Maryland Condominium Conversion Notice and Tenant Purchase Offer (Ten or More Units)

Maryland Condominium Conversion Notice and Tenant Purchase Offer (Ten or More Units)

Before delivery: Use only for a residential rental facility with ten or more dwelling units. Confirm the condominium's Secretary of State registration first. Complete every bracket and attach the registered public offering statement, extended-lease application, and project-specific extended lease. The purchase offer below must accompany the notice. Give the Secretary of State a copy of the notice and the tenant list when serving tenants. Serve each tenant by hand or certified mail, return receipt requested, postage prepaid, to the tenant's last known address. Confirm the applicable local income figure and allocation rule with counsel. The printed statutory notice model has an outdated Tax–Property cross-reference and an allocation sentence that omits the local rule and wheelchair priority; the notice below follows the current operative sections. This form does not replace a later notice to vacate.

Tenant and unit: [TENANT FULL NAME(S), UNIT, FACILITY ADDRESS]
Owner and landlord, if different: [LEGAL NAMES AND ADDRESSES]
Developer and address for applications: [LEGAL NAME AND DELIVERY ADDRESS]
Facility unit count: [AT LEAST TEN]
Registration order or reference and date: [DETAILS]
Applicable local income eligibility figure and year: [FIGURE(S), AREA, YEAR, SOURCE]
Local allocation rule, if any: [LOCAL LAW OR NONE CONFIRMED]
Date this notice and offer are given: [DATE]
180-day date: [DATE]
60-day application and purchase-acceptance deadline: [DATE]
75-day determination deadline: [DATE]

Statutory notice of intention to create a condominium

NOTICE OF INTENTION TO CREATE A CONDOMINIUM

[NOTICE DATE] (Date)

This is to inform you that the rental facility known as [FACILITY NAME AND ADDRESS] may be converted to a condominium regime in accordance with the Maryland Condominium Act. You may be required to move out of your residence after 180 days have passed from the date of this notice, or in other words, after [180-DAY DATE] (Date).

Section 1 — Rights that apply to all tenants

If you are a tenant in this rental facility and you have not already given notice that you intend to move, you have the following rights, provided you have previously paid your rent and continue to pay your rent and abide by the other conditions of your lease.

(1)    You may remain in your residence on the same rent, terms, and conditions of your existing lease until either the end of your lease term or until [180-DAY DATE] (Date) (the end of the 180–day period), whichever is later. If your lease term ends during the 180–day period, it will be extended on the same rent, terms, and conditions until [180-DAY DATE] (Date) (the end of the 180–day period). In addition, certain households may be entitled to extend their leases beyond the 180 days as described in Section 2.

(2)    You have the right to purchase your residence before it can be sold publicly. A purchase offer describing your right to purchase is required to be included with this notice. If a purchase offer is not included with this notice, the 180–day period that you may remain in your residence does not begin until you receive the purchase offer.

(3)    If you do not choose to purchase your unit, and the annual income for all present members of your household did not exceed [LOCAL INCOME FIGURE] (the applicable income eligibility figure or figures for the appropriate area) for [YEAR], you are entitled to receive $375 when you move out of your residence. You are also entitled to be reimbursed for moving expenses as defined in the Maryland Condominium Act over $375 up to $750 which are actually and reasonably incurred. If the annual income for all present members of your household did exceed [LOCAL INCOME FIGURE] (the applicable income eligibility figure or figures for the appropriate area) for [YEAR], you are entitled to be reimbursed up to $750 for moving expenses as defined in the Maryland Condominium Act actually and reasonably incurred. To receive reimbursement for moving expenses, you must make a written request, accompanied by reasonable evidence of your expenses, within 30 days after you move. You are entitled to be reimbursed within 30 days after your request has been received.

(4)    If you want to move out of your residence before the end of the 180–day period or the end of your lease, you may cancel your lease without penalty by giving at least 30 days prior written notice. However, once you give notice of when you intend to move, you will not have the right to remain in your residence beyond that date.

Section 2 — Right to a three-year lease extension or three-month rent payment for qualifying households

The developer who converts this rental facility to a condominium must offer extended leases to qualified households for up to 20 percent of the units in the rental facility. Households which receive extended leases will have the right to continue renting their residences for at least 3 years from the date of this notice. A household may end an extended lease by giving at least three months’ written notice when 12 months or more remain, or at least one month’s written notice when less than 12 months remain.

Rents under these extended leases may only be increased once a year and are limited by increases in the cost of living index. Read the enclosed lease to learn the additional rights and responsibilities of tenants under extended leases.

In determining whether your household qualifies for an extended lease, the following definitions apply:

(1)    (i)    “Disability” means:

1.    A physical or mental impairment that substantially limits one or more of an individual’s major life activities; or

2.    A record of having a physical or mental impairment that substantially limits one or more of an individual’s major life activities.

(ii)    “Disability” does not include the current illegal use of or addiction to:

1.    A controlled dangerous substance as defined in § 5–101 of the Criminal Law Article; or

2.    A controlled substance as defined in 21 U.S.C. § 802.

(2)    “Senior citizen” means a person who is at least 62 years old on the date of this notice.

(3)    “Annual income” means the total income from all sources for all present members of your household for the income tax year immediately preceding the year in which this notice is issued but shall not include unreimbursed medical expenses if the tenant provides reasonable evidence of the unreimbursed medical expenses or consents in writing to authorize disclosure of relevant information regarding medical expense reimbursement at the time of applying for an extended lease. “Total income” means the same as “gross income” as defined in § 9-104(a)(8) of the Tax – Property Article.

(4)    “Unreimbursed medical expenses” means the cost of medical expenses not otherwise paid for by insurance or some other third party, including medical and hospital insurance premiums, co–payments, and deductibles; Medicare A and B premiums; prescription medications; dental care; vision care; and nursing care provided at home or in a nursing home or home for the aged.

To qualify for an extended lease you must meet all of the following criteria:

(1)    A member of the household must be an individual with a disability or a senior citizen and must be living in your unit as of the date of this notice and must have been a member of your household for at least 12 months preceding the date of this notice; and

(2)    Annual income for all present members of your household must not have exceeded [LOCAL INCOME FIGURE] (the applicable income eligibility figure or figures for the appropriate area) for [YEAR]; and

(3)    You must be current in your rental payments and otherwise in good standing under your existing lease.

If you meet all of these qualifications and desire an extended lease, then you must complete the enclosed form and execute the enclosed lease and return them. The completed form and executed lease must be received at the office listed below within 60 days of the date of this notice, or in other words, by [60-DAY DATE] (Date). If your completed form and executed lease are not received within that time, you will not be entitled to an extended lease.

If qualified applications exceed the 20 percent limit, allocation follows the local governing body’s rule, if one exists. If it does not, the developer allocates by continuous length of residence, giving priority among qualifying households with disabilities to a household that needs wheelchair-accessible housing. See the identified local allocation rule above.

Due to the 20 percent limitation your application for an extended lease must be processed prior to your lease becoming final. Your lease will become final if it is determined that your household is qualified and falls within the 20 percent limitation.

If you return the enclosed form and lease by [60-DAY DATE] (Date) you will be notified within 75 days of the date of this notice, or in other words, by [75-DAY DATE] (Date), whether you are qualified and whether your household falls within the 20 percent limitation.

You may apply for an extended lease and, at the same time, choose to purchase your unit. If you apply for and receive an extended lease, your purchase contract will be void. If you do not receive an extended lease, your purchase contract will be effective and you will be obligated to buy your unit.

If you qualify for an extended lease, but due to the 20 percent limitation, your lease is not finalized, the developer must pay you an amount equal to 3 months rent within 15 days after you move. You are also entitled to up to $750 reimbursement for your moving expenses, as described in Section 1.

If you qualify for an extended lease, but do not want one, you are also entitled to both the moving expense reimbursement previously described, and the payment equal to 3 months’ rent. In order to receive the 3 month rent payment, you must complete and return the enclosed form within 60 days of the date of this notice or by [60-DAY DATE] (Date), but you should not execute the enclosed lease.

All application forms, executed leases, and moving expense requests should be addressed or delivered to:

[DEVELOPER NAME]

[STREET ADDRESS]

[CITY, STATE, ZIP]

Tenant purchase offer, delivered with this notice

The owner offers the named tenant(s) the right to purchase the residence identified below. During the 180 days after this notice, the price and terms for that property must be at least as favorable as those offered to another buyer. If the occupied space does not coincide with a condominium unit, describe a substantially equivalent property offered to the extent reasonable and practicable.

Property offered and plan: [UNIT OR SUBSTANTIALLY EQUIVALENT PORTION; ATTACH PLAN]
Purchase price: $[AMOUNT]
Deposit and holder: $[AMOUNT]; [HOLDER]
Financing or cash terms: [TERMS]
Included property and exclusions: [TERMS]
Condition, inspections, and contingencies: [TERMS]
Title, closing costs, and adjustments: [TERMS]
All other sale terms and conditions: [TERMS OR IDENTIFIED ATTACHED OFFER SCHEDULE]
Owner's address for written acceptance: [ADDRESS]

Written acceptance must reach the owner before this offer ends. It ends on the earlier of the tenant's termination of the lease or 60 days after delivery. Settlement cannot be required earlier than 120 days after the tenant accepts. If the tenant qualifies for an extended lease, acceptance is contingent on the tenant not receiving that lease. A household declining the offer retains the moving-payment or reimbursement rights stated in the notice, subject to the statutory conditions.

Owner signature: ____________________ Date: [DATE]
Landlord signature, if different: ____________________ Date: [DATE]

Tenant's written acceptance of purchase offer

I/we accept the completed offer, including the identified offer schedule: [TITLE AND DATE].

Tenant signature: ____________________ Date: [DATE]
Additional tenant signature: ____________________ Date: [DATE]
Delivered to owner by and received on: [METHOD, DATE, RECEIPT DETAILS]

Extended-lease application enclosure

Return with the signed project-specific extended lease within 60 days of this notice if applying for a lease. A household eligible for the three-month rent payment but declining an extended lease should return this application within 60 days without signing the extended lease. Attach reasonable supporting income and, if applicable, medical-expense documentation or the required written authorization for disclosure.

Applicant tenant(s), unit, contact details: [NAMES, UNIT, ADDRESS, CONTACT]
Household members domiciled in the unit on notice date: [NAMES]
Qualifying member: [NAME; AGE AND DATE REACHED 62, OR DESCRIPTION AND SUPPORT FOR DISABILITY]
Date qualifying member joined household: [DATE; SUPPORT SHOWING AT LEAST 12 MONTHS]
Household annual income for preceding tax year: $[TOTAL]; [YEAR]
Unreimbursed medical expenses with supporting evidence or written disclosure authorization: $[TOTAL]; [DETAILS]
Rent current and other material lease terms satisfied: [DETAILS]
Election: ☐ Apply for an extended lease and return the signed lease ☐ Decline an extended lease; request the statutory three-month-rent payment if eligible
Supporting documents enclosed: [LIST]

I/we swear or affirm under penalty of perjury that the statements above and attached supporting information are true and complete. I/we request the election marked above.

Tenant signature: ____________________ Date: [DATE]
Additional tenant signature: ____________________ Date: [DATE]
Notarial jurat or other authorized oath certificate attached: [NOTARY, DATE, AND CERTIFICATE IDENTIFICATION]
Developer's receipt date: [DATE]

Extended lease enclosure for eligible households

Notice date: [DATE]
Tenant(s) and all other permitted occupants: [NAMES]
Developer or current landlord: [LEGAL NAME, NOTICE ADDRESS]
Residence and unit: [FACILITY ADDRESS, UNIT, AND DESCRIPTION]
Current lease attached and identified: [TITLE, DATE, PARTIES, ALL AMENDMENTS]
Current monthly rent and due date: $[AMOUNT]; [DUE DATE]
Security deposit and holder: $[AMOUNT]; [HOLDER]
Date at least three years after notice date: [END DATE]

The tenant offers to enter this extended lease by signing and returning it with the application to the developer within 60 days after the notice date. It becomes effective only if the developer accepts it after confirming the household qualifies and receives one of the units allocated under § 11-137(k). The developer will notify the household of its decision within 75 days after the notice. When accepted, this lease begins on the acceptance date and ends no earlier than the stated end date, which must be at least three years after the notice date.

The rent and all other terms of the complete current lease and its amendments attached above continue, except as § 11-137 requires or permits and as expressly stated here. Rent may increase once annually on the extended-lease commencement anniversary, by no more than the preceding annual rent multiplied by the percentage increase for the rent component of the CPI-W for the most recent 12-month period, as § 11-137(f)(2) specifies. The developer must identify the source period and calculation in a written rent-change notice. No blank here gives either party authority to change another lease term.

The tenant may end this extended lease by written notice to the developer or a later titleholder at least one month before termination when less than 12 months remain on the lease, or at least three months before termination when 12 months or more remain. The tenant's ordinary 30-day cancellation option under § 11-102.1(e) does not govern an accepted extended lease.

Other project terms permitted by § 11-137, if any, with legal basis: [NONE OR IDENTIFIED TERMS AND SECTION]
Tenant signature: ____________________ Date: [DATE]
Additional tenant signature: ____________________ Date: [DATE]
Developer's acceptance signature: ____________________ Date and time: [DATE AND TIME]
Allocation and eligibility determination reference: [DETAILS]
Effective extended-lease end date confirmed: [DATE]

Required project enclosures and delivery record

Complete the extended lease above for this project and attach the complete current lease and amendments it incorporates. Confirm every term with counsel. Attach the registered public offering statement itself. A description of any required enclosure is not its substitute.

Extended lease and current lease/amendments enclosed (titles, unit, versions/dates): [DETAILS]
Registered public offering statement enclosed (registration reference, version/date): [DETAILS]
Application enclosed: [YES; VERSION/DATE]
Purchase offer and all sale terms enclosed: [YES; ATTACHMENT DETAILS]
Tenant hand-delivery or certified-mail date, address, and receipt/tracking: [DETAILS]
Copy of notice and tenant list sent to Secretary of State at same time: [DATE, METHOD, RECEIPT]