Call 202-601-9281 for more information
FAQ
I’m a tenant in DC, what is TOPA?
The DC Tenant Opportunity to Purchase Act (TOPA) dates back to 1980 and it is a
way to give tenants a voice at the table when their apartment building is sold. In
simple terms this means:
1. A building owner must present the sale contract to the tenants. This could happen via
mail or an in-person delivery. The documents must also be posted in the building
2. The tenants have a right to try and purchase the building at that sale price either
individually (in buildings with 2 to 4 units) or through a tenant association (in buildings
with 5+ units)
3. Tenants can also assign their right to purchase the building to a third party who will
offer them some type of consideration in exchange for that assignment
How Does TOPA Work?
Once you receive notice that the building is being sold, call us so that we can
fight for you to get financial compensation. There are critical timelines that must be
honored or you may lose the opportunity to exercise your TOPA rights.
Do I need to move if my building in sold?
No. Your right to be a tenant conveys with the building’s sale. You may choose to move
in exchange for compensation but you cannot be forced to move just because your
building is being sold.
How much money can I expect to receive?
That will depend on a number of factors that we can help you evaluate. In some
cases the biggest compensation is paid to tenants who also agree to move but that is
not a requirement.
A more detailed explanation of TOPA
Background Information on Tenant Opportunity to Purchase Act (TOPA)
TOPA was enacted in order to discourage the displacement of tenants through
conversion or sale of rental property, and to strengthen the bargaining position of
tenants toward that end without unduly interfering with the rights of property owners to
the due process of law. D.C. Code § 42–3401.02(1). Substantively, TOPA requires
landlords to notify tenants in advance of a property sale, so that tenants can exercise
the right of first refusal to make an offer to purchase. Specifically, TOPA provides that
before the owner of a rental housing accommodation may sell that
accommodation, he or she is required to “give the tenant an opportunity to
purchase the accommodation at a price and [on] terms which represent a bona fide
offer of sale.” D.C. Code § 42–3404.02(a).
Before selling the rental accommodation, the Landlord must provide the Tenants with an
Offer of Sale, regardless of whether a Third Party contract is already in place. Only an
incorporated Tenant Organization (explained in greater detail below), also referred to as
a Tenant Association, may exercise the right to purchase an accommodation with 5 or
more units. Thus, Tenants must form and incorporate a Tenant Organization if such an
organization does not already exist. Instead of purchasing the building outright, a
Tenant Organization can assign or sell its rights to other groups.
Background Information on Tenant Organizations
For purposes of TOPA, a “Tenant Organization” is defined as “an organization that
represents at least a majority of the heads of household in the housing accommodation
excluding those households in which no member has resided in the housing
accommodation for at least 90 days and those households in which any member has
been an employee of the owner during the preceding 120 days.” D.C. Code §
42–3401.03(18).
“Head of household” means a tenant who maintains the affected rental unit as the
tenant’s principal place of residence, is a resident and domiciliary of the District of
Columbia, and contributes more than one-half of the cost of maintaining the rental unit.
D.C. Code § 42–3401.03(10). If no member of a household contributes more than one-
half of the cost of maintaining the rental unit, the members of the household who
maintain the affected rental unit as their principal place of residence are residents and
domiciliaries of the District of Columbia, and contribute to the cost of maintaining the
rental unit, may designate one of themselves as the head of household. D.C. Code §
42–3401.03(10).
There are several steps that must be taken by Tenants wishing to organize. First, the
Tenants must conduct a vote to form a Tenant Organization. Second, the Tenants must
hold a vote to establish a board of directors for the Tenant Organization. The Tenant
Organization must have at least three directors selected.
To be recognized under the Tenant Purchase Laws the Tenant Organization must:
1. Be incorporated
2. Represent greater than 50% of the occupied qualifying units
3. Have at least three persons serving as directors and officers.
4. Be Registered with the City.
In order to incorporate, the Tenant Organization should incorporate as a non-profit
corporation in the District of Columbia. Incorporating a D.C. not for profit corporation
currently requires a $70 incorporation fee and the preparation of two simple legal
documents:
1. Articles of Incorporation- A short document –typically two or three pages–
that registers the corporation with the government, and gives it some
special protection and additional responsibilities under the law; and
2. Bylaws- A longer document –typically five to ten pages- that details the
rules for operating the tenant association.
Once registered, the Tenant Organization becomes the sole representative of the
Tenants. Importantly, it is the Tenant Organization, as opposed to the individual Tenant,
that has the right to make a contract for purchase pursuant to TOPA, or assign the
rights to purchase to another individual, and only the Tenant Organization “may seek
enforcement of any right or provision under TOPA. D.C. Code § 42-3405.03.
Call 202-601-9281 for more information
DC TOPA is not affiliated with Department of Housing and Community Development.
We do not represent tenants and tenants are advised to see independent counsel.