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.