In May 2017 NBC 4 Washington’s I-Team exposed the misuse of the Tenant Opportunity to Purchase Act (TOPA). TOPA was originally designed to afford tenants the first right to purchase the home they are renting should it be offered for sale. Unfortunately, TOPA rights are delaying or canceling pending sales, even requiring homeowners pay tenants (or the party/-ies to whom the tenants have sold their rights) to vacate in order to proceed with the sale. Payment demands are reported to reach tens of thousands of dollars in just one sale.
As a result of the report, the D.C. Council began to discuss and vote on possible exemptions for TOPA. Specifically single-family homes, including those with accessories such as carriage houses or English basements, are being considered as exempt given the traditional function as a single-family dwelling. In March the D.C. Council approved legislation that could save District homeowners thousands and prevent renters from delaying or canceling sales. “The committee firmly supports TOPA as a way to prevent displacement, however TOPA was never intended to be a money-making business for tenants,” said Councilwoman Anita Bonds, who chairs the housing committee which put forth the legislation.
Just this month the D.C. Council voted to exempt single-family homes from TOPA law. The amendment eliminates TOPA rights for all renters of single-family homes, inclusive of homes with accessory dwellings. Condos and co-ops are in a building with a homeowners’ association are also exempt under the new legislation. Some exceptions do apply, such as renters who are disabled or over the age of 62 and entered into a lease prior to March 31, 2018 will continue to retain TOPA rights regardless of the type of property rented. Also, all tenants will still be informed the home in which they reside is going up for sale before it hits the market.
Before the legislation can take effect it must first be signed by D.C. Mayor Muriel Bowser and then approved by Congress. The changes are anticipated to take full effect Fall 2018.
Header image sourced from Prime Settlement.
Lisa Coutts, Realtor 