(d) Demolition. If the condominium or cooperative is to be created by the demolition of the housing accommodations and construction of a new building or structure, tenants have the right to purchase a unit in the new housing accommodations, under the same terms and conditions as outlined above. This right extends to any income restricted units within the housing accommodations, if the tenant is otherwise eligible for such units. If there are insufficient units to accommodate all the tenants seeking to purchase, or there are multiple tenants seeking the same unit, the OHS, or its designee, shall hold a lottery to determine who is able to purchase. The OHS may ask the landlord to provide mitigation to avoid hardship for residents due to the demolition of units.
(D) Conversion permit required to convert.
(1) No person shall convert a housing accommodation without a conversion permit, or engage in a condominium or cooperative conversion eviction, or sell a unit for immediate occupancy by the purchasing landlord until they have obtained a conversion permit from ISD pursuant to this Section.
(2) The conversion permit process shall take place in two steps. First, the landlord shall apply to the OHS to create a conversion plan. Upon fulfilling the requirements established by the OHS, the landlord may apply to ISD for the conversion permit.
(3) The OHS shall have the power to establish the provisions of the conversion plan consistent with this Section, and shall be responsible for developing administrative forms, establishing reasonable application fees, conducting hearings and approving or waiving conversion plans.