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Maryland Code ARTICLE 83B DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TITLE 9. ASSISTED HOUSING PRESERVATION ACT
§ 9-101. Definitions. (a) In general.- In this title the following words have the meanings indicated. (b) Assisted household.- "Assisted household" means an individual or individuals who occupy a rental unit in an assisted project and whose gross annual income does not exceed upper income limits imposed by any federal, State, or local government program providing financial assistance to the assisted project, or such upper income limits as may be established by the Secretary from time to time, which limits may vary for any particular project or particular area of the State to the extent necessary to achieve the purposes of this title. (c) Assisted project.- "Assisted project" means 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 residence, and where either: (1) Any loan financing the property is insured or assisted under § 221 (d) (3), § 202, or § 236 (a) or (b) of the National Housing Act or § 515 of the Housing Act of 1949; or (2) The project, the owner of the project, or any lender to the project, is receiving project-based § 8 rental assistance. (d) Assisted units.- "Assisted units" means all the dwelling units in an assisted project subject to regulatory requirements with respect to: (1) The rents chargeable by the owner; or (2) The maximum annual income of the tenant occupying the unit, which may depend upon the income of the tenant for assisted projects where a given percentage of the total number of units are required to be occupied by income qualifying tenants. (e) Fair market value; fair market valuation.- "Fair market value" or "fair market valuation" means the price which a willing buyer would pay to a willing seller, neither under any compulsion, for a residential rental project, assuming the highest and best use under current zoning and no requirements to rent to low income tenants, except for the requirements of any federal, State, or local law or regulation, governmental program, agreement, covenant, or restriction which will continue to affect the project following the date of the sale or conveyance, including the requirements of § 9-106 of this title. (f) Local jurisdiction.- "Local jurisdiction" means any of the 23 counties in Maryland, the City of Baltimore, and any municipal corporation in Maryland subject to the provisions of Article XI-E of the Constitution. (g) Owner; property owner.- "Owner" or "property owner" means the person or combination of persons who hold legal title to the assisted project or any mortgagee in possession, receiver, trustee or other person which may take a protected action. (h) Owner's offer.- "Owner's offer" means the written offer by the owner to the parties having a right of first purchase under § 9-104 of this title. (i) Project-based § 8 rental assistance.- "Project-based § 8 rental assistance" means federal rental assistance under § 8 of the United States Housing Act of 1937, to the owner or lender of a housing project under new construction, substantial rehabilitation, loan management assistance, or property disposition programs, specifically excluding rental assistance directly to tenants under the existing certificate or voucher programs. (j) Protected action.- "Protected action" means any sale, conveyance, transfer, prepayment, termination, failure to renew, or expiration as described in § 9-102 (b) of this title. (k) Relocation expenses.- "Relocation expenses" means costs incurred to: (1) Hire contractors, labor, vehicles, or equipment to transport personal property; (2) Pack and unpack personal property; (3) Disconnect and reconnect utilities such as water, telephone, gas, electric, and related services; (4) Disconnect and install personal property; (5) Insure personal property to be moved; (6) Fund rental application fees and security deposits; and (7) Such other reasonable costs as determined by the Secretary. (l) Sale or conveyance of an assisted project.- "Sale or conveyance of an assisted project" means any sale, conveyance, or other transfer of an assisted project, including by sale or other transfer of any general partnership interests or, in any one calendar year, more than 10% of any limited partnership interests of the owner, or more than 10% of the stock of the owner, or by transfer by any beneficiary of any beneficial or equitable interests under a trust for which the trustee holds title to the project, or such other transfer as determined by the Secretary. (m) Settlement agent.- "Settlement agent" means any person responsible for the closing of a real estate transaction, which transaction includes a sale, conveyance, or release governed by § 9-110 (a) of this title. (n) Tenant protection assistance.- "Tenant protection assistance" means the 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 § 9-105 of this title. [1989, ch. 96; 1992, ch. 22, § 1.]
§ 9-102. Applicability of title; exemptions. (a) Applicability of title generally; exemptions.- (1) The provisions of this title do not apply: (i) If, prior to any protected action, the owner or purchaser records a covenant running with the land on which the assisted project is located, in a form satisfactory to the Secretary, which continues for the project the existing low income rental restrictions of the federal housing program: 1. For the duration of the term remaining as of the date of prepayment of any mortgage described under subsection (b) (1) of this section; and 2. For the duration of the remaining term as of the date of termination, including all stated and unexercised renewal terms, of any rental assistance agreement described under subsection (b) (2) of this section or 5 years, whichever is greater; or (ii) If any sale or conveyance of an assisted project: 1. Is subject to the continuation of the existing mortgage financing described under subsection (b) (1) of this section; and 2. Does not occur following or at the date of a termination, failure to renew, or expiration of project-based § 8 rental assistance as described under subsection (b) (2) of this section. (2) By rule or regulation the Secretary shall establish standards and procedures by which interested persons may seek and obtain exemptions from any requirement of § 9-104, § 9-105, or § 9-106 of this title: (i) If Title II of the Housing and Community Development Act of 1987 continues, is amended, or extended, or if a successor federal law is enacted; and (ii) 1. To diminish the burdens of dual regulation; or 2. To prevent the inconsistent or inequitable application of federal and State law. (b) Actions subject to title provisions.- Every owner of an assisted project located in the State, who takes or intends to take any of the following protected actions, shall be subject to the provisions of this title: (1) The prepayment in full before the maturity date of any mortgage financing which is: (i) Insured under § 221 (d) (3) of the National Housing Act, and assisted: 1. Under § 101 of the Housing and Urban Development Act of 1965; or 2. Under § 8 of the United States Housing Act of 1937; (ii) Insured under § 221 (d) (3) of the National Housing Act and bears interest at a rate determined under the provisions of § 221 (d) (5) of the National Housing Act; (iii) Insured or assisted under § 202 or § 236 (a) or (b) of the National Housing Act; (iv) Insured or assisted under § 515 of the Housing Act of 1949; or (v) Held by the United States Department of Housing and Urban Development and insured or assisted, or formerly insured or assisted, under a program referred to in subparagraph (i), (ii), (iii), or (iv) of this paragraph; (2) (i) The termination before expiration of or failure to exercise any stated renewal option under any agreement providing for project-based § 8 rental assistance to any units in an assisted project; or (ii) The expiration, including any failure to extend following the expiration, of any agreement providing for project-based § 8 rental assistance to any units in an assisted project; or (3) The sale or conveyance of an assisted project by the owner in conjunction with or within 1 year following the effective date of any of the events described in paragraph (1) or paragraph (2) of this subsection. [1989, ch. 96.]
§ 9-103. Notice of intent. (a) Time for giving notice.- (1) Not less than 1 year and not more than 2 years before the effective date of any protected action, the owner of an assisted project shall give a written notice of intent in accordance with the provisions of this section. (2) Except for a protected action under § 9-102 (b) (2) of this title, the notice of intent may not be given before January 1, 1990. (b) Persons to receive notice.- A notice of intent as required by subsection (a) of this section shall be given to each of the following: (1) The chief executive officers of each local jurisdiction in which the assisted project is located; (2) Any public housing authority existing in any local jurisdiction where the assisted project is located; (3) If the tenant association has previously notified the owner of the title and mailing address of a person to whom the notice can be delivered, any tenant association representing any of the rental units in the assisted project; (4) Each assisted household of the assisted project; and (5) The Secretary, who shall notify any other person who has requested such notice. (c) Contents - In general.- Except for the notice of intent to each assisted household, a notice of intent shall: (1) State the intention of the owner of an assisted project to initiate or permit any protected action. (2) Provide sufficient information to enable the Department to evaluate whether the protected action will be legally permissible as of the date of the proposed protected action. (3) Include the following additional information: (i) The expected impact of the protected action on rents and the continued occupancy by existing assisted households over a period of 3 years following the proposed action; (ii) Data compiled from the most recent tenant recertification forms and other documents required by the United States Department of Housing and Urban Development, United States Department of Agriculture, or the Department regarding: 1. The number of assisted households; 2. The number of assisted units by number of bedrooms; 3. The distribution of assisted households by race, gender, income, and family size; 4. The number of elderly and handicapped households; and 5. The number of households with minors; (iii) Financial information relating to the assisted project, as required by the Department and based on existing financial data retained by the owner, for the 3 years immediately preceding the date of the notice of intent; and (iv) To the extent reasonably available, a list of all households for which the household's lease at the assisted project was terminated during the 180 days before the notice of intent. (d) Same - Notice to assisted households.- The notice of intent to be sent to each assisted household shall contain a brief summary of the protected action, and shall include: (1) A brief statement regarding the expected impact of the protected action on rents and the existing assisted household's continued occupancy for a period of 5 years following the action; (2) A summary statement of the assisted household's rights and obligations under this title; (3) Notice that the local jurisdictions, any public housing authority, and the Department may have additional information regarding the anticipated protected action and sources of technical assistance and financing for the exercise of any right of first purchase under this title; (4) 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 (5) Any other information deemed necessary by the Secretary to effectuate the purposes of this title. [1989, ch. 96.] § 9-104. Prerequisites to taking protected actions; right of first purchase; covenants; additional notices; sale or conveyance. (a) Prerequisites to taking protected actions.- An owner of an assisted project may not take any protected action, unless: (1) The owner has provided all tenant protection assistance under this title; and (2) Prior to any sale or conveyance of an assisted project which constitutes a protected action, the owner has offered the right of first purchase of the assisted project in accordance with this section. (b) Offer of right of first purchase - Notice.- (1) The owner shall provide the offer of the right of first purchase of the assisted project by a written notice, delivered concurrently with or following the notice of intent, and with a copy to the Department, to the following parties: (i) The local housing authority, if any; (ii) Each applicable local jurisdiction; and (iii) If the following have registered with the Secretary: 1. Any group representing any of the existing tenants at the assisted project; 2. Any low income housing developer exempt from taxation under § 501 (a) of the Internal Revenue Code of 1986, as amended, or the corresponding provision of any succeeding internal revenue law; and 3. Any other individual, partnership, or corporation with experience in the ownership or operation of low income housing projects and which is unrelated to the owner. (2) The offer shall be delivered to the parties registered pursuant to the provisions of subsection (b) (1) (iii) of this section within 10 days after the Secretary has delivered to the owner the title and mailing address of a person to whom the offer may be delivered. (c) Same - Contents.- The owner's offer shall include: (1) The date of the owner's offer, which shall be deemed to be the date on which the offer is delivered to the last local jurisdiction required to receive the offer; (2) The terms of the offer, which shall include: (i) The purchase price as determined under subsection (d) of this section; (ii) A final date for settlement, which may not be earlier than 1 year from the later of the date of the owner's offer or the date of the notice of intent; (iii) A contingency for the acquisition of financing which may not expire before the final date for settlement; (iv) Except as provided in subsection (e) (1) (iii) of this section, a requirement that the first $10,000 of any deposit by the purchaser shall be nonrefundable; and (v) Other purchase contract terms as determined under subsection (d) of this section; (3) A summary of the procedures and timing for the exercise of the purchase right as specified under this title and any regulations. (d) Same - Terms; appraisal.- (1) If the owner has received an offer to purchase the assisted project from an unrelated bona fide purchaser for value, then except as required under subsection (c) of this section, the terms of the owner's offer shall be substantially the same terms and conditions as offered in a binding purchase contract to the owner by the bona fide purchaser including the purchase price, terms of payment, any financing contingencies, and any assumable or purchase money financing. (2) If the owner has not received an offer which qualifies under subsection (d) (1) of this section: (i) The purchase price of the owner's offer shall be deemed to be the lesser of: 1. The purchase price of any offer which does not qualify under paragraph (1) of this subsection; or 2. The fair market value of the property as determined under subsection (f) of this section; (ii) 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 (f) of this section; and (iii) The remaining terms of the purchase contract shall be as required under subsection (c) of this section and shall otherwise conform to terms that are accepted as reasonable in that market, subject to final review by the Department. (e) Same - Acceptance generally.- (1) (i) Any of the parties identified in subsection (a) of this section shall have the right to accept the owner's offer within 120 days of the date of the offer. (ii) If more than one party submits an acceptance of the owner's offer within the original 120-day period, the Secretary shall determine which party shall have the right to accept the owner's offer based upon which party's acceptance, in the Secretary's sole discretion, will most benefit the assisted households. (iii) An owner shall return to a person that person's entire deposit made in acceptance of an owner's offer if the Secretary determines under subparagraph (ii) of this paragraph that another person shall have the right to accept the owner's offer. (2) If the original accepting party subsequently withdraws its acceptance of the owner's offer, any of the remaining parties identified in subsection (a) of this section shall have the right to accept the owner's offer in accordance with the provisions of paragraph (1) of this subsection during the 60-day period following the date on which the original accepting party withdraws its acceptance, or the original 120-day acceptance period, whichever is longer. (3) Any such acceptance must 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. (f) Same - Adjustment of price.- (1) If the owner is obligated in connection with the owner's offer to submit an appraisal in accordance with subsection (d) (2) of this section, any acceptance by a party hereunder of the owner's offer may contain notice that the purchase price of the owner's offer is deemed adjusted to a price based on an alternate fair market valuation. Such valuation shall be supported by delivery to the owner of a written appraisal prepared by an appraiser selected by the party exercising the right of first purchase. (2) If the owner objects to the adjusted purchase price established by such appraisal, the owner and the accepting party shall have the option to either: (i) Set the purchase price at the average of the fair market valuations each party has obtained by appraisal; or (ii) Have the 2 appraisers select a third appraiser, whose fee shall be shared equally, and whose fair market valuation shall be binding on the owner and the party exercising the right of first purchase. (3) To be entitled to submit an appraisal under this title, all appraisers shall be members in good standing of the American Institute of Real Estate Appraisers or the Society of Real Estate Appraisers. (g) Covenants.- At the settlement of any purchase of the assisted project under a right of first purchase, the purchaser shall execute and record a covenant running with the land in a form approved by the Secretary that shall restrict the use of all assisted units at the property to residential rental property for assisted households or other approved purposes for at least the greater of: (1) The duration of the remaining term as of the date of prepayment of any mortgage described under § 9-102 (b) (1) of this title; (2) The duration of the remaining term as of the date of termination, including all stated renewal terms, of any rental assistance agreement described under § 9-102 (b) (2) of this title; or (3) 20 years. (h) Additional notices.- If none of the parties set forth in subsection (b) of this section exercises the right of first purchase and the assisted project has not been conveyed in accordance with subsection (i) of this section and the owner has not taken any protected action within 2 years following the original notice of intent, the owner must before taking any protected action serve a further notice of intent to all parties under § 9-103 of this title and for a protected action described under § 9-102 (b) (3) of this title, notice of a right to first purchase as required under subsection (b) of this section. (i) Sale or conveyance.- (1) If there is no acceptance of the owner's offer, the owner may proceed, upon expiration of the applicable acceptance period under subsection (e) of this section, with the proposed sale or conveyance of the assisted project to any person on terms and conditions not more favorable to the purchaser than the terms of the owner's offer. (2) If the sale or conveyance is to be on terms and conditions more favorable to the purchaser than the terms of the owner's offer, the owner shall again offer the right of first purchase as required under this section based upon the terms of the new offer. (j) Right of first purchase - Assignment.- Rights of first purchase under this title may only be assigned to other parties having the right of first purchase under this title. (k) Same - Local governments; housing authorities.- (1) Any local government and any housing authority shall have the power to exercise a right of first purchase under this section, including the powers to develop, acquire, improve, own, operate, and manage rental housing projects acquired under the right of first purchase and to do all things necessary or convenient to such purposes. (2) With respect to any rental housing project purchased under a right of first purchase under this section which is owned or managed by any housing authority authorized under Article 44A of the Code, the provisions of this subtitle shall supersede the provisions of Article 44A, §§ 1-401 through 1-403 of the Code and any otherwise applicable restrictions on tenant income provided for in Article 44A of the Code. (l) Same - Applicability.- The right of first purchase under this section may not apply to any prepayment of a mortgage and sale of an assisted project otherwise constituting a protected action if the prepayment and sale is pursuant to a plan of action approved by the Secretary of Housing and Urban Development under § 225 of the Housing and Community Development Act of 1987. [1989, ch. 96; 1990, ch. 6, § 2; 1995, ch. 3, § 1; ch. 4, § 1.] § 9-105. Tenant protection assistance. (a) In general.- Unless the owner has offered the right of first purchase in accordance with § 9-104 of this title, and the assisted project is purchased by any party listed in § 9-104 (b) of this title in conjunction with any protected action, the owner shall provide the tenant protection assistance by: (1) Paying to each assisted household, an amount equal to the sum of: (i) $475 no later than the date on which the assisted household vacates the unit; and (ii) Reimbursement to the assisted household for relocation expenses in excess of $475 up to $950 which are actually and reasonably incurred; and (2) Offering to each assisted household which is current in its rent payment and has not violated any other material term of its lease, a lease extension for a period of at least 1 year from the giving of the notice of intent. (b) Lease extensions.- (1) The rate of rent for the extended lease under subsection (a) (2) of this section may not exceed the amount required to be contributed by the assisted household for rent under the assisted household's current lease, and may only be increased on the anniversary of the commencement date of the assisted household's current lease. (2) Any such increase may not exceed the lesser of (i) the amount of increase permitted by applicable federal, State, or local law, and (ii) an amount determined by multiplying the amount required to be contributed by the assisted household for rent for the preceding year by the percentage increase for the applicable U.S. Consumer Price Index, as selected by the Secretary, for the most recent 12-month period. (3) Except as permitted or required by the Secretary, all other terms, conditions, and procedures governing the extended lease shall be the same as the lease in effect on the day preceding the giving of the notice of intent. [1989, ch. 96.] § 9-106. Lease extensions. (a) Definitions.- (1) In this section the following words have the meanings indicated. (2) "Designated household" means any of the following households: (i) An assisted household which includes a senior citizen or a handicapped citizen, provided that the senior citizen or the handicapped citizen has been a member of the household for a period of at least 12 months preceding the giving of the notice of intent required by § 9-103 of this title; or (ii) An assisted household which includes a minor. (3) "Handicapped citizen" means a person within the definition of person with disabilities in § 3 (b) (3) of the United States Housing Act of 1937. (4) "Senior citizen" means a person who is at least 62 years old on the date that the notice of intent is given. (b) Eligible households.- Except for a protected action under § 9-102 (b) (2) (ii) of this title, an owner may not take a protected action affecting any unit in an assisted project occupied by a designated household without offering to the assisted household which is the tenant of the unit a lease extension for a period of at least 3 years from the date of the giving of the notice of intent, if the household: (1) Is current in its rent payment and has not violated any other material term of the lease; (2) Has provided the owner within 60 days after the giving of the notice of intent with a written notice: (i) Stating that the household is applying for an extended lease under this section; and (ii) Setting forth facts, as applicable, showing that: 1. A member of the household is either a handicapped citizen or a senior citizen who has been a member of the household for at least 12 months preceding the giving of the notice of intent; or 2. A member of the household is a minor; and (3) Has executed an extended lease and returned it to the owner within 60 days after the giving of the notice of intent. (c) Application; lease; notice.- The owner shall deliver to each assisted household entitled to receive the notice of intent, simultaneously with the notice of intent: (1) An application on which may be included all of the information required by subsection (b) (3) of this section; (2) A lease containing the terms required by this section and clearly indicating that the lease will be effective only if: (i) The assisted household executes and returns the lease not later than 60 days after the giving of the notice of intent; and (ii) The assisted household is allocated 1 of the units required to be made available to qualified households, based on its ranking under subsection (j) of this section and the number of assisted households executing and returning leases; and (3) A notice setting forth the rights and obligations of the assisted household under this section. (d) Notice of qualification and lease effectiveness.- Within 75 days after the giving of the notice of intent, the owner shall notify each assisted household which submits to the owner the documentation required by subsection (b) (2) and (3) of this section: (1) Whether the household meets the applicable criteria of subsection (b) of this section, and, if not, an explanation of which criteria have not been met; and (2) Whether the extended lease has become effective. (e) Notices to all parties receiving notice of intent.- Within 75 days after the giving of the notice of intent, the owner shall provide to all parties required to receive the notice: (1) A notice indicating the number of units in the assisted project being made available to qualified households under subsection (j) (1) of this section; (2) A list of all households meeting the applicable criteria of subsection (b) of this section, indicating the ranking of each in accordance with the priorities under subsection (j) of this section in relation to that number; (3) A list of all households returning the documents required by subsection (b) of this section which do not meet all the applicable criteria of subsection (b) of this section and copies of the notifications sent to these households under subsection (d) of this section; and (4) A list of all households as to whom a lease has become effective. (f) Terms and conditions.- (1) (i) The extended lease shall provide for a term commencing on acceptance and terminating not less than 3 years from the giving of the notice of intent. (ii) The initial rate of rent for the extended lease may not exceed the amount required to be contributed by the household for rent under the household's current lease. (2) (i) Annually, on the anniversary of the commencement date of the extended lease, the rental fee for the unit may be increased. (ii) The increase may not exceed an amount determined by multiplying the amount required to be contributed by the household for annual rent for the preceding year by the percentage increase for the applicable U.S. Consumer Price Index, as selected by the Secretary, for the most recent 12-month period. (3) Except as this section otherwise permits or requires, the extended lease shall contain the same terms and conditions as the lease in effect on the day preceding the giving of the notice of intent. (g) Termination by designated household.- (1) A designated household which executes an extended lease under this section which is accepted thereafter may terminate its extended lease at any time, with notice to the owner or any subsequent titleholder as follows: (i) At least a 1-month notice in writing shall be given when less than 12 months remain on the lease; or (ii) At least a 3-month notice in writing shall be given when 12 months or more remain on the lease. (2) Any lease executed under this section shall set forth the provisions for termination contained in this subsection. (h) Sale or conveyances.- If an assisted project which includes any units subject to the provisions of this section is sold or conveyed following a protected action: (1) The provisions of this section shall continue to apply despite any such transfer of title; (2) Each designated household shall be provided with written notice of the change of ownership of title by the new titleholder; and (3) The seller of the project shall provide to the purchaser written disclosure of each unit occupied by a designated household subject to the provisions of this section at the time of or prior to the execution of a contract of sale. (i) Cessation of extended tenancy.- The extended tenancy provided for in this section shall cease upon the occurrence of any of the following: (1) 90 days after the death of the last surviving member of the assisted household who was residing in the unit at the date of the notice of intent, or 90 days after the last member of the assisted household at the date of the notice of intent has moved from the unit; (2) Eviction for failure to pay rent due in a timely fashion or violation of a material term of the lease; or (3) Voluntary termination of the lease by the designated household under subsection (g) of this section. (j) Number of eligible units; allocation; priorities.- (1) An owner shall set aside at least 20 percent of the total number of assisted units within an assisted project to be available for designated households to receive extended leases under this section. (2) If the number of assisted units occupied by designated households which meet the criteria of subsection (b) of this section exceeds 20 percent of the total number of assisted units, the number of available units for tenancy under the provisions of this section shall be allocated by the owner in the following order of priority: (i) To assisted households which include a senior citizen or a handicapped citizen; however if such households exceed 20 percent, priority shall be based on seniority by continuous length of residence; and (ii) Any remaining units shall be allocated to assisted households which include a minor, based on seniority by continuous length of residence. (k) Relocation during rehabilitation, etc.- (1) If the protected action involves substantial rehabilitation or reconstruction of such a nature that the work involved does not permit the continued occupancy of a unit because of danger to the health and safety of the households, any designated household executing an extended lease under the provisions of this section may be required to vacate their unit not earlier than the expiration of 1 year following the notice of intent and to relocate at the expense of the owner in a comparable unit in the assisted project to permit such work to be performed. (2) If there is no comparable unit available, the designated household may be required to vacate the assisted project. When the work is completed, the owner shall notify the household of its completion. The household shall have 30 days from the date of that notice to return to their original or a comparable rental unit. The term of the extended lease of that household shall begin upon their return to the rental unit. The owner shall pay all reasonable relocation expenses of the household required as a result of this subsection. (3) The owner shall give notice of 1 year before the date that units must be vacated. The notice shall explain the household's rights under this subsection and subsection (l) of this section. (l) Relocation expenses and compensation.- (1) No later than the date on which the designated household vacates the unit, the owner shall pay relocation expenses in accordance with § 9-105 (a) of this title. (2) In accordance with the schedule of fair market rents promulgated by the United States Department of Housing and Urban Development in effect at the moving date, the owner shall also pay within 15 days of moving to the designated households eligible under this subsection a compensation equivalent to 3 months rent for a unit of comparable size and quality. (3) The following designated households which are current in rent payments and have not violated any material term of their leases are eligible under subsection (l) (2) of this section: (i) A designated household which includes a senior citizen or a handicapped citizen and which does not execute an extended lease; (ii) A designated household which includes a senior citizen or a handicapped citizen and which is precluded from having an extended tenancy by the limitation of subsection (j) of this section; or (iii) A designated household which otherwise qualifies for an extended tenancy and is required to vacate their rental unit under subsection (k) (2) of this section. (4) An owner shall also reimburse relocation expenses in accordance with § 9-105 (a) of this title, to a designated household which returns to its rental unit under subsection (k) (2) of this section. [1989, ch. 96; 1996, ch. 10, § 1.] § 9-107. Low and moderate income rental housing emergencies.
(a) Legislative findings.- After due notice and public hearing, a local government may, by legislative finding, recognize and declare that a low and moderate income rental housing emergency exists in all or part of its jurisdiction and has been caused by the taking of protected actions. The jurisdiction shall consider and make findings as to: (1) The nature and incidence of the protected actions; (2) The resulting hardship to and displacement of tenants; and (3) The scarcity of low and moderate income rental housing. (b) Actions.- Upon finding and declaration of a low and moderate income rental housing emergency caused by the taking of protected actions, a local government may by the enactment of laws, ordinances, and regulations, take the following actions to meet the emergency: (1) Grant to a designated household as defined in § 9-106 of this title a right to an extended lease for a period in addition to that period provided for in § 9-106 of this title. The right to an extended lease may not, in any event, result in a requirement that an owner set aside for an extended lease more than 20 percent of the total number of assisted units; (2) Otherwise extend any of the provisions of § 9-106 of this title except that: (i) More than 20 percent of the total number of assisted units may not be required to be set aside; and (ii) The term of an extended lease for any household made a designated household by a local government may not exceed 3 years; (3) Require that the notice required to be given under § 9-106 (c) of this title be altered to disclose the effects of any actions taken under this section. (c) Copy of law, ordinance, etc., to Secretaries.- Within 10 days of the enactment of a law, ordinance, or regulation under this section, a local government shall forward a copy of the law, ordinance, or regulation to the Secretary of State and the Secretary. [1989, ch. 96.] § 9-108. Tenants' rights. (a) Waiver or assignment of rights.- A tenant may not waive or assign, by written contract or otherwise, the rights of a tenant under this title, or receive consideration for relinquishment of the rights of a tenant hereunder and any such waiver or relinquishment is void ab initio. (b) Termination of lease without cause.- An owner may not terminate without cause the leasehold interest of any tenant occupying an assisted unit prior to any protected action in order to avoid the owner's obligations under this title. (c) Excess rent.- (1) In this subsection, "excess rent" means any rent which exceeds the rate of rent to be paid by the tenant under the tenant's lease as of the date of the notice of intent, adjusted as permitted under § 9-105 (b) of this title. (2) Until the last to occur of (i) 1 year following any notice of intent required under this title and (ii) compliance by the owner with the requirements of this title, the nonpayment of excess rent as defined under this subsection may not be considered legally sufficient grounds as to an assisted unit for termination of a lease or an action for possession of the leasehold premises by the owner. (d) Notices.- An owner shall notify in writing any tenant which occupies an assisted unit after the notice of intent: (1) Of any rent increase planned by the owner following the protected action; and (2) That the tenant will not be entitled to tenant protection assistance. [1989, ch. 96.] § 9-109. Duties of owners and tenants. In connection with any protected action: (1) An owner may not terminate or alter the terms and conditions of any leases entered into before the effective date of the protected action, or otherwise take any action to interfere with any existing rights of tenants to occupy their units of the assisted project under existing leases or under any applicable federal, State, or local law; (2) All tenants shall cooperate with the owner in providing information necessary to certify eligibility for housing subsidy payments, including execution of all necessary documents; and (3) (i) The owner may not interfere with the efforts of individual tenants to obtain housing subsidies or other public assistance, may not discriminate based on source of income or receipt of housing subsidy, and shall cooperate with the tenant to execute all necessary documents to enable the payment of housing subsidies to or on behalf of the tenant. (ii) If the owner has interfered with the tenant's application for housing subsidies or other public assistance, the nonpayment of any amount of rent for an assisted unit in excess of 30 percent of the tenant's income may not be legally sufficient grounds for termination of the lease or an action for possession of the leasehold premises by the owner. [1989, ch. 96.] § 9-110. Sworn statements; enforcement. (a) Sworn statements.- The settlement agent shall file with the Department a sworn statement executed by the owner under penalty of perjury certifying that the sale, conveyance, or release complies with the provisions of this title in the case of: (1) Any sale or conveyance of an assisted project including the real property associated therewith which constitutes a protected action, or occurs within 10 years following a protected action for which the owner failed to comply with this title; or (2) The release of any mortgage secured by an assisted project or any regulatory agreement or other document executed in connection with the mortgage which restricts the income levels of the tenants or restricts the rental rates of the assisted project. (b) Persons who may enforce title provisions.- The provisions of this title may be enforced either at law or in equity by the Department, any assisted household in occupancy at the time a notice of intent was or should have been delivered by the owner of an assisted project, any applicable local government, or the public housing authority. (c) Injunctions.- The provisions of this title may be enforced by judicial action to enjoin any action: (1) Prohibited by this title; or (2) Taken where the preliminary actions required by this title have not been completed. (d) Authority of Division of Consumer Protection.- To the extent that a violation of any provision of this title results in displacement from, increased rents for, or any other violation of the rights of a tenant or former tenant of an assisted unit, that violation shall be within the scope of the enforcement duties and powers of the Division of Consumer Protection of the Office of the Attorney General, as described in Title 13 of the Commercial Law Article. [1989, ch. 96.] § 9-111. False statements or reports; penalties. (a) False statements or reports - Furnished to Secretary, Department, etc.- A person may not knowingly make or cause any false statement or report to be made in any document required to be furnished to the Secretary, the Department, or any other person or entity in connection with this title. (b) Same - To influence Department action.- A person may not knowingly make or cause any false statement or report to be made for the purpose of influencing the action of the Department in connection with this title. (c) Penalties for violation of title.- Any person who violates any provision of this title is subject to civil liability and to a civil monetary penalty not exceeding $1,000,000. [1989, ch. 96.] § 9-112. Standards and requirements. By regulation, the Secretary shall establish standards and requirements to effectuate the purposes of this title. [1989, ch. 96; 1990, ch. 6, § 2.] § 9-113. Reduction of obligations of tenant, owner, etc. This title does not reduce any obligations or rights of a tenant, local government, or an owner under the provisions of Title 11 of the Real Property Article. [1989, ch. 96.] § 9-114. Short title. This title may be cited as the "Assisted Housing Preservation Act". [1989, ch. 96.]
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