First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 23-0020.01 Megan McCall x4215
HOUSE BILL 23-1190
House Committees Senate Committees
Transportation, Housing & Local Government Local Government & Housing
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
SENATE
Amended 2nd Reading
May 6, 2023
HOUSE
3rd Reading Unamended
March 7, 2023
HOUSE
Amended 2nd Reading
March 6, 2023
HOUSE SPONSORSHIP
Boesenecker and Sirota, Bacon, Brown, deGruy Kennedy, English, Epps, Froelich,
Garcia, Gonzales-Gutierrez, Jodeh, Joseph, Kipp, Lindsay, Mabrey, Mauro, McCormick,
Michaelson Jenet, Parenti, Ricks, Sharbini, Titone, Vigil, Weissman, Willford, Woodrow
SENATE SPONSORSHIP
Winter F. and Jaquez Lewis,
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 FIFTEEN OR18
MORE UNITS IN URBAN COUNTIES AND FIVE 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
A19
HOUSING AUTHORITY THAT IS WITHIN THE LOCAL GOVERNMENT 'S20
JURISDICTION, A REGIONAL HOUSING AUTHORITY THAT SERVES THE LOCAL21
GOVERNMENT'S JURISDICTION, OR THE COLORADO HOUSING AND FINANCE22
AUTHORITY, CREATED IN SECTION 29-4-704 (1), SUBJECT TO THE23
LIMITATIONS THAT THE QUALIFYING PROPERTY MUST BE USED TO24
PRESERVE OR BE CONVERTED FOR LONG -TERM AFFORDABLE HOUSING AND25
THAT ALL OTHER PROVISIONS OF THIS PART 12 ARE APPLICABLE TO THE26
ASSIGNEE. UPON ASSIGNMENT, THE ASSIGNEE ASSUMES ALL LIABILITY OF27
1190
-7- THE LOCAL GOVERNMENT REGARDING THE EXERCISE OF RIGHTS UNDER1
THIS PART 12 AND IS RESPONSIBLE FOR PERFORMING ALL REQUIREMENTS2
UNDER THIS PART 12 WITH RESPECT TO A QUALIFYING PROPERTY AS IF THE3
ASSIGNEE WERE THE LOCAL GOVERNMENT . THE ASSIGNEE MUST NOTIFY4
THE RESIDENTIAL SELLER OF THE ASSIGNMENT IF THE LOCAL GOVERNMENT5
HAS ALREADY SENT THE RESIDENTIAL SELLER NOTICE PURSUANT TO6
SUBSECTION (3)(a) OF THIS SECTION.7
(e) I
F A QUALIFYING PROPERTY IS CLASSIFIED AS MIXED-USE, THE8
LOCAL GOVERNMENT'S RIGHTS UNDER THIS PART 12 SHALL ONLY EXTEND9
TO THE PORTION OF THE QUALIFYING PROPERTY THAT IS RESIDENTIAL , BUT10
NOTHING IN THIS PART 12 EXCLUDES THE LOCAL GOVERNMENT FROM11
INCLUDING THE PURCHASE OF ANY COMMERCIAL PORTION OF THE12
QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT IN THE TERMS OF THE13
SALE AT THE DISCRETION OF THE LOCAL GOVERNMENT .14
(f) T
HE GOVERNING BODY OF THE LOCAL GOVERNMENT MAY ELECT
15
TO DISCLAIM ANY RIGHTS PROVIDED UNDER THIS PART 12 WITH RESPECT16
TO ANY PROPOSED TRANSACTION OR FOR ANY DURATION OF TIME .17
(g) A
LOCAL GOVERNMENT THAT HAS NOT FULLY DISCLAIMED ALL
18
RIGHTS UNDER THIS PART 12 PURSUANT TO SECTION 29-4-1203 (2)(a),19
SHALL POST A NOTICE IN A CONSPICUOUS LOCATION ON ITS WEBSITE THAT20
INFORMS RESIDENTIAL SELLERS THAT QUALIFYING PROPERTIES , IF SOLD,21
MAY BE SUBJECT TO A RIGHT OF FIRST REFUSAL FOR PURCHASE BY THE22
LOCAL GOVERNMENT AT A PRICE AGREED UPON BY THE RESIDENTIAL23
SELLER.24
(h) T
HE LOCAL GOVERNMENT MAY CREATE A RIGHT OF FIRST
25
REFUSAL OPPORTUNITY EVALUATION RUBRIC BASED ON LOCAL HOUSING26
NEEDS TO DETERMINE WHEN IT MAY OR MAY NOT EXERCISE ITS RIGHT OF27
1190
-8- FIRST REFUSAL UNDER THIS PART 12. SUCH A RUBRIC MAY CONSIDER1
GEOGRAPHY, ACQUISITION COST, PROXIMITY TO AMENITIES, UNIT COUNT,2
AND OTHER LOCAL PRIORITIES. FOR QUALIFYING PROPERTIES THAT DO NOT3
ALIGN WITH THE LOCAL PRIORITIES IDENTIFIED IN THE RUBRIC, THE LOCAL4
GOVERNMENT SHOULD EXPEDITIOUSLY WAIVE ITS RIGHT OF FIRST REFUSAL5
TO SUCH QUALIFYING PROPERTIES.6
(2) Notice by residential seller. (a) W
ITHIN FOURTEEN7CALENDAR DAYS OF A TRIGGERING EVENT DEMONSTRATING A8
RESIDENTIAL SELLER'S INTENT TO SELL THE QUALIFYING PROPERTY , A9
RESIDENTIAL SELLER SHALL PROVIDE NOTICE TO THE GOVERNING BODY OF10
THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING PROPERTY IS11
LOCATED. THE NOTICE MUST BE GIVEN IN ACCORDANCE WITH SUBSECTION12
(2)(d)
OF THIS SECTION.13
(b) A
TRIGGERING EVENT REQUIRING NOTICE UNDER THIS14
SUBSECTION (2) INCLUDES ANY TIME THE RESIDENTIAL SELLER :15
(I) S
IGNS A CONTRACT WITH A REAL ESTATE BROKER OR16
BROKERAGE FIRM TO LIST THE QUALIFYING PROPERTY FOR SALE OR TO17
SELL OR TRANSFER THE QUALIFYING PROPERTY ;18
(II) S
IGNS A LETTER OF INTENT, OPTION TO SELL OR BUY, OR OTHER19
CONDITIONAL WRITTEN AGREEMENT WITH A POTENTIAL BUYER FOR THE20
SALE OR TRANSFER OF THE QUALIFYING PROPERTY , WHICH INCLUDES THE21
ESTIMATED PRICE, TERMS, AND CONDITIONS OF THE PROPOSED SALE OR22
TRANSFER, EVEN IF THE PRICE, TERMS, OR CONDITIONS ARE SUBJECT TO23
CHANGE;24
(III) S
IGNS A CONTRACT WITH A POTENTIAL BUYER 'S REAL ESTATE25
BROKER OR BROKERAGE FIRM RELATED TO THE POTENTIAL SALE OR26
TRANSFER OF THE QUALIFYING PROPERTY ;27
1190
-9- (IV) PROVIDES A SIGNED PROPERTY DISCLOSURE FORM FOR THE1
QUALIFYING PROPERTY TO A POTENTIAL BUYER ;2
(V) L
ISTS THE QUALIFYING PROPERTY FOR SALE;3
(VI) M
AKES A CONDITIONAL ACCEPTANCE OF AN OFFER FOR THE4
SALE OR TRANSFER OF THE QUALIFYING PROPERTY ;5
(VII) T
AKES ANY OTHER ACTION DEMONSTRATING AN INTENT TO6
SELL THE QUALIFYING PROPERTY ;
EXCEPT THAT ANY ACTION TAKEN TO7
ENGAGE WITH A POLITICAL SUBDIVISION OR A HOUSING AUTHORITY IN THE8
STATE TO FACILITATE NEGOTIATIONS BETWEEN THE RESIDENTIAL SELLER9
AND A THIRD-PARTY TO CREATE OR PRESERVE LONG-TERM AFFORDABLE10
HOUSING FOR A QUALIFYING PROPERTY IS NOT CONSIDERED A TRIGGERING11
EVENT UNTIL ANOTHER ACTION SET FORTH IN THIS SUBSECTION (2)(b)12
OCCURS;13
14
(VIII) RECEIVES A NOTICE THAT A CERTIFICATE OF LEVY HAS BEEN15
FILED RELATED TO THE QUALIFYING PROPERTY PURS UANT TO SECTION16
13-56-101;
OR17
(IX)
THE POTENTIAL SALE TO A THIRD-PARTY BUYER PURSUANT TO18
SECTION 29-4-1203 (2) TERMINATES.19
(c) A
RESIDENTIAL SELLER DOES NOT NEED TO PROVIDE A
20
SUBSEQUENT NOTICE TO THE LOCAL GOVERNMENT UNLESS THE TERMS OF21
AN ACCEPTABLE SALE MATERIALLY CHANGE . IF THE TERMS OF AN22
ACCEPTABLE SALE MATERIALLY CHANGE , THE RESIDENTIAL SELLER SHALL23
PROVIDE A SUBSEQUENT NOTICE TO THE LOCAL GOVERNMENT . FOR24
PURPOSES OF THIS SUBSECTION (2)(c), ANY CHANGE IN THE PRICE OF A25
WRITTEN OFFER THE RESIDENTIAL SELLER HAS RECEIVED ON THE26
QUALIFYING PROPERTY OR ANY CHANGE IN THE PRICE OF AN ACCEPTABLE27
1190
-10- WRITTEN OFFER ON THE QUALIFYING PROPERTY IS A MATERIAL C HANGE .1
F
OR PURPOSES OF THIS SUBSECTION (2)(c), A MATERIAL CHANGE OCCURS
2
IF THE SALE PRICE OF A QUALIFYING PROPERTY CHANGES BY AT LEAST3
NINETY PERCENT FROM THE SALE PRICE THAT WAS PREVIOUSLY PROVIDED4
IN ANY NOTICE THE RESIDENTIAL SELLER IS REQUIRED TO PROVIDE TO THE5
LOCAL GOVERNMENT PURSUANT TO THIS SECTION .6
(d) (I) T
HE NOTICE GIVEN PURSUANT TO THIS SUBSECTION (2) MUST7
BE DELIVERED TO THE CLERK OF THE GOVERNING BODY OF THE LOCAL8
GOVERNMENT
BY ELECTRONIC MAIL DELIVERY; EXCEPT THAT, IF THERE IS9
NOT AN ELECTRONIC MAILING ADDRESS AVAILABLE FOR THE CLERK, THEN10
BY HAND DELIVERY, UNITED STATES FIRST CLASS MAIL, OR OVERNIGHT11
DELIVERY AND MUST INCLUDE :12
(A) A
GENERAL DESCRIPTION OF THE QUALIFYING PROPERTY TO BE13
PURCHASED, INCLUDING THE ADDRESS AND NAME OF THE PROPERTY , IF14
ANY, AND ANY ADDITIONAL DESCRIPTIONS OF THE QUALIFYING PROPERTY15
ON FILE WITH THE OFFICE OF THE ASSESSOR IN THE COUNTY IN WHICH THE16
QUALIFYING PROPERTY IS LOCATED ;17
(B) T
HE PRICE, TERMS, AND CONDITIONS OF AN ACCEPTABLE OFFER18
THE RESIDENTIAL SELLER HAS RECEIVED TO SELL THE QUALIFYING19
PROPERTY OR THE PRICE , TERMS, AND CONDITIONS FOR WHICH THE20
RESIDENTIAL SELLER INTENDS TO SELL THE QUALIFYING PROPERTY ;21
(C) A
NY TERMS OR CONDITIONS WHICH , IF NOT MET, WOULD BE22
SUFFICIENT GROUNDS, IN THE RESIDENTIAL SELLER'S DISCRETION AND IN23
COMPLIANCE WITH THIS PART 12 AND ANY OTHER APPLICABLE LAW , TO24
REJECT AN OFFER;25
(D) I
F THE RESIDENTIAL SELLER HAS ENTERED INTO A CONTINGENT26
PURCHASE AND SALE AGREEMENT WITH A PROSPECTIVE BUYER , A COPY OF27
1190
-11- THE AGREEMENT;1
(E) T
HE RESIDENTIAL SELLER'S ADDRESS
AND, IF AVAILABLE,2
ELECTRONIC MAILING ADDRESS TO RECEIVE NOTICES FROM THE LOCAL3
GOVERNMENT; AND4
(F) T
HE NAMES AND MAILING ADDRESSES THAT THE RESIDENTIAL5
SELLER HAS ON RECORD FOR EVERY TENANT RESIDING IN THE QUALIFYING6
PROPERTY.7
(II) T
HE PRICE, TERMS, AND CONDITIONS STATED IN THE NOTICE8
MUST BE UNIVERSAL AND APPLICABLE TO ALL POTENTIAL BUYERS AND9
MUST NOT BE SPECIFIC TO OR PROHIBITIVE OF THE LOCAL GOVERNMENT10
MAKING A SUCCESSFUL OFFER TO PURCHASE THE QUALIFYING PROPERTY ,11
MUST NOT BE UNLAWFUL , AND MUST NOT INHIBIT THE EXERCISE OF THE12
RIGHTS PROVIDED UNDER THIS PART 12.13
(III) T
HE LOCAL GOVERNMENT MAY SHARE THE INFORMATION14
CONTAINED IN THE NOTICE WITH ITS OFFICERS, EMPLOYEES, AGENTS, AND15
PROSPECTIVE ASSIGNEES
OR A PROSPECTIVE ENTITY THE LOCAL16
GOVERNMENT PARTNERS WITH PURSUANT TO SUBSECTION (1)(a)(II) OF17
THIS SECTION FOR THE PURPOSES OF EVALUATING OR OBTAINING18
FINANCING FOR THE PROSPECTIVE TRANSACTION . THE INFORMATION19
CONTAINED IN THE NOTICE MUST BE KEPT CONFIDENTIAL IF THE20
RESIDENTIAL SELLER SO REQUESTS AND IS CONFIDENTIAL INFORMATION21
NOT SUBJECT TO PUBLIC DISCLOSURE; EXCEPT THAT THE OCCURRENCE OF22
A TRIGGERING EVENT, THE LOCATION OF THE QUALIFYING PROPERTY , AND23
THE IDENTITY OF THE RESIDENTIAL SELLER ARE NOT CONFIDENTIAL AND24
ARE SUBJECT TO PUBLIC DISCLOSURE. NOTHING IN THIS SECTION REQUIRES25
A LOCAL GOVERNMENT TO EXERCISE ITS RIGHTS UNDER THIS PART 12.26
(e) (I) PRIOR TO THE SALE OF A QUALIFYING PROPERTY , A27
1190
-12- RESIDENTIAL SELLER SHALL EXECUTE AND RECORD IN THE REAL PROPERTY1
RECORDS OF THE COUNTY IN WHICH THE QUALIFYING PROPERTY IS2
LOCATED AN AFFIDAVIT CERTIFYING UNDER PENALTY OF PERJURY THAT3
THE REQUIREMENTS OF THIS PART 12 HAVE BEEN SATISFIED, AND STATE4
WITH RESPECT TO SUCH SALE EITHER THAT :5
(A) T
HE RIGHTS AND PROPERTY INTERESTS OF THE LOCAL
6
GOVERNMENT UNDER THIS PART 12 HAVE EXPIRED OR HAVE BEEN7
RELEASED OR WAIVED; OR8
(B) T
HAT THE PURCHASER IS THE LOCAL GOVERNMENT OR ITS
9
ASSIGNEE UNDER THIS PART 12.10
(II) ANY PARTY THAT ACQUIRES AN INTEREST IN THE QUALIFYING11
PROPERTY AND A TITLE INSURANCE ENTITY AS DEFINED IN SECTION12
10-11-102 (11) SHALL HAVE AN ABSOLUTE RIGHT TO RELY ON THE TRUTH13
AND ACCURACY OF ALL STATEMENTS IN THE AFFIDAVIT MADE PURSUANT14
TO SUBSECTION (2)(e)(I) OF THIS SECTION AND SHALL NOT BE LIABLE IN15
LAW OR EQUITY, INCLUDING UNDER ANY POLICY OR AGREEMENT OF TITLE16
INSURANCE AS DEFINED IN SECTION 10-11-102 (8), FOR A RESIDENTIAL17
SELLER'S MISREPRESENTATION IN THE AFFIDAVIT.18
(3) Notice by the local government. (a) (I) T
HE LOCAL19
GOVERNMENT SHALL PROVIDE NOTICE TO THE RESIDENTIAL SELLER WITHIN20
SEVEN
CALENDAR DAYS OF RECEIPT OF THE NOTICE REQUIRED PURSUANT21
TO SUBSECTION (2) OF THIS SECTION OF THE LOCAL GOVERNMENT'S INTENT22
TO PRESERVE ITS RIGHTS UNDER THIS PART 12. IF THE LOCAL GOVERNMENT23
PLANS TO ASSIGN ITS RIGHTS UNDER THIS PART 12 IN ACCORDANCE WITH24
SUBSECTION (1)(d) OF THIS SECTION, THE LOCAL GOVERNMENT MUST25
DISCLOSE THE POTENTIAL ASSIGNEE IN THE NOTICE. THE NOTICE MUST BE26
DELIVERED BY ELECTRONIC MAIL DELIVERY; EXCEPT THAT, IF THE27
1190
-13- RESIDENTIAL SELLER HAS NOT PROVIDED AN ELECTRONIC MAILING1
ADDRESS, THEN BY HAND DELIVERY, UNITED STATES FIRST CLASS MAIL,2
OR OVERNIGHT DELIVERY TO THE ADDRESS PROVIDED BY THE RESIDENTIAL3
SELLER PURSUANT TO SUBSECTION (2)(d)(I)(E) OF THIS SECTION.4
(II) T
HE NOTICE GIVEN PURSUANT TO SUBSECTION (3)(a)(I) OF THIS5
SECTION IS NONBINDING ON THE LOCAL GOVERNMENT .6
(III) I
F NO NOTICE IS GIVEN BY THE LOCAL GOVERNMENT OR IF THE
7
LOCAL GOVERNMENT FAILS TO MAKE AN OFFER WITHIN THE TIME PERIOD8
PROVIDED IN AND IN ACCORDANCE WITH SUBSECTION (4) OF THIS SECTION,9
THE RIGHTS UNDER THIS PART 12 EXPIRE AND THE RESIDENTIAL SELLER10
MAY PROCEED WITH THE SALE OF THE QUALIFYING PROPERTY TO A BUYER11
OF THEIR CHOOSING.12
(b) (I) U
PON GIVING NOTICE TO A RESIDENTIAL SELLER PURSUANT13
TO SUBSECTION (3)(a) OF THIS SECTION, THE LOCAL GOVERNMENT SHALL14
PROVIDE NOTICE TO EACH RESIDENT OF THE QUALIFYING PROPERTY WHO15
IS IDENTIFIED IN THE SELLER 'S NOTICE PROVIDED IN SUBSECTION16
(2)(d)(I)(F)
OF THIS SECTION INFORMING THE RESIDENT THAT THERE IS17
INTEREST BY THE LOCAL GOVERNMENT OR AN ASSIGNEE IN PURCHASING18
THE QUALIFYING PROPERTY AND PROVIDING A DATE , TIME, AND LOCATION19
THAT THE LOCAL GOVERNMENT WILL HOLD A MEETING FOR RESIDENTS TO20
ATTEND FOR INFORMATION REGARDING A POTENTIAL PURCHASE OF THE21
PROPERTY BY THE LOCAL GOVERNMENT IN ACCORDANCE WITH22
SUBSECTION (3)(d) OF THIS SECTION.23
(II) T
HE LOCAL GOVERNMENT SHALL PROVIDE A SECOND NOTICE24
TO THE RESIDENTS OF A QUALIFYING PROPERTY UPON THE EXECUTION OF25
AN AGREEMENT FOR THE SALE AND PURCHASE OF THE QUALIFYING26
PROPERTY PURSUANT TO SUBSECTION (4) OF THIS SECTION.27
1190
-14- (III) THE LOCAL GOVERNMENT SHALL PROVIDE A THIRD NOTICE TO1
THE RESIDENTS OF A QUALIFYING PROPERTY UPON THE CLOSING OF A SALE2
FOR THE QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT PURSUANT3
TO SUBSECTION (4) OF THIS SECTION. THE NOTICE MUST INCLUDE CONTACT4
INFORMATION FOR THE ENTITY THAT WILL PROVIDE MANAGEMENT5
SERVICES TO THE QUALIFYING PROPERTY .6
(c) T
HE LOCAL GOVERNMENT SHALL MAIL THE NOTICES REQUIRED7
PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION TO THE RESIDENTS OF8
A QUALIFYING PROPERTY USING THE MOST RECENT ADDRESS OF EACH9
RESIDENT. THE RESIDENTIAL SELLER SHALL PROVIDE UPDATED MAILING10
ADDRESSES FOR RESIDENTS UPON REQUEST OF THE LOCAL GOVERNMENT .11
T
HE LOCAL GOVERNMENT SHALL ALSO POST A COPY OF THE NOTICES IN A12
CONSPICUOUS PLACE IN THE QUALIFYING PROPERTY . THE NOTICES MUST13
BE PROVIDED IN ENGLISH, SPANISH, AND ANY OTHER LANGUAGE KNOWN14
TO BE SPOKEN BY RESIDENTS AT THE QUALIFYING PROPERTY .15
(d) T
HE MEETING HELD BY THE LOCAL GOVERNMENT AS REQUIRED16
BY SUBSECTION (3)(b)(I) OF THIS SECTION MUST BE IN AN ACCESSIBLE17
SPACE, AND SPANISH TRANSLATION SERVICES AND , IF AVAILABLE,18
VIRTUAL MEETING OPTIONS MUST BE PROVIDED AT NO COST TO THE19
RESIDENTS.20
(4) E
XCEPT AS OTHERWISE PROVIDED IN SUBSECTION (5)(b) OF
21
THIS SECTION FOR ALLOWABLE TOLLING PERIODS , THE LOCAL22
GOVERNMENT HAS THIRTY CALENDAR DAYS FROM PROVIDING NOTICE23
PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION TO MAKE AN OFFER TO24
PURCHASE THE QUALIFYING PROPERTY AND SHALL AGREE TO CLOSE ON25
THE QUALIFYING PROPERTY WITHIN SIXTY CALENDAR DAYS , TO THE26
EXTENT PRACTICABLE, AND NOT MORE THAN NINETY CALENDAR DAYS OF27
1190
-15- THE EXECUTION OF AN AGREEMENT FOR THE SALE AND PURCHASE OF THE1
QUALIFYING PROPERTY . THE AGREEMENT MAY INCLUDE , AT THE2
RESIDENTIAL SELLER'S OPTION, A PROVISION THAT REQUIRES THE LOCAL3
GOVERNMENT TO BE LIABLE TO THE RESIDENTIAL SELLER FOR THE FAIR4
MARKET VALUE OF ANY LOST BENEFIT OF THE QUALIFYING PROPERTY THAT5
IS CAUSED BY THE LOCAL GOVERNMENT MATERIALLY BREACHING OR6
DEFAULTING ON THE AGREEMENT IN A MANNER THAT IS NOT CURED BY7
THE LOCAL GOVERNMENT UNDER THE TERMS OF THE AGREEMENT AND IN8
A MANNER THAT ALLOWS THE RESIDENTIAL SELLER TO TERMINATE THE9
AGREEMENT.10
(5) (a) I
F THE LOCAL GOVERNMENT OR ITS ASSIGNEE RECEIVES A
11
SUBSEQUENT NOTICE FROM A RESIDENTIAL SELLER AS REQUIRED BY12
SUBSECTION (2)(c) OF THIS SECTION, THE LOCAL GOVERNMENT OR ITS13
ASSIGNEE SHALL:14
(I) P
ROVIDE A NOTICE OF INTENT IN ACCORDANCE WITH
15
SUBSECTION (3)(a)(I) OF THIS SECTION; EXCEPT THAT THE NOTICE OF16
INTENT DOES NOT NEED TO BE PROVIDED AGAIN IF THE LOCAL17
GOVERNMENT OR ITS ASSIGNEE HAS PREVIOUSLY PROVIDED A NOTICE OF18
INTENT;19
(II) M
AKE AN OFFER TO PURCHASE THE QUALIFYING PROPERTY
20
WITHIN TWENTY-ONE CALENDAR DAYS OF RECEIPT OF THE SUBSEQUENT21
NOTICE; AND22
(III) A
GREE TO CLOSE ON THE QUALIFYING PROPERTY IN
23
ACCORDANCE WITH SUBSECTION (4) OF THIS SECTION.24
(b) I
F THE LOCAL GOVERNMENT OR ITS ASSIGNEE DOES NOT MAKE
25
AN OFFER WITHIN THE TIME PERIOD SET FORTH IN SUBSECTION (5)(a)(II) OF26
THIS SECTION, THE RIGHTS UNDER THIS PART 12 EXPIRE.27
1190
-16- (6) (a) THE PERIODS SET FORTH IN SUBSECTION (4) OF THIS SECTION1
MAY BE EXTENDED AND ANY TERMS OR CONDITIONS OF SALE MAY BE2
MODIFIED BY WRITTEN AGREEMENT BETWEEN THE LOCAL GOVERNMENT3
AND THE RESIDENTIAL SELLER.4
(b) T
HE LOCAL GOVERNMENT OR ITS ASSIGNEE IS ENTITLED TO5
TOLLING OF THE PERIODS SET FORTH IN SUBSECTION (4) OF THIS SECTION6
IN ANY OF THE FOLLOWING CIRCUMSTANCES :7
(I) I
F THERE IS A REASONABLE DELAY NOT WITHIN THE CONTROL8
OF THE LOCAL GOVERNMENT OR ITS ASSIGNEE IN OBTAINING FI NANCING OR9
A REQUIRED INSPECTION OR SURVEY OF THE QUALIFYING PROPERTY , THE10
PERIOD IS TOLLED FOR THE DURATION OF THE DELAY ; AND11
(II) I
F THE LOCAL GOVERNMENT , ITS ASSIGNEE, THE ATTORNEY12
GENERAL, OR A MISSION-DRIVEN ORGANIZATION FILES A NONFRIVOLOUS13
CIVIL ACTION ALLEGING A VIOLATION OF THIS SECTION , THE PERIOD IS14
TOLLED UNTIL THE ACTION REACHES FINAL RESOLUTION OR THE PARTIES15
REACH A RESOLUTION, INCLUDING THE RESOLUTION OF ANY APPEALS , BY16
SIGNING A SETTLEMENT AGREEMENT .17
(7) A
NY ACTION BY THE LOCAL GOVERNMENT REQUIRED OR
18
PERMITTED UNDER THIS PART 12 MAY BE PERFORMED BY , AS MAY BE19
APPLICABLE AND TO THE EXTENT PERMITTED BY LAW , THE COUNTY20
MANAGER OF A COUNTY , THE MAYOR OR CITY MANAGER OF A CITY OR21
TOWN, OR ANOTHER OFFICER DESIGNATED BY THE GOVERNING BODY OF22
THE LOCAL GOVERNMENT .23
(8) ANY ACTIONS OF AN AGENT WORKING ON BEHALF OF A24
RESIDENTIAL SELLER FOR PURPOSES OF THIS PART 12 ARE ATTRIBUTABLE25
TO THE RESIDENTIAL SELLER. NOTWITHSTANDING ANY OTHER PROVISION26
IN THIS PART 12 TO THE CONTRARY, A POLITICAL SUBDIVISION OR A27
1190
-17- HOUSING AUTHORITY IN THE STATE THAT ENGAGES IN ACTIVITIES TO1
CREATE OR PRESERVE LONG-TERM AFFORDABLE HOUSING FOR A2
QUALIFYING PROPERTY IS NOT CONSIDERED AN AGENT WORKING ON3
BEHALF OF A RESIDENTIAL SELLER FOR PURPOSES OF THIS PART 12.4
5
(9) (a) THE LOCAL GOVERNMENT OR ITS ASSIGNEE SHALL6
DETERMINE TENANT QUALIFICATIONS AT ITS DISCRETION , SO LONG AS7
SUCH DETERMINATIONS ARE IN FURTHERANCE OF PROVIDING LONG -TERM8
AFFORDABLE HOUSING FOR COMMUNITY MEMBERS AT OR BELOW THE9
APPLICABLE AREA MEDIAN INCOME. 10
(b) NOTWITHSTANDING SECTION 29-4-1201 (4), RESIDENTS AT THE11
QUALIFYING PROPERTY AT THE TIME IT IS ACQUIRED BY THE LOCAL12
GOVERNMENT PURSUANT TO THIS SECTION MAY CONTINUE TO RESIDE AT13
THE QUALIFYING PROPERTY IRRESPECTIVE OF THEIR INCOME LEVEL FOR AT14
LEAST THE DURATION OF THEIR TENANCY AGREEMENT UNDER THE15
TENANCY AGREEMENT'S TERMS IN EFFECT AT THE TIME THE LOCAL16
GOVERNMENT ACQUIRES THE QUALIFYING PROPERTY .17
(c) A RESIDENT'S INCOME MAY ONLY EXCEED THE APPLICABLE18
AREA MEDIAN INCOME IF THAT RESIDENT HAS A PRE-EXISTING TENANCY19
AGREEMENT IN ACCORDANCE WITH SUBSECTION (8)(b) OF THIS SECTION. 20
(d) ONLY IN ACCORDANCE WITH SUBSECTION (8)(c) OF THIS21
SECTION MAY THE LOCAL GOVERNMENT DECLINE TO RENEW A RESIDENT'S22
PRE-EXISTING TENANCY AGREEMENT ONCE IT ENDS IN ORDER TO BRING23
THE QUALIFYING PROPERTY INTO COMPLIANCE WITH SUBSECTION (8)(a) OF24
THIS SECTION.25
29-4-1203. Exemptions - waiver of the local government's26
right of first refusal. (1) T
HIS PART 12 DOES NOT APPLY TO ANY SALE,27
1190
-18- TRANSFER, OR CONVEYANCE OF QUALIFYING PROPERTY BY A RESIDENTIAL1
SELLER:2
(a) M
ADE TO A SPOUSE, A PARTNER IN A CIVIL UNION, OR A3
PARENT, SIBLING, AUNT, UNCLE, FIRST COUSIN, OR LEGALLY RECOGNIZED4
CHILD OF THE RESIDENTIAL SELLER;5
(b) M
ADE TO A TRUST IF THE BENEFICIARIES OF THE TRUST ARE6
THE SPOUSE, PARTNER IN A CIVIL UNION, OR LEGALLY RECOGNIZED CHILD7
OF THE RESIDENTIAL SELLER;8
(c) M
ADE TO, IF WHOLLY OWNED BY THE RESIDENTIAL SELLER , A9
PARTNERSHIP, LIMITED LIABILITY COMPANY, OR CORPORATION;10
(d) M
ADE PURSUANT TO A WILL , DESCENT, OR INTESTATE11
DISTRIBUTION;12
(e) M
ADE FOR TAX OR ESTATE PURPOSES BETWEEN CLOSELY HELD
13
PARTNERS, FAMILY MEMBERS, OR CORPORATIONS;14
(f) MADE PURSUANT TO AN ACTION IN EMINENT DOMAIN ;15
(g) MADE TO THE STATE, A LOCAL GOVERNMENT, THE COLORADO16
HOUSING AND FINANCE AUTHORITY , CREATED IN SECTION 29-4-704 (1),17
THE COLORADO MIDDLE INCOME HOUSING AUTHORITY , CREATED IN18
SECTION 29-4-1104 (1), AND ANY OTHER POLITICAL SUBDIVISION OF THE19
STATE;20
(h) MADE PURSUANT TO A COURT ORDER ;21
(i) M
ADE TO A NOT-FOR-PROFIT MISSION-DRIVEN AFFORDABLE
22
HOUSING PROVIDER WHO HAS PROVIDED NOTICE OF INTENT TO PURCHASE23
THE QUALIFYING PROPERTY, HAS A HISTORY OF DEVELOPING AFFORDABLE24
HOUSING, AND WHO COMMITS TO PROVIDING TO TENANTS A MAJORITY OF25
UNITS BELOW MARKET RATE ;26
(j) MADE BETWEEN JOINT TENANTS OR TENANTS IN COMMON ; 27
1190
-19- (k) IF, AT THE TIME OF THE EFFECTIVE DATE OF THIS PART 12, THE1
QUALIFYING PROPERTY HAS A PREEXISTING AGREEMENT THAT BESTOWS2
A RIGHT OF FIRST REFUSAL OR OTHER CONTINGENT PROPERTY RIGHT3
REGARDING THE QUALIFYING PROPERTY TO A THIRD PARTY; EXCEPT THAT,4
UPON EXPIRATION OF THE AGREEMENT , THE PROVISIONS OF THIS PART 125
APPLY TO ANY SALE, TRANSFER, OR CONVEYANCE OF THE QUALIFYING6
PROPERTY BY THE RESIDENTIAL SELLER ; 7
(l) I
F THE FIRST CERTIFICATE OF OCCUPANCY FOR THE QUALIFYING
8
PROPERTY WAS ISSUED WITHIN THIRTY YEARS PRECEDING THE DATE OF A9
TRIGGERING EVENT THAT IS SET FORTH IN SECTION 29-4-1202 (2)(b);10
(m) I
F THE QUALIFYING PROPERTY IS THE SUBJECT OF A
11
FORECLOSURE ACTION OR IS ACQUIRED BY A FORECLOSING LENDER IN A12
FORECLOSURE ACTION OR BY A DEED IN LIEU OF FORECLOSURE ;13
(n) M
ADE TO ANY ORGANIZATION THAT PROVIDES NOTICE TO THE
14
LOCAL GOVERNMENT , THAT AGREES TO RESYNDICATE THE QUALIFYING15
PROPERTY PURSUANT TO 26 U.S.C. SEC. 42, AND THAT MAINTAINS16
AFFORDABILITY FOR AT LEAST THIRTY YEARS FROM THE DATE OF THE17
RESYNDICATION THROUGH A LAND USE RESTRICTIVE AGREEMENT ON THE18
QUALIFYING PROPERTY . AS USED IN THIS SUBSECTION (1)(m),19
"
AFFORDABILITY" MEANS THAT RENT FOR ANY UNIT IN THE QUALIFYING
20
PROPERTY DOES NOT EXCEED THE RENT FOR HOUSEHOLDS OF A GIVEN SIZE21
AT THE APPLICABLE AREA MEDIAN INCOME , AS PUBLISHED ANNUALLY BY22
THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN23
DEVELOPMENT; OR24
(o) I
F THE QUALIFYING PROPERTY WILL BE SOLD AND PURCHASED
25
FOR THE CONTINUED PROVISION OF, OR WILL BE CONVERTED TO PROVIDE,26
MEDICAL SERVICES, SOCIAL SERVICES, OR HALFWAY HOUSING.27
1190
-20- (2) (a) IN ADDITION TO NOT RESP ONDING TO A1
RESIDENTIAL SELLER'S NOTICE AS SET FORTH IN SECTION 29-4-12022
(3)(a)(III),
THE LOCAL GOVERNMENT MAY ALSO WAIVE ITS RIGHTS UNDER
3
THIS PART 12 IF THE LOCAL GOVERNMENT MAKES THE DETERMINATION4
THAT A PROPOSED SALE TO A THIRD-PARTY BUYER WILL ENSURE THAT :5
(I) T
HE THIRD-PARTY BUYER AGREES THAT AT LEAST TEN PERCENT
6
OF THE DWELLING UNITS IN THE QUALIFYING PROPERTY WILL NOT EXCEED7
FIFTY PERCENT OF THE AREA MEDIAN INCOME FOR A PERIOD OF FIFTEEN8
YEARS;9
(II) T
HE THIRD-PARTY BUYER AGREES THAT AT LEAST TEN
10
PERCENT OF THE DWELLING UNITS IN THE QUALIFYING PROPERTY WILL NOT11
EXCEED SIXTY PERCENT OF THE AREA MEDIAN INCOME FOR A PERIOD OF12
TWENTY YEARS; OR13
(III) T
HE THIRD-PARTY BUYER AGREES THAT AT LEAST TEN
14
PERCENT OF THE DWELLING UNITS IN THE QUALIFYING PROPERTY WILL NOT15
EXCEED EIGHTY PERCENT OF THE AREA MEDIAN INCOME FOR A PERIOD16
THIRTY YEARS.17
(b) I
N ORDER FOR THE REQUIREMENTS OF SUBSECTION (2)(a) OF
18
THIS SECTION TO BE MET:19
(I) T
HE RESIDENTIAL SELLER MUST PROVIDE NOTICE TO THE LOCAL
20
GOVERNMENT PRIOR TO THE LOCAL GOVERNMENT MAKING AN OFFER TO21
PURCHASE THE QUALIFYING PROPERTY UNDER SECTION 29-4-1202 THAT22
THE THIRD-PARTY BUYER HAS MADE AN OFFER ON THE QUALIFYING23
PROPERTY AND IS COMMITTED TO PRESERVING OR CONVERTING THE24
QUALIFYING PROPERTY AS AFFORDABLE HOUSING UNDER EITHER25
SUBSECTION (2)(a)(I), (2)(a)(II), OR (2)(a)(III) OF THIS SECTION IF THE26
QUALIFYING PROPERTY IS SOLD TO THE THIRD -PARTY BUYER;27
1190
-21- (II) THE THIRD-PARTY BUYER SHALL ENTER INTO AN AGREEMENT1
WITH THE LOCAL GOVERNMENT THAT THE THIRD -PARTY BUYER SHALL2
PRESERVE OR CONVERT THE QUALIFYING PROPERTY AS AFFORDABLE3
HOUSING UNDER EITHER SUBSECTION (2)(a)(I), (2)(a)(II), OR (2)(a)(III) OF4
THIS SECTION IF THE QUALIFYING PROPERTY IS SOLD TO THE THIRD-PARTY5
BUYER AND FOR ANY OTHER TERMS TO WHICH THE THIRD -PARTY BUYER6
AND THE LOCAL GOVERNMENT AGREE . IF, AFTER THE SALE OF THE7
QUALIFYING PROPERTY TO THE THIRD -PARTY BUYER, THE THIRD-PARTY8
BUYER FAILS TO COMPLY WITH THE TERMS OF THE AGREEMENT , THE9
THIRD-PARTY BUYER SHALL BE HELD LIABLE AND SUBJECT TO ANY10
REMEDIES AND ENFORCEMENT UNDER THE AGREEMENT PURSUANT TO11
SECTION 29-4-1205 OR UNDER ANY OTHER APPLICABLE LAW .12
(III) T
HE THIRD-PARTY BUYER SHALL CERTIFY ITS COMPLIANCE
13
WITH THIS SUBSECTION (2) AT LEAST ONCE EVERY TWO YEARS BY14
SUBMITTING DOCUMENTATION TO THE LOCAL GOVERNMENT IN A FORM15
AND MANNER DEEMED ACCEPTABLE BY THE LOCAL GOVERNMENT .16
(c) T
HE WAIVER PROVIDED UNDER THIS SUBSECTION (2) IS ONLY
17
EFFECTIVE FOR THE SALE TO THE THIRD-PARTY BUYER IDENTIFIED IN THE18
NOTICE REQUIRED BY SUBSECTION (2)(b)(I) OF THIS SECTION, AND IF THE19
SALE TO THE THIRD-PARTY BUYER DOES NOT OCCUR THEN THE WAIVER IS20
VOID AND THE LOCAL GOVERNMENT IS ENTITLED TO ALL THE RIGHTS21
PROVIDED UNDER THIS PART 12.22
29-4-1204. Conversion of qualifying property purchased by23
the local government. (1) T
HE LOCAL GOVERNMENT , ITS ASSIGNEE, OR24
A THIRD-PARTY BUYER PURSUANT TO SECTION 29-4-1203 (2), SUBSEQUENT25
TO ACQUIRING A QUALIFYING PROPERTY PURSUANT TO THIS PART 12, MAY26
CONVERT THE PROPERTY TO A DIFFERENT USE IF :27
1190
-22- (a) THE QUALIFYING PROPERTY HAS BEEN MAINTAINED AS1
LONG-TERM AFFORDABLE HOUSING FOR A DURATION OF AT LEAST FIFTY2
YEARS;3
(b) A
T LEAST ONE HUNDRED TWENTY
CALENDAR DAYS BEFORE4
THE CONVERSION, NOTICE OF THE CONVERSION IS GIVEN TO THE RESIDENTS5
AT THE QUALIFYING PROPERTY AND ANY RESIDENT WHO WILL BE6
DISPLACED BY THE CONVERSION OF THE QUALIFYING PROPERTY IS7
PROVIDED WITH RELOCATION COMPENSATION THAT EQUALS TWELVE8
MONTHS OF THE RESIDENT'S CURRENT RENT OR TWELVE MONTHS MARKET9
RENT FOR THE COUNTY IN WHICH THE QUALIFYING PROPERTY IS LOCATED ,10
WHICHEVER IS GREATER; AND11
(c) T
HE LOCAL GOVERNMENT , ITS ASSIGNEE, OR A THIRD-PARTY12
BUYER PURSUANT TO SECTION 29-4-1203 (2), GUARANTEES THE13
DEVELOPMENT OR CONVERSION OF AN E QUAL OR GREATER AM OUNT OF14
UNITS WITHIN THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING15
PROPERTY IS LOCATED FOR DESIGNATED LONG -TERM AFFORDABLE16
HOUSING AS SET FORTH UNDER THIS PART 12 AND GUARANTEES THAT THE17
UNITS WILL BE OFFERED TO ANY RESIDENT WHO WILL BE DISPLACED BY18
THE CONVERSION OF THE QUALIFYING PROPERTY BEFORE THE UNITS ARE19
MADE AVAILABLE TO THE GENERAL PUBLIC .20
(2) N
OTHING WITHIN THIS PART 12 LIMITS THE LOCAL21
GOVERNMENT'S ABILITY TO CONDEMN A QUALIFYING PROPERTY ACQUIRED22
PURSUANT TO THIS PART 12 TO THE EXTENT PERMITTED BY APPLICABLE23
LAW.24
29-4-1205. Remedies for noncompliance - definitions.25
(1) (a) (I) NOTWITHSTANDING SUBSECTION (1)(c) OF THIS SECTION AND26
SUBJECT TO AVAILABILITY OF RESOURCES , IT IS THE RESPONSIBILITY OF27
1190
-23- THE ATTORNEY GENERAL 'S OFFICE TO ENFORCE THE PROVISIONS OF THIS1
PART 12, AND THE ATTORNEY GENERAL MAY INTERVENE IN ANY ACTION2
BROUGHT PURSUANT TO SUBSECTION (1)(c) OF THIS SECTION. ANY TITLE3
TRANSFERRED SUBSEQUENT TO THE TRIGGERING EVENTS SET FORTH IN4
SECTION 29-4-1202 (2)(b) REMAINS SUBJECT TO THE PROPERTY INTERESTS5
OF THE LOCAL GOVERNMENT IN A QUALIFYING PROPERTY AS SET FORTH IN6
SUBSECTION (1)(b) OF THIS SECTION, UNLESS SUCH PROPERTY INTERESTS7
HAVE EXPIRED, ARE RELEASED OR WAIVED , OR UNTIL AN EQUITABLE8
REMEDY HAS BEEN PROVIDED .9
(II) NOTWITHSTANDING SUBSECTION (1)(a)(I) OF THIS SECTION OR10
ANY OTHER PROVISION OF THIS PART 12:11
(A) I
N ADDITION TO THE REMEDIES SET FORTH IN SUBSECTION (3)
12
OF THIS SECTION, IF A COURT FINDS THAT A RESIDENTIAL SELLER HAS13
MADE A MISREPRESENTATION IN AN AFFIDAVIT MADE IN ACCORDANCE14
WITH SECTION 29-4-1202 (2)(e), THE SOLE REMEDY AVAILABLE IS AGAINST15
THE RESIDENTIAL SELLER; AND16
(B) T
HE INTEREST IN A QUALIFYING PROPERTY TRANSFERRED IN
17
RELIANCE ON AN AFFIDAVIT MADE IN ACCORDANCE WITH SECTION18
29-4-1202 (2)(e)
IS NOT SUBJECT TO THE PROPERTY INTERESTS OF THE
19
LOCAL GOVERNMENT IN THE QUALIFYING PROPERTY .20
(b) T
HE RIGHTS ACCORDED
BY THIS PART 12 TO THE LOCAL21
GOVERNMENT WITH RESPECT TO A QUALIFYING PROPERTY ARE22
PROPERTY INTERESTS.23
(c) T
HE ATTORNEY GENERAL'S OFFICE, THE LOCAL GOVERNMENT24
IN THE JURISDICTION THE QUALIFYING PROPERTY IS LOCATED , THE LOCAL25
GOVERNMENT'S ASSIGNEE, OR A MISSION-DRIVEN ORGANIZATION ON26
BEHALF OF THE STATE MAY BRING A CIVIL ACTION AGAINST A RESIDENTIAL27
1190
-24- SELLER OR A PERSON CLAIMING AN INTEREST IN A QUALIFYING PROPERTY1
THROUGH A RESIDENTIAL SELLER FOR ANY VIOLATION OF THIS PART 12.2
(2) A
COURT MAY GRANT INJUNCTIVE RELIEF FOR ANY VIOLATIONS3
OF THIS PART 12 BY A RESIDENTIAL SELLER OR A PERSON CLAIMING AN4
INTEREST IN A QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER5
OCCURRING AFTER A TRIGGERING EVENT PURSUANT TO SECTION 29-4-12026
(2)(b).7 (3) IF A COURT FINDS THAT A RESIDENTIAL SELLER , OR A8
THIRD-PARTY BUYER THAT HAS ENTERED INTO AN AGREEMENT WITH THE9
LOCAL GOVERNMENT PURSUANT TO SECTION 29-4-1203 (2), IS IN10
MATERIAL VIOLATION OF THIS PART 12, IN ADDITION TO ANY OTHER11
AVAILABLE REMEDY, THE COURT SHALL AWARD A STATUTORY PENALTY12
OF NOT LESS THAN FIFTY THOUSAND DOLLARS OR AN AMOUNT EQUAL TO13
THIRTY PERCENT OF THE PURCHASE OR LISTING PRICE OF THE QUALIFYING14
PROPERTY, WHICHEVER AMOUNT IS GREATER .15
(4) A COURT MAY ALSO AWARD DAMAGES , REASONABLE16
ATTORNEY FEES, AND COSTS TO A PREVAILING PARTY; EXCEPT THAT, IN AN17
ACTION BROUGHT OR JOINED BY THE ATTORNEY GENERAL 'S OFFICE, THE18
LOCAL GOVERNMENT , THE LOCAL GOVERNMENT 'S ASSIGNEE, OR A19
MISSION-DRIVEN ORGANIZATION, A COURT SHALL NOT AWARD ATTORNEY20
FEES TO A RESIDENTIAL SELLER OR PERSON CLAIMING AN INTEREST IN A21
QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER UNLESS THE22
COURT FINDS THAT THE COMPLAINT FILED BY THE ATTORNEY GENERAL 'S23
OFFICE, THE LOCAL GOVERNMENT, THE LOCAL GOVERNMENT'S ASSIGNEE,24
OR A MISSION -DRIVEN ORGANIZATION WAS FRIVOLOUS ,25
NOTWITHSTANDING ANY AGREEMENT TO THE CONTRARY .26
(5) THE REMEDIES PROVIDED IN THIS SECTION ARE INDEPENDENT27
1190
-25- OF AND DO NOT AFFECT ANY CIVIL ACTION AND REMEDIES OR THE RIGHT1
OF ANY PARTY TO ANY TRANSACTION CONTEMPLATED UNDER THIS PART2
12.3
4
29-4-1206. Repeal of part. T
HIS PART 12 IS REPEALED, EFFECTIVE
5
A
UGUST 1, 2028.
6
SECTION 2. Act subject to petition - effective date -7
applicability. (1) This act takes effect at 12:01 a.m. on the day following8
the expiration of the ninety-day period after final adjournment of the9
general assembly; except that, if a referendum petition is filed pursuant10
to section 1 (3) of article V of the state constitution against this act or an11
item, section, or part of this act within such period, then the act, item,12
section, or part will not take effect unless approved by the people at the13
general election to be held in November 2024 and, in such case, will take14
effect on the date of the official declaration of the vote thereon by the15
governor.16
(2) This act applies to all qualifying properties which are listed for17
sale but are not under contract on or after the applicable effective date of18
this act.19
1190
-26-