                                 CODE OF VIRGINIA

CONVERSION CONDOMINIUMS; SPECIAL PROVISIONS (§ 55.1-1982)

A. For the purposes of this section:
			&#8220;Affordable rent&#8221;  means a monthly rent that does not exceed the
greater of 30 percent of the annual gross income of the tenant household or 30
percent of the imputed income limit applicable to such unit size, as published
by the Virginia Housing Development Authority for compliance with the Low Income
Housing Tax Credit program.
			&#8220;Certified nonprofit housing corporation&#8221;  means a nonprofit
organization exempt from taxation under &#xA7; 501(c)(3) of the Internal Revenue
Code that has been certified by a locality as actively engaged in producing or
preserving affordable housing as determined by criteria established by the
locality.
			&#8220;Disabled&#8221;  means a person suffering from a severe, chronic
physical or mental impairment that results in substantial functional imitations.
			&#8220;Elderly&#8221;  means a person not less than 62 years of age.

B. Any declarant of a conversion condominium shall include in his public
offering statement in addition to the requirements of § 55.1-1976 the
following:

   1. A specific statement of the amount of any initial or special condominium
   fee due from the purchaser on or before settlement of the purchase contract
   and the basis of such fee;

   2. Information on the actual expenditures made on all repairs, maintenance,
   operation, or upkeep of the subject building within the last three years, set
   forth in a tabular format with the proposed budget of the condominium and
   cumulatively broken down on a per unit basis in proportion to the relative
   voting strengths allocated to the units by the bylaws. If such building has
   not been occupied for a period of three years, then the information shall be
   set forth for the maximum period such building has been occupied;

   3. A description of any provisions made in the budget for reserves for capital
   expenditures and an explanation of the basis for such reserves, or, if no
   provision is made for such reserves, a statement to that effect;

   4. A statement of the declarant as to the present condition of all structural
   components and major utility installations in the condominium, including the
   approximate dates of construction, installation, and major repairs and the
   expected useful life of each such item, together with the estimated cost of
   replacing each such item;

   5. If any building included or that may be included in the condominium was
   substantially completed prior to July 1, 1978, a statement that each such
   building has been inspected for asbestos in accordance with standards in
   effect at the time of inspection, or that an asbestos inspection will be
   conducted, and whether asbestos requiring response actions has been found and,
   if found, that response actions have been or will be completed in accordance
   with applicable standards prior to the conveyance of any unit in such
   building. Any asbestos management program or response action undertaken by the
   building owner shall comply with the standards promulgated pursuant to &#xA7;
   2.2-1164.

C. In the case of a conversion condominium, the declarant shall give, at the
time specified in subsection D, formal notice to each of the tenants of the
building that the declarant has submitted or intends to submit to the provisions
of this chapter. This notice shall advise each tenant of (i) the offering price
of the unit he occupies; (ii) the projected common expense assessments against
that unit for at least the first year of the condominium&#8217;s operation;
(iii) any relocation services or assistance, public or private, of which the
declarant is aware; (iv) any measures taken or to be taken by the declarant to
reduce the incidence of tenant dislocation; and (v) the details of the
relocation plan, if any is provided by the declarant, to assist tenants in
relocating. During the first 60 days after such notice is mailed or hand
delivered, each of the tenants shall have the exclusive right to purchase the
unit he occupies, but only if such unit is to be retained in the conversion
condominium without substantial alteration in its physical layout. If the
conversion condominium is subject to local ordinances that have been adopted
pursuant to subsections G and H, any tenant who is disabled or elderly may
assign the exclusive right to purchase his unit to a governmental agency,
housing authority, or certified nonprofit housing corporation, which shall then
offer the tenant a lease at an affordable rent, following the provisions of
subsection G. The acquisition of such units by the governmental agency, housing
authority, or certified nonprofit housing corporation shall not (a) exceed the
greater of one unit or five percent of the total number of units in the
condominium or (b) impede the condominium conversion process. In determining
which, if any, units shall be acquired pursuant to this subsection, preference
shall be given to elderly or disabled tenants.
			The notice required in this subsection shall be hand delivered or sent by
first-class mail, return receipt requested, and shall inform the tenants of the
conversion to condominium. Such notice may also constitute the notice to
terminate the tenancy as provided for in &#xA7; 55.1-1410, except that, despite
the provisions of &#xA7; 55.1-1410, a tenancy from month-to-month may only be
terminated upon 120 days&#8217; notice when such termination is in regard to the
creation of a conversion condominium. If, however, a tenant so notified remains
in possession of the unit he occupies after the expiration of the 120-day period
with the permission of the declarant, in order to then terminate the tenancy,
such declarant shall give the tenant a further notice as provided in &#xA7;
55.1-1410. Until the expiration of the 120-day period, the declarant shall have
no right of access to the unit except as provided by subsection A of &#xA7;
55.1-1229 and except that, upon 45 days&#8217; written notice to the tenant, the
declarant may enter the unit in order to make additional repairs, decorations,
alterations, or improvements, provided that (i) the making of the same does not
constitute an actual or constructive eviction of the tenant and (ii) such entry
is made either with the consent of the tenant or only at times when the tenant
is absent from the unit. The declarant shall also provide general notice to the
tenants of the condominium or proposed condominium at the time of application to
the Common Interest Community Board in addition to the formal notice required by
this subsection.

D. The declarant of a conversion condominium shall, in addition to the
requirements of &#xA7; 55.1-1975, include with the application for registration
a copy of the formal notice set forth in subsection C and a certified statement
that such notice, fully complying with the provisions of subsection C, shall be
at the time of the registration of such condominium mailed or delivered to each
of the tenants in the building for which registration is sought. The price and
projected common expense assessments for each unit need not be filed with the
Common Interest Community Board until such notice is mailed to the tenants.

E. Notwithstanding the provisions of &#xA7; 55.1-1901, in the case of any
conversion condominium created under the provisions of the Horizontal Property
Act (&#xA7; 55.1-2000 et seq.) for which a final report has not been issued by
the Common Interest Community Board pursuant to former &#xA7; 55-79.21 prior to
June 1, 1975, the provisions of subsections B and C shall apply and the
declarant shall be required to furnish evidence of full compliance with
subsections B and C prior to the issuance by the Common Interest Community Board
of a final report for such conversion condominium.

F. Any locality may require by ordinance that the declarant of a conversion
condominium file with that governing body all information that is required by
the Common Interest Community Board pursuant to &#xA7; 55.1-1975 and a copy of
the formal notice required by subsection C. Such information shall be filed with
that governing body when the application for registration is filed with the
Common Interest Community Board, and such copy of the formal notice shall be
filed with that governing body. There shall be no fees for such filings.

G. The governing body of any locality may enact an ordinance requiring that
elderly or disabled tenants occupying as their residence, at the time of
issuance of the general notice required by subsection C, apartments or units in
a conversion condominium be offered leases or extensions of leases on the
apartments or units they then occupied, or on other apartments or units of at
least equal size and overall quality. The terms and conditions of such leases or
extensions shall be as agreed upon by the lessor and the lessee, provided that
the rent for such apartment or unit shall not be in excess of reasonable rent
for comparable apartments or units in the same market area as such conversion
condominium and such lease shall include or incorporate by reference the bylaws
or rules and regulations, if any, of the association. No such ordinance shall
require that such leases or extensions be offered on more than 20 percent of the
apartments or units in such conversion condominium, nor shall any such ordinance
require that such leases or extensions extend beyond three years from the date
of such notice. Such leases or extensions shall not be required, however, in the
case of any apartments or units that will in the course of the conversion be
substantially altered in the physical layout, restricted exclusively to
nonresidential use, or be converted in such a manner as to require relocation of
the tenant in premises outside of the project being converted.

H. The governing body of any county utilizing the optional urban county
executive form of government (&#xA7; 15.2-800 et seq.) or the optional county
manager plan of government (&#xA7; 15.2-702 et seq.), or of any city or town
adjoining any such county, may require by ordinance that the declarant of any
residential condominium converted from multi-family rental use shall reimburse
any tenant displaced by the conversion for amounts actually expended to relocate
as a result of such dislocation. The reimbursement shall not be required to
exceed the amount that the tenant would have been entitled to receive under
&#xA7;&#xA7; 25.1-407 and 25.1-415 if the real estate comprising the condominium
had been condemned by the Department of Transportation.

HISTORY: 1974, c. 416, § 55-79.94; 1975, c. 415; 1980, cc. 727, 738; 1981, cc.
455, 503; 1982, cc. 273, 475, 663; 1983, c. 310; 1984, cc. 321, 601; 1985, c.
69; 1987, c. 412; 1988, c. 723; 1989, c. 398; 1991, c. 497; 1993, c. 634; 2007,
cc. 602, 665; 2019, c. 712.