15 U.S.C. § 3608: Judicial determinations respecting uncon­scionable leases

it was made in connection with a cooperative or condominium project; it was entered into while the cooperative or condominium owners’ association was controlled by the developer either through special developer control or because the developer held a majority of the votes in the owners’ association; it had to be accepted or ratified by purchasers or through the unit owners’ association as a condition of purchase of a unit in the cooperative or condominium project; it is for a period of more than twenty-one years or is for a period of less than twenty-one years but contains automatic renewal provisions for a period of more than twenty-one years; it contains an automatic rent increase clause; and it was entered into prior to June 4, 1975 . creates a lien subjecting any unit to foreclosure for failure to make payments; contains provisions requiring either the cooperative or condominium unit owners or the cooperative or condominium association as lessees to assume all or substantially all obligations and liabilities associated with the maintenance, management and use of the leased property, in addition to the obligation to make lease payments; contains an automatic rent increase clause without establishing a specific maximum lease payment; and requires an annual rental which exceeds 25 per centum of the appraised value of the leased property as improved: Provided , That, for purposes of this paragraph “annual rental” means the amount due during the first twelve months of the lease for all units, regardless of whether such units were occupied or sold during that period, and “appraised value” means the appraised value placed upon the leased property the first tax year after the sale of a unit in the condominium or after the sale of a membership or share interest in the cooperative association to a party who is not an affiliate of the developer. the commercial setting of the negotiations; whether a party has knowingly taken advantage of the inability of the other party reasonably to protect his interests; the effect and purpose of the lease or portion of the lease or portion thereof, including its relationship to other contracts between the association, the unit owners and the developer or an affiliate of the developer; and the disparity between the amount charged under the lease and the value of the real estate subject to the lease measured by the price at which similar real estate was readily obtainable in similar transactions. Upon finding that any lease, or portion thereof, is unconscionable, the court shall exercise its authority to grant remedial relief as necessary to avoid an unconscionable result, taking into consideration the economic value of the lease. Such relief may include, but shall not be limited to rescission, reformation, restitution, the award of damages and reasonable attorney fees and court costs. A defendant may recover reasonable attorneys’ fees if the court determines that the cause of action filed by the plantiff 1 is frivolous, malicious, or lacking in substantial merit. 1 So in original. Probably should be “plaintiff”. sets forth the terms and conditions under which such lease or leases is or shall be purchased by such unit owners or associations; or reforms any clause in the lease which contained an automatic rent increase clause, unless such agreement was entered into when the leaseholder or his affiliate held a majority of the votes in the owners’ association.