WILLIAM DONALD SCHAEFER, Governor                   Ch. 769

(D) AFTER AN AGENCY HEARING, IF THE SECRETARY OF STATE
DETERMINES THAT AN OWNER HAS VIOLATED SUBSECTION (B) OF THIS
SECTION WITHIN 270 180 DAYS PRIOR TO FILING AN APPLICATION FOR
REGISTRATION, THE SECRETARY OF STATE SHALL REJECT THE APPLICATION
FOR REGISTRATION FILED BY THE OWNER.

(E) AFTER A PUBLIC OFFERING STATEMENT HAS BEEN REGISTERED,
IF THE SECRETARY OF STATE DETERMINES THAT AN OWNER HAS VIOLATED
SUBSECTION (B) OF THIS SECTION DURING THE 12-MONTH PERIOD PRIOR
TO THE TIME UNITS ARE OFFERED FOR SALE, THE SECRETARY OF STATE
SHALL REVOKE THE REGISTRATION.

(F) IN DETERMINING WHETHER AN OWNER HAS VIOLATED SUBSECTION
(B) OF THIS SECTION, THE SECRETARY OF STATE SHALL CONSIDER:

(1)(I) WHETHER THE TERMINATION WAS DUE TO THE
NONPAYMENT OF RENT;

(II) WHETHER THE TERMINATION WAS DUE TO A
BREACH OF THE LEASE; OR

(III) WHETHER THE OWNER INTENDED AT THE TIME OF
TERMINATION TO CONVERT THE RESIDENTIAL FACILITY TO A CONDOMINIUM;
AND

(2) ANY OTHER FACTORS AS THE SECRETARY OF STATE DEEMS
APPROPRIATE.

(G) IF AN APPLICATION FOR REGISTRATION IS REJECTED BY THE
SECRETARY OF STATE PURSUANT TO SUBSECTION (D) OF THIS SECTION, OR
IF A REGISTRATION IS REVOKED BY THE SECRETARY OF STATE PURSUANT
TO SUBSECTION (E) OF THIS SECTION, THE SECRETARY OF STATE MAY NOT
ACCEPT THE APPLICATION OR REINSTATE THE REGISTRATION UNLESS AND
UNTIL THE OWNER HAS TENDERED TO EVERY TENANT WHOSE LEASE WAS
TERMINATED IN VIOLATION OF SUBSECTION (A) OF THIS SECTION THE
GREATER OF:

(1) 5 PERCENT OF THE FAIR MARKET VALUE OF THE
DWELLING UNIT FROM WHICH THE TENANT WAS VACATED; OR

(2) $3,500 AN AWARD FOR REASONABLE EXPENSES.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1987.

Approved June 2, 1987.

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