MA H306

Municipalities may adopt a local option giving commercial tenant associations (representing at least 51% of occupied units) the right of first refusal to purchase their building when the owner intends to sell, including during short-sales and foreclosures

Owners must notify tenants and the municipality of intent to sell; tenant associations then have 30 days to submit an offer, and if a third-party contract is signed, 160 days total to complete due diligence, secure financing, and close the purchase

Earnest money deposits are capped at the lesser of the third-party deposit amount, 5% of sale price, or $250,000, and remain refundable for at least 90 days

Tenant associations may assign purchase rights to designated nonprofits, community development corporations, housing authorities, or land trusts, with purchases requiring long-term affordable commercial rental restrictions

Exemptions include eminent domain takings, publicly-assisted housing, properties owned by natural persons with 2 or fewer units in the municipality, sales to immediate family members below assessed value, and college/university student housing