TOPA Reform Update

As a follow-up to our recent TOPA Reform Alert (linked here), click here for the final version of the RENTAL Act. The enrolled bill will now be sent to the Mayor who has 10 days to sign or veto the RENTAL Act. If the Mayor does nothing, the RENTAL Act goes to Congress after 10 days. After that, Congress has 30 working days (i.e., in-session) to review. The expectation is that if all goes well, this law may become effective by December. Future Alerts will provide further details, but here are a few important items to note:

15-Year Blanket Exemption for New Buildings. This is the most important and impactful provision of the RENTAL Act. Once enacted, any sale of or transfer of interests in a new housing accommodation, completed within the 15 years prior to the date of sale, does not require an Offer of Sale. Consequently, a tenant association (TA) will not have a right to purchase a housing accommodation that qualifies for this exemption. One requirement for this