During conversion of rental units to private ownership, which statement is true?

• A. Private ownership has priority
• B. Tenants relocation required
• C. Rental units have priority over private ownership
• D. The conversion does not affect taxes

Answer: (C)

The key idea here is that tenant protection governs the conversion from rental to private ownership. When a rental building is being converted to privately owned units, the process is designed to safeguard existing tenants and the rental housing stock. Regulations typically require proper notice, potential relocation assistance, and consideration of tenants’ rights (and sometimes retention of a portion of units as rental). This means rental units are given priority in the sense that the conversion must address tenants’ rights and protections before completing the shift to private ownership. Consequently, the statement that rental units have priority over private ownership best reflects how conversions are managed. The other ideas don’t fit because private ownership isn’t automatically prioritized over tenants, relocation isn’t necessarily mandatory for every unit, and taxes can be affected by the conversion.