The Van Ness South Tenants Association today filed a Petition for Declaratory Relief to the DC Department of Housing and Community Development, challenging Equity Residential’s claim that it can transfer ownership interests associated with 3003 Van Ness without giving residents their legal right to consider purchase of the property via the Tenant Opportunity to Purchase Act (TOPA). Under TOPA, when an apartment building is put up for sale, a tenant association general must be given the first opportunity to purchase it.

The introduction to the Petition states:

“The Van Ness South Tenants Association and Harry Gural, individually, hereby challenge Equity Residential’s claim that the proposed transfer of ownership interests associated with the 625-unit apartment complex at 3003 Van Ness Street, NW, does not constitute a sale under the Tenant Opportunity to Purchase Act (TOPA). If Equity’s claimed exemption is upheld, residents will be denied the rights that TOPA provides when an apartment building is sold.”

The apartment building at 3003 Van Ness is owned by Smith Property Holdings Van Ness, a limited partnership. Smith is owned by another company, which is owned by another, which is owned by another, which is owned by another, which is owned by another (etc.), which is owned by Equity Residential.

Equity Residential is undergoing is undergoing a. merger with AvalonBay Communities, which will together form a rental housing giant under the name Vivmark Residential. Equity hopes to transfer ownership to the newly merged company, assigning a value of $111 million to the property, with current AvalonBay shareholders owning the majority of shares in the merged company. Nevertheless, Equity claims that the transfer is not a sale.

The Van Ness South Tenants Association’s Petition argues that the transaction constitutes a sale under TOPA and that residents therefore must be afforded the rights provided under the Tenant Opportunity to Purchase Act.

Read the Petition for Declaratory Relief.