2010 Pennsylvania Code
Title 68 - REAL AND PERSONAL PROPERTY
Chapter 54 - Protection of Purchasers
5410 - Planned communities containing conversion buildings.

     § 5410.  Planned communities containing conversion buildings.
        (a)  Notice of conversion.--The declarant of every planned
     community containing one or more conversion buildings shall give
     each of the residential tenants and residential subtenants, if
     any, lawfully in possession of a unit or units in a conversion
     building or buildings a conversion notice no later than one year
     before the declarant requires the residential tenant and
     residential subtenant to vacate. The conversion notice must set
     forth generally the rights of residential tenants and
     residential subtenants under this section and shall be hand
     delivered to the unit or mailed by prepaid United States
     certified or registered mail, return receipt requested, to the
     residential tenant and residential subtenant at the address of
     the unit and not more than one other mailing address provided by
     the residential tenant. Every notice shall be accompanied by a
     public offering statement concerning the proposed sale of
     planned community units within such building or buildings.
     Except as provided in subsection (f), no residential tenant or
     residential subtenant in a conversion building may be required
     by the declarant to vacate the unit earlier than one year after
     the conversion notice date except by reason of nonpayment of
     rent, waste or conduct that disturbs other tenants' peaceful
     enjoyment of the premises, and the terms of the tenancy,
     including those terms that apply to a period occurring in whole
     or in part after the conversion notice date, may not be altered
     but may be enforced during that period. Failure of a declarant
     to give notice to a residential tenant or residential subtenant
     entitled to such notice under this subsection is a defense to an
     action for possession against such residential tenant or
     residential subtenant.
        (b)  Offer to tenant to purchase unit.--For six months after
     the conversion notice date, the declarant shall offer to convey
     each unit or proposed unit occupied for residential use in a
     conversion building to the tenant who leases that unit. If the
     tenant fails to purchase his unit during that six-month period,
     the declarant may not offer to dispose of an interest in that
     unit during the following six months at a price or on terms more
     favorable to the offeree than the price or terms offered to the
     tenant. This subsection shall not apply to any rental unit:
            (1)  which, immediately prior to the conversion notice
        date, was restricted or devoted exclusively to nonresidential
        use; or
            (2)  the boundaries of which, after the creation of the
        planned community, will not substantially conform to the
        boundaries of such unit on the conversion notice date.
        (c)  Effect of wrongful conveyance.--If a declarant, in
     violation of subsection (b), conveys a unit to a purchaser for
     value who has no knowledge of the violation, recording of the
     deed conveying the unit extinguishes any right a tenant may have
     under subsection (b) to purchase that unit if the deed states
     that the seller has complied with subsection (b) but does not
     affect the right of a tenant to recover damages from the
     declarant for a violation of subsection (b).
        (d)  Notice to vacate.--If a conversion notice specifies a
     date by which a unit or proposed unit must be vacated, the
     conversion notice also constitutes a notice of termination of
     the tenant's lease, subject to revocation in accordance with
     subsection (i), and a notice to quit specified by section 501 of
     the act of April 6, 1951 (P.L.69, No.20), known as The Landlord
     and Tenant Act of 1951.
        (e)  Improper lease termination prohibited.--
            (1)  Nothing in this section permits termination of a
        lease by a declarant in violation of its terms.
            (2)  Nothing in this section or in any lease shall
        prohibit a residential tenant, after receiving notice under
        subsection (a), from terminating any lease without any
        liability for such termination provided such tenant gives the
        building owner 90 days' written notice of the intent to
        terminate the lease.
            (3)  The declarant or owner of any proposed conversion
        planned community shall not engage in any activity of any
        nature which would coerce the tenant into terminating any
        lease, including, but not limited to, harassing tenants or
        withholding normal services or repairs.
        (f)  Units leased to senior citizens and disabled persons.--
            (1)  For the purpose of this subsection, an eligible
        tenant or subtenant shall be a natural person who, on the
        conversion notice date, lawfully occupies a unit in a
        conversion building as a principal residence and is 62 years
        of age or older or is disabled and has occupied the unit for
        at least two years. For purposes of this subsection, a person
        shall be deemed to be disabled if on the conversion notice
        date he is totally and permanently unable to engage in any
        substantial gainful activity by reason of any medically
        determinable physical or mental impediment, including, but
        not limited to, blindness.
            (2)  Within 60 days after the conversion notice date, any
        tenant or subtenant in possession of a unit who believes that
        he is an eligible tenant or subtenant shall so notify the
        declarant and shall provide the declarant with proof of his
        eligibility. Any eligible tenant or subtenant who has
        established his eligibility as aforesaid shall be entitled to
        remain in possession of his unit for two years following the
        conversion notice date, notwithstanding any prior termination
        date in his lease, except by reason of nonpayment of rent,
        waste or conduct that disturbs other occupants' peaceful
        enjoyment of the planned community, and the terms of the
        tenancy, including terms that apply to a time period after
        the conversion notice date, may not be altered but may be
        enforced during the time period between the original lease
        termination date and the expiration of this two-year period
        except as is otherwise provided in paragraph (3).
            (3)  The monthly rental payable by the tenant during the
        time period commencing upon the later to occur of the
        original lease termination date or the first anniversary of
        the conversion notice date and ending upon the expiration of
        the two-year period described in paragraph (2) shall be the
        same monthly rental as was payable for the month immediately
        preceding the original lease termination date, except that,
        at the landlord's option, such monthly rental may be
        increased by the lesser of 5% of such monthly rental or the
        same percentage increase as the percentage increase, if any,
        in the Consumer Price Index as calculated and published by
        the United States Department of Labor for the six-month time
        period commencing on the first day of the first full calendar
        month after the conversion notice date.
            (4)  Failure of a declarant to comply with the provisions
        of this subsection is a defense to an action for possession.
        (g)  Tenant meetings; open to the public.--With respect to
     any conversion building containing one or more units then
     occupied for residential use, at least 30 days before the
     conversion notice date, the declarant shall hold a tenant
     meeting open to the public in the municipality where the
     proposed conversion building is located at a place and time
     convenient to the persons who may be directly affected by the
     conversion. At least ten days' notice of the time and place of
     the meeting shall be given to residential tenants and subtenants
     in lawful possession of their units, in the same manner as is
     required for the giving of the conversion notice, and to the
     general public by a notice in a newspaper of general circulation
     in the municipality in which the planned community is located,
     except that no notice to the general public need be given with
     respect to conversion buildings as to which the provisions of
     section 5402(b) (relating to public offering statement; general
     provisions) are applicable. At such meeting, representatives of
     the declarant shall briefly describe the following and may, but
     shall not be required to, discuss other matters:
            (1)  The rights and obligations of tenants and subtenants
        under this section.
            (2)  Improvements, if any, then planned to be made to the
        planned community by the declarant.
            (3)  The anticipated approximate range of initial unit
        sales prices. Specific unit sales prices need not, however,
        be provided.
            (4)  The anticipated approximate range of estimated
        monthly common expenses for various types of units; however,
        specific per unit estimates need not be provided.
        (h)  Community development grants.--If Federal funds under
     the Community Economic Development Act of 1981 (Public Law 97-
     35, 42 U.S.C. § 9801 et seq.) have been used to finance the
     rehabilitation of multifamily rental housing, with the intent
     that such housing subsequent to the rehabilitation is to be used
     for residential rental purposes, such housing shall not be
     converted to a planned community for a period of ten years from
     the date the rehabilitation is completed.
        (i)  Revocation.--A declarant may subsequently revoke a
     conversion notice if the declarant has expressly reserved the
     right of revocation in the conversion notice and if the notice
     of revocation:
            (1)  Is given prior to the conveyance of any unit in the
        planned community occurring after the conversion notice date
        other than a unit or units conveyed to a successor declarant
        or as a result of foreclosure of a mortgage on the unit or a
        deed in lieu thereof.
            (2)  Is given in the same manner as is required for the
        giving of the conversion notice.
            (3)  Is given to all persons who were entitled to receive
        the conversion notice and who continue to be in lawful
        occupancy at the time such notice of revocation is given. The
        giving of a notice of revocation revokes all rights granted
        under this section but does not revoke the rights granted to
        residential tenants under subsection (a) or (f), and such
        rights shall be deemed to have been incorporated in each
        residential tenant's lease.
        (j)  Waiver of purchase rights.--Notwithstanding any
     provisions of this subpart prohibiting waiver of rights, any
     tenant may waive his right to purchase a unit under subsection
     (b) if the waiver is in writing, is acknowledged and is given in
     consideration of:
            (1)  an extension of the term of the tenant's tenancy and
        right of occupancy under this subpart beyond the time period
        required by subsections (a) and (f) as applicable;
            (2)  the tenant entering into an agreement to purchase
        another unit in the planned community; or
            (3)  all occupants of the unit making alternative living
        arrangements.
        (k)  Alteration of terms of tenancy.--Notwithstanding any
     provisions of subsection (a) or (f), the terms of the tenancy of
     a tenant or subtenant may be altered with the express written
     consent of that tenant or subtenant, and such altered terms
     shall then be the terms of tenancy referred to in this section.
        (l)  Application of section.--The provisions of this section
     shall apply only with respect to conversion buildings in which
     one or more residential tenants or residential subtenants are in
     lawful occupancy on the conversion notice date, and the only
     tenants who are entitled to exercise the rights granted under
     this section are residential tenants or residential subtenants:
            (1)  who are in lawful occupancy of conversion building
        on the date the declarant gives the conversion notice; or
            (2)  who commence their tenancy after the notice of
        conversion is given to the other residential tenants without
        having been notified in writing, at or prior to the
        commencement of their tenancy, that the property is then a
        planned community and that they are not entitled to the
        rights granted under this section. Such rights continue only
        so long as the lawful occupancy of the tenant or subtenant
        continues.
     (Nov. 30, 2004, P.L.1486, No.189, eff. 60 days)

        2004 Amendment.  Act 189 amended subsecs. (d) and (j)(1).
        Cross References.  Section 5410 is referred to in section
     5103 of this title.