§ 11C-1. Definitions.
§ 11C-2. Applicability.
§ 11C-3. Registration.
§ 11C-4. Property report.
§ 11C-5. Property report to prospective purchaser.
§ 11C-6. Enforceability of subscription agreement.
§ 11C-7. Right to inspect.
§ 11C-8. Rescission of subscription agreement.
§ 11C-9. Warranty.
§ 11C-10. Tenant option to leave.
§ 11C-11. Tenant right to extended lease.
§ 11C-12. Temporary relocation of tenants with extended leases.
§ 11C-13. Payment instead of extended lease.
§ 11C-14. Payment for relocation.
§ 11C-15. Lease terms for tenants who are not under extended leases.
§ 11C-16. Transfer of membership for unit under extended lease.
§ 11C-17. Tenant right to purchase membership.
§ 11C-18. County and tenant right to purchase rental property.
§ 11C-19. Disclosure of rental property information.
§ 11C-20. Transfers exempt from county or tenant organization right to purchase rental property.
§ 11C-21. Owner rights and proof of compliance.
§ 11C-22. Reserve funds.
§ 11C-23. Notice of tenant and purchaser rights under this chapter.
§ 11C-24. Cooperative right to terminate contracts.
§ 11C-25. Enforcement.
§ 11C-26. Regulations.
§ 11C-27. Amendment of bylaws.
Notes
| [Note] | *Editor's note-Section 1 of 1985 L.M.C., ch. 39, repealed former ch. 11C, §§ 11C-1-11C-4, and enacted a new ch. 11C, §§ 11C-1-11C-26. Formerly, ch. 11C was derived from 1981 L.M.C., ch. 3, § 1. Cross references-Buildings, ch. 8; consumer protection, ch. 11; condominiums, ch. 11A; homeowners' associations, ch. 24B; moderately priced housing, ch. 25A; housing policy, ch. 25B; housing standards, ch. 26; discrimination in real estate, § 27-11 et seq.; real property, ch. 40; subdivision of land, ch. 50; unsafe buildings, ch. 55; homeowners' replacement loan fund, § 56-2 et seq.; tenant displacement aid fund, § 56-33 et seq.; zoning, ch. 59. |
In this Chapter, the following words have the meanings indicated.
(1) Conversion. "Conversion" means the change of residential property from rental to cooperative status.
(2) Cooperative. "Cooperative" refers to a cooperative housing corporation in which each member:
(i) Has an ownership interest in the cooperative; and
(ii) Is entitled to sole use of a particular unit that is owned by the cooperative.
(3) Cooperative project. "Cooperative project" means a plan of a developer to offer cooperative memberships for initial sale to the public.
(4) Department. "Department" means the Department of Housing and Community Affairs.
(5) Developer. "Developer" includes:
(i) An owner of residential rental property;
(ii) An agent of an owner of residential rental property;
(iii) A contract purchaser of residential rental property; and
(iv) A person who solicits another to purchase a cooperative membership.
(6) Handicapped. "Handicapped" means having a physical or mental disability that for more than one (1) year substantially impairs walking, seeing, hearing, speaking, working, learning, or another major life activity.
(7) Low-income. "Low-income" means household income that is below eighty (80) percent of the median income for Montgomery County. In this definition, household income includes total income from all sources, whether or not included as income for federal or state tax purposes. It is not reduced by a loss from a business or investment. It does not include a tax refund.
(8) Member. "Member" means a person with an ownership interest in a cooperative. It includes owners of cooperative shares as well as membership certificates.
(9) Membership. "Membership" means ownership interest in a cooperative.
(10) Membership certificate. "Membership certificate" means a legal document that evidences ownership in a cooperative. It includes shares and certificates.
(11) Property report. "Property report" means the report under Section 11C-4 as well as later changes of information in the report.
(12) Senior. "Senior" means being at least sixty-two (62) years old when the owner gives notice of tenant rights under this section.
(13) Subscription agreement. "Subscription agreement" means the contract by which a person agrees to purchase a cooperative membership.
(14) Unit. "Unit" means an area limited to the residential use of one (1) household under either a rental lease or cooperative membership. (1985 L.M.C., ch. 39, § 1; 1996 L.M.C., ch. 13, § 1.)
(a) Residential only. This chapter does not apply to the sale of a nonresidential unit or a cooperative membership with rights limited to nonresidential use.
(b) Creation or conversion date. This chapter does not apply to a cooperative that was created or converted before January 1, 1985. (1985 L.M.C., ch. 39, § 1.)
(a) Requirement. Before a developer enters into a subscription agreement for the initial sale of cooperative memberships to the public, the developer must register the cooperative project with the Department.
(b) Application. To apply for registration, a developer must submit to the Department.
(1) The property report; and
(2) An application fee.
(c) Notice to tenants.
(1) When a developer submits an application for registration with the Department, the developer by first class mail or personal delivery must give written notice to each tenant that the property may be converted.
(2) The developer must state the notice as follows:
"The property in which you live may be converted from rental to cooperative status. We are filing a detailed report with the Montgomery County Department of Housing and Community Affairs ________ (address and telephone number). You have the right to review and comment on the proposed cooperative within 30 days from ________ (date that the application is submitted)."
(d) Approval.
(1) Within 5 days after receiving an application, the Department must mail to the developer a notice of receipt of the application.
(2) Within 45 days after receiving an application, the Department must decide that either:
(i) The application complies with Section 11C-4 and issue an order registering the cooperative project; or
(ii) The application does not comply with Section 11C-4 and issue an order rejecting the application and stating the specific reasons for the rejection.
(e) Information changes. A developer promptly must submit to the Department any changes of the information in a registration.
(f) Ending of registration. The Department must issue an order ending a registration if:
(1) A developer notifies the Department that the developer has sold all of the cooperative memberships to purchasers other than a developer; and
(2) The developer cannot create additional memberships. (1985 L.M.C., ch. 39, § 1; 1996 L.M.C., ch. 13, § 1.)
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