(a) Extended lease offer.
(1) A developer must offer extended leases to eligible tenants until at least twenty (20) percent of the units are under extended leases.
(2) The tenants eligible for an extended lease include:
(i) Low-income senior tenants;
(ii) Low-income handicapped tenants;
(iii) Senior tenants who are not low-income;
(iv) Handicapped tenants who are not low-income; and
(v) Low-income tenants who are not senior or handicapped.
(3) If the number of eligible tenants exceeds twenty (20) percent of the units, the developer must grant extended leases on the basis of continuous residence within the building:
(i) First to senior or handicapped low-income tenants;
(ii) Second to senior or handicapped tenants who are not low-income; and
(iii) Third to low-income tenants who are not senior or handicapped.
(b) Extended lease provisions.
(1) The length of an extended lease is:
(i) For low-income senior and low-income handicapped tenants, the lifetime of the senior or handicapped tenants who live in the unit when the developer gives notice of tenant rights under section 11C-23; and
(ii) For other eligible tenants, three (3) years.
(2) A rent increase under an extended lease is limited to:
(i) A maximum percentage increase that does not exceed the rent component of the U.S. Consumer Price Index for urban wage earners and clerical workers, U.S. Department of Labor, for the most recent twelve-month period; and
(ii) A minimum period of at least twelve (12) months between increases.
(3) Other extended lease terms follow those of the lease that was in effect immediately before the tenant received the notice of intent to convert.
(c) Later option to purchase unit. A tenant who is eligible for an extended lease may instead exercise the right to purchase a membership under section 11C-17.
(d) Tenant option to end extended lease. A tenant may end an extended lease at any time by giving the developer written notice of at least:
(1) Thirty (30) days if the remaining lease period is less than one (1) year; or
(2) Ninety (90) days if the remaining lease period is more than one (1) year.
(e) Developer option to end extended lease. A developer may end an extended lease only after:
(1) Sixty (60) days from the death of the last surviving senior or handicapped tenant who lived in the unit; or
(2) The tenant fails to pay the rent due or violates a material provision of the lease. (1985 L.M.C., ch. 39, § 1.)