§ 53A-5. Sales not requiring right of first refusal.  

Latest version.
  •    (a)    Agreement not to convert.

    (1)   An owner may sell rental housing without providing any right of first refusal under Section 53A-4 if the Department approves a written agreement that:

    (A)   prohibits the buyer from converting the rental housing for at least 5 years after the sale;

    (B)   the Department received from the prospective buyer at least 30 days before the sale; and

    (C)   except as provided in paragraph (2)(B), requires the buyer to follow the voluntary rent increase guidelines published annually under Section 29-53 during:

    (i)   the first 3 years of the agreement, for all tenants who resided in the rental housing when the Department approved the agreement; and

    (ii)   the last 2 years, for each of these tenants who qualifies as a low- or moderate-income tenant under Department regulations.

    (2)   The Department may:

    (A)   approve or reject an agreement with the buyer under this subsection only after considering the:

    (i)   physical condition of the rental housing, including any rehabilitation necessary to correct dangerous defects;

    (ii)   tenants' ability to afford rent increases; and

    (iii)   need to preserve low- and moderate-income rental housing in the County;

    (B)   allow the buyer to increase rents above the limits in paragraph (1)(C) only when the Department decides that a greater increase is justified by:

    (i)   unforeseen circumstances beyond the buyer’s control; or

                (ii)    rehabilitation or renovation to the rental housing.

    (3)   The Department annually must verify the buyer’s compliance with the rent increase limits required by this subsection.

       (b)   Other exceptions.  An owner also does not have to provide a right of first refusal for a sale:

    (1)   under the terms of a bona fide mortgage or deed of trust;

    (2)   to a mortgagee in lieu of foreclosure;

    (3)   under a court order;

    (4)   from one co-tenant to another co-tenant by operation of law;

    (5)   under a will or intestate distribution;

    (6)   to the State or a local government; or

          (7)   of a minority title interest.  (1990 L.M.C., ch. 34, § 1; 1996 L.M.C., ch. 13, § 1; 2001 L.M.C., ch. 32 , § 1; 2007 L.M.C., ch. 6, § 1; 2007 L.M.C., ch. 11, § 1.)

       Editor’s note—Former § 53A-3, was amended and divided into two new sections, numbered §§ 53A-4 and 53A-5, pursuant to 2001 L.M.C., ch. 32, §1.  Former § 53A-5, which was derived from 1990 L.M.C., ch. 34, § 1, was repealed pursuant to 2001 L.M.C., ch. 32, § 1.