This bill aims to enhance tenant rights by requiring owners of multiple dwelling buildings to notify tenants and tenant associations of their intent to sell the property, thereby granting them the opportunity to purchase it before any sale is finalized. Owners must inform the Department of Community Affairs, the tenant association, and each residential tenant household in writing. If a tenant association achieves a minimum participation threshold of 51% of tenant-occupied units, it can designate a representative to act on its behalf in the purchase process. The bill also outlines procedures for submitting offers, terms of purchase contracts, and the rights of tenant associations, including the right of first refusal in short sale situations.

Additionally, the legislation includes protections for elderly tenant households against displacement during the purchase process and mandates the Department of Community Affairs to create sample purchase contracts for tenant associations. It establishes timelines for tenant associations to respond to offers and details the documentation required from owners to facilitate sales. Certain properties, such as those subject to eminent domain or public housing, are exempt from these provisions. The bill also prohibits tenant associations from accepting payment to waive their rights and allows for the pursuit of damages in cases of violations that obstruct the purchasing process. The bill is set to take effect seven months after enactment and will apply to new contracts of sale thereafter.