of technical assistance as published in the D.C. Register by the Mayor. If Spanish is the primary language of a head of household, the owner shall provide a Spanish translation of the request to the head of household. An owner shall also provide the Mayor with a list of tenants residing in the housing accommodation.
(b) Notice by tenant organization. — Within 30 days of receipt of the owner’s request for an election, the tenants may establish a single tenant organization, if one does not exist, and if a tenant organization exists or is established, it shall provide each tenant, the owner, and the Mayor with written notice of the election by first class mail and by conspicuous posting in common areas of the housing accommodation. Notice includes, at a minimum, the date, time and place of the election, and a summary of tenant rights, obligations, a list of tenant voter qualifications and disqualifications, and sources of technical assistance as published in the D.C. Register by the Mayor, if published.
(c) Conduct of election. — Within 60 days of receipt of an owner’s request for an election, a tenant organization, if one exists or is established, shall conduct an election. If notice of an election is not provided as required by this section, upon the request of a tenant or an owner, the Mayor shall provide notice and conduct an election within 60 days of receipt of an owner’s original request for an election.
(d) Qualified voter. —
(1) Except as provided in paragraph (2) of this subsection, a head of household residing in each rental unit of the housing accommodation is qualified to vote unless:
(A) No member of the household has resided in the accommodation for at least 90 days before the election;
(B) A member of the household is or has been an owner or an employee of the owner within 120 days prior to the date of application for eligibility; or
(C) A member of the household’s continued right to remain a tenant as guaranteed by this chapter is exercised.
(2) A tenant who otherwise meets the requirements of this section and becomes an owner only after the exercise of his or her rights under subchapter IV of this chapter shall be qualified to vote.
(3) The Mayor shall determine the eligibility of voters prior to the election and shall devise such forms and procedures as may be necessary to verify eligibility under this subsection.
(4) An elderly tenant or tenant with a disability who delivers a waiver under § 42-3402.08(a)(2)(D) to the Mayor shall be qualified to vote in an election under this section.
(e) Absentee ballot. — A head of household unable to attend the election may submit to the Mayor or tenant organization, prior to the election, a signed absentee ballot or sworn statement of agreement or disagreement with the conversion.
(f) Notification of election results. — The tenant organization shall notify the owner and the Mayor of the results of the election within 3 days. If the Mayor conducts the election, the Mayor shall notify the owner of the results of the election within 3 days.
(g) Election audit. — The Mayor may monitor an election and take measures to preserve the integrity of the election process and result.
(h) Coercion prohibited. — An owner, tenant organization, or third party purchaser shall not coerce a household in order to influence the head of household’s vote. Coercion includes, but is not limited to, the knowing circulation of inaccurate information; frequent visits or calls over the objection of that household; threat of retaliatory action; an act or threat not otherwise permitted by law which seeks to recover possession of a rental unit, increase rent, decrease services, increase the obligation of a tenant or cause undue or unavoidable inconvenience, harass or violate the privacy of the household; refusal to honor a lease provision; refusal to renew a lease or rental agreement; or other form of threat or coercion.
(i) Compliance approved. — If over 50 percent of the qualified voters vote in approval of conversion, or if an election is not held within 60 days of receipt of an owner’s request pursuant to subsection (a) of this section or within such reasonable extension of time as the Mayor may consider necessary to hold an election in accordance with the procedural requirements of this chapter, the Mayor shall certify compliance with this section for purposes of conversion.
(j) Compliance not approved. — If 50 percent or less of the qualified voters vote in approval of conversion, or if an election is invalidated by the Mayor because of fraud or coercion in favor of conversion on the part of the owner, the Mayor shall not certify compliance with this section for purposes of conversion, and an owner may not request another tenant election for that accommodation for 1 year from the date of the election.
(k) New election. — If an election is invalidated by the Mayor because of fraud or coercion on the part of the tenant organization, the Mayor shall conduct a new election within 30 days of the invalidation.
§ 42–3402.04. Conversion fee.
(a) Definitions. — For the purposes of this section, the term “low-income” means annual household income, as determined by the Mayor, no greater than 80% of the area median income, as defined in § 42-2801(1)).
(a-1)(1) Amount. — An owner who converts a housing accommodation, including vacant buildings, into a condominium or a cooperative shall pay the Mayor a conversion fee of 5% of the sales price for each condominium unit, or proportionate value of the cooperative residence, within the housing accommodation.
(2) An owner who converts a housing accommodation containing more than 3 and fewer than 11 units, each with a separate certificate of occupancy, including vacant buildings but excluding a building that the Mayor has determined to be a blighted vacant building, as that term is defined in § 42-3131.05(1), and thereby reduces the number of units in the housing accommodation, shall pay the Mayor an additional conversion fee of 5% of the appraised value of the most valuable unit in the building multiplied by the net decrease in units. When calculating the net decrease in units pursuant to this paragraph, the Mayor shall subtract one unit for each unit that qualifies for the fee exemption under subsection (b) of this section; except, that the result shall not be less than zero.
(b) Fee exemption. — The Mayor shall not require conversion fees under subsection (a-1) of this section, or the proportionate share value of a cooperative residence, that:
(1) Is sold or rented to a low-income household;
(2)(A) Is sold or rented to a member of a household who, as determined by the Mayor:
(i) Has maintained a rental unit in the building complex as the principal place of residence for at least one year prior to the owner’s application to the Mayor for conversion of the housing accommodation to a condominium or cooperative;
(ii) Is a domiciliary of the District of Columbia; and
(iii) Is entitled to the possession, occupancy, or benefits of the rental unit.
(B) If an owner seeks an exemption under this paragraph, the member of the household may elect to purchase any unit in the housing accommodation in lieu of her current unit;
(3)(A) Is sold or rented to a person who is an elderly tenant or a tenant with a disability.
(B) Does not have a total annual household income, as determined by the Mayor, greater than 100% of the area median income, as defined in § 42-2801(1);
(4)(A) Is sold as part of a conversion of a property that has been registered as vacant for at least 12 months prior to conversion; and
(B) Is part of a building complex not exceeding 10 units; or
(5) Gains at least one additional bedroom in the process of the reduction of units.
(b-1) Payment. —
(1) The conversion fees required by subsection (a-1) of this section shall be paid in full into an escrow account at the time of settlement on the sale of the condominium unit or cooperative share.
(2)(A) The escrow agent shall submit the conversion fees to the Mayor within 30 business days of settlement, together with a copy of the recordation and transfer tax form reflecting the sale price of each condominium unit or cooperative share.
(B) The name, address, and telephone number of the escrow agent shall be stated on the deed or on a form attached to the deed.
(3) The Mayor may impose civil fines, penalties, and fees for failure to submit the conversion fees to the Mayor, any infraction of the provisions of this section, or any rules issued under the authority of this section pursuant to Chapter 18 of Title 2 [§ 2-1801 et seq.]. Adjudication of any infraction of this chapter shall be pursuant to Chapter 18 of Title 2 [§ 2-1801 et seq.].
(4) No portion of the conversion fees required under this section shall be included in the purchase price of units exempted from the conversion fees in subsection (b) of this section.
(b-2) To qualify for the exemption under subsection (b) of this section, if the unit is rented, the owner shall:
(1) Set the rent at no higher than:
(A) If seeking an exemption pursuant to subsection (b)(1), (2), or (3) of this section, the rent level before the conversion or 30% of the tenant's income, whichever is lower; or
(B) If seeking an exemption pursuant to subsection (b)(5) of this section an amount, as determined by the Mayor through rulemaking, that is affordable to a household whose income does not exceed 100% of the area median income, as that term is defined in § 42-2801(1);
(2) Increase the rent by no more, and no more often, than the increases allowed under § 42-3502.08, for the duration of the tenant's tenancy or 5 years, whichever is longer; and
(3) Otherwise maintain the same lease terms as before the reduction in the number of units.
(c) Repealed.
(d) The Mayor shall deposit in the Housing Production Trust Fund, created pursuant to § 42-2802, all fees paid pursuant to this section above $692,000 annually, as of April 16, 2020.
(e) The Mayor, subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this section.
§ 42–3402.05. Certification fee.
An owner who seeks to convert must pay the Mayor a certification fee. The Mayor is authorized to collect and establish the amount of the fee. The certification fee shall be sufficient to cover the cost of administering this subchapter.
§ 42–3402.05a. Application fees.
(a) The Mayor may impose and collect fees for the processing of an application for conversion and other services provided by the Mayor or the Department of Housing and Community Development to implement this chapter. The Mayor shall establish the fees by rulemaking pursuant to subchapter I of Chapter 5 of Title 2 [§ 2-501 et seq.].
(b) Each application for approval of a conversion shall be accompanied by payment to cover the fees, if any, prescribed pursuant to this section.
(c) Fees collected by the Mayor pursuant to this section shall be deposited in the Department of Housing and Community Development Unified Fund, established pursuant to § 42-2857.01.
§ 42–3402.06. Cooperative conversion.
(a) Notice. — An owner shall provide each tenant with prior written notice of an intent to convert of at least 120 days by first class mail and by conspicuous posting in common areas of the housing accommodation. An owner shall not provide notice prior to the Mayor’s certification of compliance for purposes of cooperative conversion.
(b) Tenant opportunity to purchase unit. — An owner shall make to each tenant of the housing accommodation a bona fide offer to sell to each tenant a share or membership interest in the cooperative. An offer includes, at a minimum, the asking price for the share or membership interest and a summary of tenant rights and sources of technical assistance as published in the D.C. Register by the Mayor, if published. An owner shall afford the tenant at least 60 days in which to make a contract to purchase the share 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. An owner shall not provide notice prior to the Mayor’s certification of compliance for purposes of cooperative conversion.
(c) Notice to vacate. — An owner shall not serve a notice to vacate until at least 90 days after the tenant received notice of intention to convert, or prior to expiration of the 60-day period of notice of opportunity to purchase.
§ 42–3402.07. [Reserved].
§ 42–3402.08. Tenancy of elderly tenants and tenants with disabilities.
(a) Eviction limited. —
(1) For the purposes of this subsection, the term “qualifying income” means a total annual household income, as determined by the Mayor, no greater than 95% of the area median income, as defined in § 42-2801(1).
(2) Notwithstanding any other provision of this subchapter, Chapter 19 of this title, or Chapter 35 of this title, an owner of a rental unit in a housing accommodation converted under the provisions of this subchapter shall not evict or send notice to vacate to an elderly tenant or tenant with a disability if the combined annual household income for his or her unit, as determined by the Mayor, does not exceed the qualifying income, unless:
(A) The tenant violates an obligation of the tenancy and fails to correct the violation within 30 days after receiving notice of the violation from the owner;
(B) A court of competent jurisdiction has determined that the tenant has performed an illegal act within the rental unit or housing accommodation;
(C) The tenant fails to pay rent; or
(D)(i) For the purposes of a single, scheduled tenant election under § 42-3402.03, the tenant waives, in writing, his or her right to remain a tenant.
(ii) The waiver shall state that it was made voluntarily, without coercion as set forth in § 42-3402.03(h), and with full knowledge of the ramifications of a waiver of the right to remain a tenant.
(iii) The waiver under sub-subparagraph (i) of this subparagraph shall apply only to the single, scheduled tenant election for which it was given.
(b) Rent level. — Any owner of a converted unit shall not charge an elderly tenant or tenant with a disability rent in excess of the lawful rent at the time of request for a tenant election for purposes of conversion plus annual increases on that basis authorized under the Rental Housing Act.
(c) Qualification. –
(1) A tenant shall qualify under this subchapter if, on the day a tenant election is held for the purposes of conversion, the tenant:
(A) Is entitled to the possession, occupancy, or the benefits of the tenant's rental unit; and
(B) Is an elderly tenant or a tenant with a disability.
(2) In making a determination that a tenant qualifies as a tenant with a disability under this subchapter, 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 and shall not inquire further into the nature or severity of the disability;
(B) Shall not require the tenant to provide a description of the disability when making an eligibility determination; provided, that the Mayor may require that a physician or other licensed healthcare professional verify that a tenant meets the definition of a tenant with a disability; and
(C) Shall not require the tenant to provide eligibility documentation in fewer than 30 days.
(3) 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.
(4) In requesting information under this subsection, the Mayor:
(A) Shall not include a qualified voter's name on any publicly available list of eligible voters;
(B) Shall inform tenants that their names will be absent from publicly available lists of eligible voters; and
(C) Shall not disclose information provided about a tenant's disability unless the disclosure is required by law.
(5) The Mayor may provide a list of eligible voters upon request and may make a list of eligible voters available at the site of the tenant election.
(6) The Mayor shall develop all forms and procedures as may be necessary to verify eligibility under this subsection.
§ 42–3402.09. Property tax abatement.
The Mayor shall not require the owner of a converted condominium unit occupied by a low-income tenant to pay real property tax for the unit. The proportionate value for a unit in a converted cooperative housing accommodation occupied by a low-income tenant shall be exempt from real property tax.
§ 42–3402.10. Exceptions to coverage of subchapter; expiration provisions.
(a) This subchapter shall remain in effect until the Mayor declares that a housing crisis no longer exists pursuant to § 42-3405.12.
(b) The rights granted under § 42-3402.08 to eligible elderly and disabled tenants shall not be abrogated or reduced notwithstanding such a declaration by the Mayor.
(c)(1) A housing provider shall not unreasonably interfere with the tenant’s comfort, safety, or enjoyment of a rental unit, or engage in retaliatory action under § 42-3505.02, for the purpose of causing a housing accommodation to become vacant.
(2) For the purposes of this subsection, the terms “unreasonable interference” or “retaliatory action” may include:
(A) The knowing circulation of inaccurate information;
(B) Frequent visits or calls over the objection of the household;
(C) The threat of retaliatory action;
(D) An act or threat not otherwise permitted by law to recover possession of a rental unit, increase rent, decrease services, increase the obligation of a tenant or cause undue or avoidable inconvenience, harass or violate the privacy of the household, reduce the quality or quantity of service, refuse to honor a lease, rental agreement, or any provision of a lease or rental agreement, refuse to renew a lease or rental agreement, or terminate a tenancy without legal cause; or
(E) Any other form of threat or coercion.
(d)(1) The provisions of this subchapter shall not apply to the conversion of housing accommodations into condominium or cooperative status that are fully vacant as of the date of application to the Mayor for a vacancy exemption; provided, that this exemption shall not apply to:
(A) § 42-3402.04; or
(B) Any violation of subsection (c) of this section.
(2) The Mayor shall make such inquiries as the Mayor considers appropriate to determine whether the vacating of each unit was voluntary.
(3) If the Mayor determines that the vacating of any unit was not voluntary, the Mayor shall disapprove or rescind the approval of the application for exemption.
(4) All vacancy exemptions shall expire after 180 days; provided, that vacancy exemptions in effect on March 25, 2009, shall expire 180 days after March 25, 2009.
(e) The Mayor may impose civil fines, penalties, and fees for any infraction of the provisions of this section, or any rules issued under the authority of this section pursuant to Chapter 18 of Title 2 [§ 2-1801 et seq.]. Adjudication of any infraction of this chapter shall be pursuant to Chapter 18 of Title 2 [§ 2-1801 et seq.].
§ 42–3402.11. Retroactive conversion.
With respect to conversions of housing accommodations by owners or contract purchasers who received a notice of filing or filed articles of incorporation as a housing cooperative prior to August 10, 1980 (the effective date of the Rental Housing Conversion and Sale Emergency Act of 1980 (D.C. Act 3-248)), or prior to the effective date of this chapter [September 10, 1980], the following provisions shall apply:
(1) Definitions. — For the purposes of this section, unless the subject matter requires otherwise, the term:
(A) “Association” means a group enterprise legally incorporated under the District of Columbia Cooperative Association Act, or a cooperative corporation incorporated pursuant to the laws of another jurisdiction.
(B) “Comparable rental units” means rental units of corresponding facilities with the same or similar benefits or services included in the price of the rent.
(C) “Declarant” shall mean a person(s), association(s), or group(s) who:
(i) In the case of a housing cooperative, obtained an exemption pursuant to § 4 of the Cooperative Regulation Act of 1979 and filed articles of incorporation prior to August 10, 1980; or
(ii) In the case of a condominium conversion, received a notice of filing pursuant to § 42-1904.06.
(D) “Eligible recipient” means the head of household in which the household has a combined annual income totaling less than the following percentages of the median annual family income (for a household of 4 persons) for the District of Columbia, as such median is determined by the United States Bureau of Census and adjusted yearly by historic trends of that median, and as may be further adjusted by an interim census of District of Columbia incomes collected under contract by local or regional government agencies:
| one-person household | 50% |
| two-person household | 60% |
| three-person household or a 1- or 2-person household containing any person who is 60 years of age or older or who has a disability as defined by the Mayor |
90% |
| four-person household | 100% |
| five-person household | 110% |
| more than 5-person household | 120% |
(E) “Family” means a group of persons related by blood or marriage.
(F) “Head of household” means an individual who maintains the affected rental unit as his or her principal place of abode, is a bona fide resident and domiciliary of the District of Columbia, and contributes more than one-half the cost of maintaining such rental unit. An individual may be considered a head of household without regard as to whether such individual would qualify as a head of household for the purposes of any other law.
(G) “High rent housing accommodation” means any housing accommodation in the District of Columbia for which the total monthly rent exceeds an amount computed for such housing accommodation as follows:
(i) Multiply the number of rental units in the following categories by the corresponding rents established by the United States Department of Housing and Urban Development for the District of Columbia as the current fair market rents for existing housing under § 8 Housing Assistance Payments Program for Elevator or Non-Elevator (as appropriate) Buildings: (1) efficiency rental units; (2) 1 bedroom rental units; (3) 2 bedroom rental units; (4) 3 bedroom rental units; (5) 4 or more bedroom rental units; so that the rates are not lower than $267 for 1 bedroom, $314 for 2 bedroom, $408 for a 3 or more bedroom, and $221 for efficiency rental units;
(ii) Total the results obtained in sub-subparagraph (i) of this subparagraph; and
(iii) Increase the result obtained in sub-subparagraph (ii) of this subparagraph by the maximum percentage of any upward rent adjustments found to be warranted by the District of Columbia Rental Accommodations Commission pursuant to § 206 of the Rental Housing Act of 1977.
(H) “Housing accommodation” means any structure or building in the District of Columbia containing 1 or more rental units, and the land appurtenant thereto. Such term shall not include any hotel, motel, or other structure, including any room therein, used primarily for transient occupancy, and in which at least 60% of the rooms devoted to living quarters for tenants or guests are used for transient occupancy; any rental unit in an establishment which has as its primary purpose the providing of diagnostic care and treatment of diseases, including, but not limited to, hospitals, convalescent homes, nursing homes, and personal care homes; or any dormitory of an institute of higher education, or a private boarding school, in which rooms are provided for students.
(I) “Housing expense” means the amount of rent attributable to a rental unit plus the cost of gas, electricity, water, and sewer services if not included in the rent and if paid by the occupant of such rental unit, but shall exclude any security deposit.
(J) “Housing project” means a group of housing accommodations which are managed as a single business entity.
(K) “Suitable size” means for a 1 person family, an efficiency rental unit; for a 2 person family, a 1 bedroom rental unit; for a family of 3 or 4 persons, a 2 bedroom rental unit; for a family of 5 or 6 persons, a 3 bedroom rental unit; and for a family of 7 or more persons, a 4 bedroom rental unit; except, that adjustments shall be made to allow children and unmarried adults of the opposite sex, to have separate sleeping rooms. In determining suitable size for a comparable rental unit, 1 person living in a 1 bedroom rental unit before relocation as a result of cooperative conversion shall be eligible for assistance at the level of a 1 bedroom comparable rental unit.
(L) “Total monthly rent” shall include the rents asked for vacant units.
(2) Eligibility for housing assistance and relocation compensation. —
(A) In addition to all other requirements of this section, and to all other applicable provisions of law, each declarant of a conversion cooperative shall pay housing assistance, in an amount calculated according to paragraph (3) of this section, to any eligible recipient who:
(i) Makes application for such assistance;
(ii) Has been living, for at least 1 year immediately prior to the first day of the month in which the application for registration relating to such conversion is filed, in the rental unit from which he or she is being displaced;
(iii) Is displaced from a rental unit because such rental unit is being converted to a cooperative by the declarant; and
(iv) Relocates in the District of Columbia. Such housing assistance shall be paid in 1 lump sum payment, within 30 days after the date the declarant receives notification pursuant to subparagraph (C) of paragraph (5) of this section, to the eligible recipient or the Mayor, as appropriate. Beginning with the 25th month occurring immediately after the month in which such eligible recipient relocated, and for the immediately succeeding 35 months thereafter, housing assistance payments to such recipient shall be made by the Mayor if, as of the first day of the 25th month occurring after his or her relocation, the recipient is eligible for such payment. In lieu of monthly payments, the Mayor may make a lump sum payment to an eligible recipient equal to the amount to which the recipient is entitled to receive under this section.
(B) In addition to all other requirements of this section, and to all other applicable provisions of law, each declarant shall pay relocation compensation to an eligible recipient in each rental unit in the building converted if such rental unit is occupied primarily for residential purposes on the date the occupant received the 120-day notice of declarant’s intention to convert as required by § 603 of the Rental Housing Act of 1977. Such relocation compensation shall be calculated according to the provisions of subparagraph (D) of paragraph (4) of this section.
(C) No part of any housing assistance payment or any relocation compensation made under this section shall be considered income to the eligible recipient for the purposes of Chapter 18 of Title 47. Any such housing assistance payment or any relocation compensation made to any person or family entitled to receive any other payment from the District of Columbia government related to paying the costs of housing or shelter shall be in addition to and shall not affect the amount of or entitlement to such other payment.
(3) Calculation of housing assistance. —
(A) The amount of each housing assistance payment to be made under this section shall be calculated as follows:
(i) If the amount of an eligible recipient’s average monthly housing expense, during the 12 consecutive month period ending with the month preceding the month during which he or she relocated as a result of the rental unit being converted to a cooperative, is an amount which is less than 25% of the average net monthly family income computed for such period, then the amount of the monthly housing assistance payment to such eligible recipient shall be in an amount equal to the difference between an amount equal to 25% of such average net monthly family income and the amount of the monthly housing expense to be paid by the eligible recipient for the first full month after such relocation (excluding security deposit, if any).
(ii) If the amount of an eligible recipient’s average monthly housing expense, during such period, is an amount which is more than 25% of such average net monthly family income, then the amount of the monthly housing assistance payment shall be in an amount equal to the difference between such average monthly housing expense during such period and the amount of the monthly housing expense to be paid by the eligible recipient for the first full month after such relocation (excluding security deposit, if any).
(iii) To obtain the total housing assistance payment to be made by a declarant to any eligible recipient, multiply the figure obtained under either sub-subparagraph (i) or (ii) of this subparagraph, as appropriate, by 24. To obtain the total housing assistance payment to be made by the Mayor to any eligible recipient, multiply such appropriate figure by 36.
(B) The Mayor shall determine, from time to time and at least once every 12 months, the range of rents being charged in the District of Columbia by landlords of privately-owned housing accommodations for available 1 bedroom, 2 bedroom, 3 bedroom or more, and efficiency rental units. The Mayor shall publish his or her preliminary range of rents in the District of Columbia Register and, within 30 days after publication shall hold hearings on that preliminary range. Based on the record of those hearings, the Mayor shall certify a final range of rents to be used for the purposes of this section. The figure obtained under either sub-subparagraph (i) or (ii) of subparagraph (A) of this paragraph, as appropriate, shall not exceed the difference between the highest rent in the range of rents of comparable rental units of suitable size, as determined by the Mayor at the time the housing assistance payment is made to such eligible recipient, and the amount of the eligible recipient’s average monthly housing expense for the 12-month period referred to in sub-subparagraph (i) of subparagraph (A) of this paragraph.
(4) Calculation of relocation compensation. —
(A) The amount of relocation compensation payable shall be calculated as follows:
(i) Relocation compensation in the amount of $125 for each room in the apartment unit shall be payable to the tenants if the tenants are occupying the apartment unit, or, if the tenants are not occupying the apartment unit, to the tenants or subtenants bearing the cost of removing the majority of the furnishings. For the purpose of the preceding sentence, a “room” in an apartment unit shall mean any space 60 square feet or larger which has a fixed ceiling and floor and is subdivided with fixed partitions on all sides, but shall not mean bathrooms, balconies, closets, pantries, kitchens, foyers, hallways, storage areas, utility rooms, or the like.
(ii) The Mayor shall adjust the amounts to be paid as relocation compensation from time to time solely to reflect changes in the cost of moving within the Washington metropolitan area. Such adjustments shall be made no more than once in any calendar year and shall be made only after prior notice and hearing.
(B) After notification of the Mayor’s determination pursuant to paragraph (5)(B) of this section, the declarant shall pay relocation compensation as follows:
(i) If the declarant has received at least 10 days advance written notice of the date upon which the apartment unit is to be vacated, the payment shall be paid no later than 24 hours prior to the date the apartment unit is to be vacated; or
(ii) If no such notice has been received, then payment shall be made within 30 days after the apartment unit is vacated.
(C) If there is more than 1 person entitled to relocation compensation with respect to an apartment unit, each such person shall be entitled to share equally in the amount of relocation compensation.
(D) In any case in which there is a question as to whether relocation compensation shall be paid for an apartment unit, or to whom, or the proper amount of such compensation, the declarant shall pay to the Mayor the amount indicated in the notice issued pursuant to paragraph (5)(B) of this section for such apartment unit and shall thereby be relieved of any further obligation under this section with respect to such apartment unit. The Mayor shall hold such payment and shall determine, after investigation, whether relocation compensation is payable with respect to the apartment unit, the amount of relocation compensation payable, if any, and the person or persons, if any, entitled thereto. The Mayor shall refund any remainder of such payment to the declarant.
(E) Payment or relocation compensation shall not be required with respect to any apartment unit which is the subject of an outstanding judgment for possession obtained by the declarant or declarant’s predecessor in interest against the tenants or subtenants for a cause of action whether such cause of action arises before or after the service of the notice of conversion. If, however, the judgment for possession is based on nonpayment and arises after the notice of conversion has been given, then relocation compensation shall be required in an amount reduced by the amount determined to be due and owing to the declarant by the court rendering the judgment for possession.
(5) Application for housing assistance and relocation compensation. —
(A) Each declarant, at the same time he or she sends tenants the 120-day notice required under § 603 of the Rental Housing Act of 1977, shall send to each tenant the application forms (with instructions) provided by the Mayor for making application for housing assistance and relocation compensation payable under the provisions of this section. Each applicant for such housing assistance or relocation compensation shall give to the Mayor reasonable information as may be required in order to determine an applicant’s eligibility. All information provided to the Mayor under this paragraph shall be confidential and shall not be disclosed to any person except to parties and their attorneys, officials, and employees conducting proceedings under this section.
(B) If the information provided by an applicant on the form filed with the Mayor indicates on its face that such applicant is eligible for relocation compensation payable under paragraph (2)(B) of this section, then such applicant shall be presumed to be an eligible recipient. Within 15 working days from receipt of the completed application, the Mayor shall notify the appropriate declarant of the amount of payment due, to whom it shall be paid, and the address at which such payment should be delivered. Each declarant shall make each relocation compensation payment in a lump sum payment equal to the total amount of the payment for which he or she is liable to that eligible recipient. The payment of relocation compensation is subject to review pursuant to paragraph (4)(D) of this section.
(C)(i) If the information provided by an applicant on the form filed with the Mayor indicates on its face that such applicant is eligible for housing assistance payable under paragraph (2)(A) of this section, then such applicant shall be presumed to be an eligible recipient. The Mayor shall notify the appropriate declarant of the amount of housing assistance payment due, to whom it shall be paid, and the address at which such payment should be delivered.
(ii) In the event that a declarant believes either that the recipient is not an eligible recipient, or has not met the requirements of paragraph (2)(A) of this section, or that the payment to that recipient should be lower than the amount indicated by the Mayor for housing assistance payments, the declarant may seek review of the eligibility of the recipient, the recipient’s eligibility under paragraph (2)(A) of this section, and the amount of such payment by: (1) Making the payment indicated to the Mayor; and (2) filing a notice of appeal and request for a hearing with the Mayor within 10 days after making such payment. The Mayor shall conduct such requested hearing as soon as possible after such request is made. Based on the record of the hearing, the Mayor shall determine whether the recipient is actually eligible for the payment as indicated in the Mayor’s notice, or whether the amount of the payment is correct, as appropriate. In the event the Mayor determines that the recipient is not eligible, or that the amount of the payment made should be reduced, the Mayor shall issue an order to that effect, and shall refund to the declarant such excess monies, as is appropriate.
(D) The Mayor may review bi-annually, or earlier upon request by a declarant, both the continued eligibility of a recipient for housing assistance and the amount of such payments.
(6) Payments of housing assistance. — The Mayor may enter into contracts with any bank or other financial institution in the District of Columbia providing that such bank or other financial institution shall make the monthly payments of housing assistance for which the District of Columbia is liable (if the Mayor elects not to make a lump sum payment) from sums of money deposited in such bank or financial institution by the Mayor for that purpose.
(7) Tax exemption. —
(A) In addition to all other requirements of this section, and to all other applicable provisions of law, each declarant of a conversion condominium shall pay housing assistance, in an amount calculated according to paragraph (3) of this section, to any eligible recipient who:
(i) Makes application for such assistance;
(ii) Has been living, for at least 1 year immediately prior to the first day of the month in which the application for registration relating to such conversion is filed, in the rental unit from which he or she is being displaced;
(iii) Is displaced from a rental unit because such rental unit is being converted to a condominium by the declarant; and
(iv) Relocates in the District of Columbia.
Such housing assistance shall be paid in 1 lump sum payment within 30 days after the date such recipient relocates. Beginning with the 25th month occurring immediately after the month in which such recipient relocated, and for the immediately succeeding 35 months thereafter, housing assistance payments to such recipient shall be made by the Mayor if, as of the first day of the 25th month occurring after his or her relocation, the recipient is eligible for such payment. In lieu of monthly payments, the Mayor may make a lump sum payment to an eligible recipient equal to the amount to which he or she is entitled to receive under this section.
(B) In addition to all other requirements of this section, and to all other applicable provisions of law, each declarant of a conversion condominium shall pay relocation compensation to any eligible recipient in each rental unit in the building converted if such rental unit is occupied primarily for residential purposes on the date the notice required by § 42-1904.03 is given. Such relocation assistance shall be calculated according to the provisions of paragraph (9) of this section.
(C) No part of any housing assistance payment or any relocation compensation made under this section shall be considered income to the recipient for the purposes of Chapter 18 of Title 47. Any such housing assistance payment or any relocation compensation made to any person or family entitled to receive any other payment from the District of Columbia government related to paying the costs of housing or shelter shall be in addition to and shall not affect the amount of or entitlement to such other payment.
(8) Computation of housing assistance. —
(A) The amount of each housing assistance payment to be made under this section shall be calculated as follows:
(i) If the amount of an applicant’s average monthly housing expense, during the 12 consecutive month period ending with the month preceding the month during which he or she relocated as a result of his or her rental unit being converted to a condominium, is an amount which is less than 25% of the average net monthly family income, computed for such period, then the amount of the monthly housing assistance payment to such applicant shall be in an amount equal to the difference between an amount equal to 25% of such average net monthly family income and the amount of the monthly housing expense to be paid by the applicant for the first full month after such relocation (excluding security deposit, if any).
(ii) If the amount of a recipient’s average monthly housing expense, during such period, is an amount which is more than 25% of such average net monthly family income, then the amount of the monthly housing assistance payment payable to such applicant shall be an amount equal to the difference between such average monthly housing expense during such period and the amount of the monthly housing expense to be paid by the applicant for the first full month after such relocation (excluding security deposit, if any).
(iii) To obtain the total housing assistance payment to be made by a declarant to any eligible recipient, multiply the figure obtained under either sub-subparagraph (i) or (ii) of this subparagraph, as appropriate, by 24. To obtain the total housing assistance payment to be made by the Mayor to any eligible recipient, multiply such appropriate figure by 36.
(B) The Mayor shall determine, from time to time and at least once every 12 months, the range of rents being charged in the District of Columbia by landlords of privately owned housing accommodations for generally available 1 bedroom, 2 bedroom, 3 bedroom or more, and efficiency rental units. The Mayor shall publish his or her preliminary range of rents in the District of Columbia Register and during the next immediately occurring 30 days hold hearings on that preliminary range. Based on the record of those hearings, the Mayor shall certify a final range of rents to be used for the purposes of this section. The figure obtained under either sub-subparagraph (i) or (ii) of subparagraph (A) of this paragraph, as appropriate, shall not exceed the difference between the highest rent in the range of rents of comparable rental units of suitable size, as determined by the Mayor at the time of the housing assistance payment is made to such recipient, and the amount of the recipient’s average monthly housing expense for the 12-month period referred to in sub-subparagraph (i) of subparagraph (A) of this paragraph.
(9) Computation of relocation compensation. —
(A) The amount of relocation compensation payable shall be calculated as follows:
(i) Relocation compensation in the amount of $125 for each room in the apartment unit shall be payable to the tenants if the tenants are occupying the apartment unit or if the tenants are not occupying the apartment unit, to the tenants or subtenants bearing the cost of removing the majority of the furnishings. For the purposes of the preceding sentence, a “room” in an apartment unit shall mean any space 60 square feet or larger which has a fixed ceiling and floor and is subdivided with partitions on all sides, but shall not mean bathrooms, balconies, closets, pantries, kitchens, foyers, hallways, storage areas, utility rooms, or the like.
(ii) The Mayor shall adjust the amounts to be paid as relocation compensation from time to time solely to reflect changes in the cost of moving within the Washington metropolitan area. Such adjustment shall be made no more than once in any calendar year and shall be made only after prior notice and hearing.
(B) Relocation compensation shall be paid no later than 24 hours prior to the date the apartment unit is to be vacated by the tenants or subtenants if the declarant has received at least 10 days advance written notice of the date upon which the apartment unit is to be vacated. If no such notice has been received, then relocation compensation shall be paid within 30 days after the apartment unit is vacated.
(C) If there is more than 1 person entitled to relocation compensation with respect to an apartment unit, each such person entitled to relocation compensation shall be entitled to share equally in the amount of relocation compensation. In any case in which there is a dispute as to whether relocation compensation shall be paid for an apartment unit, or the proper amount of such compensation or the persons entitled to such compensation, the declarant may pay to the Mayor the maximum possible relocation compensation allowable for such apartment unit and shall thereby be relieved of any further obligation under this subparagraph with respect to such apartment unit. The Mayor shall hold such payment and shall determine whether relocation compensation is payable with respect to the apartment unit, the amount of relocation compensation payable, if any, and the person or persons entitled thereto. The Mayor shall refund any remainder of such payment to the declarant.
(D) Payment of relocation compensation shall not be required with respect to any apartment unit which is the subject of an outstanding judgment for possession obtained by the declarant or declarant’s predecessor in interest against the tenants or subtenants for a cause of action, whether such cause of action arises before or after the service of the notice of conversion. If, however, the judgment for possession is based on nonpayment and arises after the notice of conversion has been given, then relocation compensation shall be required in an amount reduced by the amount determined to be due and owing to declarant by the court rendering the judgment for possession.
(10) Notification of eligibility; review of eligibility determinations. —
(A) Each declarant of a conversion condominium, in addition to and at the same time that he or she sends tenants in the building to be converted the notices required under § 42-1904.08(b), shall send to each such tenant the necessary application forms (with instructions), provided by the Mayor, for making application for the housing assistance payments and relocation compensation payable under the provisions of this section. Each applicant for such assistance or compensation shall give to the Mayor such reasonable information as he or she may require in order to determine whether such applicant is eligible for the payments for which he or she applied. All information provided to the Mayor under this section shall be confidential and shall not be disclosed to any person or governmental or private entity in such a manner as to identify the applicant to whom the information relates.
(B) If the information provided by an applicant on the form filed with the Mayor indicates that such applicant is eligible for the relocation compensation payable under paragraph (7)(B) of this section, then such applicant shall be presumed to be an eligible recipient and the Mayor shall notify the appropriate declarant of the amount of payment due, to whom it shall be paid, and the address at which such payment should be delivered. Each declarant shall make each relocation compensation payment in a lump sum payment equal to the total amount of the payment for which he or she is liable to that recipient.
(C) In the event that a declarant believes that either the recipient is not an eligible recipient, or that the payment to that recipient should be lower than the amount indicated by the Mayor, for either housing assistance payments or for relocation compensation, he or she may seek review of both the eligibility and amount of payment by: (i) Making the payment as indicated by the Mayor; and (ii) filing a notice of appeal and request for a hearing with the Mayor within 10 days after making such payment. The Mayor shall conduct such requested hearing as soon as possible after such request is made. Based on the record of the hearing held as requested by a declarant, the Mayor shall determine whether the recipient is actually eligible for the payment received, or whether the amount of such payment is correct, as appropriate. In the event the Mayor determines that the recipient is not eligible, or that the amount of the payment made should be reduced, he or she shall issue an order to that effect, requiring the recipient to return to the declarant any payment received to which he or she was not entitled.
(D) The eligibility of a recipient for housing assistance payments shall be reviewed by the Mayor bi-annually.
(11) Deposit in and payment of banks of District of Columbia housing assistance payments. — The Mayor may enter into contracts with any bank or other financial institution in the District of Columbia providing that such bank or other financial institution shall make the monthly payments of housing assistance for which the District of Columbia is liable (if the Mayor elects not to make a lump sum payment) from sums of money deposited in such bank or financial institution by the Mayor for that purpose.
Subchapter III. Relocation Assistance.
§ 42–3403.01. Short title.
This subchapter may be cited as the ‘Relocation and Housing Assistance Act of 1980”.
§ 42–3403.02. Relocation payment.
(a) Required. — If an owner converts a housing accommodation into a condominium or cooperative pursuant to this chapter, the owner shall provide a relocation payment to each tenant who does not purchase a unit or share or enter into a lease or lease option of at least 5 years’ duration.
(b) Amount. — An owner shall pay the tenant only if the tenant provides a relocation expense receipt or a written estimate from a moving company or other relocation service provider. Regardless of the amount on the receipt or written estimates, the owner shall pay no less than $125, but is not required to pay more than $1,000 to the tenant.
(c) Method. — An owner may pay by check or cash to the tenant or person designated by the tenant, and shall pay within 7 days of receipt of the written estimate or receipt, the amount indicated or an amount required by subsection (b) of this section.
(d) Entitlement to receive. —
(1) The tenant who bears the cost of relocation is entitled to the payment. If there is more than 1 tenant who bears the cost of relocation from a unit, the owner shall pay the tenants proportionally.
(2) The owner is not required to make a relocation payment to a tenant against whom the owner has obtained a judgment for possession of the unit.
(3) If an owner does not make a relocation payment as required, the tenant has a private right of action to collect the payment and is entitled to costs and reasonable attorney fees for bringing the action.
§ 42–3403.03. Relocation services.
The Mayor shall provide relocation assistance to low-income tenants who move from a housing accommodation which is converted into a condominium or cooperative. The Mayor shall provide service in the manner required by § 6-333.01.
§ 42–3403.04. Housing assistance payments.
(a) Required. — If an owner converts a housing accommodation into a condominium or cooperative pursuant to this chapter, the Mayor shall provide housing assistance payment for 3 years to each low-income tenant who does not purchase a unit or share.
(a-1) Administration. — Housing assistance payments shall be administered by the Department of Housing and Community Development.
(b) Eligibility. — In order to receive housing assistance payments, the tenant must:
(1) Be low-income;
(2) Apply for the assistance;
(3) Have been living in a rental unit within the converted housing accommodation for at least 180 days prior to receipt of an owner’s request for a tenant election for purposes of conversion; and
(4) Reside within the District of Columbia after conversion of the housing accommodation.
(c) Amount. — The amount of a housing assistance payment is calculated as follows:
(1) If a household’s average monthly housing expenses during the 12 consecutive months prior to conversion are less than 25 percent of net monthly household income, the amount of a monthly housing assistance payment is the difference between 25 percent of net monthly household income and the projected average monthly housing expenses after conversion;
(2) If a household’s average monthly housing expenses during the 12 consecutive months prior to conversion are more than 25 percent of net monthly household income, the amount of a monthly housing assistance payment is the difference between the prior average monthly housing expenses and the projected average monthly housing expenses after conversion;
(3) The Mayor may review the eligibility of a household and the amount of payments and change the household’s status accordingly;
(4) For purposes of this subsection, the term “housing expenses” includes rent or monthly payment for a unit plus the cost of all utilities if not included in the rent or monthly payment. The term “housing expense” shall not include a security deposit. The Mayor is not required to consider housing expenses which exceed the level of fair market rents established by the federal Department of Housing and Urban Development for the District of Columbia.
(d) Method. —
(1) The Mayor may make housing assistance payments on a monthly basis or an aggregate basis for any portion of the period of eligibility. An aggregate payment is calculated by multiplying the monthly payment amount by the number of months desired.
(2) The Mayor may contract with a financial institution in the District of Columbia for provision of housing assistance payments with District funds.
(3) The Mayor may provide housing assistance payments to the tenant, or to the tenant’s landlord directly.
§ 42–3403.05. Payments not subject to District tax.
Relocation and housing assistance payments are not income to the recipient for purposes of the District of Columbia Income and Franchise Tax Act of 1947 (§ 47-1801.01 et seq.).
§ 42–3403.06. Tenant rights.
The Mayor shall include tenant rights to relocation payments, relocation services, and housing assistance payments in the summary of tenant rights required for publication in the D.C. Register. When an owner sends notice of intent to convert a housing accommodation into a condominium or cooperative, the owner shall attach to that notice a summary of tenant rights under this subchapter and an application for relocation services and housing assistance payments as published in the D.C. Register by the Mayor.
§ 42–3403.07. Housing Assistance Fund. [Repealed]
Repealed.
§ 42–3403.08. Information and technical assistance.
The Mayor shall establish an office to coordinate programs of technical assistance and serve as a central clearinghouse for information needed by tenants regarding the conversion and sale of rental housing. Program areas for this office include, but are not limited to, counseling, subsidy programs, relocation services, housing purchase and rehabilitation finance, tax relief programs, and technical assistance for the formation of tenant organizations, purchase of housing accommodations, rehabilitation, and conversion to cooperative or condominium.
§ 42–3403.09. Expiration provisions.
This subchapter shall remain in effect until the Mayor declares that a housing crisis no longer exists pursuant to § 42-3405.12.
Subchapter IV. Opportunity to Purchase.
§ 42–3404.01. Short title.
This subchapter may be cited as the "Tenant Opportunity to Purchase Act of 1980".
§ 42–3404.02. Tenant opportunity to purchase; “sale” defined.
(a) Before an owner of a housing accommodation may sell the housing accommodation or issue a notice to vacate for purposes of demolition or discontinuance of housing use, the owner shall give the tenant an opportunity to purchase the housing accommodation at a price and terms that represent a bona fide offer of sale.
(a-1) Whenever an offer of sale is made to tenants for a housing accommodation with 5 or more units that is required by subsection (a) of this section before the owner may issue a notice to vacate for purposes of demolition or discontinuance of housing use, and the offer is made in the absence of an arm’s-length third-party contract, the following shall apply:
(1) The sales price contained in the offer of sale shall be less than or equal to a price and other material terms comparable to that at which a willing seller and a willing buyer would sell and purchase the housing accommodation, or the appraised value of the housing accommodation as determined by this subsection.
(2) An appraised value shall only be based on rights an owner has as a matter-of-right as of the date of the offer, including any existing right an owner may have to convert the property to another use.
(3) Within the restrictions of paragraph (2) of this subsection, an appraised value may take into consideration the highest and best use of the property.
(4) The owner of the housing accommodation shall have the burden of proof to establish that an offer of sale under this subsection is a bona fide offer of sale.
(5)(A) A tenant organization registered according to § 42-3404.11(1) may challenge the offer presented by an owner of a housing accommodation as not being a bona fide offer of sale, and request a determination of the appraised value of the housing accommodation.
(B) The tenant organization shall request an appraisal by delivering the request to the Mayor and the owner by hand or by certified mail within 45 days of receipt of the alleged bona fide offer of sale.
(C)(i) The tenant organization and owner of the housing accommodation shall jointly select an appraiser. If within 14 days after a tenant organization has requested an appraisal, the tenant organization and owner of the housing accommodation have not agreed upon an appraiser, either party may request that the Mayor select an appraiser.
(ii) A request that the Mayor select an appraiser shall be in writing and delivered by hand or by certified mail to the Mayor and to the owner or to a member of the board of the tenant organization.
(iii) The Mayor shall select the appraiser on a sole source basis within 7 days of receiving the request for an appraiser.
(D) The tenant organization and owner of the housing accommodation shall pay one-third and two-thirds of the cost of the appraisal, respectively.
(E)(i) The appraiser shall hold an active license as a Certified General Real Property Real Estate Appraiser that has been issued by the District of Columbia Board of Real Estate Appraisers.
(ii) The owner shall give the appraiser full, unfettered access to the property.
(iii) The owner shall respond within 7 days to any request for information from the appraiser.
(iv) The tenant organization may give the appraiser information relevant to the valuation of the property.
(F) The appraisal shall be completed expeditiously according to standard industry timeframes.
(6) Beginning with the date of a tenant organization request for an appraisal, and for each day thereafter until the tenant organization receives the appraisal, the negotiation period described in § 42-3404.11(2) shall be extended by one day.
(7)(A) The determination of the appraised value of the housing accommodation in accordance with this subsection shall become the sales price of the bona fide offer of sale for the housing accommodation unless:
(i) The owner and the tenant organization agree upon a different sales price of the housing accommodation; or
(ii) The owner elects to withdraw the offer of sale within 14 days of the receipt of the appraisal by the owner.
(B)(i) The owner shall withdraw the offer of sale by delivering by hand or by certified mail a letter of withdrawal to the Mayor and a member of the board of directors of the tenant organization.
(ii) Upon the election to withdraw the offer of sale, the owner shall reimburse the tenant organization for its entire share of the cost of the appraisal within 14 days of delivery pursuant to sub-subparagraph (i) of this subparagraph.
(iii) An owner who withdraws an offer of sale in accordance with this subparagraph shall be precluded from making a subsequent offer of sale to the tenant organization without an arm’s-length third party contract for 3 months from the date of the election to withdraw the offer of sale.
(8) Within 30 days of the receipt of the appraisal conducted by an appraiser selected by the Mayor pursuant to paragraph (5)(C) of this subsection, either the tenant organization or the owner of the housing accommodation may challenge the appraisal as being in violation of the requirements of this subsection in the Superior Court of the District of Columbia for the court to take any appropriate action the court may deem necessary.
(a-2) Notwithstanding subsection (a-1) of this section, for a tenant organization that before February 26, 2016 has registered the tenant organization with the Mayor pursuant to § 42-3404.11(1) and pursuant to either § 42-3405.03 or § 42-3405.03a has filed a complaint concerning this section, the following shall apply, beginning January 1, 2014:
(1) For the purposes of this subsection:
(A) “Appraised value” means the value of a housing accommodation as of the date of the appraisal, based on an objective, independent property valuation, performed according to professional appraisal industry standards.
(B) “Bona fide offer of sale” means an offer of sale for a housing accommodation or the interest in the housing accommodation that is either:
(i) For a price and other material terms that are at least as favorable as those accepted by a purchaser in an arm’s length third-party contract; or
(ii) In the absence of an arm’s length third-party contract, an offer of sale with a price and other material terms comparable to that at which a willing seller and a willing buyer would sell and purchase the housing accommodation, or the appraised value.
(C) “Highest and best use” means the reasonably probable legal use of a property that is physically possible, appropriately supported, and financially feasible and that results in the highest value of the property.
(D) “Matter-of-right” means a land use, development density, or structural dimension to which a property owner is entitled by current zoning regulations or law.
(2) Whenever an offer of sale is made to tenants for a housing accommodation with 5 or more units that is required by subsection (a) or (a-1) of this section before the owner may issue a notice to vacate for purposes of demolition or discontinuance of housing use, and the offer is made in the absence of an arm’s-length third-party contract, the following shall apply:
(A) The sales price contained in the offer of sale shall be less than or equal to a price and other material terms comparable to that at which a willing seller and a willing buyer would sell and purchase the housing accommodation, or the appraised value of the housing accommodation as determined by this subsection.
(B) An appraised value shall only be based on rights an owner has as a matter-of-right as of the date of the offer, including any existing right an owner may have to convert the property to another use.
(C) Within the restrictions of subparagraph (B) of this paragraph, an appraised value may take into consideration the highest and best use of the property.
(D) The owner of the housing accommodation shall have the burden of proof to establish that an offer of sale under this subsection is a bona fide offer of sale.
(E)(i) A tenant organization registered according to § 42-3404.11(1) may challenge the offer presented by an owner of a housing accommodation as not being a bona fide offer of sale, and request a determination of the appraised value of the housing accommodation.
(ii) The tenant organization shall request an appraisal by delivering the request to the Mayor and the owner by hand or by certified mail within 45 days of receipt of the alleged bona fide offer of sale.
(iii)(I) The tenant organization and owner of the housing accommodation shall jointly select an appraiser. If within 14 days after a tenant organization has requested an appraisal, the tenant organization and owner of the housing accommodation have not agreed upon an appraiser, either party may request that the Mayor select an appraiser.
(II) A request that the Mayor select an appraiser shall be in writing and delivered by hand or by certified mail to the Mayor and to the owner or to a member of the board of the tenant organization.
(III) The Mayor shall select the appraiser on a sole source basis within 7 days of receiving the request for an appraiser.
(iv) The tenant organization and owner of the housing accommodation shall pay one-third and two-thirds of the cost of the appraisal, respectively.
(v)(I) The appraiser shall hold an active license as a Certified General Real Property Real Estate Appraiser that has been issued by the District of Columbia Board of Real Estate Appraisers.
(II) The owner shall give the appraiser full, unfettered access to the property.
(III) The owner shall respond within 7 days to any request for information from the appraiser.
(IV) The tenant organization may give the appraiser information relevant to the valuation of the property.
(vi) The appraisal shall be completed expeditiously according to standard industry timeframes.
(F) Beginning with the date of a tenant organization request for an appraisal, and for each day thereafter until the tenant organization receives the appraisal, the negotiation period described in § 42-3404.11(2) shall be extended by one day.
(G)(i) The determination of the appraised value of the housing accommodation in accordance with this subsection shall become the sales price of the bona fide offer of sale for the housing accommodation unless:
(I) The owner and the tenant organization agree upon a different sales price of the housing accommodation; or
(II) The owner elects to withdraw the offer of sale within 14 days of the receipt of the appraisal by the owner.
(ii)(I) The owner shall withdraw the offer of sale by delivering by hand or by certified mail a letter of withdrawal to the Mayor and a member of the board of directors of the tenant organization.
(II) Upon the election to withdraw the offer of sale, the owner shall reimburse the tenant organization for its entire share of the cost of the appraisal within 14 days of delivery pursuant to sub-sub-subparagraph (I) of this sub-subparagraph.
(III) An owner who withdraws an offer of sale in accordance with this subparagraph shall be precluded from making a subsequent offer of sale to the tenant organization without an arm’s-length third party contract for 3 months from the date of the election to withdraw the offer of sale.
(H) Within 30 days of the receipt of the appraisal conducted by an appraiser selected by the Mayor pursuant to subparagraph (E)(iii) of this paragraph, either the tenant organization or the owner of the housing accommodation may challenge the appraisal as being in violation of the requirements of this subsection, to the Superior Court of the District of Columbia for the court to take any appropriate action the court may deem necessary.
(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 [members] 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 an entity under § 29-204.06;
(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 chapter 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 an entity under § 29-204.06;
(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 chapter 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;
(N) A transfer by eminent domain or under threat of eminent domain;
(O) A transfer of interest in an entity that owns a housing accommodation or a transfer of title to a housing accommodation, if each of the following conditions is satisfied:
(i) The credit period, as defined in section 42(f) of the United States Internal Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2189; 26 U.S.C. § 42(f)) ("IRC"), for the housing accommodation has ended;
(ii) Immediately prior to the transfer the housing accommodation is subject to:
(I) An extended low-income housing commitment, as that term is defined in [s]ection 42(h)(6)(B) of the IRC; or
(II) A comparable restrictive covenant as a result of a federal or District program with occupancy, rent, and income requirements at least as restrictive as under section 42 of the IRC;
(iii) Before and after the transfer, the owner of the housing accommodation is controlled, directly or indirectly, by the same person or entity; and
(iv) Immediately following the transfer, the housing accommodation is for a term of not less than 10 years and subject to an existing or new extended low-income housing commitment or a comparable restrictive covenant as a result of a federal or District program with occupancy, rent, and income requirements at least as restrictive as under section 42 of the IRC.
(P) 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 allow for the exit of one or more limited partners or investor members who have made capital contributions and received tax benefits pursuant to section 42 of the IRC or a comparable federal or District program with occupancy, rent and income requirements at least as restrictive as under section 42 of the IRC.
(Q) A transfer of interest in an entity that owns a housing accommodation or a transfer of title to a housing accommodation, the sole purpose of which is to qualify for and enter into a new credit period, as defined in section 42 of the IRC, for purposes of the rehabilitation of the housing accommodation; provided that, before and after the transfer, the owner of the housing accommodation is controlled, directly or indirectly, by the same person or entity;
(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, an 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:
(i) A statement of the rights of the tenant or the tenant organization under this chapter;
(ii) An accurate description of the transfer containing all material facts, including whether the transfer will result in any changes in management, current rents, or any applicable affordability requirements for the housing accommodation;
(iii) The date of the proposed transfer; and
(iv) 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 bylaws, 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 chapter 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”.
§ 42–3404.02a. Registration of a tenant organization.
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.
§ 42–3404.03. Offer of sale.
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.
§ 42–3404.04. Third party rights.
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.
§ 42–3404.05. Contract negotiation.
(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
(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(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.
§ 42–3404.06. Exercise or assignment of rights.
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.
§ 42–3404.07. Waiver of rights.
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.
§ 42–3404.08. Right of first refusal.
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).
§ 42–3404.09. Single-family accommodations.
(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:
(I) Owner;
(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:
(A) First-class mail;
(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:
(i) Owner;
(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.
(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.
§ 42–3404.10. Accommodations with 2 through 4 units.
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.
§ 42–3404.11. Accommodations with 5 or more units.
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.
§ 42–3404.12. Exceptions to coverage of subchapter; expiration provisions.
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.
§ 42–3404.13. Notice to convert; offer to sell.
(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.
§ 42–3404.14. TOPA Application Assistance Pilot Program.
(a) For Fiscal Year 2017, there is established a TOPA Application Assistance Pilot Program ("Program") to help tenant organizations prepare their applications to the First Right Purchase Assistance Program described at Chapter 27 of Title 14 of the District of Columbia Municipal Regulations (14 DCMR § 2700 et seq.). The Program shall complement the First Right Purchase Assistance Program, and shall include funding for pre-application legal and technical assistance, including assistance with environmental studies.
(b) A tenant organization in a building of 5 or more units shall be eligible for the Program if the tenant organization meets the eligibility requirements of 14 DCMR § 2701 for tenant associations. A property shall be eligible for the Program if the property meets the eligibility requirements of 14 DCMR § 2703.
(c) The Mayor shall ensure that the agency administering the Program:
(1) Approves or denies an application for the Program within 15 days of receiving the completed application from a tenant organization;
(2) Issues an award letter or denies an application for the First Right Purchase Assistance Program within 30 days of receiving the completed application from a tenant organization;
(3) Reimburses an invoice received from a tenant organization for Program expenditures or First Right Purchase Assistance Program expenditures within 30 days of receipt; and
(4) Expeditiously administers the Program and the First Right Purchase Assistance Program in a manner that allows tenant organizations to meet all deadlines required by this subchapter.
(d) The maximum amount of pre-application legal and technical assistance that may be awarded to a tenant organization per TOPA offer is as follows:
(1) Up to $25,000 for a tenant organization in a building with 5 to 50 units; and
(2) Up to $45,000 for a tenant organization in a building with greater than 50 units.
(e) Funds shall not be used to pay for any costs of litigation.
(f) If a tenant organization, or the entity to which a tenant organization assigns its rights under this subchapter, successfully purchases a property, the full amount of any assistance provided pursuant to this section shall be repaid to the Program within 30 days of the purchase of the property.
(g) By November 1, 2016, the Mayor, pursuant to subchapter I of Chapter 5 of Title 2, shall issue rules to implement the provisions of this section. The rules shall mandate processes for the application for, and distribution of, funds in a timely manner so as to facilitate successful compliance with the required timelines and purposes of this section.
Subchapter IV-A. District’s Opportunity to Purchase.
§ 42–3404.31. District’s opportunity to purchase certain housing accommodations.
(a) Before an owner of a housing accommodation may sell a housing accommodation comprised of 5 or more units, the owner shall provide to the Mayor, on behalf of the District, and the Mayor shall have, an opportunity to purchase the housing accommodation in the same manner, except as otherwise provided by this subchapter, as the opportunity to purchase is provided to a tenant under subchapter IV of this chapter.
(b) The Mayor may assign the opportunity to purchase pursuant to § 42-3404.36.
(c) The Mayor shall have the same remedies and rights to enforce owner compliance with this chapter as a tenant or tenant organization would have against an owner for violation of this chapter.
§ 42–3404.32. Limitations on the District’s opportunity to purchase.
(a) The District’s opportunity to purchase shall be subordinate to the right of a tenant.
(b) To exercise its right under this subchapter, the Mayor shall provide a written statement of interest to the owner and tenant within 30 days of the Mayor’s receipt of the copy of offer of sale required by § 42-3404.03.
(c) Repealed.
§ 42–3404.33. Limitations on the District as purchaser of a housing accommodation.
(a) If the District, or an assignee, purchases a housing accommodation pursuant to this subchapter, the District shall remain subject to all provisions of this chapter as owner of the housing accommodation.
(b)(1) After purchasing a housing accommodation, the Mayor, or an assignee of the Mayor, shall maintain affordable rents for a tenant who lived in a rental unit in the housing accommodation on the date the offer of sale was provided to the Mayor, as follows:
(A) For the first 12 months, the monthly rent, including utilities, shall not be greater than the monthly rent, including utilities, on the date the offer of sale was provided to the Mayor; and
(B) After the first 12 months, the monthly rent shall be subject to allowable percentage increases annually, limited to the lesser of:
(i) The allowable annual increase in monthly rent for a rental unit pursuant to § 42-3502.08(h) or,
(ii) For any unit covered by a local or federal rental affordability program, the allowable increase under that program.
(2) For the purposes of this subsection, household income shall be calculated pursuant to 24 C.F.R. § 5.609.
(3) Tenants shall be notified in writing as to the manner in which the Mayor, or an assignee of the Mayor, calculates household income and rent.
(4) The Rent Administrator shall consider a challenge to a rent amount or income calculation upon a petition filed by a tenant. The petition shall be heard and determined according to the procedures in the Rent Stabilization Program established pursuant to subchapter II of Chapter 35 of this title [§ 42-3502.01 et seq.].
(5) Notwithstanding the rent amounts established pursuant to this section, nor any other law, no tenant in an affordable unit shall be required to pay a rent increase of more than 10% per year.
(6) Income restrictions may be imposed upon the housing accommodation by the Mayor, or an assignee of the Mayor; provided, that an existing tenant shall be exempt from any income restrictions.
(c)(1) Upon the initial sale of the housing accommodation to the Mayor or the Mayor's assignee, the Mayor shall record a covenant that shall require the Mayor or the Mayor's assignee, and every successor in interest, to maintain as rent-and-income-restricted, for as long as the property remains a housing accommodation, each rental unit in the housing accommodation for which the most recent monthly rent, including utilities, on the date the offer of sale was provided to the Mayor, was equal to or less than the maximum rent for a household with an income of 60% of the median family income, and any additional units as designated by the affordability plan required by subsection (d) of this section.
(2) For any rental unit that is vacant on the date the offer of sale was provided to the Mayor, or subsequently becomes vacant before the parties execute the affordability covenant:
(A) If the most recent monthly rent was equal to or less than the maximum rent for a household with an income of 60% of the median family income, that unit shall become a rent-and-income-restricted unit restricted to tenants with annual household incomes equal to or less than 60% of the median family income; or
(B) If the most recent monthly rent was equal to or less than the maximum rent for a household with an income of 30% of the median family income, that unit shall become a rent-and-income-restricted unit restricted to tenants with annual household incomes equal to or less than 30% of the median family income.
(C) For the remaining units, including units for which there is no record of the most recent monthly rent, the Mayor, an assignee of the Mayor, or any successor in interest, shall set the rents in accordance with the affordability plan required by subsection (d) of this section.
(D) The Mayor may waive in writing subparagraphs (A) or (B) of this paragraph for all or a portion of the rental units in a specific property that are vacant on the date the offer of sale was provided to the Mayor, or subsequently become vacant before the parties execute the affordability covenant, in order to increase financial feasibility of the purchase and operation of the project, in which case rents shall be set in accordance with the affordability plan required by subsection (d) of this section.
(d)(1) The Mayor, or an assignee of the Mayor, shall develop an affordability plan detailing a strategy to meet the requirements of subsection (c)(2) of this section, and as practicable, increase the number of rent-and-income-restricted units in the purchased housing accommodation restricted to tenants with annual household incomes equal to or less than 60% of the median family income.
(2) The affordability plan may allow for rent-and-income restricted units to be restricted to tenants with annual household incomes above 60% of the median family income; provided, that the average designated household annual income limit of all rent-and-income restricted rental units in the housing accommodation is equal to or less than 60% of the median family income as a result of the affordability plan.
(3) In accordance with subsection (c)(1) of this section, the affordability plan may not reduce the number of units affordable at 30% or 60% of median family income below the number of such units existing in the housing accommodation on the date the offer of sale was provided to the Mayor.
(e) For the purposes of this section, the term:
(1) "Maximum rent" means the highest amount chargeable for a particular rental unit such that a household of the rental unit's imputed household size that earns the applicable MFI level will expend no more than 30% of its annual income on monthly rent and utilities, as set forth in a Rent and Income Schedule published by the Mayor. For purposes of this paragraph, the imputed household size applicable to a unit will be determined in accordance with the regulations governing the Housing Production Trust Fund program.
(2) "Median family income" or "MFI" means the median family income for the Washington Metropolitan Statistical Area as set forth by the United States Department of Housing and Urban Development, adjusted for household size, without regard to any adjustments made by the United States Department of Housing and Urban Development for the purposes of the programs it administers. Adjustments of median family income for household size shall be made as prescribed for the area median income in § 42-2801(1).
(3) "Most recent monthly rent" means the rent, including utilities, that was the most recent prior to the date the offer of sale was provided to the Mayor.
(4) "Rent-and-income-restricted unit" means a unit that is restricted to tenants with a designated household annual income limit and with rents restricted to the maximum rent.
§ 42–3404.34. Procedure for District to effectuate purchase.
(a) The Mayor shall have not less than 150 days from the date of the owner’s receipt of the Mayor’s written statement of interest, issued pursuant to § 42-3404.32(b), to negotiate a contract for sale.
(b) For every day of delay in providing information by the owner as required by this chapter, the negotiation period shall be extended by one day.
(c) If a tenant organization is formed and delivers an application for registration to the Mayor pursuant to § 42-3404.11, the Mayor shall have 15 days, in addition to the time provided for in subsection (a) of this section, to negotiate a contract of sale.
(d) The Mayor shall have up to 60 days after the date of execution of a contract of sale to complete settlement.
(e) If the owner provides any extension of time to a tenant under this chapter, the Mayor shall automatically receive the same extension of time. The owner shall provide written notification to the Mayor of any extensions of time provided to the tenant.
§ 42–3404.35. Rights of tenants not abrogated.
No provision of this subchapter shall abrogate the rights of tenants or tenant organizations under this chapter.
§ 42–3404.36. Assignment of District rights.
The Mayor may assign the opportunity to purchase provided under this subchapter to a person that:
(1) Demonstrates the capacity to own and manage, either by itself or through a management agent, the housing accommodation and related facilities for the remaining useful life of the housing accommodation; and
(2) Agrees to obligate itself and any successors in interest to maintain the affordability of the assisted housing development as required by § 42-3404.33.
§ 42–3404.37. Rules.
Within 60 days of December 24, 2008, the Mayor, pursuant to subchapter I of Chapter 5 of Title 2, shall issue rules to implement the provisions of this subchapter.
Subchapter V. Implementation and Enforcement.
§ 42–3405.01. Rule making; publication requirements.
(a) The Mayor shall issue rules for the implementation of this chapter. The Mayor shall issue rules for the holding of elections which shall include, but not be limited to, provisions for secret voting, and the right of any person including the owner to observe the counting of the ballots.
(b) By November 9, 1980, the Mayor shall publish in the D.C. Register a summary of tenant rights and obligations pursuant to this chapter, and sources of technical assistance, which shall include, but shall not be limited to, information regarding counseling, subsidy programs, relocation services, housing purchase and rehabilitation finance, tax relief programs, formation of tenant organizations, purchase of housing accommodations, rehabilitation, and conversion to cooperative or condominium.
(c) By March 5, 1996, the Mayor shall issue updated rules for comment, which shall reflect all changes made by the Rental Housing Conversion and Sale Act of 1980 Reenactment Extension and Amendment Act of 1995. Within 180 days after publication of the proposed rules, the Mayor shall adopt final rules. The failure to meet these deadlines shall not prevent the changes in the Rental Housing Conversion and Sale Act of 1980 Reenactment Extension and Amendment Act of 1995 from being effective immediately upon September 6, 1995.
§ 42–3405.02. Time periods.
If a time period running under this chapter ends on a Saturday, Sunday, or legal holiday, it is extended until the next day which is not a Saturday, Sunday, or legal holiday.
§ 42–3405.03. Civil cause of action.
An aggrieved owner, tenant, or tenant organization may seek enforcement of any right or provision under this chapter through a civil action in law or equity, and, upon prevailing, may seek an award of costs and reasonable attorney fees. In an equitable action, the public policy of this chapter favors the waiver of bond requirements to the extent permissible under law or court rule.
§ 42–3405.03a. Declaratory relief.
(a) An aggrieved owner, tenant, or tenant organization may petition the Mayor for declaratory relief under provisions of this chapter. Upon a showing of reasonable grounds, the Mayor shall grant a hearing and may issue findings of fact, conclusions of law, and declaratory orders and take other enforcement actions provided by this subchapter.
(b) The Mayor shall consider a petition for relief and issue a declaratory order with regard to the petition within 30 days after receipt of the petition requesting relief. The Mayor shall promulgate regulations to afford all interested parties an opportunity to participate in any declaratory proceeding.
(c) A declaratory order issued pursuant to § 42-3405.03 or § 42-3405.03a shall be the sole means by which the Mayor shall issue an official, binding determination pursuant to the request of an aggrieved owner, tenant, or tenant organization to determine rights under subchapters IV and V of this chapter. Reliance upon any other form of determination shall not be afforded any weight.
(d) Notwithstanding the preceding subsection, the following, when taken together, shall constitute conclusive proof of the termination of a tenant’s or a tenant organization’s rights pursuant to subchapters IV and V of this chapter:
(1) Certifications provided by the Mayor setting forth the date of receipt of the Notice of Transfer and indicating that no Time Certain Notices from a tenant or tenant organization were received within the prescribed periods;
(2) An affidavit from the owner or the owner’s authorized representative attesting to the date, content, and manner of issuance of the Notice of Transfer; and
(3) An affidavit from owner or owner’s authorized representative in compliance with the Servicemembers Civil Relief Act, approved October 17, 1940 (54 Stat. 1178; 50 U.S.C. App. § 501 et seq.), as to any tenant whose rights are affected by this chapter.
§ 42–3405.03b. Choice of forum; standard of review.
(a) The rights provided under §§ 42-3405.03 and 42-3405.03a are in the alternative. The party bringing the action may choose the forum and need not exhaust administrative remedies in order to bring an action under § 42-3405.03. Unless all parties to the action agree otherwise, once an action has been brought in one forum, an action based on the same or a substantially similar cause of action may not be brought in any other forum.
(b) The applicability of this chapter, and rights created hereunder, shall be determined by examining the substance of the transaction or series of transactions. A step transaction or other device entered into or employed for the purpose of avoiding the obligation to comply with the requirements of this chapter shall be construed in accordance with the substance of the transaction.
§ 42–3405.04. Notice of rejection.
If the Mayor determines to reject an application by a party pursuant to this chapter, he or she shall notify the applicant of the findings upon which the rejection is based, and that the rejection will be deemed final in 20 days. During the 20-day period, the applicant may petition for reconsideration, and, upon a proper showing of reasonable grounds, shall be entitled to a hearing to contest the particulars specified in the Mayor’s rejection notice. Such notice of rejection shall not take effect during the pendency of a hearing, if requested.
§ 42–3405.05. Investigations.
(a) The Mayor may make necessary public or private investigations in accordance with law within or without of the District of Columbia to determine compliance with the requirements of this chapter or to determine whether any person has violated or is about to violate this chapter or any rule or order hereunder, or to aid in the enforcement of this chapter or in the prescribing of rules and forms hereunder.
(b) For the purpose of any investigation under this chapter, the Mayor or any officer designated by rule may administer oaths or affirmations, subpoena witnesses and compel their attendance, take evidence, and require the production of any matter which is relevant to the investigation, including the existence, description, nature, custody, condition, and location of any books, documents or other tangible things and the identity and location of persons having knowledge or relevant facts or any other matter reasonably calculated to lead to the discovery of material evidence.
(c) Upon failure to obey a subpoena or to answer questions propounded by the investigating officer and upon reasonable notice to all persons affected thereby, the Mayor may apply to the Superior Court of the District of Columbia for an order compelling compliance.
§ 42–3405.06. Enforcement.
(a) The Mayor shall have the power to enforce this chapter and rules and regulations made hereunder. If the Mayor determines after notice and hearing that a person has: (1) violated any provision of this chapter; (2) violated any condition imposed in writing in connection with the granting of any application or other request under this chapter; or (3) violated any lawful order or rule of the agency; the Mayor may issue an order requiring the person to cease and desist from the unlawful practice and to take such affirmative action as in his or her judgment will carry out the purposes of this chapter.
(b) If the Mayor makes a finding of fact in writing that the public interest will be irreparably harmed by delay in issuing an order, the Mayor may issue a temporary cease and desist order. Prior to issuing the temporary cease and desist order, the Mayor shall give notice of the proposal to issue a temporary cease and desist order which shall include in its terms a provision that upon request a hearing will be held promptly to determine whether or not such order becomes permanent.
(c) If it appears that a person has engaged or is about to engage in an act or practice constituting a violation of a provision of this chapter, or a rule, regulation, or order hereunder, the Mayor with or without prior administrative proceedings may bring an action in the Superior Court of the District of Columbia to enjoin the acts or practices and to enforce compliance with this chapter or any rule, regulation, or order hereunder. Upon proper showing, injunctive relief or temporary restraining orders shall be granted. The Mayor is not required to post a bond in any court proceedings or prove that any other adequate remedy at law exists.
(d) The Mayor may intervene in any civil action involving the enforcement of any right or provision under this chapter. The Mayor may require an owner, tenant, or tenant organization to notify the Mayor of any suit instituted pursuant to § 42-3405.03.
(e) Civil fines, penalties, and fees may be imposed as alternative sanctions for any infraction of the provisions of this chapter, or any rules or regulations issued under the authority of this chapter, pursuant to Chapter 18 of Title 2. Adjudication of any infraction of this chapter shall be pursuant to Chapter 18 of Title 2.
§ 42–3405.07. Revocation.
(a) A certificate issued pursuant to § 42-3402.02(a), an exemption issued pursuant to § 42-3402.02(b) or § 42-3402.10, or registration required pursuant to § 42-3404.11 may be revoked after notice and hearing upon a written finding of fact that the holder of the certificate, the holder of the exemption, or the registrant has:
(1) Failed to comply with the terms of a cease and desist order;
(2) Failed faithfully to perform any stipulation or agreement made with the Mayor as an inducement to grant any certificate, exemption, or registration; or
(3) Made intentional misrepresentations or concealed material facts in an application for a certificate, exemption, or registration.
(b) If the Mayor finds after notice and hearing that the holder of a certificate, the holder of an exemption, or the registrant has been guilty of a violation for which revocation could be ordered, the Mayor may issue a cease and desist order; or, upon adjudication for any infraction thereof, impose civil fines, penalties, and fees as alternative sanctions, pursuant to Chapter 18 of Title 2. Adjudication of any infraction shall be pursuant to Chapter 18 of Title 2.
§ 42–3405.08. Administrative proceedings.
(a) Any proceeding provided in § 42-3405.04, § 42-3405.06, or § 42-3405.07 shall be conducted according to §§ 2-509 and 2-510 and any officer designated to conduct such a proceeding shall not immediately supervise or be subject to supervision by any employee who participates or has participated in the investigation or prosecution of such case.
(b) After any hearing pursuant to this section, and within 10 days after the parties have been notified of the initial decision of the officer who conducted the hearing, if no appeal is taken or no determination is made to review the decision, the Mayor shall adopt and render the initial decision as the final decision and shall issue and cause to be served upon each party to the proceeding an order or orders consistent with the provisions of § 42-3405.04, § 42-3405.06, or § 42-3405.07, as appropriate.
(c) In the course of, or in connection with any such proceeding, the Mayor or any officer designated by rule may administer oaths or affirmations, take or cause depositions to be taken, subpoena witnesses and compel their attendance, take evidence, and require the production of any matter which is relevant to the proceeding, including the existence, description, nature, custody, condition, and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of relevant facts or any other matter reasonably calculated to lead to the discovery of material evidence.
(d) Upon failure to obey a subpoena or to answer questions propounded by the presiding officer and upon reasonable notice to all persons affected thereby, the Mayor may apply to the Superior Court of the District of Columbia for an order compelling compliance.
(e) Any service required or authorized to be made under this section may be made by registered mail or in such other manner reasonably calculated to give actual notice as the Mayor may by regulation or otherwise require.
§ 42–3405.09. Judicial review.
(a) After the issuance of a final decision and order pursuant to this chapter, and within 15 days after the Mayor has notified the parties of the final decision and order, any party to such proceeding may seek judicial review of such decision and order by filing a petition for review in the District of Columbia Court of Appeals.
(b) Proceedings for judicial review of Mayoral actions shall be subject to and be in accordance with § 2-510.
§ 42–3405.10. Penalties.
Any person who wilfully violates any provision of this chapter or any rule adopted under or order issued pursuant to this chapter or any person who wilfully in an application makes any false statement of a material fact or omits to state a material fact shall be fined not less than $1,000 or double the amount of gain from the transaction, whichever is larger, but not more than $50,000; or such person may be imprisoned for no more than 6 months; or both, for each offense. Prosecution for violations of this chapter shall be brought in the name of the District of Columbia by the Office of the Corporation Counsel.
§ 42–3405.10a. Rental Housing Conversion and Sale Act Task Force.
(a) The Mayor shall establish a Rental Housing Conversion and Sale Act Task Force (“Task Force”) within 30 days after July 22, 2005.
(b) The general mandate of the Task Force shall be to examine all aspects of subchapters IV and V of this chapter, including its implementation and compliance with its requirements, and to determine the best means for preserving rental housing, preventing the deterioration of the housing stock, and preventing the displacement of tenants.
(c) The Mayor shall establish the methodology for achieving the purposes of the Task Force in consultation with the members. The Task Force shall issue a report and recommendations proposing policy initiatives and revisions to the statute designed to improve subchapters IV and V of this chapter, which shall be distributed to all members of the Council and the Mayor and made available to the general public within 30 days after its issuance.
(d) As part of its review, the Task Force shall consider:
(1) Whether the District is doing enough to help tenants avail themselves of the opportunity to purchase when an offer is presented, within the prescribed time periods;
(2) Whether the time periods for tenants to avail themselves of the offer of sale are too long or not long enough;
(3) Simplifying the procedures for Time Certain Notices by establishing a single notice procedure for all transactions that do not require a notice to tenants, shortening time periods for sending or filing notices, and eliminating the Notice of Intent to File Petition;
(4) Allowing any tenant in a multi-unit housing accommodation to file a petition for a declaratory order without forming a tenant organization or extending the time period for a tenant organization to form and register;
(5) Limiting this chapter to multi-unit housing accommodations;
(6) Whether the third party rights afforded tenants are being employed to further the purposes of this chapter; and
(7) Whether owners are evading the requirements of this chapter.
(e) The Task Force shall be composed of 7 members, 5 of whom shall be appointed by the Mayor and 2 of whom shall be appointed by the Chairman of the Council. Members of the Task Force shall represent the interests affected by this chapter, including tenants, owners, the District government, title insurers, and other industry representatives.
(f) The Task Force shall continue in existence for 6 months and shall issue its report and recommendations before disbanding.
§ 42–3405.11. Statutory construction.
The purposes of this chapter favor resolution of ambiguity by the hearing officer or a court toward the end of strengthening the legal rights of tenants or tenant organizations to the maximum extent permissible under law. If this chapter conflicts with another provision of law of general applicability, the provisions of this chapter control.
§ 42–3405.12. Declaration of continuing housing crisis.
(a) Within 1 month of the first annual anniversary date of the effective date of this chapter, and during the same period of each successive year, the Mayor shall determine and then declare whether there is a continuing housing crisis in the District. If the Mayor determines that at least 1 of the factors listed in subsection (b) of this section continue to exist, the Mayor shall declare that there is a continuing housing crisis. If the Mayor determines that none of the factors listed in subsection (b) of this section continue to exist, the Mayor shall declare there is no longer a housing crisis. The Mayor’s declaration shall include the reasons for such determination.
(b) The factors which the Mayor shall consider in determining whether there is a continuing housing crisis in the District include, but are not limited to, the following:
(1) That the percentage of all rental housing units in the District which are vacant, habitable, and available for occupancy is less than 5%;
(2) That the number of new rental units made available for occupancy with the District of Columbia in the previous year is less than the number of units demolished, discontinued in use or converted to condominiums, cooperatives or nonhousing use;
(3) That the number of new or substantially rehabilitated units subsidized under federal or local publicly funded programs and made available for occupancy within the District of Columbia in the past year was less than 10,000 units; and
(4) The Mayor shall consider any other significant factors which relate to the supply of housing available for low-income District of Columbia citizens.
(c) If the Mayor declares that there is no longer a housing crisis within the District of Columbia, the Mayor shall submit a proposed resolution containing the declaration to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed resolution, in whole or in part, within the 45-day review period, the proposed resolution shall be deemed approved. Upon the effective date of Council approval of the Mayor’s proposed resolution declaring that there is no longer a housing crisis in the District of Columbia, or upon a date specified in the resolution, whichever is later, the provisions of this chapter shall no longer be in effect.
§ 42–3405.13. Severability.
If any provision of this chapter, or any section, clause, phrase, or word or the application thereof, in any circumstances is held invalid, the validity of the remainder of the chapter and of the application of any other provision, section, sentence, clause, phrase, or word shall not be affected.
