§514C-22  Power of association of owners to
negotiate, purchase, and sell lessor's interest.  (a)  The association of
owners under chapter 514A or 514B may purchase the lessor's interest in the
condominium project; provided that the declaration of condominium property
regime shall either contain or be amended to include a provision authorizing
the board of directors to effectuate such a purchase.  If the lessor is also a
condominium unit lessee, the lessor's lessee interest shall be disregarded in
the computation of the percentage of condominium unit lessees needed to achieve
the vote or written consent required to amend the declaration of condominium
property regime.



(b)  If the association of owners is authorized
to purchase the lessor's interest pursuant to this section, the following
powers, in addition to any other existing powers, shall be conferred upon the
association:



(1)  To purchase or otherwise acquire, own, improve,
use, and deal in and with the lessor's interest in the leased fee interest appurtenant
to the various condominium units in the condominium project and in the various
apartment, unit, and ground leases including but not limited to the interest of
any sublessor or any or all undivided interests therein;



(2)  To incur liabilities, borrow money, and secure
any of its obligations by mortgage or pledge of all or any portion of its
property, assessments, and funds to effectuate acquisition of the lessor's
interest;



(3)  To assess, except as provided in subsection (d),
as a common expense, the expenses incurred in acquiring and holding the leased
fee interest, and to service any debt associated therewith; and



(4)  To sell the leased fee interest in a condominium
unit and acquired from the lessor by the association of owners, to the then
condominium unit lessee or subsequent purchaser of such unit; provided that if
the lessee or subsequent purchaser declines to purchase the leased fee
interest, the leased fee interest may be sold to other persons so long as
reasonable disclosure is made of the association's intent to sell the leased
fee interest to such other persons, and the disclosure includes a statement
that the lessees may have no legal remedy if they subsequently wish to purchase
the leased fee interest and the other persons refuse to sell or will sell only
at a price unacceptable to the lessees.



(c)  No condominium unit lessee shall be
compelled to purchase the leased fee interest in such condominium unit and
acquired from the lessor by the association of owners, but may instead pay
lease rent to the association together with the lessee's share of the common
expenses incurred in acquiring the leased fee interest in the condominium units
in the project including any debt associated therewith.



(d)  If some, but not all, lessees have
purchased the leased fee interest in their condominium units directly from the
lessor (other than purchases by the lessor or the association of owners), the
association may undertake the purchase of all or any part of the leased fee
interest in the remaining leasehold condominium units in the project in
accordance with subsection (b); provided that:



(1)  Sixty-seven per cent of the remaining lessees
approve an amendment to the declaration authorizing the purchase of the leased
fee interest by the association consistent with the requirements of this
section;



(2)  All costs and expenses and all proceeds and
benefits of acquiring and holding the leased fee interest and to service any
debt associated therewith shall be separately assessed or credited to the
condominium units of the remaining lessees in the same ratio that the common
interest appurtenant to each remaining lessees' apartment or unit bears to the
total common interest appurtenant to all of the remaining lessees' condominium
units;



(3)  The association of owners shall sell the leased
fee interest in a condominium unit only to the lessee of the condominium unit
or to the permitted assigns or successors of the lessee; provided that if the
lessee or the lessee's permitted assigns or successors decline to purchase the
leased fee interest, the leased fee interest may be sold to other persons so
long as reasonable disclosure is made of the association's intent to sell the
leased fee interest to the other persons and the disclosure includes a
statement that the lessees may have no legal remedy if they subsequently wish
to purchase the leased fee interest and the other persons refuse to sell or
will sell only at a price unacceptable to the lessees; and



(4)  The association of owners, through its board of
directors in the exercise of its authority, may decide not to accept an offer
from the lessor to sell all of the remaining portion of the lessor's interest
to the association on the basis that the purchase is not financially feasible
or is otherwise not in the best interests of the association.  In that event,
the board shall adopt a resolution containing written findings as to its
reasons for not accepting the offer and shall distribute the resolution to the
remaining lessees.



(e)  If the association of owners acquires all
of the remaining portion of the lessor's interest in accordance with subsection
(d), any debt associated therewith shall be secured only by the interests so
acquired and by the common expense assessments upon the condominium units of
the remaining lessees.



(f)  For purposes of this section:



"Remaining lessees" means the lessees
of condominium units  in a condominium project who have not purchased the
leased fee interest in their condominium units as of the effective date of the
amendment referred to in subsection (d)(1).



"Condominium unit" has the same
meaning as the term "apartment" or "unit" as defined in
section 514A-3 or 514B-3. [L 1999, c 241, pt of §2; am L 2002, c 199, §2; am L
2004, c 164, §20; am L 2006, c 273, §31; am L 2008, c 28, §14]