ROBERT L. EHRLICH, JR., Governor                            S.B. 655

provided for, does not exceed 99 years. A lease of the entire property improved or to be
improved by any apartment, condominium, cooperative, or other building for
multiple-family use on the property constitutes a business and not a residential
purpose. The term "multiple-family use" does not apply to any duplex or
single-family structure converted to a multiple-dwelling unit.

(2)     This section does not apply to irredeemable leases executed before
April 9, 1884.

(3)     This section does not apply to leases of the ground or site upon which
dwellings or mobile homes are erected or placed in a mobile home development or
mobile home park.

(b)     (1) Except for apartment and cooperative leases, any reversion reserved
in a lease for longer than 15 years is, redeemable, at the option of the tenant, after [a]
30 DAYS' notice [of one month] to the landlord. NOTICE SHALL BE GIVEN BY
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, AND BY FIRST-CLASS MAIL TO THE
LAST KNOWN ADDRESS OF THE LANDLORD.

(2) THE REVERSION IS REDEEMABLE:

[(1)] (I) For a sum equal to the annual rent reserved multiplied by:

[(i)] 1. 25, which is capitalization at 4 percent, if the lease was
executed from April 8, 1884 to April 5, 1888, both inclusive;

[(h)] 2. 8.33, which is capitalization at 12 percent, if the lease was
or is created after July 1, 1982; or

[(iii)] 3. 16.66, which is capitalization at 6 percent, if the lease was
created at any other time;

[(2)] (II) For a lesser sum if specified in the lease; or

[(3)] (III) For a sum to which the parties may agree at the time of
redemption.

(c)      If the lease is executed on or after July 1, 1971, the reversion is
redeemable at the expiration of 3 years from the date of the lease. If the lease is
executed on or after July 1, 1982 or between July 1, 1969 and July 1, 1971, the
reversion is redeemable at the expiration of 5 years from the date of the lease. If the
lease is executed before July 1, 1969, the reversion is redeemable at any time.

(d)     If a tenant has power to redeem the reversion from a trustee or other
person who does not have a power of sale, the reversion nevertheless may be
redeemed in accordance with the procedures prescribed in the Maryland Rules.

(e)     Notwithstanding subsections (b) and (c) of this section, any regulatory
changes made by a federal agency, instrumentality, or subsidiary, including the
Department of Housing and Urban Development, the Federal Housing
Administration, the Government National Mortgage Association, the Federal
National Mortgage Association, and the Veterans' Administration, shall be applicable
to redemption of reversions of leases for longer than 15 years.

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