<section article="ghs" article_name="Housing and Community Development" number="7-101" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Assisted household” means one or more individuals who occupy a rental unit in an assisted project.</text> </level> <level label="c"> <text>“Assisted project” means a property that qualifies under § 7–105 of this subtitle.</text> </level> <level label="d"> <text>“Assisted unit” means a dwelling unit that is in an assisted project and is subject to regulatory requirements regarding:</text> <level label="1"> <text>the rent the owner may charge; or</text> </level> <level label="2"> <text>the maximum annual income of the household occupying the unit.</text> </level> </level> <level label="e"> <text>“Designated household” means a household that qualifies under § 7–213 of this title.</text> </level> <level label="f"> <text>“Notice of intent” means a notice of intent to take a protected action in accordance with Subtitle 2 of this title.</text> </level> <level label="g"> <text>“Owner” means a person who holds legal title to an assisted project or any mortgagee in possession, receiver, trustee, or other person that may take a protected action.</text> </level> <level label="h"> <text>“Owner’s offer” means the written offer made by the owner to parties having a right of first purchase under § 7–204 of this title.</text> </level> <level label="i"> <level label="1"> <text>“Project–based § 8 rental assistance” means federal rental assistance under § 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f, to the owner or lender of a housing project under a new construction program, a substantial rehabilitation program, a loan management assistance program, or a property disposition program.</text> </level> <level label="2"> <text>“Project–based § 8 rental assistance” does not include rental assistance made directly to a tenant under existing certificate or voucher programs.</text> </level> </level> <level label="j"> <text>“Protected action” means a sale, conveyance, transfer, prepayment, termination, failure to renew, or expiration under § 7–102(a) of this subtitle.</text> </level> <level label="k"> <text>“Relocation expenses” means costs incurred to:</text> <level label="1"> <text>hire contractors, labor, vehicles, or equipment to transport personal property;</text> </level> <level label="2"> <text>pack and unpack personal property;</text> </level> <level label="3"> <text>disconnect and reconnect utilities, such as water, telephone, gas, or electric, and to perform related services;</text> </level> <level label="4"> <text>disconnect and install personal property;</text> </level> <level label="5"> <text>insure personal property to be moved;</text> </level> <level label="6"> <text>pay rental application fees and make security deposits; and</text> </level> <level label="7"> <text>pay other costs that the Secretary determines are reasonable.</text> </level> </level> <level label="l"> <text>“Tenant protection assistance” means payments to, and extensions of leases for, the occupant or former occupant of an assisted unit in connection with a protected action as required under § 7–212 of this title.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-102" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>Each owner of an assisted project is subject to this title if the owner takes or intends to take any of the following protected actions:</text> <level label="1"> <text>the prepayment in full before the maturity date of mortgage financing that is:</text> <level label="i"> <text>insured under § 221(d)(3) of the National Housing Act, 12 U.S.C. § 1715l(d)(3), and assisted under § 101 of the Housing and Urban Development Act of 1965, 12 U.S.C. § 1701s, or under § 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f;</text> </level> <level label="ii"> <text>insured under § 221(d)(3) of the National Housing Act, 12 U.S.C. § 1715l(d)(3), and bears interest at a rate determined under § 221(d)(5) of the National Housing Act;</text> </level> <level label="iii"> <text>insured or assisted under § 202 or § 236(a) or (b) of the National Housing Act, 12 U.S.C. § 1701q or 12 U.S.C. § 1715z-1(a) or (b);</text> </level> <level label="iv"> <text>insured or assisted under § 515 of the Housing Act of 1949, 42 U.S.C. § 1485; or</text> </level> <level label="v"> <text>held by the United States Department of Housing and Urban Development and insured or assisted, or formerly insured or assisted, under a program authorized by a statute referred to in item (1) of this subsection;</text> </level> </level> <level label="2"> <text>the termination before expiration of or failure to exercise any stated renewal option under an agreement providing for project-based § 8 rental assistance for any units in an assisted project;</text> </level> <level label="3"> <text>the expiration, including a failure to extend after the expiration, of an agreement providing for project-based § 8 rental assistance to any units in an assisted project; or</text> </level> <level label="4"> <text>the sale or conveyance of an assisted project by the owner in conjunction with, or within 1 year after the effective date of, any of the events described in item (1), (2), or (3) of this subsection.</text> </level> </level> <level label="b"> <text>Any sale, conveyance, or other transfer of an assisted project is subject to this title, including:</text> <level label="1"> <text>the sale or other transfer of any general partnership interests of the owner;</text> </level> <level label="2"> <text>the sale or other transfer, in any 1 calendar year, of:</text> <level label="i"> <text>more than 10% of the limited partnership interests of an owner; or</text> </level> <level label="ii"> <text>more than 10% of an owner’s stock;</text> </level> </level> <level label="3"> <text>the transfer by a beneficiary of beneficial or equitable interests under a trust in which the trustee holds title to the assisted project; and</text> </level> <level label="4"> <text>other transfer determined by the Secretary.</text> </level> </level> <level label="c"> <text>By regulation, the Secretary shall establish standards and procedures for interested persons to be exempted from any requirement of §§ 7-203 through 7-219 of this title:</text> <level label="1"> <text>if Title II of the Housing and Community Development Act of 1987, 12 U.S.C. §§ 4101 through 4124, continues, is amended, or is extended, or if a successor federal law is enacted; and</text> </level> <level label="2"> <text>to diminish the burdens of dual regulation or to prevent inconsistent or inequitable application of federal and State law.</text> </level> </level> <level label="d"> <text>This title does not apply to an assisted project if:</text> <level label="1"> <text>before any protected action, the owner or purchaser records, in a form satisfactory to the Secretary, a covenant running with the land on which the assisted project is located that preserves the existing low-income rental restrictions of the federal housing program:</text> <level label="i"> <text>for the term remaining as of the date of prepayment of any mortgage described under subsection (a)(1) of this section; and</text> </level> <level label="ii"> <text>for the term remaining as of the date of termination, including all stated and unexercised renewal terms, of any rental assistance agreement described under subsection (a)(2) of this section or, if greater, for 5 years; or</text> </level> </level> <level label="2"> <text>the sale or conveyance of the assisted project:</text> <level label="i"> <text>is subject to continuation of the existing mortgage financing described under subsection (a)(1) of this section; and</text> </level> <level label="ii"> <text>occurs before the date of a termination, failure to renew, or expiration of project-based § 8 rental assistance described under subsection (a)(2) of this section.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-103" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>The Secretary shall adopt regulations to carry out this title.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="7-104" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>A household qualifies as an assisted household if its gross annual income does not exceed:</text> <level label="1"> <text>upper income limits imposed by any federal, State, or local government program providing financial assistance to the assisted project; or</text> </level> <level label="2"> <text>upper income limits that the Secretary establishes, which may vary for a particular project or a particular area of the State to the extent necessary to achieve the purposes of this title.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-105" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>A property qualifies as an assisted project if:</text> <level label="1"> <text>it is a building or buildings under common ownership containing 10 or more dwelling units intended to be leased to assisted households for occupancy as their primary residences; and</text> </level> <level label="2"> <level label="i"> <text>a loan financing the property is insured or assisted under § 221(d)(3), § 202, or § 236(a) or (b) of the National Housing Act, 12 U.S.C. § 1701q, § 1715l(d)(3), or § 1715z-1, or § 515 of the Housing Act of 1949, 42 U.S.C. § 1485; or</text> </level> <level label="ii"> <text>the project, the owner of the project, or a lender to the project receives project-based § 8 rental assistance.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-106" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>This title does not reduce any obligation or right of a tenant, political subdivision, or owner under Title 11 of the Real Property Article.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="7-201" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>The owner of an assisted project shall give written notice of intent not less than 1 year and not more than 2 years before the effective date of the protected action.</text> </level> <level label="b"> <text>The owner shall give the notice of intent to:</text> <level label="1"> <text>the chief executive officer of each political subdivision in which the assisted project is located;</text> </level> <level label="2"> <text>each public housing authority in a political subdivision in which the assisted project is located;</text> </level> <level label="3"> <text>each tenant association that represents a rental unit in the assisted project, if the tenant association has given the owner the title and mailing address of a representative to receive the notice of intent;</text> </level> <level label="4"> <text>each assisted household of the assisted project; and</text> </level> <level label="5"> <text>the Secretary, who shall notify every other person who has requested the notice of intent.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-202" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>A notice of intent, other than one sent to an assisted household, shall:</text> <level label="1"> <text>state that the owner intends to begin or allow a protected action;</text> </level> <level label="2"> <text>give enough information so that the Department can decide whether the proposed protected action will be lawful on its effective date;</text> </level> <level label="3"> <text>state the expected impact of the protected action during the 3 years after the proposed action on:</text> <level label="i"> <text>rents in the assisted project; and</text> </level> <level label="ii"> <text>continued occupancy in the assisted project by existing assisted households;</text> </level> </level> <level label="4"> <text>give the information about the assisted project from the most recent tenant recertification documents required by the United States Department of Housing and Urban Development, the United States Department of Agriculture, or the Department of Housing and Community Development on:</text> <level label="i"> <text>the number of assisted households;</text> </level> <level label="ii"> <text>the number of assisted units by number of bedrooms;</text> </level> <level label="iii"> <text>the distribution of assisted households by race, gender, income, and family size;</text> </level> <level label="iv"> <text>the number of households with elderly individuals or individuals with disabilities; and</text> </level> <level label="v"> <text>the number of households with minors;</text> </level> </level> <level label="5"> <text>give financial information on the assisted project for the 3 years before the notice of intent that is:</text> <level label="i"> <text>required by the Department; and</text> </level> <level label="ii"> <text>based on financial information kept by the owner; and</text> </level> </level> <level label="6"> <text>include a list, based on information that is reasonably available, of all households in the assisted project whose leases were terminated in the 180 days before the notice of intent.</text> </level> </level> <level label="b"> <text>A notice of intent sent to an assisted household shall contain:</text> <level label="1"> <text>a brief summary of the protected action;</text> </level> <level label="2"> <text>a brief statement of the expected impact of the protected action on rents and on the existing assisted household’s continued occupancy during the 5 years after the protected action;</text> </level> <level label="3"> <text>a brief summary statement of the assisted household’s rights and obligations under this title;</text> </level> <level label="4"> <text>a statement that each political subdivision in which the assisted project is located, a local public housing authority, and the Department may have additional information about the protected action and sources of technical assistance and financing for the exercise of a right of first purchase under this title;</text> </level> <level label="5"> <text>the name, address, and phone number of the owner’s agent to whom the assisted household may apply for tenant protection assistance under this title; and</text> </level> <level label="6"> <text>any other information the Secretary considers necessary to further the purposes of this title.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-203" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>An owner may not take a protected action unless the owner has provided all tenant protection assistance required by this title.</text> </level> <level label="b"> <text>Before a sale or conveyance of an assisted project that is a protected action, the owner shall offer the right of first purchase in accordance with this subtitle.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-204" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <level label="1"> <text>The owner shall offer the right of first purchase by written notice to:</text> <level label="i"> <text>each political subdivision in which the assisted project is located;</text> </level> <level label="ii"> <text>each local public housing authority;</text> </level> <level label="iii"> <text>each group that represents tenants at the assisted project and has registered with the Secretary;</text> </level> <level label="iv"> <text>each low-income housing developer that has registered with the Secretary and is exempt from taxation under § 501(a) of the Internal Revenue Code; and</text> </level> <level label="v"> <text>any other person that has experience in the ownership or operation of low-income housing projects, is unrelated to the owner, and has registered with the Secretary.</text> </level> </level> <level label="2"> <text>The owner shall deliver the offer:</text> <level label="i"> <text>with or after the notice of intent; and</text> </level> <level label="ii"> <text>to a person registered with the Secretary within 10 days after the Secretary gives the owner the title and mailing address of the person.</text> </level> </level> <level label="3"> <text>The owner shall deliver a copy of the offer to the Department.</text> </level> </level> <level label="b"> <text>The owner’s offer shall include:</text> <level label="1"> <text>the terms of the offer, including:</text> <level label="i"> <text>the date of the offer;</text> </level> <level label="ii"> <text>the purchase price, as determined under § 7-205(b) of this subtitle;</text> </level> <level label="iii"> <text>a date for settlement, which must be 1 year or more after the later of:</text> <level label="1"> <text>the date of the owner’s offer; and</text> </level> <level label="2"> <text>the date of the notice of intent;</text> </level> </level> <level label="iv"> <text>a provision stating that:</text> <level label="1"> <text>the buyer’s obligation is contingent on the buyer’s obtaining financing; and</text> </level> <level label="2"> <text>the contingency will not expire before the settlement;</text> </level> </level> <level label="v"> <text>a requirement that the first $10,000 of any deposit by the purchaser be nonrefundable, except as provided in § 7-205(c)(1)(iii) of this subtitle; and</text> </level> <level label="vi"> <text>other terms determined under § 7-205(b) of this subtitle; and</text> </level> </level> <level label="2"> <text>a summary of the procedures and timing to exercise the right of first purchase, as specified in this subtitle and in any departmental regulations.</text> </level> </level> <level label="c"> <text>The date of the owner’s offer is the date on which it is delivered to the last political subdivision to which it must be delivered.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-205" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>In this section, “fair market value” means the price that a willing buyer would pay a willing seller, neither under any compulsion to buy or to sell, for a residential rental project, assuming:</text> <level label="1"> <text>the highest and best use under current zoning; and</text> </level> <level label="2"> <text>no requirements to rent to low-income tenants other than the requirements of any federal law, § 7-214 of this subtitle, or other State law, local law, governmental program, agreement, covenant, or restriction that will continue to affect the project after sale or conveyance.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as required under § 7-204(b) of this subtitle, if the owner receives an offer to purchase the assisted project in the form of a binding purchase contract from an unrelated bona fide purchaser, the terms of the owner’s offer shall be substantially the same as those offered by the bona fide purchaser, including purchase price, terms of payment, financing contingencies, and assumable or purchase money financing.</text> </level> <level label="2"> <text>If the owner has not received an offer that qualifies under paragraph (1) of this subsection:</text> <level label="i"> <text>the purchase price of the owner’s offer shall be the lesser of:</text> <level label="1"> <text>the purchase price of any offer that does not qualify under paragraph (1) of this subsection; and</text> </level> <level label="2"> <text>the fair market value of the property as determined under subsection (d) of this section;</text> </level> </level> <level label="ii"> <text>the owner’s offer shall be accompanied by a written appraisal of the fair market value of the assisted project prepared in accordance with subsection (d) of this section; and</text> </level> <level label="iii"> <text>the remaining terms of the purchase contract:</text> <level label="1"> <text>shall be as required under § 7-204(b) of this subtitle;</text> </level> <level label="2"> <text>shall otherwise conform to terms that are accepted as reasonable in that market; and</text> </level> <level label="3"> <text>are subject to final review by the Department.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>Any party identified in § 7-204(a) of this subtitle may accept the owner’s offer within 120 days after the date of the owner’s offer.</text> </level> <level label="ii"> <text>If more than one party submits a timely acceptance of the owner’s offer, the Secretary shall select as purchaser the party that, in the Secretary’s discretion, the Secretary determines will most benefit the assisted households.</text> </level> <level label="iii"> <text>The owner shall return the entire deposit made by each party whose offer was not accepted.</text> </level> </level> <level label="2"> <text>If a party that has accepted the owner’s offer withdraws the acceptance, any remaining party identified in § 7-204(a) of this subtitle may accept the owner’s offer in accordance with paragraph (1) of this subsection within:</text> <level label="i"> <text>120 days after the date of the offer; or</text> </level> <level label="ii"> <text>60 days after the acceptance is withdrawn.</text> </level> </level> <level label="3"> <text>The acceptance shall be followed by settlement of the purchase of the assisted project by the owner’s stated closing date or any extension agreed to by the owner.</text> </level> </level> <level label="d"> <level label="1"> <level label="i"> <text>If the owner is required by subsection (b)(2) of this section to submit an appraisal, acceptance of the owner’s offer made under this subtitle may state an adjusted purchase price based on an alternate fair market value.</text> </level> <level label="ii"> <text>The alternate fair market value shall be supported by a written appraisal prepared by an appraiser selected by the purchaser and delivered to the owner.</text> </level> </level> <level label="2"> <text>If the owner objects to the adjusted purchase price, the owner and the purchaser may:</text> <level label="i"> <text>set the purchase price at the average of the fair market values each party has obtained by appraisal; or</text> </level> <level label="ii"> <text>have the two appraisers select a third appraiser, whose fee shall be shared equally, and whose fair market value shall be binding.</text> </level> </level> <level label="3"> <text>Each appraiser who submits an appraisal under this subtitle must be a member in good standing of the American Institute of Real Estate Appraisers or the Society of Real Estate Appraisers.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-206" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>This section applies if the owner’s offer is not accepted and the acceptance period under § 7-205(c) of this subtitle has expired.</text> </level> <level label="b"> <text>The owner may sell or convey the assisted project to any person on terms and conditions not more favorable to the purchaser than those of the owner’s offer.</text> </level> <level label="c"> <text>The owner may sell or convey the assisted project on terms and conditions more favorable to the purchaser than those of the original offer under this subtitle only after the owner again offers the right of first purchase as required by this subtitle based on the new terms and conditions.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-207" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>This section applies if:</text> <level label="1"> <text>none of the parties identified in § 7-204(a) of this subtitle exercises the right of first purchase;</text> </level> <level label="2"> <text>the assisted project has not been conveyed in accordance with § 7-206 of this subtitle; and</text> </level> <level label="3"> <text>the owner has not taken a protected action within 2 years after the original notice of intent.</text> </level> </level> <level label="b"> <level label="1"> <text>Before taking a protected action, the owner shall serve another notice of intent on each party identified in § 7-201(b) of this subtitle.</text> </level> <level label="2"> <text>Before taking a protected action under § 7-102(a)(4) of this title, the owner shall serve notice of a right of first purchase as required by this subtitle.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-208" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>At the settlement for an assisted project under a right of first purchase, the purchaser shall execute and record, in a form that the Secretary approves, a covenant running with the land.</text> </level> <level label="b"> <text>The covenant shall restrict the use of all assisted units to residential rental property for assisted households, or to some other purpose approved by the Secretary, for at least the greatest of:</text> <level label="1"> <text>the remaining term of the mortgage as of the date of its prepayment;</text> </level> <level label="2"> <text>the remaining term of the rental assistance agreement, including all stated renewal terms, as of the date of its termination; and</text> </level> <level label="3"> <text>20 years.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-209" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <text>A right of first purchase under this subtitle may be assigned only to another party having the right of first purchase under this subtitle.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="7-210" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>A political subdivision or a housing authority may exercise a right of first purchase under this subtitle and may develop, acquire, improve, own, operate, and manage a rental housing project acquired under the right of first purchase and do all things necessary or convenient to exercise these rights.</text> </level> <level label="b"> <text>In any rental housing project purchased under a right of first purchase under this subtitle and owned or managed by a housing authority authorized under Division II of this article, this subtitle supersedes:</text> <level label="1"> <text>§§ 12-401, 12-402, and 12-405 of this article; and</text> </level> <level label="2"> <text>all otherwise applicable restrictions on tenant income under Division II of this article.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-211" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <text>The right of first purchase under this subtitle does not apply to the prepayment of a mortgage and sale of an assisted project if the prepayment and sale are done under a plan of action approved by the Secretary of Housing and Urban Development under § 225 of the Housing and Community Development Act of 1987, 12 U.S.C. § 4107.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="7-212" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>An owner that gives notice of intent shall provide tenant protection assistance under subsection (b) of this section unless:</text> <level label="1"> <text>the owner has offered the right of first purchase in accordance with this subtitle; and</text> </level> <level label="2"> <text>the assisted project is purchased by a party listed in § 7-204(a) of this subtitle in conjunction with a protected action.</text> </level> </level> <level label="b"> <text>Tenant protection assistance consists of:</text> <level label="1"> <text>paying each assisted household $475 on or before the day that the assisted household vacates the unit;</text> </level> <level label="2"> <text>reimbursing each assisted household for relocation expenses exceeding $475 and up to $950, actually and reasonably incurred; and</text> </level> <level label="3"> <text>offering each assisted household that is current in its rent and has not violated any other material term of its lease, a lease extension for at least 1 year from the giving of the notice of intent.</text> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the periodic rent during the extended lease under subsection (b)(3) of this section may not exceed the amount that the assisted household must contribute for periodic rent under the assisted household’s current lease.</text> </level> <level label="2"> <text>The periodic rent may be increased only on the anniversary of the assisted household’s current lease, and the increase may not exceed the lesser of:</text> <level label="i"> <text>the increase allowed by applicable federal, State, or local law; and</text> </level> <level label="ii"> <text>the product of the amount the household must contribute for periodic rent for the preceding year multiplied by the percentage increase for the U.S. Consumer Price Index that the Secretary selects for the most recent 12-month period.</text> </level> </level> <level label="3"> <text>Except as allowed or required by the Secretary, all other terms and conditions governing the extended lease shall be the same as those of the lease in effect on the day preceding the giving of the notice of intent.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-213" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <text>An assisted household is a designated household if it includes:</text> <level label="1"> <text>an individual who has been a member of the household for at least 12 months before the notice of intent is given and who:</text> <level label="i"> <text>is at least 62 years old on the day that the notice of intent is given; or</text> </level> <level label="ii"> <text>qualifies as a person with disabilities under § 3(b)(3) of the United States Housing Act of 1937, 42 U.S.C. § 1437f; or</text> </level> </level> <level label="2"> <text>a minor.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-214" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <level label="1"> <text>This subsection applies if a protected action affects a unit occupied by a designated household that:</text> <level label="i"> <text>is current in its rent and has not violated any other material term of the lease;</text> </level> <level label="ii"> <text>within 60 days after the giving of the notice of intent, provides the owner with written notice showing that the household qualifies as a designated household and stating that the household is applying for an extended lease under this section; and</text> </level> <level label="iii"> <text>executes the extended lease form delivered in accordance with § 7-216(a)(2) of this subtitle and returns it to the owner within 60 days after the giving of the notice of intent.</text> </level> </level> <level label="2"> <text>Except for a protected action under § 7-102(a)(3) of this title, an owner may not take a protected action that affects a unit in an assisted project occupied by a designated household without offering to the designated household an extended lease for at least 3 years beginning on the day of the giving of the notice of intent.</text> </level> </level> <level label="b"> <level label="1"> <text>The owner shall set aside at least 20% of the assisted units in an assisted project for designated households to receive extended leases under this subtitle.</text> </level> <level label="2"> <text>If the number of assisted units occupied by designated households that meet the standards of subsection (a) of this section exceeds 20% of the assisted units, the owner shall allocate the available units:</text> <level label="i"> <text>first to designated households with an individual described under § 7-213(1) of this subtitle with priority based on length of continuous residence; and</text> </level> <level label="ii"> <text>then to designated households that do not contain such an individual but include a minor, based on length of continuous residence.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-215" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <text>If an assisted project includes a unit occupied by a designated household and the assisted project is sold or conveyed after a protected action:</text> <level label="1"> <text>the provisions of this subtitle concerning extended leases continue to apply despite the sale or conveyance;</text> </level> <level label="2"> <text>the new landlord shall provide each designated household with written notice of the sale or conveyance; and</text> </level> <level label="3"> <text>on or before the execution of a contract of sale, the seller shall provide the purchaser with written disclosure of each unit occupied by a designated household subject to the provisions concerning extended leases for designated households.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-216" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>Along with the notice of intent, the owner shall deliver to each assisted household:</text> <level label="1"> <text>an application form on which the assisted household may include the information required by § 7-214(a) of this subtitle;</text> </level> <level label="2"> <text>an extended lease form for a designated household that contains the terms required by this subtitle and clearly indicates that the lease will be effective only if:</text> <level label="i"> <text>the assisted household executes and returns the lease form within 60 days after the giving of the notice of intent; and</text> </level> <level label="ii"> <text>the assisted household is allocated one of the units made available to designated households, based on its ranking under § 7-214(b) of this subtitle and the number of assisted households executing and returning leases; and</text> </level> </level> <level label="3"> <text>a notice that sets forth the rights and obligations of the assisted household under the provisions of this subtitle concerning extended leases for designated households.</text> </level> </level> <level label="b"> <text>Within 75 days after the giving of the notice of intent, the owner shall notify each assisted household that submits the documentation required by § 7-214 of this subtitle:</text> <level label="1"> <text>whether the household meets the standards of § 7-214 of this subtitle, or, if not, an explanation of which standards have not been met; and</text> </level> <level label="2"> <text>whether the extended lease has become effective.</text> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>An extended lease for a designated household shall be for a term beginning on acceptance and ending at least 3 years after the giving of the notice of intent.</text> </level> <level label="ii"> <text>The initial periodic rent for the extended lease may not exceed the amount the household is required to contribute for rent under the household’s current lease.</text> </level> </level> <level label="2"> <text>The periodic rent may be increased only on the anniversary of the assisted household’s extended lease, and the increase may not exceed the product of the amount the household must contribute for periodic rent for the preceding year multiplied by the percentage increase for the U.S. Consumer Price Index that the Secretary selects for the most recent 12-month period.</text> </level> <level label="3"> <text>Except as otherwise provided in this section, the extended lease shall contain the same terms and conditions as the lease in effect on the day before the giving of the notice of intent.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-217" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <text>Within 75 days after giving the notice of intent, the owner shall provide to each party required to receive the notice of intent:</text> <level label="1"> <text>a notice indicating the number of units in the assisted project being made available to designated households under § 7-214(b) of this subtitle;</text> </level> <level label="2"> <text>a list of the households meeting the standards of § 7-214(a) of this subtitle, indicating the ranking of each under § 7-214(b) of this subtitle;</text> </level> <level label="3"> <text>a list of the households returning the documents required by § 7-214(a) of this subtitle that do not meet all of the standards of that subsection and copies of the notices sent to those households under § 7-216(b) of this subtitle; and</text> </level> <level label="4"> <text>a list of the households with effective extended leases.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-218" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <level label="1"> <text>A designated household may terminate an extended lease at any time by giving written notice to the landlord:</text> <level label="i"> <text>at least 1 month in advance, if less than 12 months remain on the lease; or</text> </level> <level label="ii"> <text>at least 3 months in advance, if 12 months or more remain on the lease.</text> </level> </level> <level label="2"> <text>An extended lease for a designated household under this subtitle shall include the termination provisions of this section.</text> </level> </level> <level label="b"> <text>The extended tenancy of a designated household ends:</text> <level label="1"> <text>90 days after the last member of the assisted household who lived in the unit on the date of the notice of intent dies or moves from the unit;</text> </level> <level label="2"> <text>on eviction for failure to pay rent or for violation of another material term of the extended lease; or</text> </level> <level label="3"> <text>on voluntary termination by the designated household under subsection (a) of this section.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-219" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <text>This section applies if a protected action involves substantial rehabilitation or reconstruction that does not allow continued occupancy of a unit because of danger to the health and safety of the household.</text> </level> <level label="b"> <level label="1"> <text>The owner shall give notice of the reconstruction or rehabilitation at least 1 year before the date when the unit must be vacated.</text> </level> <level label="2"> <text>The notice shall explain the household’s rights under this section.</text> </level> </level> <level label="c"> <level label="1"> <text>To allow work to be performed in a unit, a designated household with an extended lease under § 7-216 of this subtitle may be required to:</text> <level label="i"> <text>vacate the unit not earlier than 1 year after the giving of the notice of intent; and</text> </level> <level label="ii"> <text>relocate at the expense of the owner to a comparable unit in the assisted project.</text> </level> </level> <level label="2"> <level label="i"> <text>If a comparable unit is not available, the designated household may be required to vacate the assisted project until the work is completed.</text> </level> <level label="ii"> <text>When the work is completed, the owner shall notify the designated household of the completion of the work.</text> </level> <level label="iii"> <text>The designated household has 30 days to return to the original or a comparable rental unit after the owner notifies the designated household that the work is completed.</text> </level> <level label="iv"> <text>The term of the extended lease begins when the designated household returns to the assisted project.</text> </level> </level> <level label="3"> <text>The owner shall pay all reasonable relocation expenses of a designated household required as a result of subsection (d) of this section.</text> </level> </level> <level label="d"> <level label="1"> <text>The owner shall pay relocation expenses in accordance with § 7-212(b)(2) of this subtitle on or before the date when the designated household vacates the unit.</text> </level> <level label="2"> <text>The owner shall also reimburse a designated household that returns to its unit under subsection (c)(2) of this section for its relocation expenses in accordance with § 7-212(b) of this subtitle.</text> </level> </level> <level label="e"> <level label="1"> <text>In accordance with the schedule of fair market rents of the United States Department of Housing and Urban Development in effect on the moving date, within 15 days after that date, the owner shall pay compensation equivalent to 3 months’ rent for a unit of comparable size and quality to each designated household eligible under this subsection.</text> </level> <level label="2"> <text>A designated household is eligible for compensation under this subsection if it:</text> <level label="i"> <text>is current in its rent payments and has not violated any other material term of its lease;</text> </level> <level label="ii"> <text>includes an individual described under § 7-213(1) of this subtitle and:</text> <level label="1"> <text>does not have an extended lease; or</text> </level> <level label="2"> <text>cannot have an extended lease because the number of assisted units set aside under § 7-214(b) of this subtitle is less than the number of qualified households; or</text> </level> </level> <level label="iii"> <text>otherwise qualifies for an extended lease but is required to vacate its unit under subsection (c)(2) of this section.</text> </level> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-220" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="2" subtitle_name="Protected Actions"> <level label="a"> <level label="1"> <text>After notice and public hearing, a political subdivision may find that, because of a protected action, a low-income and moderate-income rental housing emergency exists in all or part of its jurisdiction.</text> </level> <level label="2"> <text>The political subdivision shall make findings as to:</text> <level label="i"> <text>the nature and incidence of protected actions;</text> </level> <level label="ii"> <text>the resulting hardship to and displacement of tenants; and</text> </level> <level label="iii"> <text>the scarcity of low-income and moderate-income rental housing.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, on finding that there is an emergency under this section, a political subdivision may enact a law, ordinance, or regulation to:</text> <level label="i"> <text>grant to a designated household a right to an extended lease for a period in addition to that granted under § 7-214 of this subtitle; or</text> </level> <level label="ii"> <text>extend any other provision of this subtitle concerning extended leases.</text> </level> </level> <level label="2"> <text>A political subdivision may not require that:</text> <level label="i"> <text>more than 20% of assisted units in an assisted project be set aside for extended leases for designated households; or</text> </level> <level label="ii"> <text>the term of an extended lease for any household made a designated household by the political subdivision exceed 3 years.</text> </level> </level> <level label="3"> <text>The political subdivision may require that the notice required under § 7-216(a)(3) of this subtitle be modified to disclose the effects of any actions taken under this section.</text> </level> </level> <level label="c"> <text>Within 10 days after enacting a law, ordinance, or regulation in accordance with this section, a political subdivision shall send a copy to the Secretary of State and the Secretary of Housing and Community Development.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-301" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="3" subtitle_name="Rights and Duties"> <text>In connection with a protected action, each tenant shall cooperate with the owner in providing information necessary to certify eligibility for housing subsidy payments and in executing all necessary documents.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="7-302" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="3" subtitle_name="Rights and Duties"> <level label="a"> <text>A tenant may not:</text> <level label="1"> <text>waive or assign the tenant’s rights under this title; or</text> </level> <level label="2"> <text>receive consideration to relinquish rights under this title.</text> </level> </level> <level label="b"> <text>A waiver or relinquishment made in violation of this section is void.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-303" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="3" subtitle_name="Rights and Duties"> <text>If a new tenant moves into an assisted unit after a notice of intent is given, the owner shall give the new tenant written notice that:</text> <level label="1"> <text>sets forth any rent increase that the owner plans after the protected action; and</text> </level> <level label="2"> <text>states that the new tenant will not be entitled to tenant protection assistance.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-304" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="3" subtitle_name="Rights and Duties"> <text>Before taking a protected action, an owner may not terminate without cause the leasehold interest of a tenant occupying an assisted unit to avoid the owner’s obligations under this title.</text> </section> <section article="ghs" article_name="Housing and Community Development" number="7-305" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="3" subtitle_name="Rights and Duties"> <level label="a"> <text>In this section, “excess rent” means rent that exceeds the rent payable by a tenant under the tenant’s lease as of the date of the notice of intent, adjusted as allowed under § 7-212(c) of this title.</text> </level> <level label="b"> <text>Until 1 year has passed since the owner gave notice of intent, and the owner complies with the requirements of this title, nonpayment of excess rent is not grounds for an owner to:</text> <level label="1"> <text>terminate a lease of an assisted unit; or</text> </level> <level label="2"> <text>sue for possession of the leased property.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-306" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="3" subtitle_name="Rights and Duties"> <level label="a"> <text>In connection with a protected action, an owner:</text> <level label="1"> <text>may not terminate or alter the terms and conditions of a lease entered into before the effective date of the protected action;</text> </level> <level label="2"> <text>may not interfere with the efforts of individual tenants to obtain housing subsidies or other public assistance;</text> </level> <level label="3"> <text>may not discriminate based on source of income or receipt of a housing subsidy;</text> </level> <level label="4"> <text>may not interfere with the rights of a tenant to occupy an assisted unit under an existing lease or applicable federal, State, or local law; and</text> </level> <level label="5"> <text>shall cooperate with a tenant to execute all necessary documents to enable the payment of housing subsidies to or for the tenant.</text> </level> </level> <level label="b"> <text>If the owner has interfered with a tenant’s application for a housing subsidy or other public assistance, the nonpayment of any amount of rent for an assisted unit in excess of 30% of the tenant’s income is not grounds for the owner to terminate the lease or sue for possession of the leased property.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-307" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="3" subtitle_name="Rights and Duties"> <text>The person responsible for the closing of a real estate transaction shall file with the Department a written statement, made and signed by the owner under the penalties of perjury, that the transaction complies with this title, if the transaction includes:</text> <level label="1"> <text>a sale or conveyance of an assisted project or the real property associated with it, and:</text> <level label="i"> <text>is a protected action; or</text> </level> <level label="ii"> <text>occurred within 10 years after a protected action for which the owner failed to comply with this title; or</text> </level> </level> <level label="2"> <text>a release of:</text> <level label="i"> <text>a mortgage secured by an assisted project; or</text> </level> <level label="ii"> <text>a regulatory agreement or other document executed in connection with the mortgage that restricts the income levels of the tenants or the rental rates of the assisted project.</text> </level> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-401" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="4" subtitle_name="Enforcement"> <text>This title may be enforced at law or in equity by:</text> <level label="1"> <text>the Department;</text> </level> <level label="2"> <text>an assisted household in occupancy when the owner delivered or should have delivered a notice of intent;</text> </level> <level label="3"> <text>a political subdivision where the assisted project is located; or</text> </level> <level label="4"> <text>the public housing authority.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-402" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="4" subtitle_name="Enforcement"> <text>To enforce this title, a court may enjoin an action:</text> <level label="1"> <text>prohibited by this title; or</text> </level> <level label="2"> <text>taken before preliminary actions required by this title have been completed.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-403" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="4" subtitle_name="Enforcement"> <text>A violation of this title is within the scope of the enforcement duties and powers of the Division of Consumer Protection of the Office of the Attorney General under Title 13 of the Commercial Law Article, if the violation results in:</text> <level label="1"> <text>displacement of a tenant or former tenant from an assisted unit;</text> </level> <level label="2"> <text>increased rents for a tenant or former tenant of an assisted unit; or</text> </level> <level label="3"> <text>another violation of the rights of a tenant or former tenant of an assisted unit.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-404" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="4" subtitle_name="Enforcement"> <level label="a"> <level label="1"> <text>A person may not knowingly make or cause to be made a false statement or report in a document that is required to be submitted under this title.</text> </level> <level label="2"> <text>A person may not knowingly make or cause to be made a false statement or report to influence the action of the Department in connection with this title.</text> </level> </level> <level label="b"> <text>A person who violates this title is subject to civil liability and to a civil penalty not exceeding $1,000,000.</text> </level> </section> <section article="ghs" article_name="Housing and Community Development" number="7-501" title_number="7" title_name="Assisted Housing Preservation Act" subtitle_number="5" subtitle_name="Short Title"> <text>This title is the Assisted Housing Preservation Act.</text> </section>