Salem Code of Ordinances ch. 51, art. I § 51-5

(a) Notice requirements .
(1) Vacant units . If an owner has an intent to convert an unoccupied housing accommodation to the condominium or cooperative form of ownership, the owner shall give one year advance notice to the HSC on a form prescribed by them. This one year waiting period requirement shall not apply under the following circumstances:
a. Where the unit was previously owner occupied for the 12 months immediately preceding the unit becoming vacant; or
b. Where the owner is selling the unit to a family member as provided for herein.
(2) Occupied units . If an owner has an intent to convert an occupied housing accommodation to the condominium or cooperative form of ownership, such owner shall give to each tenant then residing in a unit in such housing accommodation and simultaneously give to the HSC a written notice translated into the tenant's primary language if a need for such translation has been identified or is otherwise apparent to a reasonable person. This notice shall be deemed given on the date when the notice is delivered in person to the tenant or the date on which the notice is received by the tenant after being sent by certified or registered mail, return receipt requested, or the date of service by a deputy sheriff or constable. The notice of intent shall state the following in clear and conspicuous language:
a. That the owner intends to file or has filed a master deed at the Southern Essex Registry of Deeds, thereby converting the housing accommodation to a condominium; or that the owner intends to file or has filed articles of organization with the secretary of the commonwealth, thereby converting the housing accommodation to a cooperative; and
b. If a displacement of a tenant is planned, the tenant shall have two years from the date the notice is given before the tenant shall be required to vacate the housing accommodation otherwise notice is treated as a vacant unit requiring one year notice; and
c. That, except as otherwise set forth herein, the tenant shall have a period of 120 days, or 180 days in the case of an older adult, disabled, or low/moderate income tenant, from the date the notice is given to purchase the tenant's unit on terms and conditions which are substantially the same as or more favorable than those which the owner would, in good faith, extend or actually extends to prospective arm's length purchasers of such unit during the applicable period following the expiration of said tenant's right to purchase, provided that such terms and conditions represent fair market value for such unit in "as is" condition; and
1. The burden of proving that a tenant is an older adult, has a disability, or low or moderate income shall, if contested, rest with the tenant. The owner shall be entitled to provide the tenant with a written request to disclose whether the tenant claims to be an older adult, disabled, or low or moderate income. In the event the tenant confirms in writing that they do not claim that they are an older adult, have a disability, or have status as low or moderate income, then there shall be a rebuttable presumption that the tenant is not an older adult, has a disability, or low or moderate income, which presumption shall only be overcome by clear and convincing evidence to the contrary.
d. That there is a permit review process involving:
1. A preliminary review by the HSC after service of this notice;
2. HSC's contact information and role in connecting tenants with housing stability resources; that a final conversion permit may be issued at the end of the notice period or upon vacancy of the tenant, in addition to the right to appeal the decision as well as hearings as necessary that may be initiated by the tenants, owner or MHO; that if the tenant does not purchase the tenant's unit or another unit in the housing accommodation, the tenant has a right to relocation benefits as provided herein; and
3. That no change may be made in the tenant's rental agreement during the notice period, except that the owner may increase the rent at the expiration of the tenancy agreement by an amount not to exceed the sum which would result by multiplying said rent by the percentage increase in the consumer price index for all urban consumers as published by the United States Department of Labor, Bureau of Labor Statistics during the calendar year immediately preceding the date of the proposed rent increase, or ten percent, whichever is less; and
4. The owner may collect real estate taxes due under a valid tax escalation clause, provided such tax escalation clause was included within the rental agreement existing as of the date of the notice of intent to convert; and
5. That the tenant is entitled to an extension of the tenant's rental agreement to coincide with the period of notice, as provided herein; and
6. That the tenant is entitled to freedom from unreasonable disruption and breach of quiet enjoyment as a result of rehabilitation, repairs or improvements made by the owner during the period of notice; and
7. That the date the notice is deemed "given" is the date on which the notice is delivered in person to the tenant or the date on which the notice is received by the tenant after being sent by certified or registered mail, return receipt requested, or the date of service by a deputy sheriff or constable.
(b) Condominium/cooperation eviction . No owner shall seek or conduct a condominium or cooperative eviction against a tenant in occupancy of a housing accommodation at the time the notice of conversion was served or should have been served pursuant to this ordinance until the expiration of required notice period. Each owner shall provide notice to the HSC of any eviction proceeding, and the reason therefore, involving a unit with a permit, conditional or final. Failure of the owner to comply with the provisions of this chapter shall constitute a defense in a summary process action against such tenant(s).
An owner of a unit converted to condominium or cooperative pursuant to this ordinance who has a tenant that occupied the unit at the time of conversion and was not displaced shall be required to provide notice to the tenant of any subsequent sale of the unit within one year of the conversion and that tenant shall be entitled to all benefits, including time of notice and relocation, set forth in this ordinance as if the tenant was displaced at the time of conversion.
(c) Tenant right to purchase .
(1) Occupied units . An owner shall extend to a tenant who is entitled to receive notice of intent to convert an exclusive right to purchase such tenant's unit, which right shall extend for a period of 120 days, or 180 days in the case of an older adult, disabled, or low/moderate income tenant beginning on the date the tenant receives a purchase and sale agreement from the owner containing the same or more favorable terms of sale than those the owner would, in good faith, offer, or actually does offer, to prospective arms' length purchasers of such unit, provided that such terms and conditions represent fair market value for such unit in "as is" condition. A copy of such agreement shall be contemporaneously provided to the HSC. Once the owner sets these terms of sale, the owner may not sell the unit under more favorable terms for 90 days from the expiration of the tenant's right to purchase. The tenant may exercise the right to purchase the tenant's unit by executing such purchase and sale agreement within the applicable period, whereupon the owner shall promptly countersign the agreement. Where there is more than one unrelated adult tenant in a household, the right to purchase shall only apply if:
a. All tenants opt to purchase the unit jointly; or
b. If all tenants other than those opting to exercise their rights to purchase waive their right to purchase under this section.
If the tenant does not wish to exercise the tenant's right to purchase and the tenant so notifies the owner, in writing, prior to the expiration of the applicable period, the applicable period shall be deemed to have expired as of the date the owner receives such notice as to the tenant.
(2) If an owner has an intent to convert a housing accommodation to a condominium or cooperative form of ownership, and the owner is transferring property as part of a conversion to a relative within the fourth degree of kindred, there shall be no tenant right to purchase. In such cases, any notices required pursuant to section 51-5 need not comply with section 51-5 (c).
(d) Relocation payments .
(1) An owner shall pay to a tenant who is entitled to receive notice of the owner's intent to convert and displace, and who does not purchase the unit which such tenant occupies or another unit in the same housing accommodation and who relocates within the notice period or such longer period allowed for access to public or subsidized housing as set forth in this section below, a relocation benefit of $6,000.00 per unit shall be paid. Tenants with a disability, are low to moderate income or qualify as adult tenants shall receive a relocation benefit of $8,000.00 per unit.
(2) The relocation benefit amount shall be adjusted annually in February of each year following the adoption of this ordinance, by an amount equal to the increase in the consumer price index for all urban consumers, as published by the United States Department of Labor, Bureau of Labor Statistics, during the immediately preceding calendar year. The amount shall be published on the city's website by the city's HSC.
(3) In the event that a tenant vacates the premises pursuant to a notice under this ordinance without having paid all rent due, the owner may subtract any sums owed from the required payment of moving expenses.
(4) In the event an older adult, person with a disability, low or moderate income tenant is seeking public or subsidized housing and requires a judgment for possession to be issued in order to obtain emergency status or other preference/priority necessary to access such housing or housing subsidy program on an expedited basis, such tenant shall continue to be entitled to the relocation benefit whether or not the tenant has vacated by the end of the notice period.
(5) Relocation benefits shall be paid to the tenant within ten days after the date on which the tenant vacates the unit with the following exception: in recognition of the fact that many relocation costs must be paid in whole or in part before a tenant actually moves out, the owner shall, upon request of the tenant, make payments, up to the amount authorized by this section, directly to a moving company, realtor, storage facility, or successor landlord (upon receipt of a signed lease, tenancy at will agreement, or letter signed by the prospective landlord indicating that they has agreed to rent a particular unit to the tenant as of a date certain with a copy of proof of ownership), prior to the date on which they vacate the premises.
(e) Extension of rental agreement .
(1) An owner shall give to a tenant who is entitled to notice of intent to convert an extension of such tenant's rental agreement, whether it is a lease or a written or oral tenancy at will, until the expiration of the notice period or the applicable right to purchase period, whichever is later. Conversely, if the two-year notice period would expire before the expiration date of such tenant's rental agreement, then the notice period shall be extended to coincide with the expiration date of such rental agreement.
If a new owner buys a converted condominium where the tenant was not displaced, the rental agreement of the tenant with the new owner shall be equal to the notice period of a new conversion as set forth herein.
(2) The provisions of such rental agreement may not be modified by the owner except with respect to the amount of annual rent.
a. The total increase in rent for any one year during the period of notice shall not exceed an amount equal to the sum which would result by multiplying said rent by the percentage increase in the consumer price index for all urban consumers as published by the United States Department of Labor, Bureau of Labor Statistics, during the calendar year immediately preceding the date of receipt of the notice of intent to convert, or ten percent, whichever is less;
b. Provided, however, nothing herein shall limit the right of an owner to any amounts which may be due under a valid tax escalation clause, provided such tax escalation clause was included within the rental agreement existing as of the date of the notice of intent to convert.
c. The HSC shall be notified of any rent increase on a form prescribed by the HSC.
(f) Renovation to units during the notice period .
(1) Tenants are entitled to freedom from unreasonable disruption as a result of rehabilitation, repairs or improvements during the notice period.
(2) During the notice period, the owner may only make repairs in a tenanted unit undergoing conversion that are required by the State Sanitary or Building Codes.
(3) During the notice period, other unit renovations or improvements may only be undertaken with the express written consent of the tenant.
(g) Tenant's right to vacate . During the notice period, a tenant shall be permitted to vacate the unit upon 30 days' notice to owner without penalty regardless of the status of their rental agreement.
The rights specified in section 51-5 shall vest with a tenant at the time that the owner intends to displace a tenant and convert any unit in such property to the condominium or cooperative form of ownership.
(h) Housing search assistance . Any owner shall assist older adult, disabled, and low or moderate income tenants who are entitled to notice of intent to convert by locating, within the period of the notice to such tenants, comparable rental housing within the City of Salem which rents, for at least the remainder of the notice period, for a sum which is equal to or less than the sum which any such tenant had been paying for the tenant's unit. The failure of the owner of such residential property to find such comparable housing shall extend the period of notice until the owner locates such comparable rental housing, or for two additional years, whichever occurs first.
Any owner who has both kept rent levels at or below Salem Housing Authority Section 8 payment standards in place at the time the notice is served for a minimum of three consecutive years and has limited rent increases to no more than five percent annually for three consecutive years shall be exempt from (a) being required to locate comparable rental housing; and (b) from providing an additional two-year notice period in the event that after five years, the elderly, disabled or low or moderate-income tenant has not yet located alternative housing.