State law controls condominium
conversions. That law is administered by
Ms. Mary D. Kane, Secretary of State
State House,
1-888-874-0013 x3859
(My contact there is Mr. Clinton
Black at 410-260-3859.)
City law provides some additional
local protections, especially for the elderly.
Mr. Paul Graziano,
Commissioner
Baltimore City Department of Housing
& Community Development
410-396-3232
Notice of
Intention to Create a Condominium
Under State law, a building owner who
plans to convert apartments to condominium units must notify residents
officially in a document entitled “NOTICE OF INTENTION TO CREATE A
CONDOMINIUM.”
I will refer to this as The Notice.
Many rights of apartment residents
begin and end within 180 days (6 months) from the date of The Notice
Under State law, The Notice
can be “delivered by hand to the tenant or mailed, certified mail, return
receipt requested, postage prepaid, to the tenant’s last- known address.” In other words, it is legal to drop The Notice under
your door.
Residents’
Right to Remain as Tenants
Under State law, current
If a lease expires during the 180-day
period, tenants are entitled to remain until the end of the 180-day period.
Reimbursements
for Moving Expenses
Under State law, residents who choose
to move after receiving The Notice are entitled to receive up to $750 in moving expenses from the owner. Please note that residents must “bill” the
owner for moving expenses, documenting the costs. Law requires reimbursement
after the move, not payment in advance.
Residents’
Rights to Purchase their own Rental Units
Under State law, apartment residents
must be offered the right to purchase the units where they live before their
units can be offered in a public sale.
During the 180-day period after The Notice, State law requires that the tenants of a unit must be
offered a purchase price and terms at
least as favorable as the price and terms offered to any other
person. If current tenants agree to
purchase their units, settlement cannot be required any sooner than 120 days (4
months) after tenants agree to the terms of sale.
Title
11-102.1, Section 2
Right to 3-year lease extension or 3-month rent payment for certain
handicapped citizens and senior citizens
Qualified
Households
Under State law, a condominium
developer must set aside 20 % of an apartment building’s units to provide
3-year lease extensions for the benefit of “qualified households.” Under local law,
A “qualified household” is an
apartment in which a resident lives who is either handicapped or elderly (62 or
older) --- and in which the total annual income of the household is $47,680 or
less.
The handicapped or elderly resident
must have lived in the apartment for at least ONE YEAR prior to the date of The Notice. Annual income is based on tax year
2005, and un-reimbursed medical expenses can be deducted in calculating this
annual income.
All members of a qualified household
are entitled to the 6-year lease extension for as long as the handicapped or
elderly member remains a member of the household.
The Notice will include an
application to apply as a qualified household.
Please be sure to meet all the deadlines for submission of the
application and the 6-year extended lease.
If more than 20% of households apply,
the 20% households with the longest years of residence will receive extended leases.
Priorities will be established by length of residence.
But be sure to apply! There may very well be 20% or fewer qualified
households. More important, qualified households for which extended leases are
not available --- or who choose not to extend their leases --- are entitled to
a payment from the developer equivalent to 3 months’ rent.
Protections
for Qualified Households
1) Under State and local law, rental
rates for 6-year extended leases may not be increased more than once a year and
may not be increased by more than annual increases in the Consumer Price Index
(CPI).
2) The condominium developer may sell
the unit in which a qualified household resides, but the new owner must honor
all the extended lease protections required by law. In addition, the residents must be informed
in writing of any change in ownership of their unit.
3) If the owner of a qualified
household apartment wants to rehabilitate the unit, local law protects the
right of the qualified household to remain in place during the
rehabilitation. To temporarily move-out
the residents, the developer must receive certification from the Baltimore City
Housing Commissioner “that the rehabilitation will constitute a danger to the health
and safety of the tenants.”
If residents choose to move, the
developer must temporarily relocate the household to a comparable unit, and the
household has the right to move back to its unit after work is completed. Temporary moving costs must be paid by the
developer, and the period of temporary relocation does not count as part of the
6-years of extended
lease.
Enforcement under
The Housing Commissioner of
In addition, the City Solicitor is
authorized to seek injunctive relief in addressing any violations by owners/
developers.
Definitions
as quoted and paraphrased from Maryland Condominium Act (Title 11-101)
“Annual
Income means the total
income from all sources, of a designated household, for the income tax year
immediately preceding the year in which The Notice is given...whether or not
included in the definition of gross income for federal or State tax
purposes.... [Annual income] shall not include un-reimbursed medical expenses
if the tenant provides reasonable evidence of the un-reimbursed medical
expenses or consents in writing to authorize disclosure of relevant information
regarding medical expense reimbursement at the time of applying for an extended
lease.”
Designated
household means
1.A household which includes a senior
citizen who has been a member of the household for a period of at least 12
months preceding the giving of The Notice; and, 2. A household which includes a handicapped citizen who has been
a member of the household for a period of at least 12 months preceding the
giving of The
Notice.
“Handicapped”
citizen means a person
with a measurable limitation of mobility due to congenital defect, disease, or
trauma.”
“Household”
means only those persons domiciled in the unit at the time The Notice is
given.
Senior
citizen means a person
who is at least 62 years old on the date The Notice is given.
Mary Pat Clarke
550 City Hall
Home 410-366-2023
410-396-4814
Fax 410-545-7585
mclarke@baltimorecitycouncil.com