Alert: New Right of First Refusal Law in Prince George's County

December 6, 2013

Newly enacted legislation in Prince George's County (CB 27-2013, effective September 23, 2013) requires owners of multifamily rental facilities (MRFs) consisting of 20 or more dwelling units to provide the County Department of Housing and Community Development (DHCD) with a right of first refusal (ROFR) to purchase the MRF, by delivering notice to DHCD within 5 days after entry into (1) a bona fide contract of sale of the MRF, (2) an agreement to lease of the MRF for a term of more than 7 years, or (3) an agreement to transfer a majority interest in the owner within a 12-month period. Under the ROFR law, DHCD must notify the owner within 7 days after receipt if it elects to exercise the ROFR, and must close on the purchase within 180 days. The ROFR law also requires owners of MRFs to deliver written notice of the proposed sale or lease to each tenant of the MRF by hand or by certified mail, return receipt requested, and to post the notice in public areas of the MRF.

According to an Interim Advisory Notice issued by DHCD on December 2, 2013, the Director of DHCD will promulgate regulations implementing the ROFR law by January 1, 2014, and by July 1, 2014 will offer to the County Council proposed designated areas within the County where the ROFR requirement will apply. During this period of transition, however, all owners of MRFs consisting of 20 or more dwelling units must comply with the notice requirements set forth in the ROFR law. Notices delivered to DHCD must be in the form of an affidavit, together with evidence of delivery of notices to tenants, a copy of the purchase contract or lease, the current rent roll, and numerous other attachments. 

If you have any questions about the new ROFR law, interim notice and compliance requirements, or the ROFR law's impact on the sale or purchase of MRFs in Prince George's County, please feel free to contact any of the Linowes and Blocher attorneys listed below. We are carefully monitoring the ROFR law and its implementation and are available to assist you. 

Steven L. Dube at or 301-961-5209

Brian D. Bichy at or 301-961-5253

Emily J. Vaias at or 301-961-5174

Midgett S. Parker at or 443-949-3792

Renee M. Finley at or 301-961-5138


Linowes and Blocher LLP has prepared this e-blast for general information purposes only, and the information contained in it does not constitute legal advice. This e-blast is not an offer to represent you and does not create an attorney-client relationship with Linowes and Blocher LLP or any of the firm's lawyers. You should not act, or refrain from acting, in a manner that changes your legal position based upon any information contained in this e-blast without first consulting with an attorney.