Potomac Place Assoc., LLC v. Mendez

District of Columbia Court of Appeals·Decided April 10, 2025·No. 23-CV-0271·Published

Opinion

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DISTRICT OF COLUMBIA COURT OF APPEALS No. 23-CV-0271

POTOMAC PLACE ASSOCIATES, LLC, APPELLANT, v.

WALTER MENDEZ, et al., APPELLEES.

Appeal from the Superior Court of the District of Columbia (2019-LTB-022079)

(Hon. Maurice A. Ross, Trial Judge)

(Argued November 13, 2024 Decided April 10, 2025)

Joshua M. Greenberg, with whom Richard W. Luchs and Spencer B. Ritchie, were on the brief, for appellant.

Ramona Quillet for appellee Walter Mendez.

Before BLACKBURNE-RIGSBY, Chief Judge, DEAHL, Associate Judge, and WASHINGTON, Senior Judge.

WASHINGTON, Senior Judge: This case involves appellant Potomac Place’s efforts to evict appellee Walter Mendez from his home following the death of his mother. Potomac Place contends that Mr. Mendez’s failure to respond to a notice to purchase his apartment or move issued pursuant to the Rental Housing Conversion and Sale Act (RHCSA), is grounds for eviction under the Rental Housing Act

(RHA). Mr. Mendez counters that he is protected from eviction because his mother, with whom he shared tenancy of his apartment at the time of the condominium conversion, was exempt from the requirements of the RHCSA and, therefore, the RHCSA and RHA provide no basis for terminating his tenancy. He further contends that his failure to comply with the notice to purchase or vacate does not provide Potomac with a basis for eviction because he is low-income and handicapped and thus exempt from participating in the RHCSA process. The Superior Court rejected Potomac Place’s argument and granted summary judgment to Mr. Mendez. For the following reasons, we affirm.

I. Statement of Facts

On June 1st, 2003, Teresa Aparicio and her son Walter Mendez co-signed a lease to rent an apartment at 800 4th Street, SW, in Washington, D.C. Approximately two years later, the building’s owner Potomac Place began the process of converting the building into a condominium. As required by the Rental Housing Conversion and Sale Act (RHCSA), Potomac Place held a conversion election in November 2005. A majority of 800 4th Street’s eligible households voted for conversion, and by May 2006 the building was successfully registered as a condominium. In accordance with the RHCSA, Potomac Place sent most of 800 4th Street’s tenants 120 Day Notices of Intent to Convert. D.C. Code § 42-3402.06.

These notices offered tenants the opportunity to purchase their apartment, but stated that, if tenants chose not to buy, they would be required to leave their residences so the residences could be sold. However, the RHCSA exempted certain households from its requirement that they purchase their unit or move. Specifically, at the time of 800 4th Street’s conversion, apartment owners could not use the conversion process to evict households where the “head of household” was 62 or older and had an annual household income of less than $40,000 per year. D.C. Code § 42-3402.08 (2001) (amended 2006 and 2017). These households maintained a right to live in the building as renters. Id.

Because Ms. Aparicio qualified as a low-income elderly tenant her household was protected, and neither she nor Mr. Mendez received a Notice of Intent to Convert. The two continued to live as renters in the converted condominium without incident for the next thirteen years.

When Ms. Aparicio passed away in 2019 Mr. Mendez continued to live in the apartment. At the end of the lease term, Potomac Place sent him a Notice of Intent to Convert with the same choice it had offered his neighbors in 2006: he either had to purchase his apartment at the then-current market rate or move out. When Mr. Mendez refused, Potomac Place brought a complaint for possession in the Superior Court, arguing that, because the exempt status of the household was based on his

mother’s age and income at the time of the 2005-2006 conversion, the exemption applied only during Ms. Aparicio’s lifetime. Thus, because Mr. Mendez was not a low-income elderly tenant when the 2005 conversion election took place, he was now required to comply with the requirements of the RHCSA. Potomac Place asserted that it was irrelevant that Mr. Mendez was a low-income disabled tenant, or that the D.C. legislature had amended the RHCSA in late 2006 to also prohibit the eviction of low-income disabled households. Since these protections did not exist at the time of the conversion election, it stated, applying them to Mr. Mendez would be unlawfully retroactive.

Mr. Mendez filed a motion for summary judgment, arguing that since the conversion occurred in 2005-2006, the RHCSA no longer applied to him. Instead, he argued, his tenancy was governed by the provisions of the D.C. Rental Housing Act (RHA), which gave him a right to remain. The Superior Court agreed and granted Mr. Mendez’s motion. Potomac Place timely appealed.

II. Standard of Review

Because this is a matter of statutory interpretation, it presents a question of law that we review de novo. Aziken v. District of Columbia, 194 A.3d 31, 34 (D.C. 2018). We also review a grant of summary judgment de novo, and will affirm if, even when viewed in the light most favorable to appellant, there is “no genuine

issue[] of material fact” and the appellee was “entitled to judgment as a matter of law.” Id. (internal citations omitted); Super. Ct. Civ. R. 56(c).

III. Analysis

A.

This case turns on the statutory interpretation of and interplay between two D.C. statutes—the Rental Housing Act (RHA) and the Rental Housing Conversion and Sale Act (RHCSA). The RHA governs the relationships between landlord and tenants in the District of Columbia generally, while the RHCSA provides special rules for use during the conversion of rental housing into condominium regimes. Adm’r of Veterans Affs. v. Valentine, 490 A.2d 1165, 1168 (D.C. 1985); Hornstein v. Barry, 560 A.2d 530, 532-33 (D.C. 1989).

D.C. landlords attempting to evict a rent-paying residential tenant must comply with the dictates of the RHA. D.C. Code §§ 42-3501.01 et seq.; cf. Hernandez v. Banks, 84 A.3d 543, 553 (D.C. 2014) (the RHA provides an “expeditious statutory substitute for the ancient action of ejectment”) (quoting Thornhill v. Atl. Life Ins. Co., 70 F.2d 846, 846 (D.C. Cir. 1934)). Enacted in response to D.C.’s shrinking supply of rental housing in the 1970s and 80s, the RHA is part of a “comprehensive legislative scheme to protect the rights of tenants.”

Valentine, 490 A.2d at 1168; see also Rental Housing Act of 1985, D.C. Council, Report on Bill 6-33 at 1-2 (March 22, 1985) (describing purpose and history of the RHA and its predecessors). It is an explicitly renter-friendly statute—its stated purposes include both “[t]o protect the existing supply of rental housing from conversion to other uses” and “[t]o prevent the erosion of moderately priced rental housing while providing housing providers and developers with a reasonable rate of return on their investments.” § 42-3501.02(4)-(5). Its eviction protections, in particular, are designed to “eliminate improper attempts to remove low and moderate housing stock from the market.” Rental Accommodations Act of 1975, D.C. Council, Report on Bill 1-33 at 36 (July 31, 1975). Therefore, we have asserted, the RHA “must be construed liberally” to protect the rights of tenants and achieve its desired goals. Valentine, 490 A.2d at 1168; see also City Ctr. Real Est., LLC v. 1606 7th St. NW, LLC, 263 A.3d 1036, 1044 (D.C. 2021).

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