Latest news with #TOPA
Yahoo
28-05-2025
- Business
- Yahoo
DC councilmembers, advocates debate the future of TOPA
WASHINGTON (DC News Now)—The future of TOPA is up for debate in the District. On Wednesday, nearly 200 people signed up to testify about the future of the program. TOPA, or the Tenant Opportunity to Purchase Act, has been in place since 1980. It gives tenants the first right to purchase if their landlord is selling their building. The policy is intended to prevent displacement. However, developers have argued that it's made it difficult to do business in the District, slowing down sales and jeopardizing new development. 'What we're seeing in DC is really a troubling trend of lack of investment in housing,' said Liz DeBarros, CEO of the DC Building Industry Association. 'We've had a lot of regulations over the years. TOPA is obviously one of them that hasn't been modernized in a number of years.' 'It's past time to act': DC jail audit shows urgent need for new facility, despite budget cuts DeBarros supports the Mayor's proposed RENTAL Act, a piece of legislation that, in part, reforms TOPA. Under the RENTAL Act, market-rate housing would no longer be eligible for TOPA, though low and moderate-income housing would. It would also exempt new buildings from triggering TOPA for 25 years. '(If passed) it will signal to the market that DC is ready for investment, that the hurdles that we've had in the past will get out of the way. I think it'll have an immediate reaction to the market,' she said. 'A lot of the concerns that have been raised are things that can be explained by other causes, lack of people paying rent, differences in urban versus suburban settings,' said councilmember Brianne Nadeau. Nadeau proposed a competing piece of legislation to address TOPA concerns. 'Shortening some of the timelines, it goes after bad actors who have been manipulating the system. It makes things more clear, creates templates. Overall, it streamlines the process,' she said. The councilwoman would like to preserve TOPA rights for all. Her bill keeps market-rate buildings eligible and only exempts new builds for three years. 'Three years is about how long it takes to fill a building. So if you're just wanting to get out of a deal, you can do that before it's filled with tenants and before you're actually taking away someone's fundamental rights in DC,' she said. DC mayor presents 2026 budget amid forced cuts, impacts from federal job loss 'TOPA is wild. If you've never gone through TOPA, you may have no idea about it. TOPA has also been part of DC's process since the 1980s,' said Maya Brennan, Chief Housing Officer with the Coalition. Brennan agrees that some changes to TOPA are necessary, but she wants to ensure the purpose and value of TOPA are maintained. She argues the program is being used as a scapegoat for other issues occurring in the housing market. 'We have not seen over the history of TOPA that TOPA has actually been the challenge,' she said. 'TOPA is something that exists in DC but not in Maryland and Virginia. It makes people think it's TOPA, but it's really a scapegoat. The issue is actually about a combination of rent arrears and a shift to lower-cost places to get land, which are the suburbs usually.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Business Journals
24-04-2025
- Business
- Business Journals
Takoma Park apartment building sells under city's TOPA law
The deal stands out for the speed with which the buyer and the county cooperated on financing. An apartment building in Takoma Park has sold for $11 million, after the tenants organized to exercise their first right of refusal under the city's Tenant Opportunity to Purchase law. An affiliate of Orlo, a multifamily investor based in Laurel, acquired the 101-unit Deauville Apartments at 7520 Maple Ave., about half a mile west of Washington Adventist University, on March 5, the building's tenant association having transferred its purchase rights to that firm. The deal will result in the long-term preservation of affordable rents there. To make the acquisition, Orlo got a $13 million loan through Montgomery County's Housing Initiative Fund. Orlo didn't return a request for comment. But people with knowledge of the deal told me the HIF funding is temporary, giving Orlo time to apply for more permanent Low-Income Housing Tax Credit financing, a federal subsidy to investors administered competitively by the state. Both HIF and LIHTC financing come with requirements to cap unit rents at certain affordability thresholds for specified periods. The Deauville has six stories and was constructed in 1960. The seller was Deauville Associates LLC, which owned the building for decades, and from public records appears to represent a private family trust. The tenant association originally assigned its priority acquisition right to a different party, which backed out. It then assigned its right to Orlo, instead, which was able to close the deal on a short timeline. The deal stands out for the speed with both Orlo and the county cooperated, Rick Eisen from Eisen & Rome PC, who represented the Deauville tenants, told me in an interview. LIHTC is widely employed for affordable housing, but it takes time to nail down, making it hard to use for seizing acquisition opportunities when they pop up in a fast-moving market. Orlo's ability to close the deal quickly, matched by the county's ability to deploy HIF dollars quickly, made the deal possible. The deal also stands out because of the size of the building. It's not easy to organize that many households, Devin McNally, Takoma Park's deputy director housing and community development, told me. McNally estimated that perhaps one in 10 apartment transactions in the city involve TOPA, usually for smaller apartment buildings. He's seen two TOPA deals since taking a job with the city government in 2022, he said. When a building owner strikes a deal to sell, TOPA gives a tenant association priority to match the offer and pay the same market price; or assign that right to another party, like a company with more resources to bring to the table. In assigning its right, tenants can negotiate favorable terms with the assignee, such as affordability covenants or required renovations. When you hear about TOPA, the District probably comes to mind first. Similar but separate programs exist in Montgomery County and the city of Takoma Park, an independent municipality within the county's borders. The county's is rarely used, since it gives tenants the first crack at buying their building, but doesn't allow them to transfer their priority rights, Eisen said. Without the ability to assign their rights, it can be hard for tenants to come up with the necessary cash.
Yahoo
20-03-2025
- Politics
- Yahoo
Trump signs executive order to begin the dismantling of the Department of Education
WASHINGTON () — President Donald Trump announced an executive order Thursday to begin the dismantling of the Department of Education. Trump called it an 'historic action' that was '45 years in the making.' '[We will take] all lawful steps to shut down the department, were going to shut it down and shut it down as quickly as possible,' he said. DC tests 'intelligent speed assistance' devices on city school buses The department, which was created by Congress in the 1970's, requires Congressional action to fully shutter. However, Trump took steps to redistribute the core functions of the department to other agencies. Currently, the department oversees the federal student loan program, distributes grants for Title 1 programs and enforces civil rights, all of which Trump said will continue to occur. The Department of Education does not mandate the curriculums. That responsibility has always been with the states. However, the Trump administration pointed to poor test scores as a reason for the needed changes. 'Our children's test scores are incredibly concerning when it comes to reading rates, literacy rates, math,' said Press Secretary Karoline Levitt. 'The numbers prove that, and the President is finally taking much-needed action to return education to where it belongs and that's to educators closest to students in their states.' Still education advocates dispute the need for dismantling the agency. 'The Department of Education is really important,' said Jessica Giles with Education Reform Now. 'It provides states and local governments with funds for schools, it enforces civil rights protection for students and it ensures there is federal student aid for those who go to school.' Giles pointed out that it will take more than just an executive order to fully close the department. 'The Department of Education can't just disappear overnight,' she said. 'It'll take an act of Congress. So, it's important that District voters, American voters, let Congress know how important the DOE is.' Advocates rally to preserve TOPA program in DC Reaction to the news was mixed. 'This is horrible,' said Taylor Birkes, a special education teacher from Tulsa. She's concerned about the impact this will have on programs for students with disabilities, despite the President saying those programs won't be impacted. 'It's basically a lifestyle for the kids. [The DOE] is where we're getting all of our services and everything else,' she said. 'Giving them speech therapy, all of that, that's going to cost the parents money, and a lot of the kids in my district, they are low income so parents can't pay for this stuff.' But Wesley, a father of two high school students, supports the move. 'It gives the strength back to the state individually to set up how they feel to raise and educate the children,' he said. 'It is the responsibility of the parents to step up. Otherwise, it's easy to let off the gas and expect the federal government to run everything for them and it's ultimately not that intent.' Earlier this month, the Trump administration cut staffing at the DOE by about 50%, an effort the President celebrated Thursday. Bowser: 'We will meet our financial obligations' following passage of federal funding bill Giles said her agency will continue to monitor the impacts of the Trump administration. 'We're tracking to make sure student achievement data is continued to be collected, student loan repayment still works the way it's supposed to,' said Giles. 'And that we're continuing to see funds flow to schools in a timely and effective matter. We don't want things to erupt into chaos and confusion.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
18-03-2025
- Business
- Yahoo
Advocates rally to preserve TOPA program in DC
WASHINGTON ()—Tenants rights advocates are calling on the D.C. Council to vote 'no' on a proposal that would make changes to the Tenant Opportunity to Purchase Act (TOPA) program. TOPA was passed in 1980 and is intended to prevent the displacement of residents while creating a path to homeownership. Under the law, tenants have the first opportunity to buy their building if it goes up for sale. 'TOPA gives tenants rights to either purchase their building or negotiate with an incoming buyer,' said Damiana Dendy, a housing organizer with DC Jobs with Justice. 'These are tools that can be used to preserve affordability and it's been proven since it's been passed in 1980, it's been doing what it's supposed to be doing.' But, there could be changes to which buildings are eligible for TOPA. Last month, Mayor Muriel Bowser introduced the RENTAL Act, a comprehensive piece of legislation that aims to strengthen the city's housing market. The legislation includes various provisions, like returning the eviction process to pre-pandemic timelines, ensuring that landlords can collect rent. 'Because of the people who aren't paying rent we see an inability for property owners to invest in those properties, provide security, and long term, maintain ownership and affordability,' said Bowser. 'No longer in Ward 7 will this behavior be tolerated': Massive trash pile in Northeast DC cleaned up; investigations underway And while low and moderate income housing will still be eligible for TOPA, the proposed legislation would exempt market rate housing from triggering TOPA. 'What we are seeing is a lag of 18 months in order to go through the TOPA process,' explained Nina Albert, deputy mayor for planning and economic development. 'Market rate investors in residential real estate are making choices, and they're seeing that 18-month delay in selling the building and choosing not to invest in DC.' Still, tenant rights groups want to see eligibility expanded, not limited. Dendy led a rally outside the Wilson Building Tuesday calling on the city to preserve the program. 'Tenants should have the opportunity to negotiate with an incoming buyer, chose a buyer, go out looking for a buyer to ensure there are affordability requirements for the building, have rent protections, have protections against eviction,' she said. 'The reality is housing and rent prices keep going up and up,' said Christopher Williams, president of the Capitol Park Plaza and Twins Tenants Association. Williams said his building is currently going through the TOPA process and said it's an important bargaining tool for renters. '[The TOPA process is] an attempt to reset and work with the new owner and say, here are our expectations as tenants, and we want to listen to your expectations,' he explained. 'For those tenants associations like ours who want to exercise those rights because of past living conditions, those rights ought to be preserved.' Council must still consider and vote on the RENTAL Act. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-03-2025
- Business
- Yahoo
DC Council considers ways to build more resilient economy amid uncertainty from federal government
WASHINGTON () — D.C. leaders are preparing for major economic impacts as changes at the federal level take a direct hit at the District's budget. According to city projections, mass reductions to the federal workforce will create a more than $1 billion loss in revenue over the next three years. If Congress passes its current short-term spending bill this week, it'll mean an immediate . 'I'm concerned obviously because a lot of what we're seeing happen on Capitol Hill is happening through no fault of local District officials,' said At-Large Councilmember Kenyan McDuffie. 'We're talking about a city that is well run, that has been recognized with how well we've operated, and frankly, the proof is in the numbers.' Despite that, McDuffie and other councilmembers are planning for an uncertain future. On Wednesday, McDuffie hosted a public round table to discuss ways to make the economy more resilient. Advocates express concern to lawmakers over proposed $1 billion cuts to DC budget 'We need to diversify our economy,' said Aakash Thakker, chief acquisitions officer for EYA. Thakker testified at the meeting and said D.C.'s economic development office must attract more private sector businesses to bolster the economy. '[We need] a team of well paid, highly qualified professionals with a strategy in place that goes out and recruits the best and brightest companies from around the country,' he said. For Chinyere Hubbard, president of the DC Chamber of Commerce, upskilling and reskilling former members of the federal workforce is also key. 'We should be looking at emerging industries like AI, cyber security, manufacturing. Skills that can weather times like this and reskilling and upskilling some of our current workforce,' she explained. 'These are industries that are growing, and we have a strong tech force right here in this city, so we really should leverage on that.' Others suggested suspending some District policies—at least temporarily—that make it more difficult for developers to do business in D.C. This includes shortening the eviction timeline and rolling back who is eligible for the Tenants Opportunity to Purchase Act program (TOPA). Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
