FAQs for Tenants
If my landlord decides to sell the property, what are my options?
You can decide to make the first offer on the property, choose a qualified organization to assign your rights to, or waive your rights altogether by choosing not to respond.
What does the TOPA process look like?
1. Landlord decides to sell their property.
2. Landlord notifies tenants and qualified organizations of intent to sell.
3. If tenants are interested in purchasing or assigning their rights to a qualified organization, a majority must submit a collective statement of interest to the owner. After that, the following phases take place.
Offer phase – Tenants select a Supportive Partner that will help them legally incorporate as a tenant association, assess financial feasibility, explore finance and ownership options, and submit a purchase offer. Tenants can also decide during this phase to assign their rights to a qualified organization (i.e. an affordable housing developer) who would purchase the property and become the new landlord, stabilizing the housing as affordable indefinitely.
Landlord accepts or rejects offer. If landlord rejects offer, tenants or qualified organizations will have a chance to match a third party offer.
Financing phase – Tenants or qualified organizations work with lending institutions to complete paperwork in order to secure financing.
Closing phase – All paperwork is finalized and signed to complete the purchase.
4. If tenants do not submit a statement of interest, qualified organizations may submit a statement of interest to the landlord and go through a similar process.
5. If no qualified organizations submit a statement of interest, then the landlord can proceed to sell on the open market.
How long will I have to complete each step of the process? How were these timelines decided?
Timelines differ depending on the property type (see timelines here). These timelines are based on research on the time needed for every step: forming a tenant organization; typical closing timelines for residential/commercial loans; how quickly qualified organizations can close on deals working with a community development financial institution (CDFI) for financing; and how quickly tenants can complete every step of the process of organizing a tenant purchase, as detailed through focus group research with tenants.
Is my only option to purchase the property?
No. If you wish to stay in your home but do not wish to purchase or find that it is financially infeasible for you to purchase, you can choose to assign your TOPA rights to a qualified organization who may be ready and willing to purchase. The City of Berkeley will maintain a list of qualified organizations (nonprofit housing developers, community land trusts and cooperatives) that are committed to permanent affordability, partnering with tenants and keeping you in your home.
If I choose to remain a renter and a Qualified Organization purchases the building, will I still have tenant protections?
Yes. Tenants would continue to be able to live there, either as owners, or as tenants with tenant protections and the enforcement of tenant's rights, under existing local, state, and federal laws. While those making 80% AMI and below would be prioritized for vacant units, the policy is designed to NOT lead to any internal displacement as a result of TOPA sales. As a tenant, TOPA ensures tenant protections post-purchase, including just cause eviction and rent control, if applicable, or other limits on rent increases subject to Costa-Hawkins.
What if I live in a multi-unit property and other tenants want to purchase, but I do not?
If a majority of the tenants would like to purchase and are able to successfully go through the purchase process, you will be able to remain a tenant. As a tenant, TOPA ensures tenant protections post-purchase, including just cause eviction and rent control, if applicable, or other limits on rent increases subject to Costa-Hawkins.
What if my landlord doesn’t notify me before putting the property up for sale?
Landlords that violate TOPA regulations could be fined up to $1,000 per day per unit and are liable for monetary damages in court.
If I purchase the property on my own, what happens if I want to sell in the future?
It depends on whether you purchase on your own using public subsidy. If so, the home will be permanently affordable, subject to the requirements of the subsidy, and will be subject to a limited equity resale formula and process recorded on your title deed. If you finance the home exclusively with private capital, your home will not be subject to these permanent affordability restrictions. For those tenant purchases funded exclusively with private capital that are not subject to any permanent affordability restrictions, a penalty for sales occurring less than 36 months from the purchase date was added to the policy, with decreasing penalty amounts to deter the potential of speculation.
What is the difference between Supportive Partners and Qualified Organizations?
Supportive Partners are organizations that will apply to and be selected by the City of Berkeley specifically to work with tenants as they go through the TOPA purchase process.
Qualified Organizations include nonprofit housing developers, community land trusts and cooperatives that have experience with affordable housing. These organizations are committed to maintaining permanent affordability and working with tenants long-term, including working with tenants to later purchase the property, if feasible. The City of Berkeley will vet and maintain a list of these organizations.