Mayor Brandon Scott signed a new act into law on Monday which aims to make the transition from renting to homeownership easier for Baltimore residents.
“The Councilmember Mary Pat Clarke Tenant Opportunity to Purchase Act” would restore renters’ ability to engage directly with their landlords who may be looking to sell their rental properties and provide easier pathways for renters to move to homeownership. Scott signed the new law with Councilwoman Odette Ramos and former Council President Mary Pat Clarke, after whom the law is named, by his side.
Clarke’s continuing advocacy and legislation she’d led while in office inspired the bill. “As a Councilwoman representing Northeast Baltimore, she worked with St. Ambrose Housing Aid Center founders Vinnie Quayle and Frank Fisher on the original ‘Tenant Right of First Refusal’ legislation, which was the first legislation in the country designed to give tenants the opportunity to purchase the homes in which they live when the owner was ready to sell,” reads the press release announcing the new law. Later legislation, however, essentially made that original legislation obsolete.
“The Councilmember Mary Pat Clarke Tenant Opportunity to Purchase Act will help give back some power to renters in Baltimore City who are hoping to pursue the dream of homeownership and stay in their homes when a landlord decides to sell,” Scott said. “Homeownership is one of the greatest generational wealth builders that families and communities have. By signing this bill into law, we are making a statement that we want to expand every opportunity for residents who rent to take the leap into homeownership.”
Ramos represents District 14, the same district Clarke represented when she served on the City Council. Ramos said this new legislation will help restore some of Clarke’s work that had been eroded.
“This is an important piece of legislation to ensure that renters have the best chance to purchase the home in which they already live,” Ramos said. “Our version makes the law much stronger, as it was originally intended by then Council President Mary Pat Clarke when she worked with St. Ambrose and other advocates to pass the very first Right of First Refusal law in the nation. In the rare time she was not in office, the bill was watered down which made it almost impossible for renters to purchase the homes in which they live. That changes today, and I’m proud to name this bill after my predecessor to acknowledge her groundbreaking work for Baltimore’s families.”
The Councilmember Mary Pat Clarke Tenant Opportunity to Purchase Act reestablishes an owner’s/landlord’s obligation to provide their current tenant opportunity to pursue a purchase of the property if they want to sell it. In most cases, the tenant would have 14 days to decide to sign a letter of intent to purchase and enter a contract. After that, if the current tenant does not provide the letter of intent, the owner can move forward with the process of selling the property to any potential buyer.
“This work started years ago, and I remember all of the changes that we went through in drafting this bill. Baltimore City’s housing market is still very attractive, especially in District 14, but we have to find a way to keep people in their homes and offer them opportunities to establish wealth for themselves,” Clarke said. “This legislation accomplishes that, and I am honored to have my name attached to this bill. I want to thank Mayor Scott and my successor Councilwoman Odette Ramos for seeing this through to the finish line and creating this win for the residents of Baltimore City.”
According to the Census Reporter, in 2020, approximately 48% of the households in Baltimore City were lived in by those who owned the homes, and 52% were renter-occupied.
The new act signed into law today adds to a list of incentives and tools Baltimore City deploys to lower the barriers to home ownership for its residents. There is the “Baltimore City Employee Homeownership Program,” where in the City awards $5,000 or $10,000 for employees of the City and “quasi-City agencies” who have been employed for at least six months. “Buying into Baltimore” awards $5,000 to people via lottery who have attended a Live Baltimore Trolley Tour. There is also a “First-Time Homebuyers Incentive Program” (formerly the “CDBG Homeownership Assistance Program”) which gives $10,000 to first-time homebuyers with a household income at or below 80% of the area median income. More information on these programs can be found at this Baltimore City Department of Housing and Community Development link.
Tenants already have a “first right of refusal” when the landlords selling in Maryland. They have to sign off that they’re not interested in buying the house. How is this any different? It’s been a thing for a very long time.