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(a) Authority. In accordance with the legislative findings and declaration of a rental housing emergency caused by conversions of rental housing to condominiums, this Section is enacted under authority granted by § 11-140 of the Real Property Article.
(b) Definitions. In this Section the following words have the meanings indicated.
(1) (A) Except as provided in subparagraph (B), “annual income” has the meaning stated in § 11-137 of the Real Property Article.
(B) In subsections (d) and (f), “annual income” does not include income received by an individual who is employed by a non-profit entity for the purpose of monitoring, supervising, or caring for disabled individuals who reside in the same household as part of the program operated by the non-profit entity.
(2) “Disabled individual” means an individual who has a disability.
(3) “Disability,” “household,” and “senior citizen” have the meanings stated in § 11-137 of the Real Property Article.
(c) Life tenancies. A household that includes a senior citizen or disabled individual is entitled to an extended lease for a period of no less than the lifetime of the senior citizen or disabled individual if the:
(1) household meets the annual income limit established in subsection (h); and
(2) senior citizen or disabled individual has been a member of the household for at least 12 months before the notice required by § 11-102.1 of the Real Property Article is given.
(d) Three-year tenancies. The following households are eligible for a 3-year extended lease:
(1) A household that includes a senior citizen or disabled individual and meets the annual income limit in subsection (h), regardless of how long the senior citizen or disabled individual has been a member of the household.
(2) Any other household that meets the annual income limit in subsection (h).
(3) A household that includes a senior citizen or disabled individual, regardless of whether the household meets the annual income limit in subsection (h) or how long the senior citizen or disabled individual has been a member of the household.
(e) Lessee.
(1) If the lessee of a rental unit does not occupy the unit when the notice required by § 11-102.1 of the Real Property Article is given, and the unit is occupied by a household that is eligible for a 3-year extended lease under subsection (d), the lessee may execute a 3-year extended lease on behalf of the eligible household.
(2) A lessee that executes a 3-year extended lease as provided in paragraph (1) may retain the lease until the end of the specified 3-year period even if there is a change in the membership of the household that occupies the unit, so long as the household that occupies the unit at any particular time meets the eligibility criteria for a 3-year extended lease under subsection (d).
(f) Priority.
(1) If the total number of households eligible for an extended lease exceeds the 20% limit established in § 11-140 of the Real Property Article, the available units must be allocated in the following order of priority:
(A) to households eligible for a life tenancy under subsection (c);
(B) to households eligible for a 3-year lease under subsection (d)(1);
(C) to households eligible for a 3-year lease under subsection (d)(2); and
(D) to households eligible for a 3-year lease under subsection (d)(3).
(2) If allocating extended leases to all households in any of the 4 categories listed in paragraph (1) would exceed the 20% limit established in § 11-140 of the Real Property Article, priority within the category must be based on household annual income, with the lowest income household receiving the highest priority and the highest income household receiving the lowest priority.
(g) Extended tenancies. Extended tenancies under this section are subject to termination rights contained in § 11-137(h) of the Real Property Article.
(h) Income Limit. The household annual income limit under this section is 80% of the median household income of the metropolitan statistical area in which the County is located, as determined by the Secretary of State under § 11-137(n) of the Real Property Article.
(i) A notice of intent to create a condominium required by § 11-102.1 of the Real Property Article must include notice of the rights created by this Section.
(j) Regulations. The County Executive may adopt regulations under method (3) to implement this Section, including regulations that establish:
(1) recordation requirements for owners of condominium units subject to life tenancies under this Section; and
(2) prohibitions against changing business or leasing practices to circumvent the application of this Section. (1982 L.M.C., ch. 2, § 1; 1984 L.M.C., ch. 24, § 14; 2005 L.M.C., ch. 20, § 1, 2; 2005 L.M.C., ch. 34, § 1; 2006 L.M.C., ch. 33, § 1; 2007 L.M.C., ch. 4, § 1.)
Editor’s note—See County Attorney Opinion dated 7/21/05 explaining that the County cannot require a lifetime tenancy for developmentally disabled individuals when an apartment building in which they reside converts to a condominium, but it may provide for an extended lease term without conflicting with State law.
2005 L.M.C., ch. 34, §§ 2 and 3, state:
Sec. 2. Legislative Findings. The County Council reaffirms the findings set forth in Section 11A-1 of the County Code. Specifically, the County Council finds that a rental housing emergency exists in the County that is caused in part by the conversion of rental housing to condominiums. The County Council’s findings are based on its understanding of the nature and incidence of condominium conversion that have occurred or are expected to occur in the County, the hardship experienced by tenants who are displaced when rental housing is converted to condominiums, and the scarcity of rental housing in the County.
Sec. 3. Applicability. This Act does not apply to a rental facility for which the owner has given notice of intent to convert to the tenants and Secretary of State, as required by § 11-102.1 of the Real Property Article, before December 6, 2005.
2005 L.M.C., ch. 20, § 2, states: Legislative Findings. The County Council reaffirms the findings set forth in Section 11A-1 of the County Code. Specifically, the County Council finds that a rental housing emergency exists in the County that is caused in part by the conversion of rental housing to condominiums. The County Council’s findings are based on its understanding of the nature and incidence of condominium conversions that have occurred or are expected to occur in the County, the hardship experienced by tenants who are displaced when rental housing is converted to condominiums, and the scarcity of rental housing in the County.
Secs. 11A-5B, 11A-5C. Reserved.
Editor's note—Section 11A-5B, "Leaseholds Extending Beyond Notice to Terminate," was added by § 1 of 1980 L.M.C., ch. 15. Section 11A-5C, "Transfer of Rental Facilities," was added by § 1 of 1980 L.M.C., ch. 5, and was repealed and reenacted by § 1 of 1989, L.M.C., ch. 9. Neither of these two sections was included in the complete revision of this chapter by 1982 L.M.C., ch. 2, § 1.
A developer must file with the Director, concurrently with filing with the Secretary of State under state law, copies as required by regulation of the public offering statement described in state law, including copies of all amendments. (1982 L.M.C., ch. 2, § 1; 1996 L.M.C., ch. 13, § 1.)
(a) The developer must file with the Director, concurrently with the filing of the public offering statement under Section 11A-6, copies as required by regulation of the consumer guide required under this Section. The developer must file any later amendments to the consumer guide with the Department.
(b) The purchaser shall be given at the time a contract is entered into between the developer and purchaser a consumer guide containing all information set forth in subsection (c), as well as a public offering statement. The purchaser shall be provided with any subsequent amendments to the consumer guide.
(c) The consumer guide shall be sufficient if it contains the following:
(1) Plat.
(2) Sample deed.
(3) Estimated itemized closing costs.
(4) Estimated itemized monthly housing costs, including principal, interest, taxes, condominium fee and utilities.
(5) Statement of all warranties, including statutory implied warranties.
(6) Name(s) of institutions offering long-term financing and terms, if the developer has obtained a commitment.
(7) Other information, as required by executive regulations adopted by the County Executive under method (3) of Section 2A-15 of this Code, to promote full and fair disclosure of the details of the transaction, the nature of condominium ownership and the characteristics of the particular condominium facility.
(d) A purchaser's right to receive a consumer guide may not be waived.
(e) Concurrently with the filing of the public offering statement and consumer guide with the Department, the developer must notify tenants in the rental facility in the manner
prescribed by regulation, of the filing and of the tenants' rights to review these documents.
(f) A Montgomery County property report accepted by the Director before July 1, 1981, may be considered the consumer guide for the condominium therein described for purposes of this Section. (1981 L.M.C., ch. 26, § 2; 1982 L.M.C., ch. 2, § 1; 1984 L.M.C., ch. 24, § 14; 1996 L.M.C., ch. 13, § 1.)
Editor’s note-Section 11A-7(c) (formerly §11A-5(c)) is cited in Rockville Grosvenor, Inc. v. Montgomery County, 289 Md. 74, 422 A.2d 353 (1980).
(a) A developer must file with the Director a copy of the notice of intention to create a condominium concurrently with giving notice to tenants under state law.
(b) The owner/developer of any property in the County must notify the Director of the subjection of the property to a condominium regime in the County, concurrently with the recordation of the declaration, bylaws and condominium plat in County land records under state law. (1982 L.M.C., ch. 2, § 1; 1996 L.M.C., ch. 13, § 1.)
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