First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
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
Amended 2nd Reading
March 6, 2023
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
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
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; EXCEPT5
THAT THE RENT INCREASE CAP SHALL NOT APPLY TO UNITS OF HOUSING6
REGULATED BY FAIR MARKET RENTS PUBLISHED BY THE UNITED STATES7
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR ANY OTHER8
FEDERAL OR STATE PROGRAMS THAT RESTRICT OR LIMIT ALLOWABLE9
RENTS.10
(5) "M
ISSION-DRIVEN ORGANIZATION" MEANS AN ORGANIZATION11
IN GOOD STANDING WITH THE SECRETARY OF STATE THAT IS EXEMPT FROM12
TAXATION PURSUANT TO SECTION 501 (a) OF THE FEDERAL "INTERNAL13
R
EVENUE CODE OF 1986", AS AMENDED, AND LISTED AS AN EXEMPT14
ORGANIZATION IN SECTION 501 (c)(3) OF THE FEDERAL "INTERNAL15
R
EVENUE CODE OF 1986", AS AMENDED.16
(6) (a) "Q
UALIFYING PROPERTY" MEANS A MULTIFAMILY17
RESIDENTIAL OR MIXED-USE
RENTAL PROPERTY CONSISTING OF FIVE OR18
MORE UNITS IN URBAN COUNTIES AND THREE OR MORE UNITS IN RURAL OR19
RURAL RESORT COUNTIES. THE CLASSIFICATION OF URBAN, RURAL, AND20
RURAL RESORT COUNTIES IS THE DIVISION OF HOUSING 'S MOST RECENT21
CLASSIFICATION OF THE SAME PURSUANT TO SECTION 29-4-1107 (1)(d).22
23
(b) "QUALIFYING PROPERTY" DOES NOT INCLUDE A MOBILE HOME24
PARK AS DEFINED IN SECTION 38-12-201.5 (6).25
(7) "R
ENT INCREASE CAP" MEANS
A PERCENTAGE OF THE CURRENT26
ANNUAL RENT FOR A QUALIFYING PROPERTY THAT IS EQUAL TO THE27
1190
-4- GREATER OF:1
(a) T
HE AVERAGE ANNUAL PERCENTAGE C HANGE FOR THE2
PREVIOUS TWELVE MONTHS AT THE TIME OF THE CALCULATION IN THE3
U
NITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS4
CONSUMER PRICE INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL5
ITEMS AND ALL URBAN CONSUMERS , OR ITS SUCCESSOR INDEX; OR6
(b) T
HREE PERCENTAGE
POINTS.7
(8) "R
ESIDENTIAL SELLER" MEANS AN OWNER OF A QUALIFYING8
PROPERTY.9
29-4-1202. Right of first refusal - eligibility - process - notice10
- tolling. (1) (a) (I) I
N ACCORDANCE WITH THIS PART 12, THE LOCAL11
GOVERNMENT FOR THE JURISDICTION IN WHICH A QUALIFYING PROPERTY12
IS LOCATED HAS A RIGHT TO PURCHASE THE QUALIFYING PROPERTY FOR AN13
ECONOMICALLY SUBSTANTIALLY IDENTICAL OFFER TO ANOTHER OFFER14
THAT A RESIDENTIAL SELLER RECEIVES ON THE QUALIFYING PROPERTY .15
T
HE LOCAL GOVERNMENT 'S RIGHT TO PURCHASE THE QUALIFYING16
PROPERTY IS LIMITED TO PRESERVING OR CONVERTING THE QUALIFYING17
PROPERTY FOR LONG -TERM AFFORDABLE HOUSING BY THE LOCAL18
GOVERNMENT OR ANOTHER PUBLIC OR PRIVATE ENTITY THAT THE LOCAL19
GOVERNMENT ASSIGNS ITS RIGHTS TO UNDER THIS PART 12, OR THAT THE20
LOCAL GOVERNMENT TRANSFERS THE QUALIFYING PROPERTY TO .21
(II) I
N EXERCISING ITS RIGHT OF FIRST REFUSAL SET FORTH IN22
SUBSECTION (1)(a)(I) OF THIS SECTION AND IN THIS PART 12, A LOCAL23
GOVERNMENT MAY PARTNER WITH A NONPROFIT
ENTITY, A PRIVATE24
ENTITY, OR ANOTHER GOVERNMENTAL ENTITY TO CO-FINANCE, LEASE, OR25
MANAGE THE QUALIFYING PROPERTY FOR THE PUBLIC PURPOSE OF26
MAINTAINING THE QUALIFYING PROPERTY AS LONG -TERM AFFORDABLE27
1190
-5- HOUSING IF THE LOCAL GOVERNMENT OR ITS ASSIGNEE MAINTAINS1
OWNERSHIP OF THE QUALIFYING PROPERTY .2
(b) A
NY PURCHASE AND SALE AGREEMENT FOR THE CONVEYANCE3
OF A QUALIFYING PROPERTY BY A RESIDENTIAL SELLER IS CONTINGENT4
UPON THE RIGHT OF FIRST REFUSAL SET FORTH IN THIS PART 12.5
(c) (I) I
F THE LOCAL GOVERNMENT PROVIDES NOTICE PURSUANT TO6
SUBSECTION (3)(a)(I) OF THIS SECTION TO A RESIDENTIAL SELLER THAT7
THE LOCAL GOVERNMENT MAY EXERCISE ITS RIGHTS UNDER THIS PART 12,8
THE RESIDENTIAL SELLER SHALL NOT PROCEED WITH THE SALE OF THE9
QUALIFYING PROPERTY TO ANY OTHER PARTY AND THE LOCAL10
GOVERNMENT SHALL HAVE A RIGHT TO MAKE AN OFFER THAT IS11
ECONOMICALLY SUBSTANTIALLY IDENTICAL TO AN ACCEPTABLE OFFER ON12
THE QUALIFYING PROPERTY THAT IS IDENTIFIED BY THE RESIDENTIAL13
SELLER AS REQUIRED BY SUBSECTION (2)(d)(I)(B) OF THIS SECTION.14
(II) F
OR THE PURPOSE OF DETERMINING WHETHER THE TERMS OF15
AN OFFER BY A THIRD PARTY AND AN OFFER BY THE LOCAL GOVERNMENT16
ARE ECONOMICALLY SUBSTANTIALLY IDENTICAL , IT IS IMMATERIAL HOW17
THE OFFER WOULD BE FINANCED . FOR PURPOSES OF THIS PART 12, A18
RESIDENTIAL SELLER SHALL NEGOTIATE IN GOOD FAITH WITH THE LOCAL19
GOVERNMENT THAT MAKES AN OFFER THAT IS ECONOMICALLY20
SUBSTANTIALLY IDENTICAL TO AN ACCEPTABLE OFFER ON THE QUALIFYING21
PROPERTY THAT IS IDENTIFIED BY THE RESIDENTIAL SELLER AS REQUIRED22
BY SUBSECTION (2)(d)(I)(B) OF THIS SECTION FOR THE SALE OF THE23
QUALIFYING PROPERTY WHICH INCLUDES , BUT IS NOT LIMITED TO24
EVALUATING AN OFFER FROM THE LOCAL GOVERNMENT OR ITS ASSIGNEE25
WITHOUT CONSIDERATION OF :26
(A) T
HE TIME PERIOD FOR CLOSING;27
1190
-6- (B) THE TYPE OF FINANCING OR PAYMENT METHOD ;1
(C) W
HETHER OR NOT THE OFFER IS CONTINGENT ON FINANCING2
OR PAYMENT METHOD; AND3
(D) W
HETHER OR NOT THE OFFER IS CONTINGENT ON AN4
APPRAISAL, INSPECTION, OR REVIEW OF TITLE , OBTAINING TITLE5
INSURANCE, OR OTHER CUSTOMARY CONDITIONS FOR THE SALE OF SIMILAR6
PROPERTY.7
(III) I
F THE RESIDENTIAL SELLER REJECTS THE OFFER MADE BY THE8
LOCAL GOVERNMENT , THE RESIDENTIAL SELLER SHALL PROVIDE A9
WRITTEN EXPLANATION OF THE REJECTION AND SHALL INVITE THE LOCAL10
GOVERNMENT TO MAKE A SUBSEQUENT OFFER BY IDENTIFYING THE TERMS11
AND CONDITIONS THAT MUST BE INCLUDED IN THE SUBSEQUENT OFFER FOR12
THE RESIDENTIAL SELLER TO POTENTIALLY ACCEPT THE SUBSEQUENTLY13
MADE OFFER BY THE LOCAL GOVERNMENT .
A RESIDENTIAL SELLER14
SHALL NOT COLLUDE WITH A POTENTIAL BUYER FOR THE PRIMARY15
PURPOSE OF INFLATING A SALES PRICE ABOVE THE MARKET PRICE OF A16
QUALIFYING PROPERTY.17
(d) A
T ANY TIME THE LOCAL GOVERNMENT MAY ASSIGN ITS RIGHTS18
REGARDING A QUALIFYING PROPERTY UNDER THIS PART 12 TO THE STATE,19
ANY POLITICAL SUBDIVISION,
ANY HOUSING AUTHORITY IN THE STATE, OR20
THE COLORADO HOUSING AND FINANCE AUTHORITY, CREATED IN SECTION21
29-4-704 (1), SUBJECT TO THE LIMITATIONS THAT THE QUALIFYING22
PROPERTY MUST BE USED TO PRESERVE OR BE CONVERTED FOR LONG -TERM23
AFFORDABLE HOUSING AND THAT ALL OTHER PROVISIONS OF THIS PART 1224
ARE APPLICABLE TO THE ASSIGNEE . UPON ASSIGNMENT, THE ASSIGNEE25
ASSUMES ALL LIABILITY OF THE LOCAL GOVERNMENT REGARDING THE26
EXERCISE OF RIGHTS UNDER THIS PART 12 AND IS RESPONSIBLE FOR27
1190
-7- PERFORMING ALL REQUIREMENTS UNDER THIS PART 12 WITH RESPECT TO1
A QUALIFYING PROPERTY AS IF THE ASSIGNEE WERE THE LOCAL2
GOVERNMENT. THE ASSIGNEE MUST NOTIFY THE RESIDENTIAL SELLER OF3
THE ASSIGNMENT IF THE LOCAL GOVERNMENT HAS ALREADY SENT THE4
RESIDENTIAL SELLER NOTICE PURSUANT TO SUBSECTION (3)(a) OF THIS5
SECTION.6
(e) I
F A QUALIFYING PROPERTY IS CLASSIFIED AS MIXED-USE, THE7
LOCAL GOVERNMENT'S RIGHTS UNDER THIS PART 12 SHALL ONLY EXTEND8
TO THE PORTION OF THE QUALIFYING PROPERTY THAT IS RESIDENTIAL , BUT9
NOTHING IN THIS PART 12 EXCLUDES THE LOCAL GOVERNMENT FROM10
INCLUDING THE PURCHASE OF ANY COMMERCIAL PORTION OF THE11
QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT IN THE TERMS OF THE12
SALE AT THE DISCRETION OF THE LOCAL GOVERNMENT .13
(2) Notice by residential seller. (a) W
ITHIN FOURTEEN14
CALENDAR DAYS OF A TRIGGERING EVENT DEMONSTRATING A15
RESIDENTIAL SELLER'S INTENT TO SELL THE QUALIFYING PROPERTY , A16
RESIDENTIAL SELLER SHALL PROVIDE NOTICE TO THE GOVERNING BODY OF17
THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING PROPERTY IS18
LOCATED. THE NOTICE MUST BE GIVEN IN ACCORDANCE WITH SUBSECTION19
(2)(d)
OF THIS SECTION.20
(b) A
TRIGGERING EVENT REQUIRING NOTICE UNDER THIS21
SUBSECTION (2) INCLUDES ANY TIME THE RESIDENTIAL SELLER :22
(I) S
IGNS A CONTRACT WITH A REAL ESTATE BROKER OR23
BROKERAGE FIRM TO LIST THE QUALIFYING PROPERTY FOR SALE OR TO24
SELL OR TRANSFER THE QUALIFYING PROPERTY ;25
(II) S
IGNS A LETTER OF INTENT, OPTION TO SELL OR BUY, OR OTHER26
CONDITIONAL WRITTEN AGREEMENT WITH A POTENTIAL BUYER FOR THE27
1190
-8- SALE OR TRANSFER OF THE QUALIFYING PROPERTY , WHICH INCLUDES THE1
ESTIMATED PRICE, TERMS, AND CONDITIONS OF THE PROPOSED SALE OR2
TRANSFER, EVEN IF THE PRICE, TERMS, OR CONDITIONS ARE SUBJECT TO3
CHANGE;4
(III) S
IGNS A CONTRACT WITH A POTENTIAL BUYER 'S REAL ESTATE5
BROKER OR BROKERAGE FIRM RELATED TO THE POTENTIAL SALE OR6
TRANSFER OF THE QUALIFYING PROPERTY ;7
(IV) P
ROVIDES A SIGNED PROPERTY DISCLOSURE FORM FOR THE8
QUALIFYING PROPERTY TO A POTENTIAL BUYER ;9
(V) L
ISTS THE QUALIFYING PROPERTY FOR SALE;10
(VI) M
AKES A CONDITIONAL ACCEPTANCE OF AN OFFER FOR THE11
SALE OR TRANSFER OF THE QUALIFYING PROPERTY ;12
(VII) T
AKES ANY OTHER ACTION DEMONSTRATING AN INTENT TO13
SELL THE QUALIFYING PROPERTY;
EXCEPT THAT ANY ACTION TAKEN TO14
ENGAGE WITH A POLITICAL SUBDIVISION OR A HOUSING AUTHORITY IN THE15
STATE TO FACILITATE NEGOTIATIONS BETWEEN THE RESIDENTIAL SELLER16
AND A THIRD-PARTY TO CREATE OR PRESERVE LONG-TERM AFFORDABLE17
HOUSING FOR A QUALIFYING PROPERTY IS NOT CONSIDERED A TRIGGERING18
EVENT UNTIL ANOTHER ACTION SET FORTH IN THIS SUBSECTION (2)(b)19
OCCURS;20
(VIII) R
ECEIVES A NOTICE OF ELECTION AND DEMAND OR LIS21
PENDENS RELATED TO THE FORECLOSURE OF THE QUALIFYING PROPERTY22
PURSUANT TO PART 1 OF ARTICLE 38 OF TITLE 38; EXCEPT THAT, NOTICE TO23
THE LOCAL GOVERNMENT MUST BE PROVIDED AS SPECIFIED IN SUBSECTION24
(7)
OF THIS SECTION AND NOT AS SPECIFIED IN SUBSECTION (2)(a) OF THIS25
SECTION;26
(IX) R
ECEIVES A NOTICE THAT A CERTIFICATE OF LEVY HAS BEEN27
1190
-9- FILED RELATED TO THE QUALIFYING PROPERTY PURS UANT TO SECTION1
13-56-101;
OR2
(X) T
HE POTENTIAL SALE TO A THIRD-PARTY BUYER PURSUANT TO3
SECTION 29-4-1203 (2)(b) TERMINATES.4
(c) A
RESIDENTIAL SELLER SHALL PROVIDE SUBSEQUENT NOTICE5
TO THE LOCAL GOVERNMENT THAT RECEIVED NOTICE PURSUANT TO THIS6
SUBSECTION (2) IF THE TERMS OF AN ACCEPTABLE SALE MATERIALLY7
CHANGE.8
(d) (I) T
HE NOTICE GIVEN PURSUANT TO THIS SUBSECTION (2) MUST9
BE DELIVERED TO THE CLERK OF THE GOVERNING BODY OF THE LOCAL10
GOVERNMENT
BY ELECTRONIC MAIL DELIVERY; EXCEPT THAT, IF THERE IS11
NOT AN ELECTRONIC MAILING ADDRESS AVAILABLE FOR THE CLERK, THEN12
BY HAND DELIVERY, UNITED STATES FIRST CLASS MAIL, OR OVERNIGHT13
DELIVERY AND MUST INCLUDE :14
(A) A
GENERAL DESCRIPTION OF THE QUALIFYING PROPERTY TO BE15
PURCHASED, INCLUDING THE ADDRESS AND NAME OF THE PROPERTY , IF16
ANY, AND ANY ADDITIONAL DESCRIPTIONS OF THE QUALIFYING PROPERTY17
ON FILE WITH THE OFFICE OF THE ASSESSOR IN THE COUNTY IN WHICH THE18
QUALIFYING PROPERTY IS LOCATED ;19
(B) T
HE PRICE, TERMS, AND CONDITIONS OF AN ACCEPTABLE OFFER20
THE RESIDENTIAL SELLER HAS RECEIVED TO SELL THE QUALIFYING21
PROPERTY OR THE PRICE , TERMS, AND CONDITIONS FOR WHICH THE22
RESIDENTIAL SELLER INTENDS TO SELL THE QUALIFYING PROPERTY ;23
(C) A
NY TERMS OR CONDITIONS WHICH , IF NOT MET, WOULD BE24
SUFFICIENT GROUNDS, IN THE RESIDENTIAL SELLER'S DISCRETION AND IN25
COMPLIANCE WITH THIS PART 12 AND ANY OTHER APPLICABLE LAW , TO26
REJECT AN OFFER;27
1190
-10- (D) IF THE RESIDENTIAL SELLER HAS ENTERED INTO A CONTINGENT1
PURCHASE AND SALE AGREEMENT WITH A PROSPECTIVE BUYER , A COPY OF2
THE AGREEMENT;3
(E) T
HE RESIDENTIAL SELLER'S ADDRESS
AND, IF AVAILABLE,4
ELECTRONIC MAILING ADDRESS TO RECEIVE NOTICES FROM THE LOCAL5
GOVERNMENT; AND6
(F) T
HE NAMES AND MAILING ADDRESSES THAT THE RESIDENTIAL7
SELLER HAS ON RECORD FOR EVERY TENANT RESIDING IN THE QUALIFYING8
PROPERTY.9
(II) T
HE PRICE, TERMS, AND CONDITIONS STATED IN THE NOTICE10
MUST BE UNIVERSAL AND APPLICABLE TO ALL POTENTIAL BUYERS AND11
MUST NOT BE SPECIFIC TO OR PROHIBITIVE OF THE LOCAL GOVERNMENT12
MAKING A SUCCESSFUL OFFER TO PURCHASE THE QUALIFYING PROPERTY ,13
MUST NOT BE UNLAWFUL , AND MUST NOT INHIBIT THE EXERCISE OF THE14
RIGHTS PROVIDED UNDER THIS PART 12.15
(III) T
HE LOCAL GOVERNMENT MAY SHARE THE INFORMATION16
CONTAINED IN THE NOTICE WITH ITS OFFICERS, EMPLOYEES, AGENTS, AND17
PROSPECTIVE ASSIGNEES
OR A PROSPECTIVE ENTITY THE LOCAL18
GOVERNMENT PARTNERS WITH PURSUANT TO SUBSECTION (1)(a)(II) OF19
THIS SECTION FOR THE PURPOSES OF EVALUATING OR OBTAINING20
FINANCING FOR THE PROSPECTIVE TRANSACTION . THE INFORMATION21
CONTAINED IN THE NOTICE MUST BE KEPT CONFIDENTIAL IF THE22
RESIDENTIAL SELLER SO REQUESTS AND IS CONFIDENTIAL INFORMATION23
NOT SUBJECT TO PUBLIC DISCLOSURE; EXCEPT THAT THE OCCURRENCE OF24
A TRIGGERING EVENT, THE LOCATION OF THE QUALIFYING PROPERTY , AND25
THE IDENTITY OF THE RESIDENTIAL SELLER ARE NOT CONFIDENTIAL AND26
ARE SUBJECT TO PUBLIC DISCLOSURE. NOTHING IN THIS SECTION REQUIRES27
1190
-11- A LOCAL GOVERNMENT TO EXERCISE ITS RIGHTS UNDER THIS PART 12.1
(e) (I) PRIOR TO THE SALE OF A QUALIFYING PROPERTY, A2
RESIDENTIAL SELLER SHALL EXECUTE AND RECORD IN THE REAL PROPERTY3
RECORDS OF THE COUNTY IN WHICH THE QUALIFYING PROPERTY IS4
LOCATED AN AFFIDAVIT CERTIFYING UNDER PENALTY OF PERJURY THAT5
THEY HAVE COMPLIED WITH THE REQUIREMENTS OF THIS PART 12.6
(II) ANY PARTY THAT ACQUIRES AN INTEREST IN THE QUALIFYING7
PROPERTY AND A TITLE INSURANCE ENTITY AS DEFINED IN SECTION8
10-11-102 (11) SHALL HAVE AN ABSOLUTE RIGHT TO RELY ON THE TRUTH9
AND ACCURACY OF ALL STATEMENTS IN THE AFFIDAVIT MADE PURSUANT10
TO SUBSECTION (2)(e)(I) OF THIS SECTION AND SHALL NOT BE HELD LIABLE11
OR RESPONSIBLE FOR ANY DAMAGES RELATED TO A RESIDENTIAL SELLER'S12
MISREPRESENTATION IN THE AFFIDAVIT.13
(3) Notice by the local government. (a) (I) T
HE LOCAL14
GOVERNMENT SHALL PROVIDE NOTICE TO THE RESIDENTIAL SELLER WITHIN15
FOURTEEN
CALENDAR DAYS OF RECEIPT OF THE NOTICE REQUIRED16
PURSUANT TO SUBSECTION (2) OF THIS SECTION OF THE LOCAL17
GOVERNMENT'S INTENT TO PRESERVE ITS RIGHTS UNDER THIS PART 12. IF18
THE LOCAL GOVERNMENT PLANS TO ASSIGN ITS RIGHTS UNDER THIS PART19
12
IN ACCORDANCE WITH SUBSECTION (1)(d) OF THIS SECTION, THE LOCAL20
GOVERNMENT MUST DISCLOSE THE POTENTIAL ASSIGNEE IN THE NOTICE .21
T
HE NOTICE MUST BE DELIVERED
BY ELECTRONIC MAIL DELIVERY; EXCEPT22
THAT, IF THE RESIDENTIAL SELLER HAS NOT PROVIDED AN ELECTRONIC23
MAILING ADDRESS, THEN BY HAND DELIVERY, UNITED STATES FIRST CLASS24
MAIL, OR OVERNIGHT DELIVERY TO THE ADDRESS PROVIDED BY THE25
RESIDENTIAL SELLER PURSUANT TO SUBSECTION (2)(d)(I)(E) OF THIS26
SECTION.27
1190
-12- (II) THE NOTICE GIVEN PURSUANT TO SUBSECTION (3)(a)(I) OF THIS1
SECTION IS NONBINDING ON THE LOCAL GOVERNMENT .2
(III) I
F NO NOTICE IS GIVEN BY THE LOCAL GOVERNMENT , THE3
RIGHTS UNDER THIS PART 12 EXPIRE AND THE RESIDENTIAL SELLER MAY4
PROCEED WITH THE SALE OF THE QUALIFYING PROPERTY TO A BUYER OF5
THEIR CHOOSING.6
(b) (I) U
PON GIVING NOTICE TO A RESIDENTIAL SELLER PURSUANT7
TO SUBSECTION (3)(a) OF THIS SECTION, THE LOCAL GOVERNMENT SHALL8
PROVIDE NOTICE TO EACH RESIDENT OF THE QUALIFYING PROPERTY WHO9
IS IDENTIFIED IN THE SELLER 'S NOTICE PROVIDED IN SUBSECTION10
(2)(d)(I)(F)
OF THIS SECTION INFORMING THE RESIDENT THAT THERE IS11
INTEREST BY THE LOCAL GOVERNMENT OR AN ASSIGNEE IN PURCHASING12
THE QUALIFYING PROPERTY AND PROVIDING A DATE , TIME, AND LOCATION13
THAT THE LOCAL GOVERNMENT WILL HOLD A MEETING FOR RESIDENTS TO14
ATTEND FOR INFORMATION REGARDING A POTENTIAL PURCHASE OF THE15
PROPERTY BY THE LOCAL GOVERNMENT IN ACCORDANCE WITH16
SUBSECTION (3)(d) OF THIS SECTION.17
(II) T
HE LOCAL GOVERNMENT SHALL PROVIDE A SECOND NOTICE18
TO THE RESIDENTS OF A QUALIFYING PROPERTY UPON THE EXECUTION OF19
AN AGREEMENT FOR THE SALE AND PURCHASE OF THE QUALIFYING20
PROPERTY PURSUANT TO SUBSECTION (4) OF THIS SECTION.21
(III) T
HE LOCAL GOVERNMENT SHALL PROVIDE A THIRD NOTICE TO22
THE RESIDENTS OF A QUALIFYING PROPERTY UPON THE CLOSING OF A SALE23
FOR THE QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT PURSUANT24
TO SUBSECTION (4) OF THIS SECTION. THE NOTICE MUST INCLUDE CONTACT25
INFORMATION FOR THE ENTITY THAT WILL PROVIDE MANAGEMENT26
SERVICES TO THE QUALIFYING PROPERTY .27
1190
-13- (c) THE LOCAL GOVERNMENT SHALL MAIL THE NOTICES REQUIRED1
PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION TO THE RESIDENTS OF2
A QUALIFYING PROPERTY USING THE MOST RECENT ADDRESS OF EACH3
RESIDENT. THE RESIDENTIAL SELLER SHALL PROVIDE UPDATED MAILING4
ADDRESSES FOR RESIDENTS UPON REQUEST OF THE LOCAL GOVERNMENT .5
T
HE LOCAL GOVERNMENT SHALL ALSO POST A COPY OF THE NOTICES IN A6
CONSPICUOUS PLACE IN THE QUALIFYING PROPERTY . THE NOTICES MUST7
BE PROVIDED IN ENGLISH, SPANISH, AND ANY OTHER LANGUAGE KNOWN8
TO BE SPOKEN BY RESIDENTS AT THE QUALIFYING PROPERTY .9
(d) T
HE MEETING HELD BY THE LOCAL GOVERNMENT AS REQUIRED10
BY SUBSECTION (3)(b)(I) OF THIS SECTION MUST BE IN AN ACCESSIBLE11
SPACE, AND SPANISH TRANSLATION SERVICES AND , IF AVAILABLE,12
VIRTUAL MEETING OPTIONS MUST BE PROVIDED AT NO COST TO THE13
RESIDENTS.14
(4) T
HE LOCAL GOVERNMENT HAS
SIXTY CALENDAR DAYS FROM15
PROVIDING NOTICE PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION TO16
MAKE AN OFFER TO PURCHASE THE QUALIFYING PROPERTY AND SHALL17
AGREE TO CLOSE ON THE QUALIFYING PROPERTY WITHIN ONE HUNDRED18
TWENTY CALENDAR DAYS OF THE EXECUTION OF AN AGREEMENT FOR THE19
SALE AND PURCHASE OF THE QUALIFYING PROPERTY .20
(5) (a) T
HE PERIODS SET FORTH IN SUBSECTION (4) OF THIS SECTION21
MAY BE EXTENDED AND ANY TERMS OR CONDITIONS OF SALE MAY BE22
MODIFIED BY WRITTEN AGREEMENT BETWEEN THE LOCAL GOVERNMENT23
AND THE RESIDENTIAL SELLER.24
(b) T
HE LOCAL GOVERNMENT OR ITS ASSIGNEE IS ENTITLED TO25
TOLLING OF THE PERIODS SET FORTH IN SUBSECTION (4) OF THIS SECTION26
IN ANY OF THE FOLLOWING CIRCUMSTANCES :27
1190
-14- (I) IF THERE IS A REASONABLE DELAY NOT WITHIN THE CONTROL1
OF THE LOCAL GOVERNMENT OR ITS ASSIGNEE IN OBTAINING FI NANCING OR2
A REQUIRED INSPECTION OR SURVEY OF THE QUALIFYING PROPERTY , THE3
PERIOD IS TOLLED FOR THE DURATION OF THE DELAY ; AND4
(II) I
F THE LOCAL GOVERNMENT , ITS ASSIGNEE, THE ATTORNEY5
GENERAL, OR A MISSION-DRIVEN ORGANIZATION FILES A NONFRIVOLOUS6
CIVIL ACTION ALLEGING A VIOLATION OF THIS SECTION , THE PERIOD IS7
TOLLED UNTIL THE ACTION REACHES FINAL RESOLUTION OR THE PARTIES8
REACH A RESOLUTION, INCLUDING THE RESOLUTION OF ANY APPEALS , BY9
SIGNING A SETTLEMENT AGREEMENT .10
(6) A
NY ACTIONS OF AN AGENT WORKING ON BEHALF OF A11
RESIDENTIAL SELLER FOR PURPOSES OF THIS PART 12 ARE ATTRIBUTABLE12
TO THE RESIDENTIAL SELLER.
NOTWITHSTANDING ANY OTHER PROVISION13
IN THIS PART 12 TO THE CONTRARY, A POLITICAL SUBDIVISION OR A14
HOUSING AUTHORITY IN THE STATE THAT ENGAGES IN ACTIVITIES TO15
CREATE OR PRESERVE LONG -TERM AFFORDABLE HOUSING FOR A16
QUALIFYING PROPERTY IS NOT CONSIDERED AN AGENT WORKING ON17
BEHALF OF A RESIDENTIAL SELLER FOR PURPOSES OF THIS PART 12.18
(7) I
F THE SALE OF THE QUALIFYING PROPERTY IS PURSUANT TO AN19
ACTION IN FORECLOSURE, THEN THE PUBLIC TRUSTEE SHALL PROVIDE THE20
NOTICE REQUIRED UNDER SUBSECTION (2) OF THIS SECTION TO THE LOCAL21
GOVERNMENT WITHIN FOURTEEN
CALENDAR DAYS AFTER THE22
FORECLOSURE AUCTION. NOTWITHSTANDING SUBSECTION (4) OF THIS23
SECTION, THE LOCAL GOVERNMENT HAS THIRTY CALENDAR DAYS TO24
SUBMIT AN OFFER THAT IS ECONOMICALLY SUBSTANTIALLY SIMILAR TO25
THE WINNING OFFER MADE AT THE FORECLOSURE AUCTION . THE PUBLIC26
TRUSTEE IS SUBJECT TO ALL OTHER REQUIREMENTS THAT THE RESIDENTIAL27
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(8) (a) T
HE LOCAL GOVERNMENT OR ITS ASSIGNEE SHALL2
DETERMINE TENANT QUALIFICATIONS AT ITS DISCRETION , SO LONG AS3
SUCH DETERMINATIONS ARE IN FURTHERANCE OF PROVIDING LONG -TERM4
AFFORDABLE HOUSING FOR COMMUNITY MEMBERS AT OR BELOW THE5
APPLICABLE AREA MEDIAN
INCOME. 6
(b) NOTWITHSTANDING SECTION 29-4-1201 (4), RESIDENTS AT THE7
QUALIFYING PROPERTY AT THE TIME IT IS ACQUIRED BY THE LOCAL8
GOVERNMENT PURSUANT TO THIS SECTION MAY CONTINUE TO RESIDE AT9
THE QUALIFYING PROPERTY IRRESPECTIVE OF THEIR INCOME LEVEL FOR AT10
LEAST THE DURATION OF THEIR TENANCY AGREEMENT UNDER THE11
TENANCY AGREEMENT'S TERMS IN EFFECT AT THE TIME THE LOCAL12
GOVERNMENT ACQUIRES THE QUALIFYING PROPERTY .13
(c) A RESIDENT'S INCOME MAY ONLY EXCEED THE APPLICABLE14
AREA MEDIAN INCOME IF THAT RESIDENT HAS A PRE -EXISTING TENANCY15
AGREEMENT IN ACCORDANCE WITH SUBSECTION (8)(b) OF THIS SECTION. 16
(d) ONLY IN ACCORDANCE WITH SUBSECTION (8)(c) OF THIS17
SECTION MAY THE LOCAL GOVERNMENT DECLINE TO RENEW A RESIDENT'S18
PRE-EXISTING TENANCY AGREEMENT ONCE IT ENDS IN ORDER TO BRING19
THE QUALIFYING PROPERTY INTO COMPLIANCE WITH SUBSECTION (8)(a) OF20
THIS SECTION.21
29-4-1203. Exemptions - waiver of the local government's22
right of first refusal. (1) T
HIS PART 12 DOES NOT APPLY TO ANY SALE,23
TRANSFER, OR CONVEYANCE OF QUALIFYING PROPERTY BY A RESIDENTIAL24
SELLER:25
(a) M
ADE TO A SPOUSE, A PARTNER IN A CIVIL UNION, OR A26
PARENT, SIBLING, AUNT, UNCLE, FIRST COUSIN, OR LEGALLY RECOGNIZED27
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(b) M
ADE TO A TRUST IF THE BENEFICIARIES OF THE TRUST ARE2
THE SPOUSE, PARTNER IN A CIVIL UNION, OR LEGALLY RECOGNIZED CHILD3
OF THE RESIDENTIAL SELLER;4
(c) M
ADE TO, IF WHOLLY OWNED BY THE RESIDENTIAL SELLER , A5
PARTNERSHIP, LIMITED LIABILITY COMPANY, OR CORPORATION;6
(d) M
ADE PURSUANT TO A WILL , DESCENT, OR INTESTATE7
DISTRIBUTION;8
(e) M
ADE PURSUANT TO AN ACTION IN EMINENT DOMAIN ;9
(f) M
ADE TO THE STATE OR TO A LOCAL GOVERNMENT ;10
(g) M
ADE PURSUANT TO A COURT ORDER ;11
(h) M
ADE BETWEEN JOINT TENANTS OR TENANTS IN COMMON ; OR12
(i) I
F, AT THE TIME OF THE EFFECTIVE DATE OF THIS PART 12, THE13
QUALIFYING PROPERTY HAS A PREEXISTING AGREEMENT THAT BESTOWS14
A RIGHT OF FIRST REFUSAL
OR OTHER CONTINGENT PROPERTY RIGHT15
REGARDING THE QUALIFYING PROPERTY TO A THIRD PARTY; EXCEPT THAT,16
UPON EXPIRATION OF THE AGREEMENT , THE PROVISIONS OF THIS PART 1217
APPLY TO ANY SALE, TRANSFER, OR CONVEYANCE OF THE QUALIFYING18
PROPERTY BY THE RESIDENTIAL SELLER .19
(2) IN ADDITION TO NOT RESPONDING TO A RESIDENTIAL SELLER'S20
NOTICE AS SET FORTH IN SECTION 29-4-1202 (3)(a)(III), THE LOCAL21
GOVERNMENT MAY ALSO WAIVE ITS RIGHTS UNDER THIS PART 12 IF:22
(a) T
HE GOVERNING BODY OF THE LOCAL GOVERNMENT ELECTS TO23
DISCLAIM ANY RIGHTS PROVIDED UNDER THIS PART 12 WITH RESPECT TO24
ANY PROPOSED TRANSACTION OR FOR ANY DURATION OF TIME ; OR25
(b) (I) T
HE LOCAL GOVERNMENT MAKES THE DETERMINATION26
THAT A PROPOSED SALE TO A THIRD -PARTY BUYER WILL ENSURE THE27
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PROPERTY FOR LONG-TERM AFFORDABLE HOUSING IN THE SAME MANNER2
IN WHICH IT WOULD BE PRESERVED OR CONVERTED IF THE LOCAL3
GOVERNMENT WERE TO EXERCISE ITS RIGHTS UNDER THIS PART 12.4
(II) F
OR THE REQUIREMENTS OF SUBSECTION (2)(b)(I) OF THIS5
SECTION TO BE MET:6
(A) T
HE RESIDENTIAL SELLER MUST PROVIDE NOTICE TO THE7
LOCAL GOVERNMENT PRIOR TO THE LOCAL GOVERNMENT MAKING AN8
OFFER UNDER SECTION 29-4-1202 THAT THE THIRD-PARTY BUYER HAS9
MADE AN OFFER ON THE QUALIFYING PROPERTY AND IS COMMITTED TO10
PRESERVING OR CONVERTING THE QUALIFYING PROPERTY FOR LONG -TERM11
AFFORDABLE HOUSING IF THE TRANSACTION OCCURS FOR THE SALE AND12
PURCHASE OF THE QUALIFYING PROPERTY ;
13
(B) T
HE THIRD-PARTY BUYER SHALL ENTER INTO AN AGREEMENT14
WITH THE LOCAL GOVERNMENT THAT THE THIRD -PARTY BUYER SHALL15
PRESERVE OR CONVERT THE QUALIFYING PROPERTY FOR LONG -TERM16
AFFORDABLE HOUSING IF THE TRANSACTION OCCURS FOR THE SALE AND17
PURCHASE OF THE QUALIFYING PROPERTY AND FOR ANY OTHER TERMS TO18
WHICH THE THIRD-PARTY BUYER AND THE LOCAL GOVERNMENT AGREE . IF,19
AFTER THE SALE OF THE QUALIFYING PROPERTY TO THE THIRD -PARTY20
BUYER, THE THIRD-PARTY BUYER FAILS TO COMPLY WITH THE TERMS OF21
THE AGREEMENT ENTERED INTO WITH THE LOCAL GOVERNMENT , THE22
THIRD-PARTY BUYER SHALL BE HELD LIABLE AND SUBJECT TO ANY23
REMEDIES AND ENFORCEMENT UNDER THE AGREEMENT , UNDER SECTION24
29-4-1205,
OR UNDER ANY OTHER APPLICABLE
LAW; AND25
(C) THE THIRD-PARTY BUYER SHALL CERTIFY ITS COMPLIANCE26
WITH SUBSECTION (2)(b)(II)(B) OF THIS SECTION AT LEAST ONCE EVERY27
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-18- TWO YEARS BY SUBMITTING DOCUMENTATION TO THE LOCAL1
GOVERNMENT IN A FORM AND MANNER DEEMED ACCEPTABLE BY THE2
LOCAL GOVERNMENT .3
(III) T
HE WAIVER PROVIDED UNDER SUBSECTION (2)(b)(I) OF THIS4
SECTION IS ONLY EFFECTIVE FOR THE SALE TO THE THIRD -PARTY BUYER5
IDENTIFIED IN THE NOTICE REQUIRED IN SUBSECTION (2)(b)(II) OF THIS6
SECTION, AND IF THE SALE TO THE THIRD-PARTY BUYER DOES NOT OCCUR7
THEN THE WAIVER IS VOID AND THE LOCAL GOVERNMENT IS ENTITLED TO8
ALL THE RIGHTS PROVIDED UNDER THIS PART 12.9
29-4-1204. Conversion of qualifying property purchased by10
the local government. (1) T
HE LOCAL GOVERNMENT , ITS ASSIGNEE, OR11
A THIRD-PARTY BUYER PURSUANT TO SECTION 29-4-1203 (2), SUBSEQUENT12
TO ACQUIRING A QUALIFYING PROPERTY PURSUANT TO THIS PART 12, MAY13
CONVERT THE PROPERTY TO A DIFFERENT USE IF :14
(a) T
HE QUALIFYING PROPERTY HAS BEEN MAINTAINED AS15
LONG-TERM AFFORDABLE HOUSING FOR A DURATION OF AT LEAST FIFTY16
YEARS;17
(b) A
T LEAST ONE HUNDRED TWENTY
CALENDAR DAYS BEFORE18
THE CONVERSION, NOTICE OF THE CONVERSION IS GIVEN TO THE RESIDENTS19
AT THE QUALIFYING PROPERTY AND ANY RESIDENT WHO WILL BE20
DISPLACED BY THE CONVERSION OF THE QUALIFYING PROPERTY IS21
PROVIDED WITH RELOCATION COMPENSATION THAT EQUALS TWELVE22
MONTHS OF THE RESIDENT'S CURRENT RENT OR TWELVE MONTHS MARKET23
RENT FOR THE COUNTY IN WHICH THE QUALIFYING PROPERTY IS LOCATED ,24
WHICHEVER IS GREATER; AND25
(c) T
HE LOCAL GOVERNMENT , ITS ASSIGNEE, OR A THIRD-PARTY26
BUYER PURSUANT TO SECTION 29-4-1203 (2), GUARANTEES THE27
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UNITS WITHIN THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING2
PROPERTY IS LOCATED FOR DESIGNATED LONG -TERM AFFORDABLE3
HOUSING AS SET FORTH UNDER THIS PART 12 AND GUARANTEES THAT THE4
UNITS WILL BE OFFERED TO ANY RESIDENT WHO WILL BE DISPLACED BY5
THE CONVERSION OF THE QUALIFYING PROPERTY BEFORE THE UNITS ARE6
MADE AVAILABLE TO THE GENERAL PUBLIC .7
(2) N
OTHING WITHIN THIS PART 12 LIMITS THE LOCAL8
GOVERNMENT'S ABILITY TO CONDEMN A QUALIFYING PROPERTY ACQUIRED9
PURSUANT TO THIS PART 12 TO THE EXTENT PERMITTED BY APPLICABLE10
LAW.11
29-4-1205. Remedies for noncompliance - definitions.12(1) (a) (I) NOTWITHSTANDING SUBSECTION (1)(c) OF THIS SECTION AND13
SUBJECT TO AVAILABILITY OF RESOURCES , IT IS THE RESPONSIBILITY OF14
THE ATTORNEY GENERAL 'S OFFICE TO ENFORCE THE PROVISIONS OF THIS15
PART 12, AND THE ATTORNEY GENERAL MAY INTERVENE IN ANY ACTION16
BROUGHT PURSUANT TO SUBSECTION (1)(c) OF THIS SECTION. ANY TITLE17
TRANSFERRED SUBSEQUENT TO THE TRIGGERING EVENTS SET FORTH IN18
SECTION 29-4-1202 (2)(b) IS DEFECTIVE UNLESS THE PROPERTY INTERESTS19
OF THE LOCAL GOVERNMENT IN A QUALIFYING PROPERTY AS SET FORTH IN20
SUBSECTION (1)(b) OF THIS SECTION ARE SECURED OR UNTIL AN21
EQUITABLE REMEDY HAS BEEN PROVIDED .22
(II) NOTWITHSTANDING SUBSECTION (1)(a)(I) OF THIS SECTION,23
AND IN ADDITION TO THE REMEDIES SET FORTH IN SUBSECTION (3) OF THIS24
SECTION, IF A COURT FINDS THAT A RESIDENTIAL SELLER HAS MADE A25
MISREPRESENTATION IN AN AFFIDAVIT MADE IN ACCORDANCE WITH26
SECTION 29-4-1202 (2)(e), THE SOLE REMEDY AVAILABLE IS AGAINST THE27
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TRANSFERRED IN RELIANCE ON THE AFFIDAVIT SHALL NOT BE TREATED AS2
DEFECTIVE OR AFFECTED IN ANY OTHER WAY .3
(b) T
HE RIGHTS ACCORDED
BY THIS PART 12 TO THE LOCAL4
GOVERNMENT WITH RESPECT TO A QUALIFYING PROPERTY ARE5
PROPERTY INTERESTS.6
(c) T
HE ATTORNEY GENERAL'S OFFICE, THE LOCAL GOVERNMENT7
IN THE JURISDICTION THE QUALIFYING PROPERTY IS LOCATED , THE LOCAL8
GOVERNMENT'S ASSIGNEE, OR A MISSION-DRIVEN ORGANIZATION ON9
BEHALF OF THE STATE MAY BRING A CIVIL ACTION AGAINST A RESIDENTIAL10
SELLER OR A PERSON CLAIMING AN INTEREST IN A QUALIFYING PROPERTY11
THROUGH A RESIDENTIAL SELLER FOR ANY VIOLATION OF THIS PART 12.12
(2) A
COURT MAY GRANT INJUNCTIVE RELIEF FOR ANY VIOLATIONS13
OF THIS PART 12 BY A RESIDENTIAL SELLER OR A PERSON CLAIMING AN14
INTEREST IN A QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER15
OCCURRING AFTER A TRIGGERING EVENT PURSUANT TO SECTION 29-4-120216
(2)(b).17
(3) IF A COURT FINDS THAT A RESIDENTIAL SELLER , OR A18
THIRD-PARTY BUYER THAT HAS ENTERED INTO AN AGREEMENT WITH THE19
LOCAL GOVERNMENT PURSUANT TO SECTION 29-4-1203 (2)(b), IS IN20
MATERIAL VIOLATION OF THIS PART 12, IN ADDITION TO ANY OTHER21
AVAILABLE REMEDY, THE COURT SHALL AWARD A STATUTORY PENALTY22
OF NOT LESS THAN FIFTY THOUSAND DOLLARS OR AN AMOUNT EQUAL TO23
THIRTY PERCENT OF THE PURCHASE OR LISTING PRICE OF THE QUALIFYING24
PROPERTY, WHICHEVER AMOUNT IS GREATER .25
(4) A COURT MAY ALSO AWARD DAMAGES , REASONABLE26
ATTORNEY FEES, AND COSTS TO A PREVAILING PARTY; EXCEPT THAT, IN AN27
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-21- ACTION BROUGHT OR JOINED BY THE ATTORNEY GENERAL 'S OFFICE, THE1
LOCAL GOVERNMENT , THE LOCAL GOVERNMENT 'S ASSIGNEE, OR A2
MISSION-DRIVEN ORGANIZATION, A COURT SHALL NOT AWARD ATTORNEY3
FEES TO A RESIDENTIAL SELLER OR PERSON CLAIMING AN INTEREST IN A4
QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER UNLESS THE5
COURT FINDS THAT THE COMPLAINT FILED BY THE ATTORNEY GENERAL 'S6
OFFICE, THE LOCAL GOVERNMENT, THE LOCAL GOVERNMENT'S ASSIGNEE,7
OR A MISSION -DRIVEN ORGANIZATION WAS FRIVOLOUS ,8
NOTWITHSTANDING ANY AGREEMENT TO THE CONTRARY .9
(5) THE REMEDIES PROVIDED IN THIS SECTION ARE INDEPENDENT10
OF AND DO NOT AFFECT ANY CIVIL ACTION AND REMEDIES OR THE RIGHT11
OF ANY PARTY TO ANY TRANSACTION CONTEMPLATED UNDER THIS PART12
12.13
14
SECTION 2. Act subject to petition - effective date -15
applicability. (1) This act takes effect at 12:01 a.m. on the day following16
the expiration of the ninety-day period after final adjournment of the17
general assembly; except that, if a referendum petition is filed pursuant18
to section 1 (3) of article V of the state constitution against this act or an19
item, section, or part of this act within such period, then the act, item,20
section, or part will not take effect unless approved by the people at the21
general election to be held in November 2024 and, in such case, will take22
effect on the date of the official declaration of the vote thereon by the23
governor.24
(2) This act applies to all qualifying properties which are listed for25
sale but are not under contract on or after the applicable effective date of26
this act.27
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