People’s Law Resource Center

A nonprofit organization serving the legal needs of the

people and communities in the Washington, DC area.

LAWSUIT FILED TO REQUIRE GOVERNMENT COMPLIANCE

WITH TENANT RIGHTS UNDER THE SALE ACT

 

              People's Law Resource Center is pleased to announce the filing of litigation designed to require a District government agency to cease practices that frustrate enforcement of tenant rights under the Rental Housing Conversion and Sale Act.

              The Sale Act represents important public policy in the District of Columbia .   It requires landlords who wish to sell rental housing to negotiate with the tenants and offer them an opportunity to purchase the building on the same terms that they would accept from someone else.  

              When allowed to function properly, the Sale Act has been successful.   It provides a measure of stability and security for District residents, and is especially important for elderly, long-term residents of areas that are now undergoing rapid gentrification.   Tenant organizations have been successful in obtaining financing, particularly in such areas, where property values are increasing rapidly.

              However, some large developers seek to avoid the procedures required by the Sale Act.   A favored device is for owners to retain some insignificant fraction of ownership interest in the property (often 5%).   Disturbingly, the D.C. Department of Consumer and Regulatory Affairs issues letters purporting to certify such transactions as exempt from the Sale Act.   This has been a windfall to big developers, and has undermined tenant rights.

              On September 30, 2004, PLRC filed suit in the Superior Court of the District of Columbia on behalf of twelve tenants and tenant associations.  It challenges the issuance of such letters as unlawful, and asks the Court to order an end to practices that are in violation of the public policy of the District of Columbia .  

              The lawsuit alleges that DCRA overstepped its authority, and is doing the bidding of major developers in violation of laws enacted by the City Council.   Specifically, the lawsuit alleges that DCRA does not follow proper procedures, reaches erroneous conclusions, and issues these letters “without authority and essentially upon request” of the developers.  

              “It is outrageous that a District agency would employ undemocratic maneuvers in an attempt to render meaningless important tenant rights under laws enacted by the City Council,” said Zachary Wolfe, founder of PLRC and attorney for the plaintiffs in New Capitol Park Plaza Tenants Association, et al. v. District of Columbia , et al.  

10/20/04 - UPDATE:
TENAC joins this litigation as a Plaintiff.  Read the Amended Complaint. 

View the case status page for updated information.