Understanding Topa Rights In Dc Rooming Houses

The Tenant Opportunity to Purchase Act (TOPA) is a law in Washington, D.C., that gives tenants the first right of refusal to purchase their rental property. The law was enacted over 30 years ago to protect renters from being evicted by landlords looking to sell their property. However, in 2018, the D.C. Council passed a bill that largely eliminated TOPA for single-family dwellings, which include condos, co-ops, and accessory dwelling units (ADUs) such as basement apartments. The new law, called the TOPA Single-Family Home Exemption Amendment Act of 2018, was a response to concerns that tenants were abusing their TOPA rights by demanding large sums of money to release their rights or flipping their rights to speculators. While renters of single-family dwellings will still have to be notified of their landlord's intent to sell, this notice will no longer trigger a right to purchase. The law does include an exception for renters who are 62 or older or have a disability, allowing them to retain their TOPA rights as long as they meet certain requirements. So, do TOPA rights apply to rooming houses in D.C.? The answer is: it depends on the specific circumstances.

TOPA rights for elderly or disabled tenants

The Tenant Opportunity to Purchase Act (TOPA) is a law in the District of Columbia that requires owners of rental properties to give tenants the opportunity to purchase the accommodation and a right of first refusal to match a third-party contract.

The TOPA Single-Family Home Exemption Act of 2018 states that single-family accommodations are exempt from the provisions of TOPA, except accommodations with tenants who are elderly or with a disability who signed a written lease by March 31, 2018, and took occupancy by April 15, 2018.

This means that owners of single-family homes no longer need to give tenants the opportunity to purchase or right of first refusal, but there are still notice requirements for these properties. Owners of exempted units must give tenants notice within three calendar days of receiving an offer of sale.

Elderly and disabled tenants who signed a lease to occupy an exempted unit by the specified date and provided documentation verifying their status will have a limited opportunity to purchase or assign their rights.

The process for exercising TOPA rights for elderly or disabled tenants is as follows:

• The seller or agent must deliver Form 1 Notice to Tenant of Landlord's Receipt or Solicitation of an Offer to Sell the Single-Family Accommodation and Notice of Intent to Sell (along with blank Form 2 and Form 4 attached) to each tenant/occupant via trackable delivery service.
• Copies must also be sent to the Office of Tenant Advocate (OTA) and the Department of Housing and Community Development (DHCD) on the same day via trackable delivery service.
• If the tenant is not elderly or disabled, the seller can obtain their signatures on the TENANT ACKNOWLEDGEMENT - NO TOPA RIGHTS FORM to confirm no TOPA rights and close immediately.
• If the tenant is elderly or disabled, the owner must send the Notice of Offer of Sale (FORM 3A, 3B, or 3C) via trackable delivery to all eligible tenants, DHCD, and OTA on the same day.
• To confirm no TOPA rights have been exercised after the Offer of Sale, obtain the signature of the eligible tenant and provide a copy of the TENANT'S ELECTION NOT TO EXERCISE AND WAIVER OF TOPA RIGHTS.
• Wait for the statutory 20 days to expire to confirm that the tenant did not submit a statement of interest and elderly/disability documentation via DHCD Form 4.

TOPA notice requirements for landlords

The Tenant Opportunity to Purchase Act (TOPA) requires landlords to give tenants an opportunity to purchase their rented accommodation and a right of first refusal to match a third-party contract. Here are the key notice requirements for landlords under TOPA:

Notice of Intent to Sell

When a landlord intends to sell a rental property, they must first notify their tenants and give them the opportunity to purchase the property. This notice must be provided in writing and should include a description of the tenant's rights and obligations under TOPA, as well as a list of organisations that can provide assistance. Landlords must also file copies of the notices with the relevant local authorities.

Timeline for Tenant Response

Once the landlord has provided notice, tenants have a specified timeframe to respond, known as the "registration of interest" period. During this time, tenants can express their interest in purchasing the property. The exact timeframe varies but is typically between several months and several years.

Negotiation and Finalisation

If tenants express interest in purchasing the property, the landlord must enter into a negotiation period with them. This period typically lasts for at least 25 days, excluding the initial response timeframe. During this time, both parties can negotiate a contract of sale. After an agreement is reached, tenants are usually given at least 45 days to secure financing and financial assistance before the settlement.

Right of First Refusal

Even if the landlord receives an offer from another buyer, tenants have the right of first refusal under TOPA. This means that they can choose to match the other offer and purchase the property. This right is a powerful tool for tenants, as it gives them the opportunity to remain in their rented property by becoming homeowners.

Exemptions

It is important to note that TOPA does not apply to all properties. Single-family accommodations, for example, are generally exempt from TOPA unless the tenant is elderly (62 or over) or has a disability, and they signed a lease by a specified date. In such cases, landlords still have notice requirements, but they are not obligated to give tenants the opportunity to purchase.

Renters' rights to purchase

The Tenant Opportunity to Purchase Act (TOPA) is a law in Washington, D.C., that gives tenants the right to purchase their rental property and a right of first refusal to match a third-party contract when their landlord intends to sell. This law is derived from the Rental Housing Conversion and Sale Act of 1980, which was amended in 2018 to exempt single-family accommodations from TOPA. However, this exemption does not apply if the tenant is elderly (62 or older) or has a disability and signed a lease by March 31, 2018, and took occupancy by April 15, 2018.

Under TOPA, renters have specific rights when it comes to the opportunity to purchase their rented property. If a landlord intends to sell a rental property with five or more units, they must notify each tenant in writing of their intent and provide them with a copy of the written offer of sale. Tenants then have 20 days to deliver a written statement of interest to the landlord, expressing their intention to exercise their right to purchase the property. If a tenant does not submit a statement of interest within this timeframe, they are deemed to have waived their TOPA rights.

Once a tenant delivers a written statement of interest, the landlord must allow at least 25 days for negotiation on the contract of sale, excluding the initial 20 days provided for the statement of interest. The landlord must also provide at least 45 days after the date of contracting for the tenant to secure financing and financial assistance. This timeframe can be extended if the tenant presents a written estimate from a lending institution or agency stating that a decision on financing will be made within 75 days.

It is important to note that TOPA also applies to renters in buildings with two to four units, and there are separate process charts available for these situations. The Office of the Tenant Advocate (OTA) offers tenants classes and technical assistance to understand their rights and the TOPA process.

In addition to TOPA, renters in Washington, D.C., are protected by various other laws and regulations that govern the landlord-tenant relationship. These include laws related to security deposits, late rent, evictions, tenant screening, and habitable rentals. Renters have the right to a safe, clean, and sanitary rental unit, and landlords must maintain the facilities, utilities, and services as required by law.

Renters' rights to assign TOPA rights

The Tenant Opportunity to Purchase Act (TOPA) is a law in Washington, D.C., that gives tenants the first right to purchase their homes if their landlord intends to sell. This law was enacted in 1980 to give tenants at risk of eviction a pathway to ownership and control over their homes.

Under TOPA, tenants can work out a deal directly with their landlord or refuse a contracted sale the landlord arranges with a third party and purchase the building instead for the same price. While TOPA is a right-to-buy statute, it gives tenants bargaining power and a powerful seat at the table when it comes to deciding what happens to their building.

One important aspect of TOPA is the right of first refusal, which gives tenants leverage in a situation where they normally have none. This right is collective rather than individual, meaning that only a registered tenants' association can refuse a sale or convert a rental property to a condominium through TOPA. This helps ensure that the interests of vulnerable tenants are considered and prevents a small group of tenants from hijacking the process for their own interests.

In addition to purchasing their building, tenants can also assign their TOPA rights to a third party, who can help with financing and oversight in the acquisition and renovation process. This third party must be a private or nonprofit corporation or a partnership in which the assignee is an owner, managing member, or officer who can legally bind the entity.

For elderly tenants or tenants with disabilities, the only consideration they may receive for assigning their TOPA rights is the right to immediately use and occupy their unit for a period of 12 months following the sale of the accommodation at the rate of rent charged as of the date of the offer of sale.

While TOPA provides valuable rights to renters, it is important to note that it does not have a permanent affordability requirement. This means that tenants who collectively purchase a property through TOPA using private funds could resell the property at market-rate prices without resale caps. However, if tenants utilize public subsidies or subsidized loans, affordability restrictions are triggered.

TOPA's application to rooming houses

The Tenant Opportunity to Purchase Act (TOPA) was enacted by the D.C. Council over 30 years ago to protect renters from being evicted by landlords who want to sell their property for a profit. Under TOPA, tenants have the right of first refusal to match a third-party contract and purchase the property themselves.

However, in 2018, the D.C. Council passed a bill that largely eliminated TOPA for single-family dwellings, including condominiums and co-ops. This was in response to concerns that tenants were taking advantage of the law by demanding large sums of money to release their TOPA rights, and that the law was not achieving its intended purpose, with less than 5% of renters ending up buying their homes.

The new law, known as the TOPA Single-Family Home Exemption Amendment Act of 2018, exempts single-family dwellings from TOPA unless they are occupied by elderly or disabled tenants. To qualify, elderly or disabled tenants must have signed a lease to occupy the unit by March 31, 2018, and taken occupancy by April 15, 2018. These tenants will have a limited opportunity to purchase or assign their rights, and they must provide documentation verifying their status.

While renters in single-family dwellings will no longer have the right to purchase under TOPA, they will still be notified of their landlord's intent to sell. This notification does not trigger a right to purchase, but it does provide tenants with sufficient notice and an opportunity to make a bid to purchase the property outside of the TOPA process.

It is important to note that TOPA still applies to properties with two to four units and buildings with five or more units. In these cases, tenants must follow specific procedures and time frames to express their interest in buying and negotiate a contract.

Frequently asked questions