Bill > S998

This bill introduces a municipal local option for tenants to have the first right of refusal when their residential property is being sold, transferred through a short sale, or going through foreclosure. The legislation allows cities and towns to adopt an ordinance that provides tenants with a comprehensive set of protections and opportunities to purchase their housing accommodation. Under this bill, if a property owner intends to sell, they must notify tenants and provide them with an opportunity to form a tenant association and potentially purchase the property. The tenant association, representing at least 51% of occupied units, can select a successor entity to act on their behalf and has specific timeframes to submit a purchase offer that matches the terms of any third-party contract. The bill includes detailed provisions about deposit requirements, due diligence periods, and closing timelines. Importantly, any property purchased under this law must be used for long-term affordable housing, cooperative housing, or owner-occupied units. The legislation includes numerous exemptions for certain types of properties and owners, such as small property owners, properties with specific uses, and sales to immediate family members. The bill aims to provide tenants with more housing stability and opportunities for community ownership, while also establishing clear processes for property sales and transfers.

Budget and Finance, Housing and Urban Affairs

https://malegislature.gov/Bills/194/S998