(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.)