(a) Each tenant in a building that is converted subject to this Article has the right to purchase a Member Share at a price not to exceed an amount determined by the prescribed purchase price formula, as further defined in Section 1399.9, provided that:
(1) The purchasing tenant continues to reside in the unit from the date the application packet as provided in Section 1399.17 is filed up to and including the date of close of escrow on the purchase.
(2) Prior to the execution of a purchase and sale agreement, the purchasing tenant obtains income certification as provided in Section 1399.16.
(3) If another tenant residing in the same unit with a purchasing tenant does not jointly purchase a Member Share, the purchasing tenant may take possession of his or her unit subject to the lifetime lease rights of the non-purchasing tenant, as provided in Section 1399.8A.
(4) For any tenant to accrue a right to purchase, that tenant must have lived in the building for at least 1 year prior to the filing of the Certificate of Clearance with the Mayor's Office of Housing.
(b) A tenant may not assign his or her right to purchase a Member Share except that a tenant may jointly purchase a Member Share with another person or persons who reside in the unit with that tenant.
(c) A purchasing tenant shall not be made to execute a purchase and sale agreement or to make a non-refundable deposit toward the purchase of a Member Share prior to (i) the issuance of a conditional or final subdivision public report for the property by the California Department of Real Estate or (ii) the filing of a subdivision public reporting exemption with the Department of Real Estate under California Business and Professions Code Section 11003.4 and the recording of a Final Map under this Article.
(d) Within 30 calendar days following the issuance of the final subdivision public report by the State Department of Real Estate, the Subdivider shall notify each tenant in writing of the right to purchase a Member Share. The written notice shall be served in person or by certified or registered mail, and shall include the price at which the Member Share may be purchased and the date on which the offering period expires.
(e) To effectuate a purchase, a purchasing tenant must:
(1) execute a binding purchase and sale agreement that includes all material terms negotiated between the Subdivider and the tenant, and such other usual and customary terms found in an agreement for the purchase and sale of residential property in the City and County of San Francisco, in accordance with the requirements of the California Department of Real Estate and the final subdivision public report authorizing the sale of units in the property, restrictions on resale price consistent with the provisions of Section 1399.22 of this Article 11, and first right-of-refusal for the Limited Equity Housing Cooperative to repurchase the Member Share.
(2) execute an occupancy agreement with the Limited Equity Housing Cooperative that includes (i) a description of that portion of the Limited Equity Housing Cooperative to which the Resident Member has an exclusive right of occupancy, provided, however, (ii) a right by the Limited Equity Housing Cooperative to transfer the Resident Member to another unit in the Limited Equity Housing Cooperative for the purpose of alleviating overcrowding or underutilization of the Resident Member's existing unit, (iii) a monthly Carrying Charge for that portion as restricted by Section 1399.9, (iv) the subleasing restrictions set forth in Section 1399.6(b)(3), and (v) such other covenants and conditions conducive to maintaining the property in good, clean and habitable condition.
(f) Notwithstanding the foregoing, the Subdivider or Limited Equity Housing Cooperative may execute a conditional agreement to sell or finance Member Shares (including an agreement requiring a non-refundable deposit) as provided in California Government Code section 66499.30(e) so long as the following are completed: (i) filing of a subdivision public reporting exemption with the Department of Real Estate as set forth in Section 1399.8(a) above, (ii) issuance of a Certificate of Clearance by the Mayor's Office of Housing, and (iii) inclusion within the agreement to sell or finance Member Shares the restrictions set forth in subsection (e) above.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)