TOPA, DOPA and

ECONOMIC INTELLIGENCE
ROUNDTABLE: A FOCUS ON
AFFORDABLE HOUSING
JUNE 17, 2016

TOP 40 MULTIFAMILY SALES

MARKET

Source: Real Capital Analytics,

Greysteel.

SCOPE OF MULTIFAMILY SALES IN THE

DISTRICT
YEAR

VOLUME

AVG. PPU
20142015

# UNITS

# OF TRADES

AVG. SALE PRICE

W. AVG. SALE PRICE

2014

$1,195,543,845

4,473

64

$267,280

$18,680,373

$73,278,832

2015

$1,359,376,573

5,521

67

$246,219

$20,289,203

$79,326,006

Total

$2,554,920,418

9,994

131

$255,645

$19,503,209

$76,726,963

QUADRAN
T

VOLUME

AVG. PPU

AVG. SALE PRICE

# UNITS

# OF TRADES

W. AVG. SALE PRICE

NE

$439,635,220

1,550

12

$283,636

$36,636,268

$167,599,272

NW

$1,683,750,933

4,650

66

$362,097

$25,511,378

$82,748,210

SE

$155,564,265

2,267

46

$68,621

$3,381,832

$20,204,312

SW

$275,970,000

1,527

$180,727

$39,424,286

$49,360,753

9,994

131

$255,645

$19,503,209

$76,726,963

TOTAL

$2,554,920,418

CRITERIA AND
CLOSED SALES
METHODOLOGY
10+ units per
property
Arms-length closed transactions between 2014
2015
Minimum 90%
interest

*Excludes portfolio sale between Gables Residential and Clairon

Partners

Sources: Greysteel, Costar, Yardi Matrix, Real Capital

Analytics, District of Columbia Public Records, Cartodb.

DISCLAIMERS
While the information contained in this presentation has been compiled
from sources we believe to be reliable, neither Greysteel nor its representatives
make any representations or warranties as to the accuracy or completeness of
the information contained herein. Where such information is from unpublished
sources, Greysteel has reviewed the information for reasonableness and
consistency before including same herein. No representations are made by
Greysteel as regards property ownership, size, zoning conformance,
occupancy and lease terms, availability of utilities, soil conditions, flood
hazard, environmental problems, or any other matters.

SCOPE OF MULTIFAMILY SALES IN THE

DISTRICT

DOLLAR VOLUME BY ZIP CODE

TOPA BACKGROUND AND

TIMELINE
D.C. Council
passed the Rental Housing Conversion and Sales Act of 1980 (RHCSA) that
included provisions granting tenants the opportunity to purchase their buildings. This collection
of rights known as the Tenant Opportunity to Purchase Act (TOPA), restricted the rights of a
property owner to transfer the property to a third party.

D.C. Council passed The Districts Opportunity to Purchase Amendment Act of 2008
(DOPA), empowering the city with the right to purchase housing accommodations with 5+
units.

TOPA OUTCOMES

Note: Third party can use buyouts or negotiate terms.

Source: Gallaher, Carolyn. The Politics of Staying Put; Condo Conversion and
Tenant Right-to-Buy in Washington, D.C. Temple University Press, 2016.

PRIOR STUDIES OF TOPA

Majority of past studies focused on affordable housing and/or affordable housing

financing.
TITLE
"The Politics of Staying Put: Condo Conversion and Tenant Right-to-Buy in Washington, D.C."

AUTHOR
Carolyn Gallaher, Temple University Press

"Going, Going, Gone: DCs Vanishing Affordable Housing"

DC Fiscal Policy Institute

2015

"DC's First Right Purchase Program Helps to Preserve Affordable Housing and is One of DC's
Key Anti-Displacement Tools"

DC Fiscal Policy Institute

2013

"A Decade of Progress: Investing in Lives and Neighborhoods through the Housing
Production Trust Fund"

CNHED

2012

"An Affordable Continuum of HousingKey to a Better City"

CNHED

2010

An Analysis of the Strengths and Deficiencies of Washington, D.C.s Tenant

Opportunity to Purchase Act"

Harrison Institute for Public Law, Georgetown University Law Center

"A Study of Limited-equity Cooperatives in the District of Columbia"

YEAR
2016

CNHED

2006
2004

A lack of historical data, a lack of advanced computing tools and resources, and past instances of
data mis-management has most likely impeded a more comprehensive, data-intensive study.

TOPA BOXSCORE
POSITIVE

Mitigate displacement of incumbent tenants.

Increase quality of life for incumbent tenants.
Enhanced bargaining power through TOPA rights.

NEGATIVE

Mitigate displacement of incumbent tenants only.

Uncertainty and delays in closing for buyers reduce annual tax revenue generated from
recordation and other closing fees that could be used to finance new affordable
housing.
Perpetuates deferred repairs and maintenance.
In some cases, difficulty to attract needed debt or equity investments due to trigger of
TOPA rights from change in ownership interest.
Incentivizes many developers to become de-facto merchant builders.
Cottage Industry.

HOW CAN DATA SOLVE SOME OF THESE

PROBLEMS?

AVAILABILITY OF TOPA RELATED

DATA

No less than NINE District agencies, sub-agencies, and non-profit organizations that
collect or administer primary source data that is relevant to TOPA.
AGENCY/NON-PROFIT

DATA

Department of Housing and Community Development (DHCD)

IZ, ADU, LIHTC Compliance and Info

Rental Conversion and Sale Division (CASD)

Condo/LEC conversion data; notice of sale data; TA registration data

Rental Accommodations Division (RAD)

Rental assistance and rent control data

Department of Consumer and Regulatory Affairs (DCRA)

Permit, alterations and inspection data

DC Office of Zoning (DCOZ)

Zoning, parcel and BZA adjustment history

Office of the Tenant Advocate (OTA)

Housing petition data (voluntary agreements, hardship petitions, etc)

Office of Tax and Revenue (OTR)

Tax assessment data; Recorder of Deeds (grantor/grantee,

foreclosures, liens, etc)

Office of the Deputy Mayor for Planning and Economic Development (DMPED)

Affordable & market-rate construction pipeline and investment

Coalition for Nonprofit Housing and Economic Development + Neighborhood Info DC

DC Preservation Catalog; standardized neighborhood profile GIS data

TOPA OUTCOMES
TOPA OUTCOMES (20142015)

COUNT

% OF TOTAL SALES

TA Forms; Purchase Outright or Designate

Rights
Non-Profit/Affordable Housing Provider
For-Profit Affordable (Section 8)
Market-Rate Rental or Condo

68

51.91%

13
25
30

9.92%
19.08%
22.90%

Contract Purchaser
Vacant or Pre-Occupancy
Vacant For-Profit Affordable (Section 8)
TA Forms; Does not Purchase

52
18
5
6

39.69%
13.74%
3.82%
4.58%

Unknown

11

8.40%

131

100.00%

TOTAL

PAST STUDIES

OTHER COLLECTED
DATA

Carolyn Gallaher, Temple University Press (2016)

Kathryn Howell, DC Housing Preservation Strike Force

(2016)

NOTES

Found that between 2000-2007, 1,147

buildings or 26,645 apartments converted
to
condominiums - 10% of occupied housing
units in the District from data provided by
DHCD
Found that 20 publicly subsidized housing
buildings were lost between 2008-2015
analyzing DC Preservation Catalog data.

1
0

TOPA OUTCOME
DISTRIBUTION

MISSING DATA
Examples of useful data that is going
uncollected or difcult to obtain;

How was the developer selected?

How many net units were affordable at the end
of the process?
How many units were vacant upon sale?
How many tenants were bought-out prior to
sale?
What were insider prices established by
development agreement? Were these units
quickly resold by incumbent tenants?
Compared to market rates?
Were any voluntary agreements involved and
how many units did the agreements affect? What
were the terms of the voluntary agreement?
Scope of rehab?
Tenant motivations?

11

VALUE OF MISSING
DATA
Establish framework and network of comparable prices related to housing
provider petitions, development agreements, and tenant buy-outs through data
transparency.
Understand the geographic distribution of TOPA outcomes and how it may be
influenced by housing market and/or socioeconomic factors.
Promote development in areas most affected by the loss of affordable housing.
Understand the efficiency of TOPA and motivate discussion about alternative solutions
to affordable housing.
Basis for more comprehensive, data-driven study.

12

SOURC
ES
Greysteel, Costar, Yardi Matrix, Real Capital Analytics, District of Columbia Public Records,
Cartodb, DHCD, CNHED, DC Multifamily Housing Task Force, and The Washington Post.
TITLE
"The Politics of Staying Put: Condo Conversion and Tenant Right-to-Buy in Washington, D.C."

AUTHOR
Carolyn Gallaher, Temple University Press

YEAR
2016

"Going, Going, Gone: DCs Vanishing Affordable Housing"

DC Fiscal Policy Institute

2015

"DC's First Right Purchase Program Helps to Preserve Affordable Housing and is One of DC's
Key Anti-Displacement Tools"

DC Fiscal Policy Institute

2013

CNHED

2012

CNHED

2010

"A Decade of Progress: Investing in Lives and Neighborhoods through the Housing
Production Trust Fund"
"An Affordable Continuum of HousingKey to a Better City"
An Analysis of the Strengths and Deficiencies of Washington, D.C.s Tenant
Opportunity to Purchase Act"
"A Study of Limited-equity Cooperatives in the District of Columbia"

Harrison Institute for Public Law, Georgetown University Law Center

CNHED

2006
2004

13

14

7735 Old Georgetown Road Suite 301 Bethesda, MD

20814 202.280.2722 www.greysteel.com
Los Angeles Washington, D.C.* Baltimore Philadelphia Dallas
Fort Worth
D.C. License No: LL98371301
*Corporate Headquarters and Transaction Services Center

2016 The Greysteel Company LLC. All rights reserved.