TITLE XXXI
TRADE AND COMMERCE

Chapter 356-C
PROTECTION OF TENANTS IN CONVERSION OF RENTAL UNITS

Section 356-C:1

356-C:1 Definitions. –
As used in this chapter:
I. [Repealed.]
II. "Conversion" means a change in the character of residential real property from a rental to an ownership basis. A condominium, stock cooperative or other similar arrangement shall be deemed ownership in character.
III. "Disabled tenant" means a tenant who is receiving aid to the totally and permanently disabled from the New Hampshire division of human services, disability benefits from the social security administration or benefits for total disability from the department of veterans affairs.
IV. "Elderly tenant" means a tenant who is 65 years of age or older.
V. "Tenant" means a person who has entered into a lease or other contractual arrangement with the owner.
VI. "Tenant household" means one or more persons, whether related or not, who occupy a dwelling unit in residential real property on a rental basis pursuant to a valid lease or oral or written rental agreement.

Source. 1983, 398:1. 1985, 300:29, IV.

Section 356-C:2

356-C:2 Applicability. –
I. This chapter shall apply to the conversion of all residential real property in the state of New Hampshire except:
(a) The conversion of any building, building complex or manufactured housing park having 10 or fewer than 10 dwelling units; provided, however, that, if the conversion of a building, building complex or manufactured housing park having more than 10 dwelling units is conducted in stages of 10 or fewer than 10 units at any time, this chapter shall be applicable to any such conversion;
(b) The conversion of any nursing home, dormitory, boarding house, motel, hotel, dwelling unit normally occupied by transient persons for periods of 3 months or less or dwelling unit occupied on a seasonal basis for fewer than 6 months of the year;
(c) The conversion of any dwelling unit which is individually owned but has been rented.
II. This chapter shall not apply to a conversion which has been registered under RSA 356-A or 356-B prior to June 22, 1983, or, if registration was not required, if either condominium instruments had been recorded in the registry of deeds in accordance with RSA 356-B:7 prior to June 22, 1983, or if a formal offering of sale to prospective buyers had been made prior to June 22, 1983. This chapter shall apply to a conversion with respect to which an application for registration had been filed in proper form under RSA 356-A or 356-B, but for which registration had not been granted, prior to June 22, 1983, to the extent provided in RSA 356-C:3, II; 356-C:5; 356-C:8 and 356-C:9.
III. A conversion subject to this chapter shall be registered under RSA 356-A or 356-B, as appropriate, notwithstanding any exemption to the contrary contained in those chapters, unless the conversion is exempted by action of the attorney general pursuant to RSA 356-A or 356-B.

Source. 1983, 398:1. 1985, 300:7, I(b).

Section 356-C:3

356-C:3 Provision of Rights; Contents of Notice. –
I. No conversion subject to this chapter shall be effected until:
(a) The owner or his agent has mailed to each tenant by registered mail, return receipt requested, a notice of intent to convert no earlier than 120 days before the date of filing an application for registration under RSA 356-A or 356-B, as appropriate, which notice shall contain the following information:
(1) That the owner intends to convert the tenant's dwelling unit into a condominium, stock cooperative or other ownership arrangement;
(2) The name of the owner or owners of the real property and the number of dwelling units in the building or buildings to be converted;
(3) That the conversion must be registered with the attorney general before the owner may offer or sell dwelling units in the building or buildings to be converted;
(4) That the owner has submitted, or intends to submit within 120 days, an application for registration of the conversion with the attorney general under RSA 356-A or 356-B, as appropriate, and that the attorney general may take up to 60 days to act upon the application;
(5) That, if the conversion is not yet registered with the attorney general, the owner shall notify each tenant of the registration or of the withdrawal of the application at such time as it occurs;
(6) That, if the dwelling unit is to be retained without substantial alteration in its physical layout, the tenant has the exclusive right to contract for the purchase of the unit that the tenant occupies for a period of 60 days from the time of receipt of the sale documents;
(7) That any tenant residing in the building at the time of the receipt of this notice shall have no less than 270 days from the receipt of the notice or until the expiration of the 60 day period in which the tenant has an exclusive right to purchase his or her dwelling unit, whichever is later, before being required to vacate. If the tenant has valid leasehold rights which provide for a longer term of occupancy than provided by this section, such tenant shall not be required to vacate the unit until the longer term has expired;
(8) That a tenant who is elderly or disabled at the time notice is given shall have at least 18 months from the receipt of this notice before the tenant shall be required to vacate the unit; provided, however, any such tenant shall be required to show that he qualifies as an elderly or disabled tenant within the meaning of this chapter;
(9) That, notwithstanding any of the foregoing, the tenant may be evicted pursuant to the provisions of RSA 356-C:6, which provisions shall be set forth in full or summary form in the notice;
(10) That, notwithstanding any obligation contained in a lease or other contractual arrangement to the contrary, except for an obligation contained in a lease or other contractual arrangement entered into before June 22, 1983, the tenant may terminate his tenancy without penalty or liability upon giving notice to the owner or his agent at least 30 days prior to termination; and
(11) Such other information as the attorney general deems necessary or advisable to effectuate the purposes of this chapter;
(12) That, notwithstanding any provision of this notice, if there is a rent increase, except for those increases under RSA 356-C:6, I(a), application for condominium conversion shall not be made until 3 months after such increase; and
(b) The owner or his agent has mailed to each tenant by registered mail, return receipt requested, a registration notice after the conversion has been registered under RSA 356-A or 356-B, as appropriate, which notice shall contain the following information:
(1) That the owner or his agent has registered the conversion with the attorney general;
(2) That the time periods described in subparagraphs I(a)(6), (7), (8) and (12) shall expire on specified dates; and
(3) Such other information as the attorney general deems necessary or advisable to effectuate the purposes of this chapter; and
(c) The owner or his agent may consolidate the notices described herein into one notice if registration of the conversion has occurred prior to notice of intent to convert being sent to the tenants.
II. No residential property for which an application for registration has been filed in proper form under RSA 356-A or 356-B, but not registered, prior to June 22, 1983, shall be converted until, no earlier than the date upon which the conversion is registered, the owner or his agent has mailed to each tenant by registered mail, return receipt requested, a notice containing the following information:
(a) The information required by subparagraphs I(a)(1), (2), and (6); and
(b) That the owner or his agent has registered the conversion with the attorney general; and
(c) That any tenant residing in the building at the time of the receipt of this notice shall have 90 days from the receipt of the notice or until the expiration of the 60 day period in which the tenant has an exclusive right to purchase his unit, whichever is later, before being required to vacate. If the tenant has valid leasehold rights which provide for a longer term of occupancy than provided in this section, such tenant shall not be required to vacate the unit until the longer term has expired.
III. The notice described in subparagraph I(a) shall be void if the owner or his agent fails to make application for registration under RSA 356-A or 356-B, as appropriate, within 120 days after mailing the notice to tenants.
IV. Any person whose tenancy begins after service of the notices required under this section shall not be provided with the protections of this chapter if he or she was given written notice of the impending conversion before entering into the lease for other contractual arrangement.

Source. 1983, 398:1. 1985, 300:7, I(b). 1987, 320:5, 6, eff. May 25, 1987.

Section 356-C:4

356-C:4 Filing Notices With Attorney General. – The notices required under RSA 356-C:3, I, shall be filed with the attorney general at least 10 days prior to their being mailed to any tenant.

Source. 1983, 398:1. 1985, 300:7, I(b).

Section 356-C:5

356-C:5 Exclusive Right to Purchase. –
I. Any tenant entitled to notice under RSA 356-C:3, I and II, shall have an exclusive right to contract for the purchase of the unit that he occupies, provided that the unit is to be retained without substantial alteration in its physical layout. Such tenant shall be given all documents provided to the general public or to any other tenant as a part of the offering for sale. Each tenant shall have 60 days from the time of receipt of the sales documents to exercise his exclusive right to purchase. The exclusive right to purchase shall expire prior to the expiration of the 60 day period upon the tenant's voluntarily giving notice of termination of his lease or rental agreement or vacating his unit, whichever is earlier.
II. Failure to comply with this section shall render a sale to any person or entity other than the tenant voidable at the option of the tenant if the tenant exercises this option before giving notice of termination or vacating the premises.