CONDO CONVERSION 101: FROM A TO ZED, ZED CONDOS GUIDE

Welcome to Zed Condos' condo conversion guide for success in Washington, DC. Whether you're a homeowner or investor, let's get started on your path to a thriving condominium!

Condo
Conversion 101

Own a property in DC?

You probably have one deed and one tax lot. With Zed Condos, you can transform it into a lucrative condominium association. Each unit gets its own deed and lot number. Now, you can sell or rent individual units, maximizing your property’s value and investment.

Let’s learn how!

  • What is a Condo Conversion?

    Condominium conversion refers to the transformation of a residential or commercial property into distinct condominium or “condo” units, each individually entitled and separately deeded. Those who purchase these units become Unit Owners, governed by a Condominium Association Regime. This process involves reshaping a property into separate condominiums, overseen by an Unit Owner’s Association.

  • Why Condo Conversion?

    Condo conversions offer a unique opportunity to increase property density, creating new housing options in urban communities. This offers investors a potential profit avenue while opening doors for prospective homeowners, particularly families and first-time homebuyers. This trend is especially prominent in densely populated cities like Washington DC, providing affordable homeownership alternatives within urban environments, all while delivering attractive returns for investors.

  • The Condo Approval Process

    Condominium conversions follow an application process that require approval from The Rental Conversion and Sale Division (CASD) under the Department of Housing and Community Development (DHCD). It is governed by The Rental Housing Conversion and Sale Act of 1980, as amended (D.C. Law 3-86) (the Conversion Act), along with The Condominium Act of 1976 Technical and Clarifying Amendment Act, as amended (D.C. Law 9-82) (the Condominium Act). The 3-Step approval process is further outlined on this page below.

  • Is Condo Conversion Right for You?

    Condo conversions can be a profitable venture if you own a property in Washington DC, are willing to invest time and resources, and have a long-term vision. However, they require compliance with regulations and financial commitment. Carefully assess your property, goals, and willingness to navigate the process before proceeding with a condo conversion. Learn more about the condo conversion process below or reach out to us for guidance.

3-Step CONDO Conversion Process in DC

  • Step 11-2 weeks

    Eligibility to Convert (NHA or VE)

     

    The condominium conversion process begins with the submission of an “Eligibility to Convert” application to DHCD, who assesses the property’s prior occupancy status, classifying it as either:

    1. “Not a Housing Accommodation” (NHA) applies to previously owner-occupied or vacant properties for over 12 months, thereby being granted exemption from DC’s 5% condo conversion fee.
    2. “Vacancy Exemption” (VE) is assigned to properties with a tenant history in the past 12 months and subject to the 5% fee. Property owners seeking to retain tenants must initiate a “Tenant Election to Convert.”

    Upon DHCD’s approval, the Certificate of Eligibility to Convert is granted, signaling the initiation of the condominium conversion process in DC.

    After this Step: You can market your condo units as “Coming Soon,” (with unregistered condo disclosure) and can accept non-binding reservation agreements.

  • Step 24-8 weeks

    Public Offering Statement (POS)

     

    The next step is preparing and submitting the Public Offering Statement (POS), commonly referred to as the “condo docs.” This document has 2 key parts:

    1. The Narrative, which summarizes vital condominium details, and
    2. Exhibit Section, containing essential documents for establishing the condominium association, including Declaration & Bylaws, Architect’s Report, Condominium Plat & Plan, Limited Warranty, Construction Budget, and Condominium Association Budget.

    These documents are the bridge between property owners and potential buyers, ensuring transparency and compliance, which DHCD reviews under Chapter 19 of the Code of the District of Columbia and awards a Condominium Registration Order, allowing the sale of individual units.

    After this Step: Your condominium association is registered and you can market your condo units “for sale” and accept fully binding contracts.

  • Step 31-3 weeks

    Condo Tax Lot Numbers

    The final step in Washington DC’s condominium conversion process is carried out under the jurisdiction of the DC Department of Buildings (DOB) and Office of Tax and Revenue (OTR).

    1. First, the Declaration and Bylaw exhibits, as part of the approved POS, must be recorded with DC’s Recorder of Deeds for public record.
    2. Second, the Condominium Plat and Plan Survey must be recorded with DC’s Office of the Surveyor.
    3. Finally, Office of Tax and Revenue will issue new condominium tax lot numbers to each individual Condominium Unit and Parking Unit, ensuring clear and separate ownership designations.

    After this Step: Condo conversion process is complete and you can settle on sales contracts with newly issued condo lot numbers. Congrats on your new condo units!

How fast?2-3months

*Factors such as project specifics and client collaboration efficiency can impact the registration approvals timeline, with approvals possible in as little as 45 days.

Simplifying the condo conversion process for you

At Zed Condos, our mission is to make the complex process of condominium conversion as simple and stress-free as possible for property owners. We understand that navigating the intricate regulatory landscape of Washington DC can be challenging, which is why we’re here to provide expert guidance and support at every step.

Turn-Key Condo Docs

We handle the entire condominium conversion process, from the document prep to filing for approvals and expediting, ensuring a seamless journey to establish your Condominium Association.

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Dedicated Project Manager

We streamline every aspect of your condo conversion process, from start to finish and even after your condo sales. Let us handle every detail, whether you’re a first-time developer or an experienced pro.

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Expediting on all Conversions

We expedite the condo registration approvals from DHCD and DOB. With our deep regulatory knowledge and strong DC office relationships, we ensure a swift condo conversion process.

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FAQs on Condo Conversion

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