District Of Columbia § 42-3402.04 - Conversion fee.
Full text of District Of Columbia D.C. Code § 42-3402.04 — Conversion fee., with citation guidance and answers to common questions.
§ 42-3402.04. Conversion fee.
42-3402.04For the purposes of this section, the term “low-income” means annual household income, as determined by the Mayor, no greater than 80% of the area median income, as defined in ).
An owner who converts a housing accommodation, including vacant buildings, into a condominium or a cooperative shall pay the Mayor a conversion fee of 5% of the sales price for each condominium unit, or proportionate value of the cooperative residence, within the housing accommodation.
The Mayor shall not require a conversion fee for a condominium unit, or the proportionate share value of a cooperative residence, that:
Is sold to a low-income household;
Is sold to a member of a household who, as determined by the Mayor:
Has maintained a rental unit in the building complex as the principal place of residence for at least one year prior to the owner’s application to the Mayor for conversion of the housing accommodation to a condominium or cooperative;
Is a domiciliary of the District of Columbia; and
Is entitled to the possession, occupancy, or benefits of the rental unit.
If an owner seeks an exemption under this paragraph, the member of the household may elect to purchase any unit in the housing accommodation in lieu of her current unit;
Is sold to a person who:
Is 62 years of age or older; or
Has a disability as defined in ; and
Does not have a total annual household income, as determined by the Mayor, greater than 100% of the area median income, as defined in ; or
Is sold as part of a conversion of a property that has been registered as vacant for at least 12 months prior to conversion; and
Is part of a building complex not exceeding 10 units.
The conversion fee required by subsection (a-1) of this section shall be paid in full into an escrow account at the time of settlement on the sale of the condominium unit or cooperative share.
The escrow agent shall submit the conversion fee to the Mayor within 30 business days of settlement, together with a copy of the recordation and transfer tax form reflecting the sale price of each condominium unit or cooperative share.
The name, address, and telephone number of the escrow agent shall be stated on the deed or on a form attached to the deed.
The Mayor may impose civil fines, penalties, and fees for failure to submit the conversion fee to the Mayor, any infraction of the provisions of this section, or any rules issued under the authority of this section pursuant to [ et seq.]. Adjudication of any infraction of this chapter shall be pursuant to [ et seq.].
No portion of the conversion fee required under this section shall be included in the purchase price of units exempted from the conversion fee in subsection (b) of this section.
Repealed.
Annotations
“(c) Waiver of lien. The Mayor shall waive a conversion fee lien on a condominium unit or proportionate value of the cooperative residence purchased by a low-income tenant.”
“(b-1) Payment. The conversion fee required by subsection (a) of this section shall be paid no later than at the time of settlement on the individual units or shares.
“(b) Reduction. The Mayor may reduce the conversion fee to as low as $50 per condominium unit or proportionate value of the cooperative residence if the owner declares the intent to sell or provide a lease or option to lease for at least 5 years to tenants who, at the time of request for an election, are low income and whose continued right to remain a tenant is not required by statute (”qualifying tenants“). To qualify for this reduction, a sale or lease cannot require monthly payments greater than existing rents, as may be increased by the annual adjustment of general applicability provided in or a similar annual adjustment in any successor rent control act, or 25% of gross household income, whichever is greater. The number of qualifying tenants is the number of tenants identified by the Mayor as residing in the accommodation as of the date of the owner’s request for an election. The amount of the reduction shall be determined by the Mayor based on factors such as the Mayor may determine, which shall include the percentage of tenants in the accommodation who are qualifying tenants and the percentage of qualifying tenants who purchase or continue renting in accordance with the first sentence of this subsection. The Mayor shall also reduce the amount of the conversion fee of each unit or proportionate value for a cooperative residence that is sold or leased to a low-income purchaser or to a new low-income tenant who leases a unit in accordance with the requirements of this subsection, regardless of where that low-income purchaser or tenant previously lived. In doing so, the Mayor shall consider the lost conversion fee revenue in comparison to the cost of making available the number of low-income units purchased or leased. If the owner does not sell or lease to the percentage of qualifying tenants or outside purchasers or tenants as declared, the unpaid balance of the conversion fee as adjusted by the Mayor in accordance with the actual sales and leases shall be paid by the owner. The Mayor may assert a lien against any unsold units or proportionate value of the cooperative residence by filing a lien against the land. The Mayor shall not attempt to collect any conversion fee which would not have been due if the provisions of this section had been in effect at the time of the conversion.
Amendment of section by Law 10-144: Section 2(e) of purported to amend (b), (b-1) and (c) of this section to read as follows:
Reenactment of Law 3-86: See Historical and Statutory Notes following .
Frequently Asked Questions About District Of Columbia § 42-3402.04
What does D.C. Code § 42-3402.04 cover?
Section 42-3402.04 ("Conversion fee.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite District Of Columbia § 42-3402.04?
A common citation format is "D.C. Code § 42-3402.04" (District Of Columbia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of District Of Columbia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the District Of Columbia official source linked on this page or consult a licensed District Of Columbia attorney.
How does District Of Columbia § 42-3402.04 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in District Of Columbia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in District Of Columbia.