First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0020.01 Megan McCall x4215
HOUSE BILL 23-1190
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
C
ONCERNING A RIGHT OF FIRST RE FUSAL TO PURCHASE QUALIFYING101
MULTIFAMILY RESIDENTIAL PROPERTY BY A LOCAL102
GOVERNMENT.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill creates a right of first refusal of a local government to
match an acceptable offer for the sale of a residential or mixed-use
multifamily property (property). The right to the purchase of the property
by the local government is subject to the local government's commitment
to using the property as long-term affordable housing. The local
HOUSE SPONSORSHIP
Boesenecker and Sirota,
SENATE SPONSORSHIP
Winter F.,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. government may assign its right of first refusal to the state, to any
political subdivisions, or to any housing authority in the state subject to
the limitation that the assignee make the same commitment to using the
property as long-term affordable housing.
The bill requires notices to be given by the seller to local
governments and by local governments to the seller and to residents of the
property. Upon receiving notice of intent to sell or of a potential sale of
property, a local government has 14 business days to preserve its right of
first refusal and an additional 90 business days to make an offer and must
agree to close on the property within 180 business days of the execution
of an agreement for the sale and purchase of the qualifying property.
The bill allows certain sales of property to be exempt from the
right of first refusal and the requirements established by the bill for the
right of first refusal. The bill also allows the local government to waive
its right of first refusal to purchase a property if the local government
elects to disclaim its rights to any proposed transaction or for any duration
of time or if there is a third-party buyer interested in purchasing the
property with the same commitment to preserving or converting the
property for long-term affordable housing and if the third-party buyer
enters into an agreement with the local government concerning the
third-party buyer's commitment to long-term affordable housing.
If the local government, its assignee, or a third-party buyer who
has committed to preserving or converting the property for long-term
affordable housing has acquired the property and maintained the property
for long-term affordable housing for 50 years, the property may be
converted to another use if the following conditions are met:
! Notice is given to residents prior to the conversion;
! Any displaced residents are provided with compensation
for relocation; and
! The local government, its assignee, or a third-party buyer
who has committed to preserving or converting the
property for long-term affordable housing guarantees the
development or conversion of an equal or greater amount
of units within the boundaries of the local government for
long-term affordable housing and offers the units first to
any residents displaced by the conversion of the property.
The bill also provides that the attorney general's office has
responsibility to enforce the provisions of the bill and that the attorney
general's office, a local government, or a mission-driven organization has
standing to bring a civil action for violations of the bill.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add part 12 to article2
HB23-1190-2- 4 of title 29 as follows:1
PART 122
RIGHT OF FIRST REFUSAL3
TO PURCHASE MULTIFAMILY HOUSING4
29-4-1201. Definitions. A
S USED IN THIS PART 12, UNLESS THE5
CONTEXT OTHERWISE REQUIRES :6
(1) "A
PPLICABLE AREA MEDIAN INCOME " MEANS NO MORE THAN7
EIGHTY PERCENT OF THE AREA MEDIAN INCOME IN URBAN COUNTIES , NO8
MORE THAN ONE HUNDRED TWENTY PERCENT OF THE AREA MEDIAN9
INCOME IN RURAL COUNTIES, AND NO MORE THAN ONE HUNDRED FORTY10
PERCENT OF THE AREA MEDIAN INCOME IN RURAL RESORT COUNTIES . THE11
CLASSIFICATION OF URBAN, RURAL, AND RURAL RESORT COUNTIES IS THE12
DIVISION OF HOUSING'S MOST RECENT CLASSIFICATION OF THE SAME13
PURSUANT TO SECTION 29-4-1107 (1)(d).14
(2) "A
REA MEDIAN INCOME" MEANS THE MEDIAN INCOME OF THE15
COUNTY IN WHICH A QUALIFYING PROPERTY IS LOCATED IN RELATION TO16
FAMILY SIZE, AS PUBLISHED ANNUALLY BY THE UNITED STATES17
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT .18
(3) "L
OCAL GOVERNMENT" MEANS:19
(a) I
F THE QUALIFYING PROPERTY IS LOCATED WITHIN THE20
INCORPORATED AREA OF A CITY , A CITY AND COUNTY, OR A TOWN, THE21
CITY, THE CITY AND COUNTY, OR THE TOWN; AND22
(b) I
F THE QUALIFYING PROPERTY IS LOCATED WITHIN THE23
UNINCORPORATED AREA OF A COUNTY , THE COUNTY.24
(4) "L
ONG-TERM AFFORDABLE HOUSING " MEANS HOUSING FOR25
WHICH THE ANNUAL RENT FOR ANY UNIT IN THE QUALIFYING PROPERTY26
DOES NOT EXCEED THE RENT FOR HOUSEHOLDS OF A GIVEN SIZE AT THE27
HB23-1190
-3- APPLICABLE AREA MEDIAN INCOME , AS PUBLISHED ANNUALLY BY THE1
U
NITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ,2
FOR A MINIMUM OF ONE HUNDRED YEARS AND WHERE THE LOCAL3
GOVERNMENT AGREES NOT TO RAISE RENT FOR ANY UNIT IN THE4
QUALIFYING PROPERTY BY MORE THAN THE RENT INCREASE CAP .5
(5) "M
ISSION-DRIVEN ORGANIZATION" MEANS AN ORGANIZATION6
IN GOOD STANDING WITH THE SECRETARY OF STATE THAT IS EXEMPT FROM7
TAXATION PURSUANT TO SECTION 501 (a) OF THE FEDERAL "INTERNAL8
R
EVENUE CODE OF 1986", AS AMENDED, AND LISTED AS AN EXEMPT9
ORGANIZATION IN SECTION 501 (c)(3) OF THE FEDERAL "INTERNAL10
R
EVENUE CODE OF 1986", AS AMENDED.11
(6) (a) "Q
UALIFYING PROPERTY" MEANS A MULTIFAMILY12
RESIDENTIAL OR MIXED-USE PROPERTY CONSISTING OF FIVE OR MORE13
UNITS IN URBAN COUNTIES AND THREE OR MORE UNITS IN RURAL OR RURAL14
RESORT COUNTIES. THE CLASSIFICATION OF URBAN, RURAL, AND RURAL15
RESORT COUNTIES IS THE DIVISION OF HOUSING 'S MOST RECENT16
CLASSIFICATION OF THE SAME PURSUANT TO SECTION 29-4-1107 (1)(d).17
(b) "Q
UALIFYING PROPERTY" ALSO INCLUDES ANY PROPERTY18
SUPPORTED WITH PUBLIC FUNDS THAT IS SUBJECT TO ONE OR MORE19
RESTRICTED-USE COVENANTS, INCLUDING PROPERTIES RECEIVING FUNDING20
FROM ANY OF THE FOLLOWING :21
(I) A
FEDERAL LOW-INCOME HOUSING TAX CREDIT PROVIDED BY22
SECTION 42 OF THE "INTERNAL REVENUE CODE OF 1986";23
(II) T
HE COLORADO AFFORDABLE HOUSING TAX CREDIT ALLOWED24
IN SECTION 39-22-2102;25
(III) T
HE UNITED STATES DEPARTMENT OF AGRICULTURE 51526
RURAL RENTAL HOUSING LOAN PROGRAM ;27
HB23-1190
-4- (IV) A LOAN OR GRANT FROM THE DEPARTMENT OF LOCAL1
AFFAIRS, THE DIVISION OF HOUSING CREATED IN SECTION 24-32-704 (1),2
THE COLORADO HOUSING AND FINANCE AUTHORITY CREATED IN SECTION3
29-4-704
(1), OR THE MIDDLE-INCOME HOUSING AUTHORITY CREATED IN4
SECTION 29-4-1104 (1); OR5
(V) A
NY OF THE FOLLOWING PROGRAMS THROUGH THE UNITED6
S
TATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT :7
(A) S
ECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY ;8
(B) S
ECTION 811 SUPPORTIVE HOUSING FOR PERSONS WITH9
DISABILITIES; OR10
(C) S
ECTION 8 HOUSING ASSISTANCE PAYMENT .11
(7) "R
ENT INCREASE CAP" MEANS THE GREATER OF:12
(a) T
HE AVERAGE ANNUAL PERCENTAGE CHANGE FOR THE13
PREVIOUS TWELVE MONTHS AT THE TIME OF THE CALCULATION IN THE14
U
NITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS15
CONSUMER PRICE INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL16
ITEMS AND ALL URBAN CONSUMERS , OR ITS SUCCESSOR INDEX; OR17
(b) T
HREE PERCENTAGE POINTS OF THE CURRENT ANNUAL RENT .18
(8) "R
ESIDENTIAL SELLER" MEANS AN OWNER OF A QUALIFYING19
PROPERTY.20
29-4-1202. Right of first refusal - eligibility - process - notice21
- tolling. (1) (a) (I) I
N ACCORDANCE WITH THIS PART 12, THE LOCAL22
GOVERNMENT FOR THE JURISDICTION IN WHICH A QUALIFYING PROPERTY23
IS LOCATED HAS A RIGHT TO PURCHASE THE QUALIFYING PROPERTY FOR AN24
ECONOMICALLY SUBSTANTIALLY IDENTICAL OFFER TO ANOTHER OFFER25
THAT A RESIDENTIAL SELLER RECEIVES ON THE QUALIFYING PROPERTY .26
T
HE LOCAL GOVERNMENT 'S RIGHT TO PURCHASE THE QUALIFYING27
HB23-1190
-5- PROPERTY IS LIMITED TO PRESERVING OR CONVERTING THE QUALIFYING1
PROPERTY FOR LONG -TERM AFFORDABLE HOUSING BY THE LOCAL2
GOVERNMENT OR ANOTHER PUBLIC OR PRIVATE ENTITY THAT THE LOCAL3
GOVERNMENT ASSIGNS ITS RIGHTS TO UNDER THIS PART 12, OR THAT THE4
LOCAL GOVERNMENT TRANSFERS THE QUALIFYING PROPERTY TO .5
(II) I
N EXERCISING ITS RIGHT OF FIRST REFUSAL SET FORTH IN6
SUBSECTION (1)(a)(I) OF THIS SECTION AND IN THIS PART 12, A LOCAL7
GOVERNMENT MAY PARTNER WITH A NONPROFIT ENTITY TO CO -FINANCE,8
LEASE, OR MANAGE THE QUALIFYING PROPERTY FOR THE PUBLIC PURPOSE9
OF MAINTAINING THE QUALIFYING PROPERTY AS LONG -TERM AFFORDABLE10
HOUSING IF THE LOCAL GOVERNMENT OR ITS ASSIGNEE MAINTAINS11
OWNERSHIP OF THE QUALIFYING PROPERTY .12
(b) A
NY PURCHASE AND SALE AGREEMENT FOR THE CONVEYANCE13
OF A QUALIFYING PROPERTY BY A RESIDENTIAL SELLER IS CONTINGENT14
UPON THE RIGHT OF FIRST REFUSAL SET FORTH IN THIS PART 12.15
(c) (I) I
F THE LOCAL GOVERNMENT PROVIDES NOTICE PURS UANT TO16
SUBSECTION (3)(a)(I) OF THIS SECTION TO A RESIDENTIAL SELLER THAT17
THE LOCAL GOVERNMENT MAY EXERCISE ITS RIGHTS UNDER THIS PART 12,18
THE RESIDENTIAL SELLER SHALL NOT PROCEED WITH THE SALE OF THE19
QUALIFYING PROPERTY TO ANY OTHER PARTY AND THE LOCAL20
GOVERNMENT SHALL HAVE A RIGHT TO MAKE AN OFFER THAT IS21
ECONOMICALLY SUBSTANTIALLY IDENTICAL TO AN ACCEPTABLE OFFER ON22
THE QUALIFYING PROPERTY THAT IS IDENTIFIED BY THE RESIDENTIAL23
SELLER AS REQUIRED BY SUBSECTION (2)(d)(I)(B) OF THIS SECTION.24
(II) F
OR THE PURPOSE OF DETERMINING WHETHER THE TERMS OF25
AN OFFER BY A THIRD PARTY AND AN OFFER BY THE LOCAL GOVERNMENT26
ARE ECONOMICALLY SUBSTANTIALLY IDENTICAL , IT IS IMMATERIAL HOW27
HB23-1190
-6- THE OFFER WOULD BE FINANCED . FOR PURPOSES OF THIS PART 12, A1
RESIDENTIAL SELLER SHALL NEGOTIATE IN GOOD FAITH WITH THE LOCAL2
GOVERNMENT THAT MAKES AN OFFER THAT IS ECONOMICALLY3
SUBSTANTIALLY IDENTICAL TO AN ACCEPTABLE OFFER ON THE QUALIFYING4
PROPERTY THAT IS IDENTIFIED BY THE RESIDENTIAL SELLER AS REQUIRED5
BY SUBSECTION (2)(d)(I)(B) OF THIS SECTION FOR THE SALE OF THE6
QUALIFYING PROPERTY WHICH INCLUDES , BUT IS NOT LIMITED TO7
EVALUATING AN OFFER FROM THE LOCAL GOVERNMENT OR ITS ASSIGNEE8
WITHOUT CONSIDERATION OF :9
(A) T
HE TIME PERIOD FOR CLOSING;10
(B) T
HE TYPE OF FINANCING OR PAYMENT METHOD ;11
(C) W
HETHER OR NOT THE OFFER IS CONTINGENT ON FINANCING12
OR PAYMENT METHOD; AND13
(D) W
HETHER OR NOT THE OFFER IS CONTINGENT ON AN14
APPRAISAL, INSPECTION, OR REVIEW OF TITLE , OBTAINING TITLE15
INSURANCE, OR OTHER CUSTOMARY CONDITIONS FOR THE SALE OF SIMILAR16
PROPERTY.17
(III) I
F THE RESIDENTIAL SELLER REJECTS THE OFFER MADE BY THE18
LOCAL GOVERNMENT , THE RESIDENTIAL SELLER SHALL PROVIDE A19
WRITTEN EXPLANATION OF THE REJECTION AND SHALL INVITE THE LOCAL20
GOVERNMENT TO MAKE A SUBSEQUENT OFFER BY IDENTIFYING THE TERMS21
AND CONDITIONS THAT MUST BE INCLUDED IN THE SUBSEQUENT OFFER FOR22
THE RESIDENTIAL SELLER TO POTENTIALLY ACCEPT THE SUBSEQUENTLY23
MADE OFFER BY THE LOCAL GOVERNMENT . A RESIDENTIAL SELLER IS24
PROHIBITED FROM ENGAGING IN NEGOTIATIONS WITH THIRD -PARTY25
POTENTIAL BUYERS THAT HAVE THE PRIMARY EFFECT OF THE THIRD PARTY26
MAKING AN OFFER TO THE RESIDENTIAL SELLER TO PURCHASE THE27
HB23-1190
-7- QUALIFYING PROPERTY THAT IS UNREASONABLY COST PROHIBITIVE OR1
LEGALLY IMPOSSIBLE FOR THE LOCAL GOVERNMENT TO MATCH WITH AN2
ECONOMICALLY SUBSTANTIALLY IDENTICAL OFFER .3
(d) A
T ANY TIME THE LOCAL GOVERNMENT MAY ASSIGN ITS RIGHTS4
REGARDING A QUALIFYING PROPERTY UNDER THIS PART 12 TO THE STATE,5
ANY POLITICAL SUBDIVISION, OR ANY HOUSING AUTHORITY IN THE STATE6
SUBJECT TO THE LIMITATIONS THAT THE QUALIFYING PROPERTY MUST BE7
USED TO PRESERVE OR BE CONVERTED FOR LONG -TERM AFFORDABLE8
HOUSING AND THAT ALL OTHER PROVISIONS OF THIS PART 12 ARE9
APPLICABLE TO THE ASSIGNEE . UPON ASSIGNMENT, THE ASSIGNEE10
ASSUMES ALL LIABILITY OF THE LOCAL GOVERNMENT REGARDING THE11
EXERCISE OF RIGHTS UNDER THIS PART 12 AND IS RESPONSIBLE FOR12
PERFORMING ALL REQUIREMENTS UNDER THIS PART 12 WITH RESPECT TO13
A QUALIFYING PROPERTY AS IF THE ASSIGNEE WERE THE LOCAL14
GOVERNMENT. THE ASSIGNEE MUST NOTIFY THE RESIDENTIAL SELLER OF15
THE ASSIGNMENT IF THE LOCAL GOVERNMENT HAS ALREADY SENT THE16
RESIDENTIAL SELLER NOTICE PURSUANT TO SUBSECTION (3)(a) OF THIS17
SECTION.18
(e) I
F A QUALIFYING PROPERTY IS CLASSIFIED AS MIXED-USE, THE19
LOCAL GOVERNMENT'S RIGHTS UNDER THIS PART 12 SHALL ONLY EXTEND20
TO THE PORTION OF THE QUALIFYING PROPERTY THAT IS RESIDENTIAL , BUT21
NOTHING IN THIS PART 12 EXCLUDES THE LOCAL GOVERNMENT FROM22
INCLUDING THE PURCHASE OF ANY COMMERCIAL PORTION OF THE23
QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT IN THE TERMS OF THE24
SALE AT THE DISCRETION OF THE LOCAL GOVERNMENT .25
(2) Notice by residential seller. (a)
WITHIN FOURTEEN DAYS OF26
A TRIGGERING EVENT DEMONSTRATING A RESIDENTIAL SELLER 'S INTENT27
HB23-1190
-8- TO SELL THE QUALIFYING PROPERTY , A RESIDENTIAL SELLER SHALL1
PROVIDE NOTICE TO THE GOVERNING BODY OF THE LOCAL GOVERNMENT2
IN WHICH THE QUALIFYING PROPERTY IS LOCATED . THE NOTICE MUST BE3
GIVEN IN ACCORDANCE WITH SUBSECTION (2)(d) OF THIS SECTION.4
(b) A
TRIGGERING EVENT REQUIRING NOTICE UNDER THIS5
SUBSECTION (2) INCLUDES ANY TIME THE RESIDENTIAL SELLER :6
(I) S
IGNS A CONTRACT WITH A REAL ESTATE BROKER OR7
BROKERAGE FIRM TO LIST THE QUALIFYING PROPERTY FOR SALE OR TO8
SELL OR TRANSFER THE QUALIFYING PROPERTY ;9
(II) S
IGNS A LETTER OF INTENT, OPTION TO SELL OR BUY, OR OTHER10
CONDITIONAL WRITTEN AGREEMENT WITH A POTENTIAL BUYER FOR THE11
SALE OR TRANSFER OF THE QUALIFYING PROPERTY , WHICH INCLUDES THE12
ESTIMATED PRICE, TERMS, AND CONDITIONS OF THE PROPOSED SALE OR13
TRANSFER, EVEN IF THE PRICE, TERMS, OR CONDITIONS ARE SUBJECT TO14
CHANGE;15
(III) S
IGNS A CONTRACT WITH A POTENTIAL BUYER 'S REAL ESTATE16
BROKER OR BROKERAGE FIRM RELATED TO THE POTENTIAL SALE OR17
TRANSFER OF THE QUALIFYING PROPERTY ;18
(IV) P
ROVIDES A SIGNED PROPERTY DISCLOSURE FORM FOR THE19
QUALIFYING PROPERTY TO A POTENTIAL BUYER ;20
(V) L
ISTS THE QUALIFYING PROPERTY FOR SALE;21
(VI) M
AKES A CONDITIONAL ACCEPTANCE OF AN OFFER FOR THE22
SALE OR TRANSFER OF THE QUALIFYING PROPERTY ;23
(VII) T
AKES ANY OTHER ACTION DEMONSTRATING AN INTENT TO24
SELL THE QUALIFYING PROPERTY;25
(VIII) R
ECEIVES A NOTICE OF ELECTION AND DEMAND OR LIS26
PENDENS RELATED TO THE FORECLOSURE OF THE QUALIFYING PROPERTY27
HB23-1190
-9- PURSUANT TO PART 1 OF ARTICLE 38 OF TITLE 38; EXCEPT THAT, NOTICE TO1
THE LOCAL GOVERNMENT MUST BE PROVIDED AS SPECIFIED IN SUBSECTION2
(7)
OF THIS SECTION AND NOT AS SPECIFIED IN SUBSECTION (2)(a) OF THIS3
SECTION;4
(IX) R
ECEIVES A NOTICE THAT A CERTIFICATE OF LEVY HAS BEEN5
FILED RELATED TO THE QUALIFYING PROPERTY PURSUANT TO SECTION6
13-56-101;
OR7
(X) T
HE POTENTIAL SALE TO A THIRD-PARTY BUYER PURSUANT TO8
SECTION 29-4-1203 (2)(b) TERMINATES.9
(c) A
RESIDENTIAL SELLER SHALL PROVIDE SUBSEQUENT NOTICE10
TO THE LOCAL GOVERNMENT THAT RECEIVED NOTICE PURSUANT TO THIS11
SUBSECTION (2) IF THE TERMS OF AN ACCEPTABLE SALE MATERIALLY12
CHANGE.13
(d) (I) T
HE NOTICE GIVEN PURSUANT TO THIS SUBSECTION (2) MUST14
BE DELIVERED TO THE CLERK OF THE GOVERNING BODY OF THE LOCAL15
GOVERNMENT BY HAND DELIVERY , UNITED STATES FIRST CLASS MAIL, OR16
OVERNIGHT DELIVERY AND MUST INCLUDE :17
(A) A
GENERAL DESCRIPTION OF THE QUALIFYING PROPERTY TO BE18
PURCHASED, INCLUDING THE ADDRESS AND NAME OF THE PROPERTY , IF19
ANY, AND ANY ADDITIONAL DESCRIPTIONS OF THE QUALIFYING PROPERTY20
ON FILE WITH THE OFFICE OF THE ASSESSOR IN THE COUNTY IN WHICH THE21
QUALIFYING PROPERTY IS LOCATED ;22
(B) T
HE PRICE, TERMS, AND CONDITIONS OF AN ACCEPTABLE OFFER23
THE RESIDENTIAL SELLER HAS RECEIVED TO SELL THE QUALIFYING24
PROPERTY OR THE PRICE, TERMS, AND CONDITIONS FOR WHICH THE25
RESIDENTIAL SELLER INTENDS TO SELL THE QUALIFYING PROPERTY ;26
(C) A
NY TERMS OR CONDITIONS WHICH , IF NOT MET, WOULD BE27
HB23-1190
-10- SUFFICIENT GROUNDS, IN THE RESIDENTIAL SELLER'S DISCRETION AND IN1
COMPLIANCE WITH THIS PART 12 AND ANY OTHER APPLICABLE LAW , TO2
REJECT AN OFFER;3
(D) I
F THE RESIDENTIAL SELLER HAS ENTERED INTO A CONTINGENT4
PURCHASE AND SALE AGREEMENT WITH A PROSPECTIVE BUYER , A COPY OF5
THE AGREEMENT;6
(E) T
HE RESIDENTIAL SELLER'S ADDRESS TO RECEIVE NOTICES7
FROM THE LOCAL GOVERNMENT ; AND8
(F) T
HE NAMES AND MAILING ADDRESSES THAT THE RESIDENTIAL9
SELLER HAS ON RECORD FOR EVERY TENANT RESIDING IN THE QUALIFYING10
PROPERTY.11
(II) T
HE PRICE, TERMS, AND CONDITIONS STATED IN THE NOTICE12
MUST BE UNIVERSAL AND APPLICABLE TO ALL POTENTIAL BUYERS AND13
MUST NOT BE SPECIFIC TO OR PROHIBITIVE OF THE LOCAL GOVERNMENT14
MAKING A SUCCESSFUL OFFER TO PURCHASE THE QUALIFYING PROPERTY ,15
MUST NOT BE UNLAWFUL , AND MUST NOT INHIBIT THE EXERCISE OF THE16
RIGHTS PROVIDED UNDER THIS PART 12.17
(III) T
HE LOCAL GOVERNMENT MAY SHARE THE INFORMATION18
CONTAINED IN THE NOTICE WITH ITS OFFICERS, EMPLOYEES, AGENTS, AND19
PROSPECTIVE ASSIGNEES FOR THE PURPOSES OF EVALUATING OR20
OBTAINING FINANCING FOR THE PROSPECTIVE TRANSACTION . THE21
INFORMATION CONTAINED IN THE NOTICE MUST BE KEPT CONFIDENTIAL IF22
THE RESIDENTIAL SELLER SO REQUESTS AND IS CONFIDENTIAL23
INFORMATION NOT SUBJECT TO PUBLIC DISCLOSURE ; EXCEPT THAT THE24
OCCURRENCE OF A TRIGGERING EVENT, THE LOCATION OF THE QUALIFYING25
PROPERTY, AND THE IDENTITY OF THE RESIDENTIAL SELLER ARE NOT26
CONFIDENTIAL AND ARE SUBJECT TO PUBLIC DISCLOSURE . NOTHING IN THIS27
HB23-1190
-11- SECTION REQUIRES A LOCAL GOVERNMENT TO EXERCISE ITS RIGHTS UNDER1
THIS PART 12.2
(3) Notice by the local government. (a) (I) T
HE LOCAL3
GOVERNMENT SHALL PROVIDE NOTICE TO THE RESIDENTIAL SELLER WITHIN4
FOURTEEN BUSINESS DAYS OF RECEIPT OF THE NOTICE REQUIRED5
PURSUANT TO SUBSECTION (2) OF THIS SECTION OF THE LOCAL6
GOVERNMENT'S INTENT TO PRESERVE ITS RIGHTS UNDER THIS PART 12. IF7
THE LOCAL GOVERNMENT PLANS TO ASSIGN ITS RIGHTS UNDER THIS PART8
12
IN ACCORDANCE WITH SUBSECTION (1)(d) OF THIS SECTION, THE LOCAL9
GOVERNMENT MUST DISCLOSE THE POTENTIAL ASSIGNEE IN THE NOTICE .10
T
HE NOTICE MUST BE DELIVERED BY HAND DELIVERY , UNITED STATES11
FIRST CLASS MAIL, OR OVERNIGHT DELIVERY TO THE ADDRESS PROVIDED12
BY THE RESIDENTIAL SELLER PURSUANT TO SUBSECTION (2)(d)(I)(E) OF13
THIS SECTION.14
(II) T
HE NOTICE GIVEN PURSUANT TO SUBSECTION (3)(a)(I) OF THIS15
SECTION IS NONBINDING ON THE LOCAL GOVERNMENT .16
(III) I
F NO NOTICE IS GIVEN BY THE LOCAL GOVERNMENT , THE17
RIGHTS UNDER THIS PART 12 EXPIRE AND THE RESIDENTIAL SELLER MAY18
PROCEED WITH THE SALE OF THE QUALIFYING PROPERTY TO A BUYER OF19
THEIR CHOOSING.20
(b) (I) U
PON GIVING NOTICE TO A RESIDENTIAL SELLER PURSUANT21
TO SUBSECTION (3)(a) OF THIS SECTION, THE LOCAL GOVERNMENT SHALL22
PROVIDE NOTICE TO EACH RESIDENT OF THE QUALIFYING PROPERTY WHO23
IS IDENTIFIED IN THE SELLER 'S NOTICE PROVIDED IN SUBSECTION24
(2)(d)(I)(F)
OF THIS SECTION INFORMING THE RESIDENT THAT THERE IS25
INTEREST BY THE LOCAL GOVERNMENT OR AN ASSIGNEE IN PURCHASING26
THE QUALIFYING PROPERTY AND PROVIDING A DATE , TIME, AND LOCATION27
HB23-1190
-12- THAT THE LOCAL GOVERNMENT WILL HOLD A MEETING FOR RESIDENTS TO1
ATTEND FOR INFORMATION REGARDING A POTENTIAL PURCHASE OF THE2
PROPERTY BY THE LOCAL GOVERNMENT IN ACCORDANCE WITH3
SUBSECTION (3)(d) OF THIS SECTION.4
(II) T
HE LOCAL GOVERNMENT SHALL PROVIDE A SECOND NOTICE5
TO THE RESIDENTS OF A QUALIFYING PROPERTY UPON THE EXECUTION OF6
AN AGREEMENT FOR THE SALE AND PURCHASE OF THE QUALIFYING7
PROPERTY PURSUANT TO SUBSECTION (4) OF THIS SECTION.8
(III) T
HE LOCAL GOVERNMENT SHALL PROVIDE A THIRD NOTICE TO9
THE RESIDENTS OF A QUALIFYING PROPERTY UPON THE CLOSING OF A SALE10
FOR THE QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT PURSUANT11
TO SUBSECTION (4) OF THIS SECTION. THE NOTICE MUST INCLUDE CONTACT12
INFORMATION FOR THE ENTITY THAT WILL PROVIDE MANAGEMENT13
SERVICES TO THE QUALIFYING PROPERTY .14
(c) T
HE LOCAL GOVERNMENT SHALL MAIL THE NOTICES REQUIRED15
PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION TO THE RESIDENTS OF16
A QUALIFYING PROPERTY USING THE MOST RECENT ADDRESS OF EACH17
RESIDENT. THE RESIDENTIAL SELLER SHALL PROVIDE UPDATED MAILING18
ADDRESSES FOR RESIDENTS UPON REQUEST OF THE LOCAL GOVERNMENT .19
T
HE LOCAL GOVERNMENT SHALL ALSO POST A COPY OF THE NOTICES IN A20
CONSPICUOUS PLACE IN THE QUALIFYING PROPERTY . THE NOTICES MUST21
BE PROVIDED IN ENGLISH, SPANISH, AND ANY OTHER LANGUAGE KNOWN22
TO BE SPOKEN BY RESIDENTS AT THE QUALIFYING PROPERTY .23
(d) T
HE MEETING HELD BY THE LOCAL GOVERNMENT AS REQUIRED24
BY SUBSECTION (3)(b)(I) OF THIS SECTION MUST BE IN AN ACCESSIBLE25
SPACE, AND SPANISH TRANSLATION SERVICES AND , IF AVAILABLE,26
VIRTUAL MEETING OPTIONS MUST BE PROVIDED AT NO COST TO THE27
HB23-1190
-13- RESIDENTS.1
(4) T
HE LOCAL GOVERNMENT HAS NINETY BUSINESS DAYS FROM2
PROVIDING NOTICE PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION TO3
MAKE AN OFFER TO PURCHASE THE QUALIFYING PROPERTY AND SHALL4
AGREE TO CLOSE ON THE QUALIFYING PROPERTY WITHIN ONE HUNDRED5
EIGHTY BUSINESS DAYS OF THE EXECUTION OF AN AGREEMENT FOR THE6
SALE AND PURCHASE OF THE QUALIFYING PROPERTY .7
(5) (a) T
HE PERIODS SET FORTH IN SUBSECTION (4) OF THIS SECTION8
MAY BE EXTENDED AND ANY TERMS OR CONDITIONS OF SALE MAY BE9
MODIFIED BY WRITTEN AGREEMENT BETWEEN THE LOCAL GOVERNMENT10
AND THE RESIDENTIAL SELLER.11
(b) T
HE LOCAL GOVERNMENT OR ITS ASSIGNEE IS ENTITLED TO12
TOLLING OF THE PERIODS SET FORTH IN SUBSECTION (4) OF THIS SECTION13
IN ANY OF THE FOLLOWING CIRCUMSTANCES :14
(I) I
F THERE IS A REASONABLE DELAY NOT WITHIN THE CONTROL15
OF THE LOCAL GOVERNMENT OR ITS ASSIGNEE IN OBTAINING FI NANCING OR16
A REQUIRED INSPECTION OR SURVEY OF THE QUALIFYING PROPERTY , THE17
PERIOD IS TOLLED FOR THE DURATION OF THE DELAY ; AND18
(II) I
F THE LOCAL GOVERNMENT , ITS ASSIGNEE, THE ATTORNEY19
GENERAL, OR A MISSION-DRIVEN ORGANIZATION FILES A NONFRIVOLOUS20
CIVIL ACTION ALLEGING A VIOLATION OF THIS SECTION , THE PERIOD IS21
TOLLED UNTIL THE ACTION REACHES FINAL RESOLUTION OR THE PARTIES22
REACH A RESOLUTION, INCLUDING THE RESOLUTION OF ANY APPEALS , BY23
SIGNING A SETTLEMENT AGREEMENT .24
(6) A
NY ACTIONS OF AN AGENT WORKING ON BEHALF OF A25
RESIDENTIAL SELLER FOR PURPOSES OF THIS PART 12 ARE ATTRIBUTABLE26
TO THE RESIDENTIAL SELLER.27
HB23-1190
-14- (7) IF THE SALE OF THE QUALIFYING PROPERTY IS PURSUANT TO AN1
ACTION IN FORECLOSURE, THEN THE PUBLIC TRUSTEE SHALL PROVIDE THE2
NOTICE REQUIRED UNDER SUBSECTION (2) OF THIS SECTION TO THE LOCAL3
GOVERNMENT WITHIN FOURTEEN DAYS AFTER THE FORECLOSURE4
AUCTION, AND THE LOCAL GOVERNMENT SHALL PROVIDE THE NOTICES5
REQUIRED UNDER SUBSECTION (3)(a) OF THIS SECTION TO THE PUBLIC6
TRUSTEE. NOTWITHSTANDING SUBSECTION (4) OF THIS SECTION, THE7
LOCAL GOVERNMENT HAS NINETY DAYS TO SUBMIT AN OFFER THAT IS8
ECONOMICALLY SUBSTANTIALLY SIMILAR TO THE WINNING OFFER MADE9
AT THE FORECLOSURE AUCTION . THE PUBLIC TRUSTEE IS SUBJECT TO ALL10
OTHER REQUIREMENTS THAT THE RESIDENTIAL SELLER IS OTHERWISE11
SUBJECT TO UNDER THIS PART 12.12
(8) (a) T
HE LOCAL GOVERNMENT OR ITS ASSIGNEE SHALL13
DETERMINE TENANT QUALIFICATIONS AT ITS DISCRETION , SO LONG AS14
SUCH DETERMINATIONS ARE IN FURTHERANCE OF PROVIDING LONG -TERM15
AFFORDABLE HOUSING FOR COMMUNITY MEMBERS AT OR BELOW THE16
APPLICABLE AREA MEDIAN INCOME ; EXCEPT THAT RESIDENTS AT THE17
QUALIFYING PROPERTY AT THE TIME IT IS ACQUIRED BY THE LOCAL18
GOVERNMENT PURSUANT TO THIS SECTION MAY CONTINUE TO RESIDE AT19
THE QUALIFYING PROPERTY IRRESPECTIVE OF THEIR INCOME LEVEL FOR AT20
LEAST THE DURATION OF THEIR LEASE UNDER THE LEASE TERMS IN EFFECT21
AT THE TIME THE LOCAL GOVERNMENT ACQUIRES THE QUALIFYING22
PROPERTY.23
(b) N
OTWITHSTANDING SECTION 29-4-1201 (4), THE RENT OF A24
RESIDENT RESIDING IN A UNIT AT THE QUALIFYING PROPERTY IN25
ACCORDANCE WITH SUBSECTION (8)(a) OF THIS SECTION MAY EXCEED THE26
RENT FOR HOUSEHOLDS OF THE SAME SIZE AT THE APPLICABLE AREA27
HB23-1190
-15- MEDIAN INCOME WITHOUT AFFECTING THE STATUS OF THE QUALIFYING1
PROPERTY AS LONG-TERM AFFORDABLE HOUSING . HOWEVER, THE RENT2
FOR THE UNIT IS SUBJECT TO THE RENT INCREASE CAP.3
29-4-1203. Exemptions - waiver of the local government's4
right of first refusal. (1) T
HIS PART 12 DOES NOT APPLY TO ANY SALE,5
TRANSFER, OR CONVEYANCE OF QUALIFYING PROPERTY BY A RESIDENTIAL6
SELLER:7
(a) M
ADE TO A SPOUSE, A PARTNER IN A CIVIL UNION, OR A8
PARENT, SIBLING, AUNT, UNCLE, FIRST COUSIN, OR LEGALLY RECOGNIZED9
CHILD OF THE RESIDENTIAL SELLER;10
(b) M
ADE TO A TRUST IF THE BENEFICIARIES OF THE TRUST ARE11
THE SPOUSE, PARTNER IN A CIVIL UNION, OR LEGALLY RECOGNIZED CHILD12
OF THE RESIDENTIAL SELLER;13
(c) M
ADE TO, IF WHOLLY OWNED BY THE RESIDENTIAL SELLER , A14
PARTNERSHIP, LIMITED LIABILITY COMPANY, OR CORPORATION;15
(d) M
ADE PURSUANT TO A WILL , DESCENT, OR INTESTATE16
DISTRIBUTION;17
(e) M
ADE PURSUANT TO AN ACTION IN EMINENT DOMAIN ;18
(f) M
ADE TO THE STATE OR TO A LOCAL GOVERNMENT ;19
(g) M
ADE PURSUANT TO A COURT ORDER ;20
(h) M
ADE BETWEEN JOINT TENANTS OR TENANTS IN COMMON ; OR21
(i) I
F, AT THE TIME OF THE EFFECTIVE DATE OF THIS PART 12, THE22
QUALIFYING PROPERTY HAS A PREEXISTING AGREEMENT THAT BESTOWS23
A RIGHT OF FIRST REFUSAL TO A THIRD PARTY ; EXCEPT THAT, UPON24
EXPIRATION OF THE AGREEMENT, THE PROVISIONS OF THIS PART 12 APPLY25
TO ANY SALE, TRANSFER, OR CONVEYANCE OF THE QUALIFYING PROPERTY26
BY THE RESIDENTIAL SELLER.27
HB23-1190
-16- (2) THE LOCAL GOVERNMENT MAY WAIVE ITS RIGHTS UNDER THIS1
PART 12 IF:2
(a) T
HE GOVERNING BODY OF THE LOCAL GOVERNMENT ELECTS TO3
DISCLAIM ANY RIGHTS PROVIDED UNDER THIS PART 12 WITH RESPECT TO4
ANY PROPOSED TRANSACTION OR FOR ANY DURATION OF TIME ; OR5
(b) (I) T
HE LOCAL GOVERNMENT MAKES THE DETERMINATION6
THAT A PROPOSED SALE TO A THIRD -PARTY BUYER WILL ENSURE THE7
EQUIVALENT PRESERVATION OR CONVERSION OF THE QUALIFYING8
PROPERTY FOR LONG-TERM AFFORDABLE HOUSING IN THE SAME MANNER9
IN WHICH IT WOULD BE PRESERVED OR CONVERTED IF THE LOCAL10
GOVERNMENT WERE TO EXERCISE ITS RIGHTS UNDER THIS PART 12.11
(II) F
OR THE REQUIREMENTS OF SUBSECTION (2)(b)(I) OF THIS12
SECTION TO BE MET:13
(A) T
HE RESIDENTIAL SELLER MUST PROVIDE NOTICE TO THE14
LOCAL GOVERNMENT PRIOR TO THE LOCAL GOVERNMENT MAKING AN15
OFFER UNDER SECTION 29-4-1202 THAT THE THIRD-PARTY BUYER HAS16
MADE AN OFFER ON THE QUALIFYING PROPERTY AND IS COMMITTED TO17
PRESERVING OR CONVERTING THE QUALIFYING PROPERTY FOR LONG -TERM18
AFFORDABLE HOUSING IF THE TRANSACTION OCCURS FOR THE SALE AND19
PURCHASE OF THE QUALIFYING PROPERTY ; AND20
(B) T
HE THIRD-PARTY BUYER SHALL ENTER INTO AN AGREEMENT21
WITH THE LOCAL GOVERNMENT THAT THE THIRD -PARTY BUYER SHALL22
PRESERVE OR CONVERT THE QUALIFYING PROPERTY FOR LONG -TERM23
AFFORDABLE HOUSING IF THE TRANSACTION OCCURS FOR THE SALE AND24
PURCHASE OF THE QUALIFYING PROPERTY AND FOR ANY OTHER TERMS TO25
WHICH THE THIRD-PARTY BUYER AND THE LOCAL GOVERNMENT AGREE . IF,26
AFTER THE SALE OF THE QUALIFYING PROPERTY TO THE THIRD -PARTY27
HB23-1190
-17- BUYER, THE THIRD-PARTY BUYER FAILS TO COMPLY WITH THE TERMS OF1
THE AGREEMENT ENTERED INTO WITH THE LOCAL GOVERNMENT , THE2
THIRD-PARTY BUYER SHALL BE HELD LIABLE AND SUBJECT TO ANY3
REMEDIES AND ENFORCEMENT UNDER THE AGREEMENT , UNDER SECTION4
29-4-1205,
OR UNDER ANY OTHER APPLICABLE LAW .5
(III) T
HE WAIVER PROVIDED UNDER SUBSECTION (2)(b)(I) OF THIS6
SECTION IS ONLY EFFECTIVE FOR THE SALE TO THE THIRD -PARTY BUYER7
IDENTIFIED IN THE NOTICE REQUIRED IN SUBSECTION (2)(b)(II) OF THIS8
SECTION, AND IF THE SALE TO THE THIRD-PARTY BUYER DOES NOT OCCUR9
THEN THE WAIVER IS VOID AND THE LOCAL GOVERNMENT IS ENTITLED TO10
ALL THE RIGHTS PROVIDED UNDER THIS PART 12.11
29-4-1204. Conversion of qualifying property purchased by12
the local government. (1) T
HE LOCAL GOVERNMENT , ITS ASSIGNEE, OR13
A THIRD-PARTY BUYER PURSUANT TO SECTION 29-4-1203 (2), SUBSEQUENT14
TO ACQUIRING A QUALIFYING PROPERTY PURSUANT TO THIS PART 12, MAY15
CONVERT THE PROPERTY TO A DIFFERENT USE IF :16
(a) T
HE QUALIFYING PROPERTY HAS BEEN MAINTAINED AS17
LONG-TERM AFFORDABLE HOUSING FOR A DURATION OF AT LEAST FIFTY18
YEARS;19
(b) A
T LEAST ONE HUNDRED TWENTY DAYS BEFORE THE20
CONVERSION, NOTICE OF THE CONVERSION IS GIVEN TO THE RESIDENTS AT21
THE QUALIFYING PROPERTY AND ANY RESIDENT WHO WILL BE DISPLACED22
BY THE CONVERSION OF THE QUALIFYING PROPERTY IS PROVIDED WITH23
RELOCATION COMPENSATION THAT EQUALS TWELVE MONTHS OF THE24
RESIDENT'S CURRENT RENT OR TWELVE MONTHS MARKET RENT FOR THE25
COUNTY IN WHICH THE QUALIFYING PROPERTY IS LOCATED , WHICHEVER IS26
GREATER; AND27
HB23-1190
-18- (c) THE LOCAL GOVERNMENT , ITS ASSIGNEE, OR A THIRD-PARTY1
BUYER PURSUANT TO SECTION 29-4-1203 (2), GUARANTEES THE2
DEVELOPMENT OR CONVERSION OF AN EQUAL OR GREATER AMOUNT OF3
UNITS WITHIN THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING4
PROPERTY IS LOCATED FOR DESIGNATED LONG -TERM AFFORDABLE5
HOUSING AS SET FORTH UNDER THIS PART 12 AND GUARANTEES THAT THE6
UNITS WILL BE OFFERED TO ANY RESIDENT WHO WILL BE DISPLACED BY7
THE CONVERSION OF THE QUALIFYING PROPERTY BEFORE THE UNITS ARE8
MADE AVAILABLE TO THE GENERAL PUBLIC .9
(2) N
OTHING WITHIN THIS PART 12 LIMITS THE LOCAL10
GOVERNMENT'S ABILITY TO CONDEMN A QUALIFYING PROPERTY ACQUIRED11
PURSUANT TO THIS PART 12 TO THE EXTENT PERMITTED BY APPLICABLE12
LAW.13
29-4-1205. Remedies for noncompliance - definitions.14
(1) (a) N
OTWITHSTANDING SUBSECTION (1)(c) OF THIS SECTION AND15
SUBJECT TO AVAILABILITY OF RESOURCES , IT IS THE RESPONSIBILITY OF16
THE ATTORNEY GENERAL 'S OFFICE TO ENFORCE THE PROVISIONS OF THIS17
PART 12, AND THE ATTORNEY GENERAL MAY INTERVENE IN ANY ACTION18
BROUGHT PURSUANT TO SUBSECTION (1)(c) OF THIS SECTION. ANY TITLE19
TRANSFERRED SUBSEQUENT TO THE TRIGGERING EVENTS SET FORTH IN20
SECTION 29-4-1202 (2)(b) IS DEFECTIVE UNLESS THE PROPERTY INTERESTS21
OF THE LOCAL GOVERNMENT IN A QUALIFYING PROPERTY AS SET FORTH IN22
SUBSECTION (1)(b) OF THIS SECTION ARE SECURED OR UNTIL AN23
EQUITABLE REMEDY HAS BEEN PROVIDED .24
(b) T
HE RIGHTS ACCORDED TO THE LOCAL GOVERNMENT OF A25
QUALIFYING PROPERTY IN THIS SECTION ARE PROPERTY INTERESTS .26
(c) T
HE ATTORNEY GENERAL'S OFFICE, THE LOCAL GOVERNMENT27
HB23-1190
-19- IN THE JURISDICTION THE QUALIFYING PROPERTY IS LOCATED , THE LOCAL1
GOVERNMENT'S ASSIGNEE, OR A MISSION-DRIVEN ORGANIZATION ON2
BEHALF OF THE STATE MAY BRING A CIVIL ACTION AGAINST A RESIDENTIAL3
SELLER OR A PERSON CLAIMING AN INTEREST IN A QUALIFYING PROPERTY4
THROUGH A RESIDENTIAL SELLER FOR ANY VIOLATION OF THIS PART 12.5
(2) A
COURT MAY GRANT INJUNCTIVE RELIEF FOR ANY VIOLATIONS6
OF THIS PART 12 BY A RESIDENTIAL SELLER OR A PERSON CLAIMING AN7
INTEREST IN A QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER8
OCCURRING AFTER A TRIGGERING EVENT PURSUANT TO SECTION 29-4-12029
(2)(b).10
(3) A
COURT MAY ALSO AWARD DAMAGES , REASONABLE11
ATTORNEY FEES,
AND COSTS TO A PREVAILING PARTY; EXCEPT THAT, IN AN12
ACTION BROUGHT OR JOINED BY THE ATTORNEY GENERAL 'S OFFICE, THE13
LOCAL GOVERNMENT , THE LOCAL GOVERNMENT 'S ASSIGNEE, OR A14
MISSION-DRIVEN ORGANIZATION, A COURT SHALL NOT AWARD ATTORNEY15
FEES TO A RESIDENTIAL SELLER OR PERSON CLAIMING AN INTEREST IN A16
QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER UNLESS THE17
COURT FINDS THAT THE COMPLAINT FILED BY THE ATTORNEY GENERAL 'S18
OFFICE, THE LOCAL GOVERNMENT, THE LOCAL GOVERNMENT'S ASSIGNEE,19
OR A MISSION -DRIVEN ORGANIZATION WAS FRIVOLOUS ,20
NOTWITHSTANDING ANY AGREEMENT TO THE CONTRARY .21
(4) T
HE REMEDIES PROVIDED IN THIS SECTION ARE INDEPENDENT22
OF AND DO NOT AFFECT ANY CIVIL ACTION AND REMEDIES OR THE RIGHT23
OF ANY PARTY TO ANY TRANSACTION CONTEMPLATED UNDER THIS PART24
12.25
SECTION 2. Applicability. This act applies to all qualifying26
properties which are listed for sale but are not under contract on or after27
HB23-1190
-20- the effective date of this act.1
SECTION 3. Safety clause. The general assembly hereby finds,2
determines, and declares that this act is necessary for the immediate3
preservation of the public peace, health, or safety.4
HB23-1190
-21-