B 23-0048 — Housing Conversion and Eviction Clarification Amendment Act of 2019

ENGROSSEDENROLLED ORIGINAL AAN BILLACT 3_____________ 23-48 5 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 7_____________________________ ____________ 9 To amend the Rental Housing Production Trust Fund Act of 19881985 to authorizeprovide feesthat collectedan pursuantowner toof housing who reduces the Conversionnumber of Rentalunits Housingin toan Condominiumaccommodation orof Cooperativegreater Statusthan Act3 ofbut 1980fewer than 11 units pay a fee to bethe depositedMayor, create a fee exemption if a unit is rented in certain circumstances, direct the Mayor to deposit into the Housing Production Trust Fund;Fund all fees collected, provide for damages when a housing provider repossesses a rental unit from a tenant to personally use and occupy or sell a housing unit for personal use and occupancy and subsequently receives rent within the following 12-month period, and provide that a tenant who recovers damages shall not be barred from bringing any other available civil action;

to amend the Conversion of Rental Housing to Condominium or Cooperative Status Act of 1980 to provide that an owner of housing who reduces the number of units in an accommodation of 10greater orthan 3 but fewer unitsthan shall11 units pay a fee to the Mayor, to expand the fee exemption if a unit is rented in certain circumstances, and to direct the Mayor to deposit ininto the Housing Production Trust Fund the fees collectedcollected; pursuant to this section;

and to amend the Rental Housing Act of 1985 to provide that an owner of housing who reduces the number of units in an accommodation of 10 or fewer units shall pay a fee to the Mayor, to create a fee exemption ifa unit is rented in certain circumstances, and to direct the Mayor to deposit in the Housing Production Trust Fund allAct feesof collected1988 pursuant to this section, provide forthat damagesby when a housingspecified providerdate repossessall afees rentalabove unit$692,000 fromannually acollected tenantpursuant in order to personally use and occupy or sell a housing unit for personal use and occupancy and subsequently receives rent within the followingConversion 12-monthof period,Rental andHousing to provideCondominium thator aCooperative tenantStatus whoAct recoversof damages1980 shall not be barreddeposited fromin bringingthe anyHousing otherProduction civilTrust action.Fund.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act maybe cited as the “Housing Conversion and Eviction Clarification Amendment Act of 2019”.2020”.

Official Code § 42-3501.01 et seq.)seq.), is amended as follows:

(a) SectionThe 501table of contents is amended by adding a3 new subsectionsection (e-1)designations to read as follows:

“(e-1)(1)“Sec. A housing provider who recovers possession pursuant to subsection (d) or (e) of this section, or a person who purchases property from a housing provider who recovers ENGROSSED ORIGINAL possession pursuant to subsection (e), and, during the 12-month period beginning on the date on which the rental unit was originally repossessed by the housing provider, demands or receives from a new tenant rent for the rental unit which was repossessed, or fails to personally use and occupy the rental unit, shall be liable to the former tenant for:

908.

Inspection of rental housing.

“Sec.

909.

Restrictions on tobacco smoking.

“Sec.

910.

Fee for reduction of units.”.

(b) Section 501 (D.C.

Official Code § 42-3505.01) is amended by adding a new subsection (e-1) to read as follows:

ENROLLED ORIGINAL “(e-1)(1) A housing provider who recovers possession pursuant to subsection (d) or (e) of this section, or a person who purchases property from a housing provider who recovers possession pursuant to subsection (e) of this section, who, during the 12-month period beginning on the date on which the rental unit was originally repossessed by the housing provider, demands or receives from a new tenant rent for the rental unit that was repossessed or fails to personally use and occupy the rental unit shall be liable to the former tenant for:

“(2) A housing provider shall not be liable for damages pursuant to paragraph (1) of this subsection if the housing provider can demonstrate that, acting in good faith, he or she failed to sell or to personally use and occupy the housing accommodation due to circumstances outside of the housing provider’s control that arisearose after the rental unit was repossessed.

“(3) A tenant who recovers damages pursuant to this subsection shall not be barred from bringing any other available civil action that may arise from the same circumstances.”.

(b)(c) A new section 910 is added to read as follows:

ENGROSSED ORIGINAL “Sec.

“(a) A housing provider who reduces the number of units in a housing accommodation containing 10more orthan 3 and fewer than 11 units, each with a separate certificate of occupancy, including vacant buildings, shall pay the Mayor a fee of 5% of the appraised value of the most valuable unit in the building multiplied by the netmultiplier decreasecalculated inpursuant units.”to “(b)(1)subsection When(b) calculating the net decrease in units, the Mayor shall subtract the number of remainingthis unitssection. that are rented to:

“(A)“(b)(1) ATo low-incomecalculate household;the multiplier, the Mayor shall subtract the number of remaining units from the number of existing units, and then, if the housing provider so elects, subtract the number of remaining units that are exempted units.

“(B)“(2) AFor tenantthe who,purposes asof determinedthis bysubsection, the Mayor:term “exempted unit” means a unit that:

“(A) Is rented to a low-income household;

“(B) Is rented to a tenant who, as determined by the Mayor:

“(ii) Is a domiciliary of the DistrictDistrict; of Columbia;

and ENROLLED ORIGINAL “(iii) Is entitled to the possession, occupancy, or benefits of the rental unit;

or “(C) AIs rented to a person who is an elderly tenant or a tenant with a disability, as determined by the Mayor under section 224(d), that does not have a total annual household income, as determined by the Mayor, greater than 100% of the area median income, as that term is defined in section 202(1)2(1) of the Housing Production Trust Fund Act of 1988, effective March 16, 1989 (D.C.

§D.C. 42- 2801(1)).

ENGROSSEDOfficial ORIGINALCode “(2)§ The42-2801(1)); number calculated under paragraph (1) of this subsection shall not be less than zero.

“(c)or To“(D) qualifyGains forat anleast exemptionone underadditional subsectionbedroom (b)in ofthe thisprocess section,of athe housingreduction providerof must:units.

“(1)“(3) SetTo thequalify rentfor atan noexemption higherunder thanparagraph 30%(1) of thethis tenant’ssubsection, incomea orhousing theprovider priorshall, rent,for whichevereach isexempted lower;unit:

“(2)“(A) IncreaseSet the rent byat no more,higher andthan: no more often, than the increases allowed under section 208 for the duration of the tenant’s tenancy or 5 years, whichever is longer;

and“(i) “(3)If Otherwiseseeking maintainan theexemption samepursuant leaseto termsparagraph as(2)(A), (B), or (C) of this subsection, the rent level before the reduction in theunits numberor 30% of units.the tenant’s income, whichever is lower;

“(d)or For“(ii) theIf purposesseeking ofan thisexemption section,pursuant “low-income”to meansparagraph annual(2)(D) householdof income,this assubsection, an amount, determined by the Mayor,Mayor nothrough greaterrulemaking, thanthat 80%is affordable to a household whose income does not exceed 100% of the area median income, as definedthat interm asis defined in section 202(1)2(1) of the Housing Production Trust Fund Act of 1988, effective March 16, 1989 (D.C.

§ 42-2801(1)).

“(e) The Mayor shall deposit in the Housing Production Trust Fund, created pursuant to the Housing Production Trust Fund Act of 1988, effective March 16, 1989 (D.C Law 7-202;

Official Code § 42-2801,42-2801(1)); et seq.), all fees paid pursuant to this section as of the effective date of the Housing Conversion and Eviction Clarification Amendment Act of 2019, introduced on January 8, 2019 (Bill 23-048).