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GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
Summary of Act 22-339
The TOPA Single-Family Home Exemption
Amendment Act of 2018
Effective July 3, 2018
HIGHLIGHTS OF THE NEW LAW
- Exempts single family dwellings from the Tenant Opportunity to Purchase Act of 1980 (TOPA) unless occupied by elderly or disabled tenants.
- Also exempts single family dwellings with an Accessory Dwelling Unit and a single rental unit in a condo, co-op or homeowners’ association.
- An owner of such an exempted unit must give tenants notice within three calendar days of soliciting or receiving an offer of sale. Elderly and disabled tenants who signed a lease to occupy such an exempted unit by March 31, 2018 and took occupancy by April 15, 2018 will have a limited opportunity to purchase or assign their rights.
- DHCD’s Rental Conversion and Sale Division (CASD) will determine an elderly or disabled tenant’s status. Elderly or disabled tenants must provide documentation verifying their status.
- CASD must provide a status letter to the owner, tenant, realtor, or settlement agent upon request.
- CASD must provide written confirmation of receipt (or non-receipt) of any document required to be delivered to CASD upon request.
- The Act also prohibits the eviction of any tenant except in accordance with eviction provisions under the Rental Housing Act of 1985 (D.C. Official Code 2001 ed., as amended, §42-3501.01 et seq.)
BACKGROUND
TOPA provides that before an owner may sell, demolish, or discontinue housing use of a rental accommodation, the owner must give tenants an opportunity to purchase and a right of first refusal to match a third party contract. Tenants have the power to assign their opportunity to purchase to any party for any consideration a tenant deems acceptable in her sole discretion
About the New Law
On April 10, 2018, the District of Columbia City Council passed the TOPA Single-Family Home Exemption Amendment Act of 2017 (Bill 22-0315 transmitted to Mayor April 24, 2018), which was signed by the Mayor on May 7, 2018 as The TOPA Single-Family Home Exemption Amendment Act of 2018 and became effective July 3, 2018. The Act exempts all single-family dwellings from the requirements of TOPA (D.C. Official Code 2001 ed., as amended, § 42- 3404.01 et seq.). The Act carves out an exception for rental units occupied by elderly or disabled tenants, who if they fulfill certain criteria may be entitled to a limited opportunity to purchase.
The Rental Conversion and Sale Division (CASD) administers several laws related to the conversion of property to cooperatives or condominiums, including:
- The Rental Housing Conversion and Sale Act of 1980, as amended (D.C. Law 3-86) (the Conversion Act).
The Tenant Opportunity to Purchase Act (TOPA) is included under the Conversion Act, and regulates the conversion of use, sale, and transfer of rental housing in District of Columbia. Tenants can:
- Have the opportunity to invoke their rights to purchase
- Have first rights of refusal
- Receive offer of sale notices
- Receive notices of the transfer and the conversion of property to cooperatives or condominiums
- The Condominium Act of 1976 Technical and Clarifying Amendment Act, as amended (D.C. Law 9-82) (the Condominium Act). This act regulates condominium formation and registration of condominium units before a developer may offer units to interested buyers, including administration of the Structure Defect Warranty Claim Program.
- The District Opportunity to Purchase Act (DOPA). This act empowers the Mayor with the right to purchase buildings with five or more rental units of which 25 percent are deemed as “affordable.”
The Housing Assistance Payment Program (HAP) is also available to tenants, under which persons may be eligible for financial assistance if they are displaced because their apartment building is converted to a condominium or cooperative.
Procedures for Tenants and Landlords
Certain procedures must be followed and documents filed by:
- Landlords when they seek to sell an apartment building or convert it to a cooperative or condominium.
- Tenants when they want to invoke their TOPA rights.
Note: On July 3, 2018 a new law became effective that exempts single family dwellings from TOPA, unless occupied by certain elderly or disabled tenants. See our summary for more information.
DHCD Presentations About TOPA
If you are interested in DHCD staff making a presentation about TOPA to your group of landlords, tenants, tenant associations, realtors, or title professionals, please contact (202) 442-4407.
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