D.C. TOPA Ruling Has Ground Lease Implications For Multifamily Properties

Highlights

• The decision in Foster House Tenants Association v. New Bethel Baptist Church Housing Corporation, Inc., et al., focuses on whether a ground lease or transaction that includes something less than an absolute transfer of title of multifamily property is considered a "sale" under the District of Columbia Tenant Opportunity to Purchase Act (TOPA).
• The District of Columbia Court of Appeals affirmed that rights created under TOPA "shall be determined by examining the substance of the transaction or series of transactions" to conclude if the transaction is actually a sale.
• The Court stated that the definitions of "sell" and "sale" under TOPA apply broadly pursuant to the 2005 amendments to TOPA.