§11–137.

    (a)    (1)    In this section the following words have the meanings indicated.

        (2)    “Annual income” means the total income from all sources, of a designated household, for the income tax year immediately preceding the year in which the notice is given under § 11-102.1 of this title, whether or not included in the definition of gross income for federal or State tax purposes. For purposes of this section, the inclusions and exclusions from annual income are the same as those listed in § 9-104(a)(8) of the Tax - Property Article, “gross income” as that term is defined for the property tax credits for homeowners by reason of income and age, but shall not include unreimbursed medical expenses if the tenant provides reasonable evidence of the unreimbursed medical expenses or consents in writing to authorize disclosure of relevant information regarding medical expense reimbursement at the time of applying for an extended lease.

        (3)    “Designated household” means any of the following households:

            (i)    A household which includes a senior citizen who has been a member of the household for a period of at least 12 months preceding the giving of the notice required by § 11-102.1 of this title; or

            (ii)    A household which includes an individual with a disability who has been a member of the household for a period of at least 12 months preceding the giving of the notice required by § 11-102.1 of this title.

        (4)    (i)    “Disability” means:

                1.    A physical or mental impairment that substantially limits one or more of an individual’s major life activities; or

                2.    A record of having a physical or mental impairment that substantially limits one or more of an individual’s major life activities.

            (ii)    “Disability” does not include the current illegal use of or addiction to:

                1.    A controlled dangerous substance as defined in § 5-101 of the Criminal Law Article; or

                2.    A controlled substance as defined in 21 U.S.C. § 802.

        (5)    “Household” means only those persons domiciled in the unit at the time the notice required by § 11-102.1 of this title is given.

        (6)    “Rental facility” means property containing 10 or more dwelling units intended to be leased to persons who occupy the dwellings as their residences.

        (7)    “Senior citizen” means a person who is at least 62 years old on the date that the notice required by § 11-102.1 of this title is given.

        (8)    “Unreimbursed medical expenses” means the cost of medical expenses not otherwise paid for by insurance or some other third party, including medical and hospital insurance premiums, co-payments, and deductibles; Medicare A and B premiums; prescription medications; dental care; vision care; and nursing care provided at home or in a nursing home or home for the aged.

    (b)    A developer may not grant a unit in a rental facility occupied by a designated household entitled to receive the notice required by § 11-102.1 of this title without offering to the tenant of the unit a lease extension for a period of at least 3 years from the giving of the notice required by § 11-102.1 of this title, if the household meets the following criteria:

        (1)    Had an annual income which did not exceed the income eligibility figure applicable for the county or incorporated municipality in which the rental facility is located, as provided under subsection (n) of this section;

        (2)    Is current in its rent payment and has not violated any other material term of the lease; or

        (3)    Has provided the developer within 60 days after the giving of the notice required by § 11-102.1 of this title with an affidavit under penalty of perjury:

            (i)    Stating that the household is applying for an extended lease under this section;

            (ii)    Setting forth the household’s annual income for the calendar year preceding the giving of the notice required by § 11-102.1 of this title together with reasonable supporting documentation of the household income and, where applicable, of unreimbursed medical expenses or a written authorization for disclosure of relevant information regarding medical expense reimbursement by doctors, hospitals, clinics, insurance companies, or similar persons, entities, or organizations that provide medical treatment coverage to the household;

            (iii)    Setting forth facts showing that a member of the household is either an individual with a disability or a senior citizen who, in either event, has been a member of the household for at least 12 months preceding the giving of the notice required by § 11-102.1 of this title; and

            (iv)    Has executed an extended lease and returned it to the developer within 60 days after the giving of the notice required by § 11-102.1 of this title.

    (c)    The developer shall deliver to each tenant entitled to receive the notice required by § 11-102.1 of this title, simultaneously with the notice:

        (1)    An application on which may be included all of the information required by subsection (b)(3) of this section;

        (2)    A lease containing the terms required by this section and clearly indicating that the lease will be effective only if:

            (i)    The tenant executes and returns the lease not later than 60 days after the giving of the notice required by § 11-102.1 of this title; and

            (ii)    The household is allocated 1 of the units required to be made available to qualified households based on its ranking under subsection (k) of this section and the number of tenants executing and returning leases;

        (3)    A notice, delivered in the form specified in § 11-102.1(f) of this title, setting forth the rights and obligations of the tenant under this section; and

        (4)    A copy of the public offering statement which is registered with the Secretary of State.

    (d)    Within 75 days after the giving of the notice required by § 11-102.1 of this title, the developer shall notify each household which submits to the developer the documentation required by subsection (b)(3) of this section:

        (1)    Whether the household meets the criteria of subsection (b) of this section, and, if not, an explanation of which criteria have not been met; and

        (2)    Whether the extended lease has become effective.

    (e)    Within 75 days after the giving of the notice required by § 11-102.1 of this title, the developer shall provide to any county, incorporated municipality, or housing agency which has a right to purchase units in the rental facility under § 11-139 of this title:

        (1)    A notice indicating the number of units in the rental facility being made available to qualified households under subsection (k)(1) of this section;

        (2)    A list of all households meeting the criteria of subsection (b) of this section, indicating the ranking of each in relation to that number;

        (3)    A list of all households returning the affidavit required by subsection (b) of this section which do not meet all the criteria of subsection (b) of this section and copies of the notifications sent to these households under subsection (d) of this section; and

        (4)    A list of all households as to whom a lease has become effective.

    (f)    (1)    The extended lease shall provide for a term commencing on acceptance and terminating not less than 3 years from the giving of the notice required by § 11-102.1 of this title.

        (2)    Annually, on the commencement date of the extended lease, the rental fee for the unit may be increased. The increase may not exceed an amount determined by multiplying the annual rent for the preceding year by the percentage increase for the rent component of the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) (1967 = 100), as published by the U.S. Department of Labor, for the most recent 12-month period.

        (3)    Except as this section otherwise permits or requires, the extended lease shall contain the same terms and conditions as the lease in effect on the day preceding the giving of the notice required by § 11-102.1 of this title.

    (g)    A designated household which exercises its rights under this section shall not be denied an opportunity to buy a unit at a later date, if one is available.

    (h)    (1)    A designated household which executes an extended lease under this section which is accepted thereafter may not terminate its extended lease under § 11-102.1 of this title. A designated household may terminate its extended lease at any time, with notice to the developer or any subsequent titleholder as follows:

            (i)    At least a 1-month notice in writing shall be given when less than 12 months remain on the lease; and

            (ii)    At least a 3-month notice in writing shall be given when 12 months or more remain on the lease.

        (2)    Any lease executed under this section shall set forth the provisions for termination contained in this subsection.

    (i)    The title to units subject to the provisions of this section may be granted to a person who is not a member of the designated household, provided that:

        (1)    The provisions of this section continue to apply despite any transfer of title to a unit occupied by a designated household as provided in this section;

        (2)    The designated household is provided written notice of the change of ownership of title by the new titleholder; and

        (3)    The vendor of any such unit provides the purchaser written disclosure that the unit is occupied by a designated household subject to the provisions of this section at the time of or prior to the execution of a contract of sale.

    (j)    The extended tenancy provided for in this section shall cease upon the occurrence of any of the following:

        (1)    90 days after the death of the last surviving senior citizen or individual with a disability residing in the unit, or 90 days after the last senior citizen or individual with a disability residing in the unit has moved from the unit;

        (2)    Eviction for failure to pay rent due in a timely fashion or violation of a material term of the lease; or

        (3)    Voluntary termination of the lease by the designated household under subsection (h) of this section.

    (k)    (1)    A developer shall set aside a percentage of the total number of units within a condominium for designated households. A developer is not required to grant extended leases covering more than 20 percent of the units within a condominium to designated households.

        (2)    (i)    If the number of units occupied by designated households which meet the criteria of subsection (b) of this section exceeds 20 percent, then the number of available units for tenancy under the provisions of this section shall be allocated as determined by the local governing body.

            (ii)    If the local governing body fails to provide for allocation, then units shall be allocated by the developer.

            (iii)    1.    Except as provided in subsubparagraph 2 of this subparagraph, the developer shall allocate the units based on seniority by continuous length of residence.

                2.    Among designated households that include individuals with disabilities, priority shall be given to households that include an individual with a physical impairment who requires wheelchair accessible housing.

    (l)    (1)    If a conversion to condominium involves substantial rehabilitation or reconstruction of such a nature that the work involved does not permit the continued occupancy of a unit because of danger to the health and safety of the tenants, then any designated household executing an extended lease under the provisions of this section may be required to vacate their unit not earlier than the expiration of the 180-day period and to relocate at the expense of the developer in a comparable unit in the rental facility to permit such work to be performed.

        (2)    If there is no comparable unit available, then the designated household may be required to vacate the rental facility. When the work is completed, the developer shall notify the household of its completion. The household shall have 30 days from the date of that notice to return to their original or a comparable rental unit. The term of the extended lease of that household shall begin upon their return to the rental unit.

        (3)    The developer shall give 180 days’ notice prior to the date that units must be vacated. The notice shall explain the household’s rights under this subsection and subsection (m) of this section.

    (m)    (1)    The developer shall pay households that qualify as to income under subsection (b)(1) of this section $375 when the household vacates the unit and for moving expenses as defined in § 11-101 of this title in excess of $375 up to $750 which are actually and reasonably incurred. The household shall make a written request for reimbursement accompanied by reasonable evidence of the costs incurred within 30 days of moving. The developer shall reimburse the household within 30 days following receipt of the request.

        (2)    If a household does not qualify as to income under subsection (b)(1) of this section, the developer shall reimburse moving expenses as defined in § 11-101 of this title, up to $750, actually and reasonably incurred to the designated households eligible under this subsection. The designated household shall make a written request for reimbursement accompanied by reasonable evidence of the costs incurred within 30 days of moving. The developer shall reimburse the designated household within 30 days following receipt of the request.

        (3)    The developer shall also pay a compensation equivalent to 3 months’ rent within 15 days of moving to the designated households eligible under this subsection.

        (4)    The following designated households which meet the applicable criteria of subsection (b) of this section are eligible under this subsection:

            (i)    A designated household which does not execute an extended lease;

            (ii)    A designated household which is precluded from having an extended tenancy by the limitation of subsection (k) of this section; or

            (iii)    A designated household which is required to vacate their rental unit under subsection (l)(2) of this section.

        (5)    A developer shall also reimburse moving expenses as defined in § 11-101 of this title, up to $750, actually and reasonably incurred, to a designated household who returns to their rental unit under subsection (l)(2) of this section. The designated household shall make a written request for reimbursement accompanied by reasonable evidence of the costs incurred within 30 days following the designated household’s return. The developer shall reimburse the designated household within 30 days following receipt of the request.

    (n)    (1)    (i)    The Secretary of State shall prepare income eligibility figures for each county and standard metropolitan statistical area of the State.

            (ii)    Except in Baltimore City, the figures shall reasonably approximate:

                1.    80 percent of the median household income for each county;

                2.    80 percent of the median household income for each metropolitan statistical area; and

                3.    The uncapped low income limits as adjusted for family size calculated by the U.S. Department of Housing and Urban Development for assisted housing programs.

            (iii)    In Baltimore City, the figure shall reasonably approximate 100% of the median household income for the Baltimore Metropolitan Statistical Area.

        (2)    Except in Baltimore City, a county or incorporated municipality may by law, ordinance, or resolution select from the figures prepared by the Secretary of State under paragraph (1)(ii) of this subsection, the applicable income eligibility figure or figures to be used in the county or incorporated municipality.

        (3)    The figure prepared by the Secretary of State under paragraph (1)(iii) of this subsection shall be the income eligibility figure used in Baltimore City.

        (4)    Except in Baltimore City, if a county or incorporated municipality does not select an income eligibility figure or figures, 80 percent of the median household income for the county shall be used.