Prince George's County has enacted legislation that grants a right of first refusal to the Department of Housing and Community Development (DHCD) prior to the sale of a multifamily rental facility. The bill was signed by the County Executive on August 6, 2013, and became effective on September 23, 2013. However, by its terms, key provisions of the new law (namely, DHCD's right of first refusal) apply only to properties located in areas of the County that are specifically designated by the County Council, with the concurrence of the County Executive. No such areas have been designated at this time. This means that DHCD does not have the authority to exercise a right of first refusal with regard to any multifamily rental facilities in Prince George's County at this time. However, the provision of the law yet to be implemented that restricts its application to designated geographic areas does not limit the notice requirements of the law. Section 13-1112 of the new law requires that within five days after an owner enters a contract to sell rental housing, the owner must provide written notice of the sale to each tenant of the multifamily rental facility by hand or certified mail, return receipt requested, post such notice in public areas of the multifamily rental facility, and provide notice to the Director of DHCD by certified mail, return receipt requested.

Regulations implementing this new law are expected to be adopted by January 2014. Although Montgomery County has had right of first refusal provisions in place for many years, such provisions are new to Prince George's County, and they vary significantly from those of Montgomery County. Developers intending to buy or sell multifamily rental facilities in Prince George's County should be aware of this new law and monitor further developments with regard to regulations and geographic designations.