HOUSE BILL 23-1190
BY REPRESENTATIVE(S) 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, Amabile, Herod, Story;
also SENATOR(S) Winter F. and Jaquez Lewis, Cutter, Moreno.
C
ONCERNING A RIGHT OF FIRST REFUSAL TO PURCHASE QUALIFYING
MULTIFAMILY RESIDENTIAL PROPERTY BY A LOCAL GOVERNMENT
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add part 12 to article
4 of title 29 as follows:
PART 12
RIGHT OF FIRST REFUSAL
TO PURCHASE MULTIFAMILY HOUSING
29-4-1201. Definitions. A
S USED IN THIS PART 12, UNLESS THE
CONTEXT OTHERWISE REQUIRES
:
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (1) "APPLICABLE AREA MEDIAN INCOME " MEANS NO MORE THAN
EIGHTY PERCENT OF THE AREA MEDIAN INCOME IN URBAN COUNTIES
, NO
MORE THAN ONE HUNDRED TWENTY PERCENT OF THE AREA MEDIAN INCOME
IN RURAL COUNTIES
, AND NO MORE THAN ONE HUNDRED FORTY PERCENT OF
THE AREA MEDIAN INCOME IN RURAL RESORT COUNTIES
. THE
CLASSIFICATION OF URBAN
, RURAL, AND RURAL RESORT COUNTIES IS THE
DIVISION OF HOUSING
'S MOST RECENT CLASSIFICATION OF THE SAME
PURSUANT TO SECTION
29-4-1107 (1)(d).
(2) "A
REA MEDIAN INCOME" MEANS THE MEDIAN INCOME OF THE
COUNTY IN WHICH A QUALIFYING PROPERTY IS LOCATED IN RELATION TO
FAMILY SIZE
, AS PUBLISHED ANNUALLY BY THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
.
(3) "L
OCAL GOVERNMENT" MEANS:
(a) I
F THE QUALIFYING PROPERTY IS LOCATED WITHIN THE
INCORPORATED AREA OF A CITY
, A CITY AND COUNTY, OR A TOWN, THE CITY,
THE CITY AND COUNTY, OR THE TOWN; AND
(b) IF THE QUALIFYING PROPERTY IS LOCATED WITHIN THE
UNINCORPORATED AREA OF A COUNTY
, THE COUNTY.
(4) "L
ONG-TERM AFFORDABLE HOUSING " MEANS HOUSING FOR
WHICH THE ANNUAL RENT FOR ANY UNIT IN THE QUALIFYING PROPERTY DOES
NOT EXCEED THE RENT FOR HOUSEHOLDS OF A GIVEN SIZE AT THE
APPLICABLE AREA MEDIAN INCOME
, AS PUBLISHED ANNUALLY BY THE
UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT , FOR
A MINIMUM OF ONE HUNDRED YEARS AND WHERE THE LOCAL GOVERNMENT
AGREES NOT TO RAISE RENT FOR ANY UNIT IN THE QUALIFYING PROPERTY BY
MORE THAN THE RENT INCREASE CAP
; EXCEPT THAT THE RENT INCREASE CAP
SHALL NOT APPLY TO UNITS OF HOUSING REGULATED BY FAIR MARKET RENTS
PUBLISHED BY THE
UNITED STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT OR ANY OTHER FEDERAL OR STATE PROGRAMS THAT
RESTRICT OR LIMIT ALLOWABLE RENTS
.
(5) "M
ISSION-DRIVEN ORGANIZATION" MEANS AN ORGANIZATION IN
GOOD STANDING WITH THE SECRETARY OF STATE THAT IS EXEMPT FROM
TAXATION PURSUANT TO SECTION
501 (a) OF THE FEDERAL "INTERNAL
REVENUE CODE OF 1986", AS AMENDED, AND LISTED AS AN EXEMPT
PAGE 2-HOUSE BILL 23-1190 ORGANIZATION IN SECTION 501 (c)(3) OF THE FEDERAL "INTERNAL REVENUE
CODE OF 1986", AS AMENDED.
(6) (a) "Q
UALIFYING PROPERTY" MEANS A MULTIFAMILY
RESIDENTIAL OR MIXED
-USE RENTAL PROPERTY CONSISTING OF FIFTEEN OR
MORE UNITS IN URBAN COUNTIES AND FIVE OR MORE UNITS IN RURAL OR
RURAL RESORT COUNTIES
. THE CLASSIFICATION OF URBAN, RURAL, AND
RURAL RESORT COUNTIES IS THE DIVISION OF HOUSING
'S MOST RECENT
CLASSIFICATION OF THE SAME PURSUANT TO SECTION
29-4-1107 (1)(d).
(b) "Q
UALIFYING PROPERTY" DOES NOT INCLUDE A MOBILE HOME
PARK AS DEFINED IN SECTION
38-12-201.5 (6).
(7) "R
ENT INCREASE CAP" MEANS A PERCENTAGE OF THE CURRENT
ANNUAL RENT FOR A QUALIFYING PROPERTY THAT IS EQUAL TO THE GREATER
OF
:
(a) T
HE AVERAGE ANNUAL PERCENTAGE CHANGE FOR THE PREVIOUS
TWELVE MONTHS AT THE TIME OF THE CALCULATION IN THE
UNITED STATES
DEPARTMENT OF LABOR
'S BUREAU OF LABOR STATISTICS CONSUMER PRICE
INDEX FOR
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS AND ALL URBAN
CONSUMERS
, OR ITS SUCCESSOR INDEX; OR
(b) THREE PERCENTAGE POINTS.
(8) "R
ESIDENTIAL SELLER" MEANS AN OWNER OF A QUALIFYING
PROPERTY
.
29-4-1202. Right of first refusal - eligibility - process - notice -
tolling. (1) (a) (I) I
N ACCORDANCE WITH THIS PART 12, THE LOCAL
GOVERNMENT FOR THE JURISDICTION IN WHICH A QUALIFYING PROPERTY IS
LOCATED HAS A RIGHT TO PURCHASE THE QUALIFYING PROPERTY FOR AN
ECONOMICALLY SUBSTANTIALLY IDENTICAL OFFER TO ANOTHER OFFER THAT
A RESIDENTIAL SELLER RECEIVES ON THE QUALIFYING PROPERTY
. THE LOCAL
GOVERNMENT
'S RIGHT TO PURCHASE THE QUALIFYING PROPERTY IS LIMITED
TO PRESERVING OR CONVERTING THE QUALIFYING PROPERTY FOR
LONG
-TERM AFFORDABLE HOUSING BY THE LOCAL GOVERNMENT OR
ANOTHER PUBLIC OR PRIVATE ENTITY THAT THE LOCAL GOVERNMENT
ASSIGNS ITS RIGHTS TO UNDER THIS PART
12, OR THAT THE LOCAL
GOVERNMENT TRANSFERS THE QUALIFYING PROPERTY TO
.
PAGE 3-HOUSE BILL 23-1190 (II) IN EXERCISING ITS RIGHT OF FIRST REFUSAL SET FORTH IN
SUBSECTION
(1)(a)(I) OF THIS SECTION AND IN THIS PART 12, A LOCAL
GOVERNMENT MAY PARTNER WITH A NONPROFIT ENTITY
, A PRIVATE ENTITY,
OR ANOTHER GOVERNMENTAL ENTITY TO CO -FINANCE, LEASE, OR MANAGE
THE QUALIFYING PROPERTY FOR THE PUBLIC PURPOSE OF MAINTAINING THE
QUALIFYING PROPERTY AS LONG
-TERM AFFORDABLE HOUSING IF THE LOCAL
GOVERNMENT OR ITS ASSIGNEE MAINTAINS OWNERSHIP OF THE QUALIFYING
PROPERTY
.
(b) A
NY PURCHASE AND SALE AGREEMENT FOR THE CONVEYANCE OF
A QUALIFYING PROPERTY BY A RESIDENTIAL SELLER IS CONTINGENT UPON
THE RIGHT OF FIRST REFUSAL SET FORTH IN THIS PART
12.
(c) (I) I
F THE LOCAL GOVERNMENT PROVIDES NOTICE PURSUANT TO
SUBSECTION
(3)(a)(I) OF THIS SECTION TO A RESIDENTIAL SELLER THAT THE
LOCAL GOVERNMENT MAY EXERCISE ITS RIGHTS UNDER THIS PART
12, THE
RESIDENTIAL SELLER SHALL NOT PROCEED WITH THE SALE OF THE
QUALIFYING PROPERTY TO ANY OTHER PARTY AND THE LOCAL GOVERNMENT
SHALL HAVE A RIGHT TO MAKE AN OFFER THAT IS EC ONOMICALLY
SUBSTANTIALLY IDENTICAL TO AN ACCEPTABLE OFFER ON THE QUALIFYING
PROPERTY THAT IS IDENTIFIED BY THE RESIDENTIAL SELLER AS REQUIRED BY
SUBSECTION
(2)(d)(I)(B) OF THIS SECTION.
(II) F
OR THE PURPOSE OF DETERMINING WHETHER THE TERMS OF AN
OFFER BY A THIRD PARTY AND AN OFFER BY THE LOCAL GOVERNMENT ARE
ECONOMICALLY SUBSTANTIALLY IDENTICAL
, IT IS IMMATERIAL HOW THE
OFFER WOULD BE FINANCED
. FOR PURPOSES OF THIS PART 12, A RESIDENTIAL
SELLER SHALL NEGOTIATE IN GOOD FAITH WITH THE LOCAL GOVERNMENT
THAT MAKES AN OFFER THAT IS ECONOMICALLY SUBSTANTIALLY IDENTICAL
TO AN ACCEPTABLE OFFER ON THE QUALIFYING PROPERTY THAT IS
IDENTIFIED BY THE RESIDENTIAL SELLER AS REQUIRED BY SUBSECTION
(2)(d)(I)(B) OF THIS SECTION FOR THE SALE OF THE QUALIFYING PROPERTY
WHICH INCLUDES
, BUT IS NOT LIMITED TO EVALUATING AN OFFER FROM THE
LOCAL GOVERNMENT OR ITS ASSIGNEE WITHOUT CONSIDERATION OF
:
(A) T
HE TIME PERIOD FOR CLOSING;
(B) T
HE TYPE OF FINANCING OR PAYMENT METHOD ;
(C) W
HETHER OR NOT THE OFFER IS CONTINGENT ON FINANCING OR
PAGE 4-HOUSE BILL 23-1190 PAYMENT METHOD; AND
(D) WHETHER OR NOT THE OFFER IS CONTINGENT ON AN APPRAISAL ,
INSPECTION, OR REVIEW OF TITLE, OBTAINING TITLE INSURANCE, OR OTHER
CUSTOMARY CONDITIONS FOR THE SALE OF SIMILAR PROPERTY
.
(III) I
F THE RESIDENTIAL SELLER REJECTS THE OFFER MADE BY THE
LOCAL GOVERNMENT
, THE RESIDENTIAL SELLER SHALL PROVIDE A WRITTEN
EXPLANATION OF THE REJECTION AND SHALL INVITE THE LOCAL
GOVERNMENT TO MAKE A SUBSEQUENT OFFER BY IDENTIFYING THE TERMS
AND CONDITIONS THAT MUST BE INCLUDED IN THE SUBSEQUENT OFFER FOR
THE RESIDENTIAL SELLER TO POTENTIALLY ACCEPT THE SUBSEQUENTLY
MADE OFFER BY THE LOCAL GOVERNMENT
. A RESIDENTIAL SELLER SHALL
NOT COLLUDE WITH A POTENTIAL BUYER FOR THE PRIMARY PURPOSE OF
INFLATING A SALES PRICE ABOVE THE MARKET PRICE OF A QUALIFYING
PROPERTY
.
(d) A
T ANY TIME THE LOCAL GOVERNMENT MAY ASSIGN ITS RIGHTS
REGARDING A QUALIFYING PROPERTY UNDER THIS PART
12 TO A HOUSING
AUTHORITY THAT IS WITHIN THE LOCAL GOVERNMENT
'S JURISDICTION, A
REGIONAL HOUSING AUTHORITY THAT SERVES THE LOCAL GOVERNMENT
'S
JURISDICTION
, OR THE COLORADO HOUSING AND FINANCE AUTHORITY ,
CREATED IN SECTION 29-4-704 (1), SUBJECT TO THE LIMITATIONS THAT THE
QUALIFYING PROPERTY MUST BE USED TO PRESERVE OR BE CONVERTED FOR
LONG
-TERM AFFORDABLE HOUSING AND THAT ALL OTHER PROVISIONS OF
THIS PART
12 ARE APPLICABLE TO THE ASSIGNEE. UPON ASSIGNMENT, THE
ASSIGNEE ASSUMES ALL LIABILITY OF THE LOCAL GOVERNMENT REGARDING
THE EXERCISE OF RIGHTS UNDER THIS PART
12 AND IS RESPONSIBLE FOR
PERFORMING ALL REQUIREMENTS UNDER THIS PART
12 WITH RESPECT TO A
QUALIFYING PROPERTY AS IF THE ASSIGNEE WERE THE LOCAL GOVERNMENT
.
T
HE ASSIGNEE MUST NOTIFY THE RESIDENTIAL SELLER OF THE ASSIGNMENT
IF THE LOCAL GOVERNMENT HAS ALREADY SENT THE RESIDENTIAL SELLER
NOTICE PURSUANT TO SUBSECTION
(3)(a) OF THIS SECTION.
(e) I
F A QUALIFYING PROPERTY IS CLASSIFIED AS MIXED -USE, THE
LOCAL GOVERNMENT
'S RIGHTS UNDER THIS PART 12 SHALL ONLY EXTEND TO
THE PORTION OF THE QUALIFYING PROPERTY THAT IS RESIDENTIAL
, BUT
NOTHING IN THIS PART
12 EXCLUDES THE LOCAL GOVERNMENT FROM
INCLUDING THE PURCHASE OF ANY COMMERCIAL PORTION OF THE
QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT IN THE TERMS OF THE
PAGE 5-HOUSE BILL 23-1190 SALE AT THE DISCRETION OF THE LOCAL GOVERNMENT .
(f) T
HE GOVERNING BODY OF THE LOCAL GOVERNMENT MAY ELECT
TO DISCLAIM ANY RIGHTS PROVIDED UNDER THIS PART
12 WITH RESPECT TO
ANY PROPOSED TRANSACTION OR FOR ANY DURATION OF TIME
.
(g) A
LOCAL GOVERNMENT THAT HAS NOT FULLY DISCLAIMED ALL
RIGHTS UNDER THIS PART
12 PURSUANT TO SECTION 29-4-1203 (3) SHALL
POST A NOTICE IN A CONSPICUOUS LOCATION ON ITS WEBSITE THAT INFORMS
RESIDENTIAL SELLERS THAT QUALIFYING PROPERTIES
, IF SOLD, MAY BE
SUBJECT TO A RIGHT OF FIRST REFUSAL FOR PURCHASE BY THE LOCAL
GOVERNMENT AT A PRICE AGREED UPON BY THE RESIDENTIAL SELLER
.
(h) T
HE LOCAL GOVERNMENT MAY CREATE A RIGHT OF FIRST
REFUSAL OPPORTUNITY EVALUATION RUBRIC BASED ON LOCAL HOUSING
NEEDS TO DETERMINE WHEN IT MAY OR MAY NOT EXERCISE ITS RIGHT OF
FIRST REFUSAL UNDER THIS PART
12. SUCH A RUBRIC MAY CONSIDER
GEOGRAPHY
, ACQUISITION COST, PROXIMITY TO AMENITIES, UNIT COUNT,
AND OTHER LOCAL PRIORITIES. FOR QUALIFYING PROPERTIES THAT DO NOT
ALIGN WITH THE LOCAL PRIORITIES IDENTIFIED IN THE RUBRIC
, THE LOCAL
GOVERNMENT SHOULD EXPEDITIOUSLY WAIVE ITS RIGHT OF FIRST REFUSAL
TO SUCH QUALIFYING PROPERTIES
.
(2) Notice by residential seller. (a) W
ITHIN FOURTEEN CALENDAR
DAYS OF A TRIGGERING EVENT DEMONSTRATING A RESIDENTIAL SELLER
'S
INTENT TO SELL THE QUALIFYING PROPERTY
, A RESIDENTIAL SELLER SHALL
PROVIDE NOTICE TO THE GOVERNING BODY OF THE LOCAL GOVERNMENT IN
WHICH THE QUALIFYING PROPERTY IS LOCATED
. THE NOTICE MUST BE GIVEN
IN ACCORDANCE WITH SUBSECTION
(2)(d) OF THIS SECTION.
(b) A
TRIGGERING EVENT REQUIRING NOTICE UNDER THIS
SUBSECTION
(2) INCLUDES ANY TIME THE RESIDENTIAL SELLER :
(I) S
IGNS A CONTRACT WITH A REAL ESTATE BROKER OR BROKERAGE
FIRM TO LIST THE QUALIFYING PROPERTY FOR SALE OR TO SELL OR TRANSFER
THE QUALIFYING PROPERTY
;
(II) S
IGNS A LETTER OF INTENT, OPTION TO SELL OR BUY, OR OTHER
CONDITIONAL WRITTEN AGREEMENT WITH A POTENTIAL BUYER FOR THE SALE
OR TRANSFER OF THE QUALIFYING PROPERTY
, WHICH INCLUDES THE
PAGE 6-HOUSE BILL 23-1190 ESTIMATED PRICE, TERMS, AND CONDITIONS OF THE PROPOSED SALE OR
TRANSFER
, EVEN IF THE PRICE, TERMS, OR CONDITIONS ARE SUBJECT TO
CHANGE
;
(III) S
IGNS A CONTRACT WITH A POTENTIAL BUYER 'S REAL ESTATE
BROKER OR BROKERAGE FIRM RELATED TO THE POTENTIAL SALE OR
TRANSFER OF THE QUALIFYING PROPERTY
;
(IV) P
ROVIDES A SIGNED PROPERTY DISCLOSURE FORM FOR THE
QUALIFYING PROPERTY TO A POTENTIAL BUYER
;
(V) L
ISTS THE QUALIFYING PROPERTY FOR SALE;
(VI) M
AKES A CONDITIONAL ACCEPTANCE OF AN OFFER FOR THE
SALE OR TRANSFER OF THE QUALIFYING PROPERTY
;
(VII) T
AKES ANY OTHER ACTION DEMONSTRATING AN INTENT TO
SELL THE QUALIFYING PROPERTY
; EXCEPT THAT ANY ACTION TAKEN TO
ENGAGE WITH A POLITICAL SUBDIVISION OR A HOUSING AUTHORITY IN THE
STATE TO FACILITATE NEGOTIATIONS BETWEEN THE RESIDENTIAL SELLER
AND A THIRD
-PARTY TO CREATE OR PRESERVE LONG -TERM AFFORDABLE
HOUSING FOR A QUALIFYING PROPERTY IS NOT CONSIDERED A TRIGGERING
EVENT UNTIL ANOTHER ACTION SET FORTH IN THIS SUBSECTION
(2)(b)
OCCURS;
(VIII) R
ECEIVES A NOTICE THAT A CERTIFICATE OF LEVY HAS BEEN
FILED RELATED TO THE QUALIFYING PROPERTY PURSUANT TO SECTION
13-56-101; OR
(IX) THE POTENTIAL SALE TO A THIRD-PARTY BUYER PURSUANT TO
SECTION
29-4-1203 (2) TERMINATES.
(c) A
RESIDENTIAL SELLER DOES NOT NEED TO PROVIDE A
SUBSEQUENT NOTICE TO THE LOCAL GOVERNMENT UNLESS THE TERMS OF AN
ACCEPTABLE SALE MATERIALLY CHANGE
. IF THE TERMS OF AN ACCEPTABLE
SALE MATERIALLY CHANGE
, THE RESIDENTIAL SELLER SHALL PROVIDE A
SUBSEQUENT NOTICE TO THE LOCAL GOVERNMENT
. FOR PURPOSES OF THIS
SUBSECTION
(2)(c), ANY CHANGE IN THE PRICE OF A WRITTEN OFFER THE
RESIDENTIAL SELLER HAS RECEIVED ON THE QUALIFYING PROPERTY OR ANY
CHANGE IN THE PRICE OF AN ACCEPTABLE WRITTEN OFFER ON THE
PAGE 7-HOUSE BILL 23-1190 QUALIFYING PROPERTY IS A MATERIAL CHANGE . FOR PURPOSES OF THIS
SUBSECTION
(2)(c), A MATERIAL CHANGE OCCURS IF THE SALE PRICE OF A
QUALIFYING PROPERTY CHANGES BY AT LEAST NINETY PERCENT FROM THE
SALE PRICE THAT WAS PREVIOUSLY PROVIDED IN ANY NOTICE THE
RESIDENTIAL SELLER IS REQUIRED TO PROVIDE TO THE LOCAL GOVERNMENT
PURSUANT TO THIS SECTION
.
(d) (I) T
HE NOTICE GIVEN PURSUANT TO THIS SUBSECTION (2) MUST
BE DELIVERED TO THE CLERK OF THE GOVERNING BODY OF THE LOCAL
GOVERNMENT BY ELECTRONIC MAIL DELIVERY
; EXCEPT THAT, IF THERE IS
NOT AN ELECTRONIC MAILING ADDRESS AVAILABLE FOR THE CLERK
, THEN BY
HAND DELIVERY
, UNITED STATES FIRST CLASS MAIL, OR OVERNIGHT
DELIVERY AND MUST INCLUDE
:
(A) A
GENERAL DESCRIPTION OF THE QUALIFYING PROPERTY TO BE
PURCHASED
, INCLUDING THE ADDRESS AND NAME OF THE PROPERTY , IF ANY,
AND ANY ADDITIONAL DESCRIPTIONS OF THE QUALIFYING PROPERTY ON FILE
WITH THE OFFICE OF THE ASSESSOR IN THE COUNTY IN WHICH THE
QUALIFYING PROPERTY IS LOCATED
;
(B) T
HE PRICE, TERMS, AND CONDITIONS OF AN ACCEPTABLE OFFER
THE RESIDENTIAL SELLER HAS RECEIVED TO SELL THE QUALIFYING PROPERTY
OR THE PRICE
, TERMS, AND CONDITIONS FOR WHICH THE RESIDENTIAL SELLER
INTENDS TO SELL THE QUALIFYING PROPERTY
;
(C) A
NY TERMS OR CONDITIONS WHICH , IF NOT MET, WOULD BE
SUFFICIENT GROUNDS
, IN THE RESIDENTIAL SELLER'S DISCRETION AND IN
COMPLIANCE WITH THIS PART
12 AND ANY OTHER APPLICABLE LAW , TO
REJECT AN OFFER
;
(D) I
F THE RESIDENTIAL SELLER HAS ENTERED INTO A CONTINGENT
PURCHASE AND SALE AGREEMENT WITH A PROSPECTIVE BUYER
, A COPY OF
THE AGREEMENT
;
(E) T
HE RESIDENTIAL SELLER'S ADDRESS AND, IF AVAILABLE,
ELECTRONIC MAILING ADDRESS TO RECEIVE NOTICES FROM THE LOCAL
GOVERNMENT
; AND
(F) THE NAMES AND MAILING ADDRESSES THAT THE RESIDENTIAL
SELLER HAS ON RECORD FOR EVERY TENANT RESIDING IN THE QUALIFYING
PAGE 8-HOUSE BILL 23-1190 PROPERTY.
(II) T
HE PRICE, TERMS, AND CONDITIONS STATED IN THE NOTICE
MUST BE UNIVERSAL AND APPLICABLE TO ALL POTENTIAL BUYERS AND MUST
NOT BE SPECIFIC TO OR PROHIBITIVE OF THE LOCAL GOVERNMENT MAKING
A SUCCESSFUL OFFER TO PURCHASE THE QUALIFYING PROPERTY
, MUST NOT
BE UNLAWFUL
, AND MUST NOT INHIBIT THE EXERCISE OF THE RIGHTS
PROVIDED UNDER THIS PART
12.
(III) T
HE LOCAL GOVERNMENT MAY SHARE THE INFORMATION
CONTAINED IN THE NOTICE WITH ITS OFFICERS
, EMPLOYEES, AGENTS, AND
PROSPECTIVE ASSIGNEES OR A PROSPECTIVE ENTITY THE LOCAL
GOVERNMENT PARTNERS WITH PURSUANT TO SUBSECTION
(1)(a)(II) OF THIS
SECTION FOR THE PURPOSES OF EVALUATING OR OBTAINING FINANCING FOR
THE PROSPECTIVE TRANSACTION
. THE INFORMATION CONTAINED IN THE
NOTICE MUST BE KEPT CONFIDENTIAL IF THE RESIDENTIAL SELLER SO
REQUESTS AND IS CONFIDENTIAL INFORMATION NOT SUBJECT TO PUBLIC
DISCLOSURE
; EXCEPT THAT THE OCCURRENCE OF A TRIGGERING EVENT , THE
LOCATION OF THE QUALIFYING PROPERTY
, AND THE IDENTITY OF THE
RESIDENTIAL SELLER ARE NOT CONFIDENTIAL AND ARE SUBJECT TO PUBLIC
DISCLOSURE
. NOTHING IN THIS SECTION REQUIRES A LOCAL GOVERNMENT TO
EXERCISE ITS RIGHTS UNDER THIS PART
12.
(e) (I) P
RIOR TO THE SALE OF A QUALIFYING PROPERTY , A
RESIDENTIAL SELLER SHALL EXECUTE AND RECORD IN THE REAL PROPERTY
RECORDS OF THE COUNTY IN WHICH THE QUALIFYING PROPERTY IS LOCATED
AN AFFIDAVIT CERTIFYING UNDER PENALTY OF PERJURY THAT THE
REQUIREMENTS OF THIS PART
12 HAVE BEEN SATISFIED, AND STATE WITH
RESPECT TO SUCH SALE EITHER THAT
:
(A) T
HE RIGHTS AND PROPERTY INTERESTS OF THE LOCAL
GOVERNMENT UNDER THIS PART
12 HAVE EXPIRED OR HAVE BEEN RELEASED
OR WAIVED
; OR
(B) THAT THE PURCHASER IS THE LOCAL GOVERNMENT OR ITS
ASSIGNEE UNDER THIS PART
12.
(II) A
NY PARTY THAT ACQUIRES AN INTEREST IN THE QUALIFYING
PROPERTY AND A TITLE INSURANCE ENTITY AS DEFINED IN SECTION
10-11-102 (11) SHALL HAVE AN ABSOLUTE RIGHT TO RELY ON THE TRUTH
PAGE 9-HOUSE BILL 23-1190 AND ACCURACY OF ALL STATEMENTS IN THE AFFIDAVIT MADE PURSUANT TO
SUBSECTION
(2)(e)(I) OF THIS SECTION AND SHALL NOT BE LIABLE IN LAW OR
EQUITY
, INCLUDING UNDER ANY POLICY OR AGREEMENT OF TITLE INSURANCE
AS DEFINED IN SECTION
10-11-102 (8), FOR A RESIDENTIAL SELLER 'S
MISREPRESENTATION IN THE AFFIDAVIT
.
(3) Notice by the local government. (a) (I) T
HE LOCAL
GOVERNMENT SHALL PROVIDE NOTICE TO THE RESIDENTIAL SELLER WITHIN
SEVEN CALENDAR DAYS OF RECEIPT OF THE NOTICE REQUIRED PURSUANT TO
SUBSECTION
(2) OF THIS SECTION OF THE LOCAL GOVERNMENT 'S INTENT TO
PRESERVE ITS RIGHTS UNDER THIS PART
12. IF THE LOCAL GOVERNMENT
PLANS TO ASSIGN ITS RIGHTS UNDER THIS PART
12 IN ACCORDANCE WITH
SUBSECTION
(1)(d) OF THIS SECTION, THE LOCAL GOVERNMENT MUST
DISCLOSE THE POTENTIAL ASSIGNEE IN THE NOTICE
. THE NOTICE MUST BE
DELIVERED BY ELECTRONIC MAIL DELIVERY
; EXCEPT THAT, IF THE
RESIDENTIAL SELLER HAS NOT PROVIDED AN ELECTRONIC MAILING ADDRESS
,
THEN BY HAND DELIVERY, UNITED STATES FIRST CLASS MAIL, OR OVERNIGHT
DELIVERY TO THE ADDRESS PROVIDED BY THE RESIDENTIAL SELLER
PURSUANT TO SUBSECTION
(2)(d)(I)(E) OF THIS SECTION.
(II) T
HE NOTICE GIVEN PURSUANT TO SUBSECTION (3)(a)(I) OF THIS
SECTION IS NONBINDING ON THE LOCAL GOVERNMENT
.
(III) I
F NO NOTICE IS GIVEN BY THE LOCAL GOVERNMENT OR IF THE
LOCAL GOVERNMENT FAILS TO MAKE AN OFFER WITHIN THE TIME PERIOD
PROVIDED IN AND IN ACCORDANCE WITH SUBSECTION
(4) OF THIS SECTION,
THE RIGHTS UNDER THIS PART 12 EXPIRE AND THE RESIDENTIAL SELLER MAY
PROCEED WITH THE SALE OF THE QUALIFYING PROPERTY TO A BUYER OF
THEIR CHOOSING
.
(b) (I) U
PON GIVING NOTICE TO A RESIDENTIAL SELLER PURSUANT TO
SUBSECTION
(3)(a) OF THIS SECTION, THE LOCAL GOVERNMENT SHALL
PROVIDE NOTICE TO EACH RESIDENT OF THE QUALIFYING PROPERTY WHO IS
IDENTIFIED IN THE SELLER
'S NOTICE PROVIDED IN SUBSECTION (2)(d)(I)(F)
OF THIS SECTION INFORMING THE RESIDENT THAT THERE IS INTEREST BY THE
LOCAL GOVERNMENT OR AN ASSIGNEE IN PURCHASING THE QUALIFYING
PROPERTY AND PROVIDING A DATE
, TIME, AND LOCATION THAT THE LOCAL
GOVERNMENT WILL HOLD A MEETING FOR RESIDENTS TO ATTEND FOR
INFORMATION REGARDING A POTENTIAL PURCHASE OF THE PROPERTY BY THE
LOCAL GOVERNMENT IN ACCORDANCE WITH SUBSECTION
(3)(d) OF THIS
PAGE 10-HOUSE BILL 23-1190 SECTION.
(II) T
HE LOCAL GOVERNMENT SHALL PROVIDE A SECOND NOTICE TO
THE RESIDENTS OF A QUALIFYING PROPERTY UPON THE EXECUTION OF AN
AGREEMENT FOR THE SALE AND PURCHASE OF THE QUALIFYING PROPERTY
PURSUANT TO SUBSECTION
(4) OF THIS SECTION.
(III) T
HE LOCAL GOVERNMENT SHALL PROVIDE A THIRD NOTICE TO
THE RESIDENTS OF A QUALIFYING PROPERTY UPON THE CLOSING OF A SALE
FOR THE QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT PURSUANT TO
SUBSECTION
(4) OF THIS SECTION. THE NOTICE MUST INCLUDE CONTACT
INFORMATION FOR THE ENTITY THAT WILL PROVIDE MANAGEMENT SERVICES
TO THE QUALIFYING PROPERTY
.
(c) T
HE LOCAL GOVERNMENT SHALL MAIL THE NOTICES REQUIRED
PURSUANT TO SUBSECTION
(3)(b) OF THIS SECTION TO THE RESIDENTS OF A
QUALIFYING PROPERTY USING THE MOST RECENT ADDRESS OF EACH
RESIDENT
. THE RESIDENTIAL SELLER SHALL PROVIDE UPDATED MAILING
ADDRESSES FOR RESIDENTS UPON REQUEST OF THE LOCAL GOVERNMENT
.
T
HE LOCAL GOVERNMENT SHALL ALSO POST A COPY OF THE NOTICES IN A
CONSPICUOUS PLACE IN THE QUALIFYING PROPERTY
. THE NOTICES MUST BE
PROVIDED IN
ENGLISH, SPANISH, AND ANY OTHER LANGUAGE KNOWN TO BE
SPOKEN BY RESIDENTS AT THE QUALIFYING PROPERTY
.
(d) T
HE MEETING HELD BY THE LOCAL GOVERNMENT AS REQUIRED
BY SUBSECTION
(3)(b)(I) OF THIS SECTION MUST BE IN AN ACCESSIBLE SPACE,
AND SPANISH TRANSLATION SERVICES AND, IF AVAILABLE, VIRTUAL MEETING
OPTIONS MUST BE PROVIDED AT NO COST TO THE RESIDENTS
.
(4) E
XCEPT AS OTHERWISE PROVIDED IN SUBSECTION (5)(b) OF THIS
SECTION FOR ALLOWABLE TOLLING PERIODS
, THE LOCAL GOVERNMENT HAS
THIRTY CALENDAR DAYS FROM PROVIDING NOTICE PURSUANT TO
SUBSECTION
(3)(a) OF THIS SECTION TO MAKE AN OFFER TO PURCHASE THE
QUALIFYING PROPERTY AND SHALL AGREE TO CLOSE ON THE QUALIFYING
PROPERTY WITHIN SIXTY CALENDAR DAYS
, TO THE EXTENT PRACTICABLE,
AND NOT MORE THAN NINETY CALENDAR DAYS OF THE EXECUTION OF AN
AGREEMENT FOR THE SALE AND PURCHASE OF THE QUALIFYING PROPERTY
.
T
HE AGREEMENT MAY INCLUDE , AT THE RESIDENTIAL SELLER'S OPTION, A
PROVISION THAT REQUIRES THE LOCAL GOVERNMENT TO BE LIABLE TO THE
RESIDENTIAL SELLER FOR THE FAIR MARKET VALUE OF ANY LOST BENEFIT OF
PAGE 11-HOUSE BILL 23-1190 THE QUALIFYING PROPERTY THAT IS CAUSED BY THE LOCAL GOVERNMENT
MATERIALLY BREACHING OR DEFAULTING ON THE AGREEMENT IN A MANNER
THAT IS NOT CURED BY THE LOCAL GOVERNMENT UNDER THE TERMS OF THE
AGREEMENT AND IN A MANNER THAT ALLOWS THE RESIDENTIAL SELLER TO
TERMINATE THE AGREEMENT
.
(5) (a) I
F THE LOCAL GOVERNMENT OR ITS ASSIGNEE RECEIVES A
SUBSEQUENT NOTICE FROM A RESIDENTIAL SELLER AS REQUIRED BY
SUBSECTION
(2)(c) OF THIS SECTION, THE LOCAL GOVERNMENT OR ITS
ASSIGNEE SHALL
:
(I) P
ROVIDE A NOTICE OF INTENT IN ACCORDANCE WITH SUBSECTION
(3)(a)(I) OF THIS SECTION; EXCEPT THAT THE NOTICE OF INTENT DOES NOT
NEED TO BE PROVIDED AGAIN IF THE LOCAL GOVERNMENT OR ITS ASSIGNEE
HAS PREVIOUSLY PROVIDED A NOTICE OF INTENT
;
(II) M
AKE AN OFFER TO PURCHASE THE QUALIFYING PROPERTY
WITHIN TWENTY
-ONE CALENDAR DAYS OF RECEIPT OF THE SUBSEQUENT
NOTICE
; AND
(III) AGREE TO CLOSE ON THE QUALIFYING PROPERTY IN
ACCORDANCE WITH SUBSECTION
(4) OF THIS SECTION.
(b) I
F THE LOCAL GOVERNMENT OR ITS ASSIGNEE DOES NOT MAKE AN
OFFER WITHIN THE TIME PERIOD SET FORTH IN SUBSECTION
(5)(a)(II) OF THIS
SECTION
, THE RIGHTS UNDER THIS PART 12 EXPIRE.
(6) (a) T
HE PERIODS SET FORTH IN SUBSECTION (4) OF THIS SECTION
MAY BE EXTENDED AND ANY TERMS OR CONDITIONS OF SALE MAY BE
MODIFIED BY WRITTEN AGREEMENT BETWEEN THE LOCAL GOVERNMENT AND
THE RESIDENTIAL SELLER
.
(b) T
HE LOCAL GOVERNMENT OR ITS ASSIGNEE IS ENTITLED TO
TOLLING OF THE PERIODS SET FORTH IN SUBSECTION
(4) OF THIS SECTION IN
ANY OF THE FOLLOWING CIRCUMSTANCES
:
(I) I
F THERE IS A REASONABLE DELAY NOT WITHIN THE CONTROL OF
THE LOCAL GOVERNMENT OR ITS ASSIGNEE IN OBTAINING FINANCING OR A
REQUIRED INSPECTION OR SURVEY OF THE QUALIFYING PROPERTY
, THE
PERIOD IS TOLLED FOR THE DURATION OF THE DELAY
; AND
PAGE 12-HOUSE BILL 23-1190 (II) IF THE LOCAL GOVERNMENT , ITS ASSIGNEE, THE ATTORNEY
GENERAL
, OR A MISSION-DRIVEN ORGANIZATION FILES A NONFRIVOLOUS
CIVIL ACTION ALLEGING A VIOLATION OF THIS SECTION
, THE PERIOD IS
TOLLED UNTIL THE ACTION REACHES FINAL RESOLUTION OR THE PARTIES
REACH A RESOLUTION
, INCLUDING THE RESOLUTION OF ANY APPEALS , BY
SIGNING A SETTLEMENT AGREEMENT
.
(7) A
NY ACTION BY THE LOCAL GOVERNMENT REQUIRED OR
PERMITTED UNDER THIS PART
12 MAY BE PERFORMED BY , AS MAY BE
APPLICABLE AND TO THE EXTENT PERMITTED BY LAW
, THE COUNTY
MANAGER OF A COUNTY
, THE MAYOR OR CITY MANAGER OF A CITY OR TOWN ,
OR ANOTHER OFFICER DESIGNATED BY THE GOVERNING BODY OF THE LOCAL
GOVERNMENT
.
(8) A
NY ACTIONS OF AN AGENT WORKING ON BEHALF OF A
RESIDENTIAL SELLER FOR PURPOSES OF THIS PART
12 ARE ATTRIBUTABLE TO
THE RESIDENTIAL SELLER
. NOTWITHSTANDING ANY OTHER PROVISION IN
THIS PART
12 TO THE CONTRARY, A POLITICAL SUBDIVISION OR A HOUSING
AUTHORITY IN THE STATE THAT ENGAGES IN ACTIVITIES TO CREATE OR
PRESERVE LONG
-TERM AFFORDABLE HOUSING FOR A QUALIFYING PROPERTY
IS NOT CONSIDERED AN AGENT WORKING ON BEHALF OF A RESIDENTIAL
SELLER FOR PURPOSES OF THIS PART
12.
(9) (a) T
HE LOCAL GOVERNMENT OR ITS ASSIGNEE SHALL DETERMINE
TENANT QUALIFICATIONS AT ITS DISCRETION
, SO LONG AS SUCH
DETERMINATIONS ARE IN FURTHERANCE OF PROVIDING LONG
-TERM
AFFORDABLE HOUSING FOR COMMUNITY MEMBERS AT OR BELOW THE
APPLICABLE AREA MEDIAN INCOME
.
(b) N
OTWITHSTANDING SECTION 29-4-1201 (4), RESIDENTS AT THE
QUALIFYING PROPERTY AT THE TIME IT IS ACQUIRED BY THE LOCAL
GOVERNMENT PURSUANT TO THIS SECTION MAY CONTINUE TO RESIDE AT THE
QUALIFYING PROPERTY IRRESPECTIVE OF THEIR INCOME LEVEL FOR AT LEAST
THE DURATION OF THEIR TENANCY AGREEMENT UNDER THE TENANCY
AGREEMENT
'S TERMS IN EFFECT AT THE TIME THE LOCAL GOVERNMENT
ACQUIRES THE QUALIFYING PROPERTY
.
(c) A
RESIDENT'S INCOME MAY ONLY EXCEED THE APPLICABLE AREA
MEDIAN INCOME IF THAT RESIDENT HAS A PRE
-EXISTING TENANCY
AGREEMENT IN ACCORDANCE WITH SUBSECTION
(8)(b) OF THIS SECTION.
PAGE 13-HOUSE BILL 23-1190 (d) ONLY IN ACCORDANCE WITH SUBSECTION (8)(c) OF THIS SECTION
MAY THE LOCAL GOVERNMENT DECLINE TO RENEW A RESIDENT
'S
PRE
-EXISTING TENANCY AGREEMENT ONCE IT ENDS IN ORDER TO BRING THE
QUALIFYING PROPERTY INTO COMPLIANCE WITH SUBSECTION
(8)(a) OF THIS
SECTION
.
29-4-1203. Exemptions - waiver of the local government's right
of first refusal. (1) T
HIS PART 12 DOES NOT APPLY TO ANY SALE, TRANSFER,
OR CONVEYANCE OF QUALIFYING PROPERTY BY A RESIDENTIAL SELLER :
(a) M
ADE TO A FAMILY MEMBER, AS DEFINED IN SECTION 8-13.3-503
(11),
OF THE RESIDENTIAL SELLER;
(b) M
ADE TO A TRUST IF THE BENEFICIARIES OF THE TRUST ARE THE
SPOUSE
, PARTNER IN A CIVIL UNION, OR LEGALLY RECOGNIZED CHILD OF THE
RESIDENTIAL SELLER
;
(c) M
ADE TO, IF WHOLLY OWNED BY THE RESIDENTIAL SELLER , A
PARTNERSHIP
, LIMITED LIABILITY COMPANY, OR CORPORATION;
(d) M
ADE PURSUANT TO A WILL , DESCENT, OR INTESTATE
DISTRIBUTION
;
(e) M
ADE FOR TAX OR ESTATE PURPOSES BETWEEN CLOSELY HELD
PARTNERS
, FAMILY MEMBERS, OR CORPORATIONS;
(f) M
ADE PURSUANT TO AN ACTION IN EMINENT DOMAIN ;
(g) M
ADE TO THE STATE, A LOCAL GOVERNMENT, THE COLORADO
HOUSING AND FINANCE AUTHORITY
, CREATED IN SECTION 29-4-704 (1), THE
COLORADO MIDDLE INCOME HOUSING AUTHORITY , CREATED IN SECTION
29-4-1104 (1), AND ANY OTHER POLITICAL SUBDIVISION OF THE STATE ;
(h) M
ADE PURSUANT TO A COURT ORDER ;
(i) M
ADE TO A NOT-FOR-PROFIT MISSION-DRIVEN AFFORDABLE
HOUSING PROVIDER WHO HAS PROVIDED NOTICE OF INTENT TO PURCHASE
THE QUALIFYING PROPERTY
, HAS A HISTORY OF DEVELOPING AFFORDABLE
HOUSING
, AND WHO COMMITS TO PROVIDING TO TENANTS A MAJORITY OF
UNITS BELOW MARKET RATE
;
PAGE 14-HOUSE BILL 23-1190 (j) MADE BETWEEN JOINT TENANTS OR TENANTS IN COMMON ;
(k) I
F, AT THE TIME OF THE EFFECTIVE DATE OF THIS PART 12, THE
QUALIFYING PROPERTY HAS A PREEXISTING AGREEMENT THAT BESTOWS A
RIGHT OF FIRST REFUSAL OR OTHER CONTINGENT PROPERTY RIGHT
REGARDING THE QUALIFYING PROPERTY TO A THIRD PARTY
; EXCEPT THAT,
UPON EXPIRATION OF THE AGREEMENT , THE PROVISIONS OF THIS PART 12
APPLY TO ANY SALE, TRANSFER, OR CONVEYANCE OF THE QUALIFYING
PROPERTY BY THE RESIDENTIAL SELLER
;
(l) I
F THE FIRST CERTIFICATE OF OCCUPANCY FOR THE QUALIFYING
PROPERTY WAS ISSUED WITHIN THIRTY YEARS PRECEDING THE DATE OF A
TRIGGERING EVENT THAT IS SET FORTH IN SECTION
29-4-1202 (2)(b);
(m) I
F THE QUALIFYING PROPERTY IS THE SUBJECT OF A
FORECLOSURE ACTION OR IS ACQUIRED BY A FORECLOSING LENDER IN A
FORECLOSURE ACTION OR BY A DEED IN LIEU OF FORECLOSURE
;
(n) M
ADE TO ANY ORGANIZATION THAT PROVIDES NOTICE TO THE
LOCAL GOVERNMENT
, THAT AGREES TO RESYNDICATE THE QUALIFYING
PROPERTY PURSUANT TO
26 U.S.C. SEC. 42, AND THAT MAINTAINS
AFFORDABILITY FOR AT LEAST THIRTY YEARS FROM THE DATE OF THE
RESYNDICATION THROUGH A L AND USE RESTRICTIVE AGREEMENT ON THE
QUALIFYING PROPERTY
. AS USED IN THIS SUBSECTION (1)(m),
"
AFFORDABILITY" MEANS THAT RENT FOR ANY UNIT IN THE QUALIFYING
PROPERTY DOES NOT EXCEED THE RENT FOR HOUSEHOLDS OF A GIVEN SIZE
AT THE APPLICABLE AREA MEDIAN INCOME
, AS PUBLISHED ANNUALLY BY THE
UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ; OR
(o) IF THE QUALIFYING PROPERTY WILL BE SOLD AND PURCHASED FOR
THE CONTINUED PROVISION OF
, OR WILL BE CONVERTED TO PROVIDE ,
MEDICAL SERVICES, SOCIAL SERVICES, OR HALFWAY HOUSING.
(2) (a) I
N ADDITION TO NOT RESPONDING TO A RESIDENTIAL SELLER 'S
NOTICE AS SET FORTH IN SECTION
29-4-1202 (3)(a)(III) AND THE WAIVER SET
FORTH IN SUBSECTION
(3) OF THIS SECTION, THE LOCAL GOVERNMENT MAY
ALSO WAIVE ITS RIGHTS UNDER THIS PART
12 IF THE LOCAL GOVERNMENT
MAKES THE DETERMINATION THAT A PROPOSED SALE TO A THIRD
-PARTY
BUYER WILL ENSURE THAT
:
PAGE 15-HOUSE BILL 23-1190 (I) THE THIRD-PARTY BUYER AGREES THAT AT LEAST TEN PERCENT
OF THE DWELLING UNITS IN THE QUALIFYING PROPERTY WILL NOT EXCEED
FIFTY PERCENT OF THE AREA MEDIAN INCOME FOR A PERIOD OF FIFTEEN
YEARS
;
(II) T
HE THIRD-PARTY BUYER AGREES THAT AT LEAST TEN PERCENT
OF THE DWELLING UNITS IN THE QUALIFYING PROPERTY WILL NOT EXCEED
SIXTY PERCENT OF THE AREA MEDIAN INCOME FOR A PERIOD OF TWENTY
YEARS
; OR
(III) THE THIRD-PARTY BUYER AGREES THAT AT LEAST TEN PERCENT
OF THE DWELLING UNITS IN THE QUALIFYING PROPERTY WILL NOT EXCEED
EIGHTY PERCENT OF THE AREA MEDIAN INCOME FOR A PERIOD OF THIRTY
YEARS
.
(b) I
N ORDER FOR THE REQUIREMENTS OF SUBSECTION (2)(a) OF THIS
SECTION TO BE MET
:
(I) T
HE RESIDENTIAL SELLER MUST PROVIDE NOTICE TO THE LOCAL
GOVERNMENT PRIOR TO THE LOCAL GOVERNMENT MAKING AN OFFER TO
PURCHASE THE QUALIFYING PROPERTY UNDER SECTION
29-4-1202 THAT THE
THIRD
-PARTY BUYER HAS MADE AN OFFER ON THE QUALIFYING PROPERTY
AND IS COMMITTED TO PRESERVING OR CONVERTING THE QUALIFYING
PROPERTY AS AFFORDABLE HOUSING UNDER EITHER SUBSECTION
(2)(a)(I),
(2)(a)(II),
OR (2)(a)(III) OF THIS SECTION IF THE QUALIFYING PROPERTY IS
SOLD TO THE THIRD
-PARTY BUYER;
(II) T
HE THIRD-PARTY BUYER SHALL ENTER INTO AN AGREEMENT
WITH THE LOCAL GOVERNMENT THAT THE THIRD
-PARTY BUYER SHALL
PRESERVE OR CONVERT THE QUALIFYING PROPERTY AS AFFORDABLE
HOUSING UNDER EITHER SUBSECTION
(2)(a)(I), (2)(a)(II), OR (2)(a)(III) OF
THIS SECTION IF THE QUALIFYING PROPERTY IS SOLD TO THE THIRD
-PARTY
BUYER AND FOR ANY OTHER TERMS TO WHICH THE THIRD
-PARTY BUYER AND
THE LOCAL GOVERNMENT AGREE
. IF, AFTER THE SALE OF THE QUALIFYING
PROPERTY TO THE THIRD
-PARTY BUYER, THE THIRD-PARTY BUYER FAILS TO
COMPLY WITH THE TERMS OF THE AGREEMENT
, THE THIRD-PARTY BUYER
SHALL BE HELD LIABLE AND SUBJECT TO ANY REMEDIES AND ENFORCEMENT
UNDER THE AGREEMENT PURSUANT TO SECTION
29-4-1205 OR UNDER ANY
OTHER APPLICABLE LAW
.
PAGE 16-HOUSE BILL 23-1190 (III) THE THIRD-PARTY BUYER SHALL CERTIFY ITS COMPLIANCE WITH
THIS SUBSECTION
(2) AT LEAST ONCE EVERY TWO YEARS BY SUBMITTING
DOCUMENTATION TO THE LOCAL GOVERNMENT IN A FORM AND MANNER
DEEMED ACCEPTABLE BY THE LOCAL GOVERNMENT
.
(c) T
HE WAIVER PROVIDED UNDER THIS SUBSECTION (2) IS ONLY
EFFECTIVE FOR THE SALE TO THE THIRD
-PARTY BUYER IDENTIFIED IN THE
NOTICE REQUIRED BY SUBSECTION
(2)(b)(I) OF THIS SECTION, AND IF THE
SALE TO THE THIRD
-PARTY BUYER DOES NOT OCCUR THEN THE WAIVER IS
VOID AND THE LOCAL GOVERNMENT IS ENTITLED TO ALL THE RIGHTS
PROVIDED UNDER THIS PART
12.
(3) I
N ADDITION TO NOT RESPONDING TO A RESIDENTIAL SELLER 'S
NOTICE AS SET FORTH IN SECTION
29-4-1202 (3)(a)(III) AND THE WAIVER SET
FORTH IN SUBSECTION
(2) OF THIS SECTION, THE LOCAL GOVERNMENT MAY
ALSO WAIVE ITS RIGHTS UNDER THIS PART
12 IF THE GOVERNING BODY OF
THE LOCAL GOVERNMENT ELECTS TO DISCLAIM ANY RIGHTS PROVIDED
UNDER THIS PART
12 WITH RESPECT TO ANY PROPOSED TRANSACTION OR FOR
ANY DURATION OF TIME
.
29-4-1204. Conversion of qualifying property purchased by the
local government. (1) T
HE LOCAL GOVERNMENT , ITS ASSIGNEE, OR A
THIRD
-PARTY BUYER PURSUANT TO SECTION 29-4-1203 (2), SUBSEQUENT TO
ACQUIRING A QUALIFYING PROPERTY PURSUANT TO THIS PART
12, MAY
CONVERT THE PROPERTY TO A DIFFERENT USE IF
:
(a) T
HE QUALIFYING PROPERTY HAS BEEN MAINTAINED AS
LONG
-TERM AFFORDABLE HOUSING FOR A DURATION OF AT LEAST FIFTY
YEARS
;
(b) A
T LEAST ONE HUNDRED TWENTY CALENDAR DAYS BEFORE THE
CONVERSION
, NOTICE OF THE CONVERSION IS GIVEN TO THE RESIDENTS AT
THE QUALIFYING PROPERTY AND ANY RESIDENT WHO WILL BE DISPLACED BY
THE CONVERSION OF THE QUALIFYING PROPERTY IS PROVIDED WITH
RELOCATION COMPENSATION THAT EQUALS TWELVE MONTHS OF THE
RESIDENT
'S CURRENT RENT OR TWELVE MONTHS MARKET RENT FOR THE
COUNTY IN WHICH THE QUALIFYING PROPERTY IS LOCATED
, WHICHEVER IS
GREATER
; AND
(c) THE LOCAL GOVERNMENT , ITS ASSIGNEE, OR A THIRD-PARTY
PAGE 17-HOUSE BILL 23-1190 BUYER PURSUANT TO SECTION 29-4-1203 (2), GUARANTEES THE
DEVELOPMENT OR CONVERSION OF AN EQUAL OR GREATER AM OUNT OF
UNITS WITHIN THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING
PROPERTY IS LOCATED FOR DESIGNATED LONG
-TERM AFFORDABLE HOUSING
AS SET FORTH UNDER THIS PART
12 AND GUARANTEES THAT THE UNITS WILL
BE OFFERED TO ANY RESIDENT WHO WILL BE DISPLACED BY THE CONVERSION
OF THE QUALIFYING PROPERTY BEFORE THE UNITS ARE MADE AVAILABLE TO
THE GENERAL PUBLIC
.
(2) N
OTHING WITHIN THIS PART 12 LIMITS THE LOCAL GOVERNMENT'S
ABILITY TO CONDEMN A QUALIFYING PROPERTY ACQUIRED PURSUANT TO
THIS PART
12 TO THE EXTENT PERMITTED BY APPLICABLE LAW .
29-4-1205. Remedies for noncompliance - definitions.
(1) (a) (I) N
OTWITHSTANDING SUBSECTION (1)(c) OF THIS SECTION AND
SUBJECT TO AVAILABILITY OF RESOURCES
, IT IS THE RESPONSIBILITY OF THE
ATTORNEY GENERAL
'S OFFICE TO ENFORCE THE PROVISIONS OF THIS PART 12,
AND THE ATTORNEY GENERAL MAY INTERVENE IN ANY ACTION BROUGHT
PURSUANT TO SUBSECTION
(1)(c) OF THIS SECTION. ANY TITLE TRANSFERRED
SUBSEQUENT TO THE TRIGGERING EVENTS SET FORTH IN SECTION
29-4-1202
(2)(b)
REMAINS SUBJECT TO THE PROPERTY INTERESTS OF THE LOCAL
GOVERNMENT IN A QUALIFYING PROPERTY AS SET FORTH IN SUBSECTION
(1)(b) OF THIS SECTION, UNLESS SUCH PROPERTY INTERESTS HAVE EXPIRED ,
ARE RELEASED OR WAIVED , OR UNTIL AN EQUITABLE REMEDY HAS BEEN
PROVIDED
.
(II) N
OTWITHSTANDING SUBSECTION (1)(a)(I) OF THIS SECTION OR
ANY OTHER PROVISION OF THIS PART
12:
(A) I
N ADDITION TO THE REMEDIES SET FORTH IN SUBSECTION (3) OF
THIS SECTION
, IF A COURT FINDS THAT A RESIDENTIAL SELLER HAS MADE A
MISREPRESENTATION IN AN AFFIDAVIT MADE IN ACCOR DANCE WITH SECTION
29-4-1202 (2)(e), THE SOLE REMEDY AVAILABLE IS AGAINST THE
RESIDENTIAL SELLER
; AND
(B) THE INTEREST IN A QUALIFYING PROPERTY TRANSFERRED IN
RELIANCE ON AN AFFIDAVIT MADE IN ACCORDANCE WITH SECTION
29-4-1202
(2)(e)
IS NOT SUBJECT TO THE PROPERTY INTERESTS OF THE LOCAL
GOVERNMENT IN THE QUALIFYING PROPERTY
.
PAGE 18-HOUSE BILL 23-1190 (b) THE RIGHTS ACCORDED BY THIS PART 12 TO THE LOCAL
GOVERNMENT WITH RESPECT TO A QUALIFYING PROPERTY ARE PROPERTY
INTERESTS
.
(c) T
HE ATTORNEY GENERAL 'S OFFICE, THE LOCAL GOVERNMENT ,
THE LOCAL GOVERNMENT 'S ASSIGNEE, OR A MISSION-DRIVEN ORGANIZATION
ON BEHALF OF THE STATE MAY BRING A CIVIL ACTION AGAINST A
RESIDENTIAL SELLER OR A PERSON CLAIMING AN INTEREST IN A QUALIFYING
PROPERTY THROUGH A RESIDENTIAL SELLER FOR ANY VIOLATION OF THIS
PART
12.
(2) A
COURT MAY GRANT INJUNCTIVE RELIEF FOR ANY VIOLATIONS
OF THIS PART
12 BY A RESIDENTIAL SELLER OR A PERSON CLAIMING AN
INTEREST IN A QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER
OCCURRING AFTER A TRIGGERING EVENT PURSUANT TO SECTION
29-4-1202
(2)(b).
(3) I
F A COURT FINDS THAT A RESIDENTIAL SELLER , OR A
THIRD
-PARTY BUYER THAT HAS ENTERED INTO AN AGREEMENT WITH THE
LOCAL GOVERNMENT PURSUANT TO SECTION
29-4-1203 (2), IS IN MATERIAL
VIOLATION OF THIS PART
12, IN ADDITION TO ANY OTHER AVAILABLE
REMEDY
, THE COURT SHALL AWARD A STATUTORY PENALTY OF NOT LESS
THAN FIFTY THOUSAND DOLLARS OR AN AMOUNT EQUAL TO THIRTY PERCENT
OF THE PURCHASE OR LISTING PRICE OF THE QUALIFYING PROPERTY
,
WHICHEVER AMOUNT IS GREATER .
(4) A
COURT MAY ALSO AWARD DAMAGES , REASONABLE ATTORNEY
FEES
, AND COSTS TO A PREVAILING PARTY ; EXCEPT THAT, IN AN ACTION
BROUGHT OR JOINED BY THE ATTORNEY GENERAL
'S OFFICE, THE LOCAL
GOVERNMENT
, THE LOCAL GOVERNMENT'S ASSIGNEE, OR A MISSION-DRIVEN
ORGANIZATION
, A COURT SHALL NOT AWARD ATTORNEY FEES TO A
RESIDENTIAL SELLER OR PERSON CLAIMING AN INTEREST IN A QUALIFYING
PROPERTY THROUGH A RESIDENTIAL SELLER UNLESS THE COURT FINDS THAT
THE COMPLAINT FILED BY THE ATTORNEY GENERAL
'S OFFICE, THE LOCAL
GOVERNMENT
, THE LOCAL GOVERNMENT'S ASSIGNEE, OR A MISSION-DRIVEN
ORGANIZATION WAS FRIVOLOUS
, NOTWITHSTANDING ANY AGREEMENT TO
THE CONTRARY
.
(5) T
HE REMEDIES PROVIDED IN THIS SECTION ARE INDEPENDENT OF
AND DO NOT AFFECT ANY CIVIL ACTION AND REMEDIES OR THE RIGHT OF ANY
PAGE 19-HOUSE BILL 23-1190 PARTY TO ANY TRANSACTION CONTEMPLATED UNDER THIS PART 12.
29-4-1206. Repeal of part. T
HIS PART 12 IS REPEALED, EFFECTIVE
AUGUST 1, 2028.
SECTION 2. Act subject to petition - effective date -
applicability. (1) This act takes effect at 12:01 a.m. on the day following
the expiration of the ninety-day period after final adjournment of the
general assembly; except that, if a referendum petition is filed pursuant to
section 1 (3) of article V of the state constitution against this act or an item,
section, or part of this act within such period, then the act, item, section, or
part will not take effect unless approved by the people at the general
election to be held in November 2024 and, in such case, will take effect on
the date of the official declaration of the vote thereon by the governor.
PAGE 20-HOUSE BILL 23-1190 (2) This act applies to all qualifying properties which are listed for
sale but are not under contract on or after the applicable effective date of
this act.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 21-HOUSE BILL 23-1190