TOPA Changes: A Follow-Up

In April this blog discussed pending changes to current TOPA requirements for D.C. homeowners, many of whom could not sell their homes due to tenants (or those who purchased the tenant rights) demanding large sums of money to relinquish interest in a property and permit the sale. As of April the D.C. Council voted to exempt single-family homes from TOPA law, but D.C. Mayor Muriel Bowser and Congress still had to sign and approve, respectively.

The amendment – formally known as D.C. Law 22-120. TOPA Single-Family Home Exemption Amendment Act of 2018 – was assigned on May 7th and transmitted to Congress for its review, becoming effective July 3rd. The amendment provides relief for homeowners who desire to sell their homes, exempting single family homes (to include condos, co-operatives and homes with accessory units) from triggering tenant rights for most types of tenants, excluding elderly or disabled as defined by the Act. Homeowners are now required only to notify tenants within three days of either receiving or soliciting an offer to purchase, and the notification serves as a “heads up” allowing the tenant to plan for their move.

Tenants who do qualify as elderly or disabled have 20 days following owner-provided notice to deliver a written statement of interest to the owner (failure to do so waives the tenant’s TOPA rights), and then an additional 25 days to negotiate a final contract. Settlement should occur no later than 45 days following execution of the final contract. The qualifying tenants may assign their rights, but only for the right to immediately occupy the tenant’s unit for up to 12 months following the sale; further, the rate of rent charged must remain unchanged as of the original offer of sale.

The changes are significant, and owners and qualified tenants must follow the appropriate notification processes using updated forms provided by D.C.’s Department of Housing and Community Development (DHCD) to ensure a successful sale, purchase or assignment.

Header image sourced from HUFFPOST.