Bill > H306

This bill establishes a municipal option for commercial tenants to have a first right of refusal when their property is being sold, with comprehensive provisions designed to protect small businesses and provide them an opportunity to purchase the property they currently rent. The bill allows cities and towns to adopt an ordinance giving commercial tenants the right to be notified when a property owner intends to sell and providing them with a chance to make a purchase offer before the property can be sold to a third party. Under the proposed law, tenants (through a Tenant Association representing at least 51% of non-residential units) would have specific timeframes to submit a purchase offer, conduct due diligence, secure financing, and close on a property sale, particularly in scenarios involving short sales or foreclosures. The bill includes detailed protections for elderly small businesses and socially or economically disadvantaged businesses, and provides mechanisms for tenants to assign their purchase rights to designated entities like nonprofits or community development organizations. The legislation also includes provisions to prevent retaliation against tenants and exempts certain types of properties, such as those owned by small individual landlords, educational institutions, and specialized treatment facilities. Importantly, the bill gives tenants legal recourse through the attorney general's office and allows them to seek damages if the law is not properly followed.

Business and Industry

https://malegislature.gov/Bills/194/H306