Condominium Conversions

condominiums

What Is A Condominium Conversion?

Condominium Conversion is the process whereby a singular residential or commercial property is transformed and entitled into multiple, individual condo units. The buyers of these condo units are said to be Unit Owners and are governed by a Condominium Regime or Association.

Why Do A Condominium Conversion?

Condominium Conversions allows for real estate developers to increase the density of a property in order to provide new housing accommodation options within their respective urban communities. This presents investors with a potential for a profitable investment, while creating new home ownership opportunities for families and first time home-buyers.

How To Do A Condominium Conversion?

Condominium Conversions are entitled through an approval process regulated by the local municipal government / authority. In Washington DC, the condo conversion process is governed by The Rental Conversion and Sale Division (CASD) within Department of Housing and Community Development (DHCD) and as constituted by The Rental Housing Conversion and Sale Act of 1980, as amended (D.C. Law 3-86) (the Conversion Act) and The Condominium Act of 1976 Technical and Clarifying Amendment Act, as amended (D.C. Law 9-82) (the Condominium Act).

To learn more about condominium conversions in Washington DC, email or call us
[email protected]
(202) 888-0132.

3-Step Condo Conversion Process in DC

Step 1

ELIGIBILITY TO CONVERT

An "Eligibility to Convert" application must first be submitted to Department of Housing and Community Development (DHCD) for all condominium conversions in Washington DC. Based on the previous occupation circumstances of a vacant property, the application is either categorized as a "Not a Housing Accommodation Exemption" (NHA) or a "Vacancy Exemption" (VE). If the subject property is to remain tenanted, the Owner must request for a "Tenant Election to Convert." DHCD will award a Certificate of Eligibility to Convert to approved applications, which provides the green light to continue the conversion process in the District and start forming the Public Offering Statement
Step 2

PUBLIC OFFERING STATEMENT

The next step involves preparing and submitting the Public Offering Statement (POS), often called the "condo docs." This important document has two primary sections:  
  1. The Narrative, which outlines key details about the condominium.
  2. The Exhibit Section, which contains the crucial documents needed to form the condominium association, such as the Declaration & Bylaws, Architect’s Report, Condominium Plat & Plan, Limited Warranty, Construction Budget, and Condominium Association Budget.
  These documents are essential for maintaining transparency between property owners and potential buyers while ensuring compliance with legal standards. The Department of Housing and Community Development (DHCD) reviews the POS under Chapter 19 of the District of Columbia’s code and, upon approval, issues a Condominium Registration Order that allows for the sale of individual units.
Step 3

CONDO TAX LOT NUMBERS

The final stage of Washington DC's condominium conversion process is overseen by the DC Department of Buildings (DOB) and the Office of Tax and Revenue (OTR). First, the Declaration and Bylaw exhibits from the approved Public Offering Statement (POS) must be officially recorded with DC’s Recorder of Deeds for public record. Next, the Condominium Plat and Plan Survey must be filed with DC’s Office of the Surveyor. Lastly, the Office of Tax and Revenue will assign new condominium tax lot numbers to each individual unit, including parking units, ensuring distinct and separate ownership for each property.

FAQ for DC Condo Conversions

What Is Included In The Public Offering Statement?
The key exhibits included in the Public Offering Statement are as follows:
  1. Declaration & Bylaws ("Condo Documents"): These documents outline the rules, regulations, and governance of the Condominium Unit Owner’s Association.
  2. Condominium Plat & Plan Survey: A detailed map showing the division of the property into individual units and common areas.
  3. Architect or Engineer’s Report: An assessment of the property’s structural integrity, safety features, and the projected lifespan of its building components.
  4. Certificate of Limited Warranty: A document providing a 2-year Structural Limited Warranty for new construction or renovations, covering 10% of the project’s conversion cost.
  5. Construction Budget: An itemized breakdown of construction or renovation expenses, used to calculate the 2-year Structural Limited Warranty.
  6. Condominium Association Budget: A financial plan outlining projected dues and expenses for the condominium association.
  7. Sample Purchase Agreement: A template contract specifying the terms and conditions for the sale of condo units.
  8. Sample Deed: A template legal document for transferring ownership of a condo unit to a buyer.
  9. Contractor’s Contact Information: The contact details of the contractor responsible for the construction or renovation work.
  10. Management Agreement (if applicable): A contract outlining the duties of the property management company overseeing the condominium association.
  11. Estimated Settlement Charges: A rough estimate of the costs associated with the sale and settlement of condo units.
  12. Building Permits: Official approvals from the Department of Buildings (DOB) for construction or renovation work.
  13. Condominium Association Bill of Rights and Responsibilities: A document that details the rights and responsibilities of condo unit owners and the association, with a linked copy available for reference.
How Long Does The Conversion Process Take?
The duration of the condominium conversion process varies depending on the project, but it typically takes between 2 to 4 months. The Department of Housing and Community Development (DHCD) can take up to 8 weeks to review the Public Offering Statement submission, as outlined in § 42–1904.06 of the District of Columbia Code. The condo conversion process can often run simultaneously with the property's construction and permitting phases. To avoid delays, it is recommended to begin the conversion process as early as the initial property acquisition. At Standard Title Group, we specialize in streamlining this process, with some approvals completed in as little as 45 days.
How Much Does The Conversion Filing Cost?
Condo conversion in D.C. consists of three main cost components: 1) fees for applications and recordation required by the District, 2) fees for architectural and survey services, and 3) the comprehensive services provided by Standard Title Group. For more details, visit our Resources Page.
What Is A Conversion Fee? What Are The Exemptions?
When applying for a condo conversion in the District, it's important to understand the associated fees: The Department of Housing and Community Development imposes a Condominium Conversion Fee equal to 5% of each unit's sales price. This fee must be paid within 30 business days from the settlement date, as specified in § 42–3402.04 of the District of Columbia Code. Key exemptions to this fee include:
  • Properties granted a "Not a Housing Accommodation Exemption," meaning the property was either solely owner-occupied or registered vacant for at least 12 months.
  • Sales to low-income households (earning less than 80% of the area median income).
  • Sales to seniors (62 years or older).
  • Sales to disabled persons, as defined by the ADA.
  • Sales to tenants who resided in the property for at least 12 months before its conversion to a condominium.
What Warranty Do I Need To Provide For A Condo Conversion?
The Department of Housing and Community Development requires a warranty against potential “structural defects” for all units and common areas in a condominium conversion, as outlined in § 42–1903.16 of the District of Columbia Code. This warranty must be backed by security equal to 10% of the estimated hard construction and conversion costs, including labor and materials, to cover any costs resulting from the declarant's failure to meet the requirements of the Condominium Warranty Claims Clarification Amendment Act of 2022. No warranty is provided for consumer products or appliances sold with the unit, except as covered by the structural warranty. The warranty security can be provided as a bond, letter of credit, or other approved form, held by the Mayor’s Office. If no claims are filed within two years, the funds are fully returned.
How Can I Start On My Dc Condo Conversion Project Today?
Starting your condo conversion journey in Washington, DC, is just a click away, and Standard Title Group is here to support you every step of the way.
  1. Complete the Get Started Form: Begin by visiting the Contact Us Page, where you can provide essential information about your project and your contact details.
  2. Customized Engagement Letter and Quote: After reviewing your project information, we will send you a personalized engagement letter and quote. This document will outline the terms of our partnership and clarify the fees and scope of work.
  3. Schedule a Meeting: We are always available to schedule meetings to address any questions or concerns you may have. Our team is dedicated to supporting you throughout the entire process.
  4. Start the Initial Process: Once engaged, we will initiate the initial process, including assessing your eligibility for conversion, which may exempt you from the 5% condo conversion fee. We will guide you through each stage to ensure a smooth and efficient experience.
Are you ready to kick off your condo conversion project? Contact Us today. We are excited to assist you in making your condo vision a reality!