Government of the District of Columbia UNIFORM LAW COMMISSION January 12, 2024 The Honorable Phil Mendelson Chairman Council of the District of Columbia The John A. Wilson Building, 1350 Pennsylvania Avenue, NW Washington, DC 20004 RE: Request for introduction of the Uniform Unlawful Restrictions in Land Records Act of 2024. Dear Chairman Mendelson: Pursuant to Rule 401(b)(1) of the Rules of Organization and Procedure for the Council, this is to request, on behalf of the District of Columbia Uniform Law Commission, that you introduce the proposed “Uniform Unlawful Restrictions in Land Records Act of 2024. ” The Uniform Act was approved by the National Conference of Commissioners on Uniform State Laws last year. District of Columbia Commissioner Brian Flowers was co-chair of the Drafting Committee. The Uniform Act addresses the lingering effects of discrimination in housing on the basis of race, color, national origin, and religion. Although these restrictive covenants are legally void and unenforceable, they are still on the property records. The Act allows current homeowners to record amendments eliminating these discriminatory restrictions. The Act also empowers common interest communities to take similar actions. If an individual unit owner or the association’s governing body itself becomes aware of any such restrictions, the Act permits the governing body to record an amendment removing the restriction, without a vote of the association as a whole. This vote, by the governing board of a common interest community, would override any provision of other law or of any of the governing instruments that would require a vote of the entire association in order to amend or eliminate a governing document which contains an illegal restriction. At the same time, and importantly, the Act preserves the chain of title and does not compromise the insurability of the title for later transfers of the property. The Uniform Act has received broad support from the real estate industry. Several key real estate industry participants, including the American Land Title Association, have 2 endorsed the Act because it introduces much-needed uniformity and provides clear guidance to state and county recording offices. A proposed “Uniform Unlawful Restrictions in Land Records Act .” is being filed with this letter. In addition, the following documents have been filed: (1) a summary of the Uniform Act; (2) a statement as to why the Uniform Act should be adopted; and (3) the official version of the Uniform Unlawful Restrictions in Land Records Act with comments. Brian and I would be pleased to answer any questions and to provide any additional information requested. Sincerely, James C. McKay, Jr. Chair D.C. Uniform Law Commission cc: Uniform Law Commissioners 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 To Chairman Phil Mendelson at the request of the District of Columbia Uniform Law Commission A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA enact the Uniform Unlawful Restrictions in Land Records Act; to allow homeowners to remove unlawful restrictive covenants from the deeds to their homes and for condominiums and other homeowner associations to remove unlawful restrictive covenants from their governing documents; to permit the homeowner or association to fill out an amendment form, a sample of which is provided in the Act, and record the amendment to their title to effectively remove the unlawful restriction; and for other purposes. BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 23 act may be cited as the "Uniform Unlawful Restrictions in Land Records Act of 2024". 24 Sec. 1. Short title. 25 This act may be cited as the Uniform Unlawful Restrictions in Land Records Act. 26 Section 2. Definitions. 27 In this act: 28 ( 1) "Amendment" means a document that removes an unlawful restriction. 29 (2) "District" means the District of Columbia. 30 (3) "Document" means a record recorded or eligible to be recorded m land 31 records. 32 (4) "Governing instrument" means a document recorded in land records that: 2 (A) Establishes a governing body responsible for management of common 33 areas or facilities used by more than one owner of a property interest affected by the document; 34 and 35 (B) Requires contribution, enforceable by a lien on a separate property 36 interest, of a share of taxes, insurance premiums, maintenance, or improvement of, or services or 37 other expenses for the common benefit of, the real property described in the document. 38 (5) “Index” means a system that enables a search for a document in land records. 39 (6) “Land records” means documents and indexes maintained by a recorder. 40 (7) “Owner” means a person that has a fee interest in real property. 41 (8) “Person” means an individual, estate, business or nonprofit entity, government 42 or governmental subdivision, agency, or instrumentality, or other legal entity. 43 (9) “Record”, used as a noun, means information: 44 (A) Inscribed on a tangible medium; or 45 (B) Stored in an electronic or other medium and retrievable in perceivable 46 form. 47 (10) “Recorder” means the District of Columbia Recorder of Deeds. 48 (11) “Remove” means eliminate any apparent or purportedly continuing effect on 49 title to real property. 50 (12) “Unlawful restriction” means a prohibition, restriction, covenant, or 51 condition in a document that purports to interfere with or restrict the transfer, use, or occupancy 52 of real property: 53 (A) On the basis of race, color, religion, national origin, sex, familial 54 status, disability, or other personal characteristics; and 55 3 (B) In violation of other law of the District or federal law. 56 Section 3. Amendment by owner. 57 Except with respect to property to which Section 4 applies, an owner of real property 58 subject to an unlawful restriction may submit to the Recorder for recordation in the land records 59 an amendment to remove the unlawful restriction, but only as to the owner’s property. 60 Section 4. Amendment by association of owners. 61 (a) The governing body of an association of owners identified in a governing instrument 62 may, without a vote of the members of the association, amend the governing instrument to 63 remove an unlawful restriction. 64 (b) A member of an association of owners may request, in a record that sufficiently 65 identifies an unlawful restriction in the governing instrument, that the governing body exercise 66 its authority under subsection (a). Not later than 90 days after the governing body receives the 67 request, the governing body shall determine reasonably and in good faith whether the governing 68 instrument includes the unlawful restriction. If the governing body determines the governing 69 instrument includes the unlawful restriction, the governing body not later than 90 days after the 70 determination shall amend the governing instrument to remove the unlawful restriction. 71 (c) Notwithstanding any provision of the governing instrument or other law of the 72 District, the governing body may execute an amendment under this section. 73 (d) An amendment under this section is effective notwithstanding any provision of the 74 governing instrument or other law of the District that requires a vote of the members of the 75 association of owners to amend the governing instrument. 76 Section 5. Requirements and limitations of amendment. 77 4 (a) An amendment under this act must identify the owner, the real property affected, and 78 the document containing the unlawful restriction. The amendment must include a conspicuous 79 statement in substantially the following form: 80 “This amendment removes from this deed or other document affecting title to real property an 81 unlawful restriction as defined under the Uniform Unlawful Restrictions in Land Records Act. 82 This amendment does not affect the validity or enforceability of a restriction that is not an 83 unlawful restriction.” 84 (b) The amendment must be executed and acknowledged in the manner required for 85 recordation of a document in the land records. The amendment must be recorded in the land 86 records of the District. 87 (c) The amendment does not affect the validity or enforceability of any restriction that is 88 not an unlawful restriction. 89 (d) The amendment or a future conveyance of the affected real property is not a 90 republication of a restriction that otherwise would expire by passage of time under other law of 91 this state the District. 92 Section 6. Optional form for amendment by owner. 93 The following form may be used by an owner to make an amendment under Section 3: 94 “Amendment by Owner to Remove an Unlawful Restriction 95 “This Amendment is recorded under the Uniform Unlawful Restrictions in Land Records 96 Act of 2024 by an Owner of an interest in real property subject to an unlawful restriction as 97 defined under the Act. 98 “(1) Name of Owner: 99 “(2) Owner’s property that is subject to the unlawful restriction is described as follows: 100 5 “Address: 101 “Legal Description: 102 “(3) This Amendment amends the following document: 103 “Title of document being amended: 104 “Recording date of document being amended: 105 “Recording information (book/page or instrument number): 106 “This Amendment removes from the document described in paragraph (3) all unlawful 107 restrictions as defined under the Act. Removal of an unlawful restriction through this 108 Amendment does not affect the validity and enforceability of any other restriction that is not an 109 unlawful restriction as defined under the Act, at the time of filing this Amendment. This 110 Amendment is not effective if the property is subject to a governing instrument as defined under 111 the Act. 112 “Owner’s Signature Date 113 “Notary Acknowledgment Witnesses (if required)]” 114 Section 7. Duty and liability of Recorder. 115 (a) The Recorder shall record an amendment submitted under this act, add the 116 amendment to the index, and cross reference the amendment to the document containing the 117 unlawful restriction. 118 (b) The Recorder and the District are not liable for recording an amendment under this 119 act. 120 Section 8. Uniformity of application and construction. 121 In applying and construing this uniform act, a court shall consider the promotion of 122 uniformity of the law among jurisdictions that enact it. 123 6 Section 9. Relation to Electronic Signatures in Global and National Commerce Act. 124 This act modifies, limits, or supersedes the Electronic Signatures in Global and National 125 Commerce Act, 15 U.S.C. § 7001 et seq., but does not modify, limit, or supersede 15 U.S.C. § 126 7001(c), or authorize electronic delivery of any of the notices described in 15 U.S.C. § 7003(b). 127 Sec.10. Fiscal impact statement. 128 The Council adopts the attached fiscal impact statement as the fiscal impact statement 129 required by section 602(c)(3) of the District of Columbia Home Rule Act, approved December 130 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)). 131 Sec. 11. Effective date. 132 This act shall take effect following approval by the Mayor (or in the event of veto by the 133 Mayor, action by the Council to override the veto), a 30-day period of Congressional review as 134 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 135 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 136 Columbia Register. 137