PRIA, Government Policy, Made Personal

Summary

Protect people’s housing when rental buildings are turned into condominiums or cooperatives. Congress found there is not enough affordable housing, and conversions can reduce options for low- and moderate-income people and for elderly and handicapped persons. Some long-term leases for shared amenities can be unfair and cause economic and social harm, and states sometimes cannot fix these problems. The federal government already affects these markets through taxes, housing programs, and federally insured lenders. The law’s goals are to reduce harm from conversions, protect housing chances for low- and moderate-income people and elderly and handicapped persons, make sure fair rules guide the creation of condos and cooperatives, and provide relief when long-term leases are found to be unfair.

Title 15, §3601

Commerce and Trade, Source: USLM XML via OLRC

(a)The Congress finds and declares that—

(1)there is a shortage of adequate and affordable housing throughout the Nation, especially for low- and moderate-income and elderly and handicapped persons;

(2)the number of conversions of rental housing to condominiums and cooperatives is accelerating, which in some communities may restrict the shelter options of low- and moderate-income and elderly and handicapped persons;

(3)certain long-term leasing arrangements for recreation and other condominium- or cooperative-related facilities which have been used in the formation of cooperative and condominium projects may be unconscionable; in certain situations State governments are unable to provide appropriate relief; as a result of these leases, economic and social hardships may have been imposed upon cooperative and condominium owners, which may threaten the continued use and acceptability of these forms of ownership and interfere with the interstate sale of cooperatives and condominiums; appropriate relief from these abuses requires Federal action; and

(4)there is a Federal involvement with the cooperative and condominium housing markets through the operation of Federal tax, housing, and community development laws, through the operation of federally chartered and insured financial institutions, and through other Federal activities; that the creation of many condominiums and cooperatives is undertaken by entities operating on an interstate basis.

(b)The purposes of this chapter are to seek to minimize the adverse impacts of condominium and cooperative conversions particularly on the housing opportunities of low- and moderate-income and elderly and handicapped persons, to assure fair and equitable principles are followed in the establishment of condominium and cooperative opportunities, and to provide appropriate relief where long-term leases of recreation and other cooperative- and condominium-related facilities are determined to be unconscionable.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 96–399, title VI, § 618, Oct. 8, 1980, 94 Stat. 1680, provided that: “The provisions of this title [enacting this chapter] shall become effective upon enactment [Oct. 8, 1980], except that section 609 [section 3608 of this title], and the prohibition included in section 610 [section 3609 of this title] as it relates to a lease with respect to which a cause of action may be established under section 609, shall become effective one year after enactment.”

Short Title

Pub. L. 96–399, title VI, § 601, Oct. 8, 1980, 94 Stat. 1672, provided that: “This title [enacting this chapter] may be cited as the ‘Condominium and Cooperative Abuse Relief Act of 1980’.”

§3601 Congressional Findings and Purpose