§ 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.

(Sept. 10, 1980, D.C. Law 3-86, § 410, 27 DCR 2975; Nov. 5, 1983, D.C. Law 5-38, § 2(k), 30 DCR 4866; Sept. 29, 1988, D.C. Law 7-154, § 2(h), 35 DCR 5715; Sept. 6, 1995, D.C. Law 11-31, § 3(n), 42 DCR 3239; Oct. 21, 2008, D.C. Law 17-234, § 2(c), 55 DCR 9014; July 23, 2010, D.C. Law 18-193,§ 2(b), 57 DCR 4510; July 3, 2018, D.C. Law 22-120, § 2(e), 65 DCR 5077.)

Prior Codifications

1981 Ed., § 45-1639.

Section References

This section is referenced in § 42-3404.05, § 42-3404.08, and § 42-3404.12.

Effect of Amendments

D.C. Law 17-234, in par. (1), rewrote the second sentence, which had read as follows: “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, a group of tenants acting jointly shall have 15 days to provide the owner and the Mayor with a written statement of interest.”

D.C. Law 18-193, in par. (1), substituted “and the Mayor, by hand or by sending by certified mail,” for “and the Mayor”.

Emergency Legislation

For temporary (90 days) tolling of time periods under this section and § 42-3404.11, see D.C. Act 24-320.

For temporary amendment of section, see § 3(n) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1994 (D.C. Act 10-285, July 8, 1994, 41 DCR 4904).

For temporary amendment of section, see § 3(n) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Emergency Act of 1995 (D.C. Act 11-47, May 4, 1995, 42 DCR 2410) and § 3(n) of the Rental Housing Conversion and Sale Act of 1980 Reenactment and Amendment Congressional Recess Emergency Act of 1995 (D.C. Act 11-96, July 19, 1995, 42 DCR 3837).

For temporary (90 day) amendment of section, see § 2(b) of Tenant Opportunity to Purchase Preservation Clarification Emergency Amendment Act of 2009 (D.C. Act 18-38, March 21, 2009, 56 DCR 2668).

For temporary (90 day) amendment of section, see § 2(b) of Tenant Opportunity to Purchase Preservation Clarification Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-109, June 18, 2009, 56 DCR 4934).

For temporary (90 day) amendment of section, see § 2(b) of Tenant Opportunity to Purchase Preservation Clarification Emergency Amendment Act of 2010 (D.C. Act 18-327, March 18, 2010, 57 DCR 2544).

Temporary Legislation

For temporary (225 day) amendment of section, see § 3(n) of Rental Housing Conversion and Sale Act of 1980 Temporary Extension Amendment Act of 1994 (D.C. Law 10-176, September 22, 1994, law notification 41 DCR 6076).

For temporary (225 day) amendment of section, see § 2(b) of Tenant Opportunity to Purchase Preservation Clarification Temporary Amendment Act of 2009 (D.C. Law 18-23, July 7, 2009, law notification 56 DCR 6125).

For temporary (225 day) amendment of section, see § 2(b) of Tenant Opportunity to Purchase Preservation Clarification Temporary Amendment Act of 2010 (D.C. Law 18-177, May 27, 2010, law notification 57 DCR 6039).

Editor's Notes

Reenactment of Law 3-86: See Historical and Statutory Notes following § 42-3401.01.

Amendment of section by Law 10-144: Section 2(n) of D.C. Law 10-144 purported to amend (1) and (2) of this section to read as follows:

“The following provisions apply to accommodations with 2 through 4 units:

“(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, a group of tenants acting jointly shall have 15 days to provide the owner and the Mayor 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. 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 1 tenant pursuant to this section, the owner may decide which contract is more favorable without liability to the other tenants.”