A TALE OF UNINTENDED CONSEQUENCES

In 1980, the District of Columbia passed the Rental Housing Conversion and Sale Act, often referred to as TOPA. The stated intent wasto provide renters with the opportunity to buy their property if the owner intended to remove the property from the rental housing stock due to demolition, change in use, or conversion to condominiums.

Unfortunately, there is many a slip between and betwixt well-meaning legislation and the consequences of that legislation.

What do you mean, I must offer my tenant the opportunity to buy my home?!

Is the answer yes, is it no, or is it maybe? I imagine you want me to keep this simple – if only I could!

The TOPA statute provides that before you may discontinue the use of a property for rental purposes, convert a property to a condominium, or sell a property containing rental units, you must offer the tenant(s) the right to buy the property. As with any law the devil is in the details.

To whom do you have to give notice? Answer: Everyone who can legitimately claim a right to live in the rental unit: "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. § 42-3401.03(17)

What about the type of structure that is being rented? Does it apply to a room that is rented in someone’s home? Answer, yes as the Code defines Rental Unit or Unit as . . . 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. § 42-3401.03(16)

To answer this question, on which statute should I rely?

1. Tenant Opportunity to Purchase Emergency Amendment Act of 2014 – No, this one was retroactive to January 1, 2014 but expired in February 2015
2. Tenant Opportunity to Purchase Temporary Amendment Act of 2014 – Yes, this act is still in effect. (It will be repealed once the TOPA Bona Fide Offer of Sale Clarification Temporary Amendment Act of 2015 becomes law. See #4 below)
3. TOPA Bona Fide Offer of Sale Clarification Emergency Amendment Act of 2015 –No, this act is retroactive to January 1, 2014 or to October 7, 2014 as to different parts, expires September 23, 2015, but does not repeal #2 above.
4. TOPA Bona Fide Offer of Sale Clarification Temporary Amendment Act of 2015 – No, this act has not yet become law but will be retroactive to January 1, 2014 or October 7, 2014 as to parts when it takes effect. Expires 225 days after it becomes law. NOTE: The Mayor must sign this Bill and submit it to the US Congress. It will go into law once Congress has been in session for 30 days provided Congress takes no action.
5. TOPA Bona Fide Offer of Sale Clarification Amendment Act of 2015 – No, the DC Council has not yet adopted this Bill.

I posed this question because on its face it is a simple question but the answer becomes incredibly complex. First American, through the District of Columbia Land Title Association, is attempting to exempt single family homes from TOPA but has not yet been successful.

NEXT TOPIC - Just how much money can I make through the exercise of my TOPA rights?

Although a tenant may not waive his right to receive an Offer to buy the property, after having received that Offer, the tenant or tenant association (5 or more units) may sell its TOPA rights to a third party. The result has been the development of a new and lucrative industry in DC, in which tenants, lawyers, and developers have a stake in the outcome of TOPA negotiations.