Strategy in Action

Tool: Community and Tenant Opportunity to Purchase Acts (COPA & TOPA)

Washington, D.C.’s Tenant Opportunity to Purchase Act (TOPA) gives right of first refusal to residential tenants when their building goes up for sale or conversion to condos. The law was originally passed in 1980 to preserve affordable housing in the city. Under the law, residents may purchase their building and convert it to condos or a co-op, or they may partner with a developer or other housing provider who purchases the building and rents to tenants. A variety of factors, including lender reticent, make tenant purchases rare. When tenants partner with a housing provider, they can negotiate building repairs and upgrades, rental rates, or buyout payments. Although the city’s TOPA law does not provide protections for commercial tenants, in some cases a transfer to tenant ownership can be beneficial for small businesses that rent or seek to rent ground-floor commercial space. For example, in 2009, the 3500 14th Street, N.W. Tenant Association partnered with the Somerset Development Company to exercise their TOPA rights at Hubbard Place. As part of the deal, the tenant association negotiated building upgrades with Somerset, including outfitting three retail and office spaces for local businesses. However, preservation of commercial space is not guaranteed under D.C. TOPA laws. When buildings transfer ownership, commercial space may be converted to residential or rent may increase, potentially displacing small businesses.