Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-0096.02 Megan McCall x4215
HOUSE BILL 24-1175
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
C
ONCERNING A LOCAL GOVERNMENT RIGHT OF FIRST REFUSAL OR101
OFFER TO PURCHASE QUALIFYING MULTIFAMILY PROPERTY FOR102
THE PURPOSE OF PROVIDING LONG -TERM AFFORDABLE HOUSING103
OR MIXED-INCOME DEVELOPMENT .104
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 2 property rights for local governments to certain
types of multifamily rental properties: A right of first refusal and a right
of first offer. The right of first offer is temporary and terminates on
HOUSE
3rd Reading Unamended
April 8, 2024
HOUSE
Amended 2nd Reading
April 5, 2024
HOUSE SPONSORSHIP
Boesenecker and Sirota, Amabile, Bacon, Brown, Clifford, deGruy Kennedy, Epps,
Froelich, Garcia, Hernandez, Herod, Jodeh, Joseph, Kipp, Lindsay, Mabrey, Marvin,
McCluskie, McCormick, Ricks, Rutinel, Velasco, Vigil, Weissman, Willford
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. December 31, 2029. For multifamily rental properties that are existing
affordable housing, a local government has a right of first refusal to
match an acceptable offer for the purchase of such property, subject to the
local government's commitment to using the property as long-term
affordable housing. Existing affordable housing is housing that is
currently receiving federal or local financial assistance.
The bill requires the seller of such property to give notice to the
local government at least 2 years before the first expiration of an existing
affordability restriction on the property and again when the seller takes
certain actions as a precursor to selling the property. Upon receiving the
notice indicating intent to sell the property or of a potential sale of the
property, the local government has 14 calendar days to preserve its right
of first refusal and an additional 60 calendar days to make an offer and
must agree to close on the property within 120 calendar days of the
acceptance of the local government's offer. If the price, terms, and
conditions of an acceptable offer that has been communicated to the local
government materially change, the seller must provide notice of the
change within 7 days and the local government may exercise or
re-exercise its right of first refusal. If the residential seller rejects an offer
by the local government, the seller must provide a written explanation of
the reasons and invite the local government to make a subsequent offer
within 14 days.
For all other multifamily rental properties that are 20 years or older
and have not more than 100 units and not less than 5 units in urban
counties and 3 units in rural and rural resort counties, a local government
has a right of first offer. A seller of such property must provide notice of
intent to sell the property to the local government before the seller lists
the property for sale. After receipt of the notice, the local government has
14 days to respond by either making an offer to purchase the property and
stating an intent to perform due diligence and enter into a contract to
purchase the property within 45 days of the date that the residential
seller's notice was received or waiving its right to purchase the property.
The local government's offer is subject to the property being used or
converted for the purpose of providing long-term affordable housing or
mixed-income development. If the local government does not provide a
response in the 14-day period, the right of first offer is waived and the
residential seller can proceed with listing and selling the property to any
third-party buyer. The residential seller has 14 days to accept or reject the
local government's offer and, if the offer is accepted, the local
government has 30 days to close the transaction.
In exercising its right of first refusal or first offer, the local
government may partner with certain other entities for financing of the
transaction and may also assign either right to certain other entities that
are then subject to all the rights and requirements of the local government
in exercising either right.
1175
-2- The bill allows certain sales of property to be exempt from either
the right of first refusal, the right of first offer, or both. The bill also
allows the local government to waive its right of first refusal to purchase
property qualifying for the right if the local government elects to disclaim
its rights to any proposed transaction or for any duration of time.
The bill also requires the attorney general's office to enforce its
provisions and grants the attorney general's office, the local government,
or a mission-driven organization standing to bring a civil action for
violations of the right of first refusal or first offer established by the bill.
If a court finds that a seller has materially violated the law with respect
to the right of first refusal or first offer, respectively, the court must award
a statutory penalty of not less than $30,000.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add part 12 to article2
4 of title 29 as follows:3
PART 124
LOCAL GOVERNMENT RIGHT OF FIRST REFUSAL OR FIRST5
OFFER TO PURCHASE MULTIFAMILY HOUSING6
29-4-1201. Definitions. A
S USED IN THIS PART 12, UNLESS THE7
CONTEXT OTHERWISE REQUIRES : 8
(1) "AFFORDABLE HOUSING FINANCIAL ASSISTANCE" MEANS9
LOANS, GRANTS, EQUITY, BONDS, OR TAX CREDITS PROVIDED TO A10
MULTIFAMILY RENTAL PROPERTY FROM ANY SOURCE TO SUPPORT THE11
CREATION, PRESERVATION, OR REHABILITATION OF AFFORDABLE HOUSING12
THAT, AS A CONDITION OF FUNDING, ENCUMBERS THE PROPERTY WITH A13
RESTRICTED USE COVENANT OR SIMILAR RECORDED AGREEMENT TO14
ENSURE AFFORDABILITY. "AFFORDABLE HOUSING FINANCIAL ASSISTANCE "15
DOES NOT INCLUDE PROPERTIES FOR WHICH ALL RESTRICTED USE16
COVENANTS OR AFFORDABILITY REQUIREMENTS HAVE EXPIRED AS OF JUNE17
1, 2024.18
(2) "APPLICABLE QUALIFYING PROPERTY " MEANS EITHER19
1175-3- "QUALIFYING PROPERTY" AS DEFINED IN SECTION 29-4-1202 (1), OR1
"
QUALIFYING PROPERTY" AS DEFINED IN SECTION 29-4-1203 (1).2 (3) "APPLICABLE RIGHT" MEANS EITHER A LOCAL GOVERNMENT 'S3
RIGHT OF FIRST REFUSAL AS SET FORTH IN SECTION 29-4-1202, OR RIGHT4
OF FIRST OFFER AS SET FORTH IN SECTION 29-4-1203.5
(4) "AREA MEDIAN INCOME" MEANS THE MEDIAN INCOME OF THE6
COUNTY IN WHICH A QUALIFYING PROPERTY IS LOCATED IN RELATION TO7
HOUSEHOLD SIZE, AS ESTABLISHED ANNUALLY BY THE UNITED STATES8
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.9
(5) "COLORADO HOUSING AND FINANCE AUTHORITY " MEANS THE10
C
OLORADO HOUSING AND FINANCE AUTHORITY CREATED IN SECTION11
29-4-704
(1).12
13
(6) "EXISTING AFFORDABLE HOUSING " MEANS HOUSING THAT IS14
SUBJECT TO ONE OR MORE RESTRICTED USE COVENANTS OR SIMILAR15
RECORDED AGREEMENTS TO ENSURE AFFORDABILITY AND THAT IS16
CONSISTENT WITH AFFORDABLE HOUSING FINANCIAL ASSISTANCE17
REQUIREMENTS.18
19
(7) "LOCAL GOVERNMENT" MEANS:20
(a)
A CITY, CITY AND COUNTY, OR TOWN IF THE APPLICABLE21
QUALIFYING PROPERTY IS LOCATED WITHIN THE INCORPORATED AREA OF22
A CITY, A CITY AND COUNTY, OR A TOWN; AND23
(b)
A COUNTY IF THE APPLICABLE QUALIFYING PROPERTY IS24
LOCATED WITHIN THE UNINCORPORATED AREA OF A COUNTY .25
26
(8) "LOCAL OR REGIONAL HOUSING AUTHORITY" MEANS A27
1175
-4- HOUSING AUTHORITY CREATED PURSUANT TO SECTION 29-4-204 (1),1
29-4-306 (1), 29-4-402, OR 29-4-503 (1).2
(9) (a) "LONG-TERM AFFORDABLE HOUSING" MEANS HOUSING FOR3
WHICH THE LOCAL GOVERNMENT ENSURES THAT AFFORDABILITY LEVELS4
AT AN APPLICABLE QUALIFYING PROPERTY ARE ON AVERAGE EQUAL TO OR5
GREATER THAN PREEXISTING LEVELS AT THE APPLICABLE QUALIFYING6
PROPERTY AND THAT THE AVERAGE ANNUAL RENTS AT THE APPLICABLE7
QUALIFYING PROPERTY DO NOT EXCEED THE RENT FOR HOUSEHOLDS OF A8
GIVEN SIZE AT A GIVEN AREA MEDIAN INCOME , AS ESTABLISHED9
ANNUALLY BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN10
DEVELOPMENT, FOR A MINIMUM OF FORTY YEARS, AND FOR WHICH THE11
LOCAL GOVERNMENT AGREES NOT TO RAISE RENT FOR ANY UNIT IN THE12
APPLICABLE QUALIFYING PROPERTY BY MORE THAN THE RENT INCREASE13
CAP; EXCEPT THAT THE RENT INCREASE CAP DOES NOT APPLY TO UNITS OF14
HOUSING THAT ARE SUBJECT TO RENT OR INCOME LIMITS ESTABLISHED15
PURSUANT TO LOCAL, STATE, FEDERAL, OR POLITICAL SUBDIVISION16
AFFORDABLE HOUSING PROGRAM GUIDELINES .17
(b) NOTHING IN THIS SUBSECTION (9) PREVENTS A LOCAL18
GOVERNMENT FROM PROVIDING AFFORDABILITY REQUIREMENTS BEYOND19
FORTY YEARS OR FOR UNITS TO BE AFFORDABLE TO RENTERS WITH20
INCOMES BELOW EXISTING AFFORDABILITY LEVELS, IN WHICH CASE THE21
LOCAL GOVERNMENT 'S REQUIREMENTS APPLY FOR PURPOSES OF THE22
DEFINITION OF "LONG-TERM AFFORDABLE HOUSING" AS SET FORTH IN23
SUBSECTION (9)(a) OF THIS SECTION.24
(10) "MIXED-INCOME PROJECT" MEANS AN AFFORDABLE HOUSING25
DEVELOPMENT IN WHICH A PERCENTAGE OF UNITS HAVE RESTRICTED26
AVAILABILITY TO HOUSEHOLDS AT OR BELOW GIVEN AREA MEDIAN INCOME27
1175
-5- LEVELS, PROPORTIONAL TO THE DEMONSTRATED HOUSING NEEDS OF THE1
LOCAL COMMUNITY. THE PERCENTAGE OF INCOME RESTRICTED UNITS AND2
AFFORDABILITY LEVELS MUST COMPLY WITH LAWS ENACTED BY LOCAL3
GOVERNMENTS PROMOTING THE DEVELOPMENT OF NEW AFFORDABLE4
HOUSING UNITS PURSUANT TO SECTION 29-20-104 (1).5
(11) "RENT INCREASE CAP" MEANS A PERCENTAGE OF THE6
CURRENT ANNUAL RENT FOR A QUALIFYING PROPERTY THAT IS EQUAL TO7
THE GREATER OF:8
(a) T
HE AVERAGE ANNUAL PERCENTAGE CHANGE FOR THE9
PREVIOUS TWELVE MONTHS AT THE TIME OF THE CALCULATION IN THE10
U
NITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS11
CONSUMER PRICE INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL12
ITEMS AND ALL URBAN CONSUMERS , OR ITS SUCCESSOR INDEX; OR13
(b) T
HREE PERCENTAGE POINTS.14
(12) "RESIDENTIAL SELLER" MEANS THE FEE SIMPLE OWNER OF AN15
APPLICABLE QUALIFYING PROPERTY . IF THERE IS MORE THAN ONE FEE16
SIMPLE OWNER OF AN APPLICABLE QUALIFYING PROPERTY, EACH FEE17
SIMPLE OWNER IS REFERRED TO IN THIS PART 12 JOINTLY AND SEVERALLY18
AS THE "RESIDENTIAL SELLER".19
20
29-4-1202. Right of first refusal - eligibility - process - notice21
- tolling - definition. (1) Definition of qualifying property. A
S USED IN22
THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES , "QUALIFYING23
PROPERTY" MEANS A MULTIFAMILY RESIDENTIAL OR MIXED -USE RENTAL24
PROPERTY
CONSISTING OF NOT LESS THAN FIVE UNITS THAT IS EXISTING25
AFFORDABLE HOUSING, EXCLUDING A MOBILE HOME PARK AS DEFINED IN26
SECTION 38-12-201.5 (6). FOR THE PURPOSE OF DETERMINING WHETHER27
1175
-6- A PROPERTY CONSISTS OF AT LEAST THE MINIMUM NUMBER OF UNITS SET1
FORTH IN THIS SUBSECTION (1) FOR A QUALIFYING PROPERTY, AN2
ACCESSORY DWELLING UNIT DOES NOT COUNT AS A UNIT .3
(2) Local government's right of first refusal. (a) I
N4
ACCORDANCE WITH THIS PART 12, THE LOCAL GOVERNMENT FOR THE5
JURISDICTION IN WHICH A QUALIFYING PROPERTY IS LOCATED HAS A RIGHT6
OF FIRST REFUSAL TO PURCHASE THE QUALIFYING PROPERTY WITH AN7
OFFER THAT IS ECONOMICALLY
IDENTICAL TO ANY OTHER OFFER A8
RESIDENTIAL SELLER RECEIVES AND IS WILLING TO ACCEPT ON THE9
QUALIFYING PROPERTY.10
(b) (I) A
NY PURCHASE AND SALE AGREEMENT FOR THE11
CONVEYANCE OF A QUALIFYING PROPERTY BY A RESIDENTIAL SELLER IS12
CONTINGENT UPON THE RIGHT OF FIRST REFUSAL SET FORTH IN THIS13
SECTION.14
(II) I
F THE LOCAL GOVERNMENT PROVIDES NOTICE PURSUANT TO15
SUBSECTION (4)(a)(I) OF THIS SECTION TO A RESIDENTIAL SELLER THAT16
THE LOCAL GOVERNMENT MAY EXERCISE ITS RIGHT OF FIRST REFUSAL , THE17
RESIDENTIAL SELLER SHALL NOT PROCEED WITH THE SALE OF THE18
QUALIFYING PROPERTY TO ANY OTHER PARTY AND THE LOCAL19
GOVERNMENT SHALL HAVE A RIGHT TO MAKE AN OFFER THAT IS20
ECONOMICALLY
IDENTICAL TO AN ACCEPTABLE OFFER ON THE21
QUALIFYING PROPERTY THAT IS IDENTIFIED BY THE RESIDENTIAL SELLER22
AS REQUIRED BY SUBSECTION (3)(b)(II)(D) OF THIS SECTION.23
(III) F
OR THE PURPOSE OF DETERMINING WHETHER THE TERMS OF24
AN OFFER BY A THIRD PARTY AND AN OFFER BY THE LOCAL GOVERNMENT25
ARE ECONOMICALLY
IDENTICAL, IT IS IMMATERIAL HOW THE OFFER26
WOULD BE FINANCED IF THE LOCAL GOVERNMENT HAS SECURED THE27
1175
-7- FINANCING OR DEMONSTRATES APPROVAL OF THE FINANCING IN1
CONNECTION WITH MAKING THE OFFER , NOTWITHSTANDING ANY2
REQUIREMENT OF APPROPRIATION BY A GOVERNING BODY FOR THE3
FINANCING. FOR PURPOSES OF THIS SECTION, A RESIDENTIAL SELLER SHALL4
NEGOTIATE IN GOOD FAITH WITH THE LOCAL GOVERNMENT THAT MAKES5
AN OFFER THAT IS ECONOMICALLY IDENTICAL TO AN ACCEPTABLE6
OFFER ON THE QUALIFYING PROPERTY THAT IS IDENTIFIED BY THE7
RESIDENTIAL SELLER PURSUANT TO SUBSECTION (3)(b)(II)(D) OF THIS8
SECTION FOR THE SALE OF THE QUALIFYING PROPERTY . THIS INCLUDES,9
BUT IS NOT LIMITED TO, EVALUATING AN OFFER FROM THE LOCAL10
GOVERNMENT OR ITS ASSIGNEE WITHOUT CONSIDERATION OF :11
(A) T
HE PERIOD FOR CLOSING;12
(B) T
HE TYPE OF FINANCING OR PAYMENT METHOD ;13
(C) W
HETHER OR NOT THE OFFER IS CONTINGENT ON A14
PARTICULAR FINANCING OR PAYMENT METHOD ;
EXCEPT THAT THE LOCAL15
GOVERNMENT MUST BE ABLE TO DEMONSTRATE THAT ITS FINANCING OR16
PAYMENT METHOD HAS BEEN APPROVED, NOTWITHSTANDING ANY17
REQUIREMENT OF APPROPRIATION BY A GOVERNING BODY FOR THE18
FINANCING OR PAYMENT METHOD ; AND19
(D) W
HETHER OR NOT THE OFFER IS CONTINGENT ON AN20
APPRAISAL, INSPECTION, REVIEW OF TITLE, OBTAINING TITLE INSURANCE,21
OR OTHER CUSTOMARY CONDITIONS FOR THE SALE OF SIMILAR PROPERTY .22
(IV) A
RESIDENTIAL SELLER SHALL NOT COLLUDE WITH A23
POTENTIAL BUYER FOR THE PRIMARY PURPOSE OF INFLATING A SALES24
PRICE ABOVE THE MARKET PRICE OF A QUALIFYING PROPERTY .25
(c) T
HE LOCAL GOVERNMENT 'S RIGHT OF FIRST REFUSAL26
CONCERNING THE QUALIFYING PROPERTY IS LIMITED TO PRESERVING OR27
1175
-8- CONVERTING THE QUALIFYING PROPERTY TO LONG -TERM AFFORDABLE1
HOUSING DIRECTLY OR THROUGH ANOTHER ENTITY TO WHICH THE LOCAL2
GOVERNMENT ASSIGNS ITS RIGHTS PURSUANT SUBSECTION (2)(f) OF THIS3
SECTION OR TRANSFERS THE QUALIFYING PROPERTY .4
(d) I
F A QUALIFYING PROPERTY IS CLASSIFIED AS MIXED-USE, THE5
LOCAL GOVERNMENT 'S RIGHT OF FIRST REFUSAL ONLY EXTENDS TO THE6
PORTION OF THE QUALIFYING PROPERTY THAT IS RESIDENTIAL , BUT7
NOTHING IN THIS SECTION EXCLUDES THE LOCAL GOVERNMENT FROM8
INCLUDING THE PURCHASE OF ANY COMMERCIAL PORTION OF THE9
QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT IN ITS OFFER OR IN10
THE TERMS OF THE SALE AT THE DISCRETION OF THE LOCAL GOVERNMENT .11
(e) T
HE LOCAL GOVERNMENT , IN EXERCISING ITS RIGHT OF FIRST12
REFUSAL, MAY PARTNER WITH A NONPROFIT ENTITY , A PRIVATE ENTITY,
A13
QUASI-GOVERNMENTAL ENTITY, OR ANOTHER GOVERNMENTAL ENTITY TO14
CO-FINANCE, LEASE, OR MANAGE THE QUALIFYING PROPERTY FOR THE15
PUBLIC PURPOSE OF MAINTAINING THE QUALIFYING PROPERTY AS16
LONG-TERM AFFORDABLE HOUSING AS LONG AS THE LOCAL GOVERNMENT17
OR ITS ASSIGNEE MAINTAINS OWNERSHIP OF THE QUALIFYING PROPERTY18
EITHER DIRECTLY OR THROUGH A SPECIAL PURPOSE ENTITY OR AFFILIATE.19
(f) A
T ANY TIME, THE LOCAL GOVERNMENT MAY ASSIGN THE RIGHT20 OF FIRST REFUSAL WITH RESPECT TO A SPECIFIC QUALIFYING PROPERTY OR21
WITH RESPECT TO ALL QUALIFYING PROPERTIES IN THE LOCAL22
GOVERNMENT'S JURISDICTION TO A HOUSING AUTHORITY THAT IS WITHIN23
THE LOCAL GOVERNMENT 'S JURISDICTION, A REGIONAL HOUSING24
AUTHORITY THAT SERVES THE LOCAL GOVERNMENT 'S JURISDICTION, OR25
THE COLORADO HOUSING AND FINANCE AUTHORITY , SUBJECT TO THE26
REQUIREMENTS THAT THE QUALIFYING PROPERTY IS USED TO PRESERVE OR27
1175
-9- BE CONVERTED TO LONG -TERM AFFORDABLE HOUSING AND THAT ALL1
OTHER PROVISIONS OF THIS PART 12 APPLY TO THE ASSIGNEE. IF THE2
PROPOSED ASSIGNEE ACCEPTS THE ASSIGNMENT OF THE RIGHT OF FIRST3
REFUSAL IN WRITING, UPON ASSIGNMENT, THE ASSIGNEE ASSUMES ALL4
LIABILITY OF THE LOCAL GOVERNMENT REGARDING THE EXERCISE OF THE5
RIGHT OF FIRST REFUSAL AND IS RESPONSIBLE FOR PERFORMING ALL6
REQUIREMENTS PURSUANT TO THIS PART 12 WITH RESPECT TO A7
QUALIFYING PROPERTY AS IF THE ASSIGNEE WERE THE LOCAL8
GOVERNMENT. THE LOCAL GOVERNMENT MUST PROVIDE NOTICE OF ANY9
ASSIGNMENT AS FOLLOWS:10
(I) IF THE LOCAL GOVERNMENT HAS ASSIGNED ITS RIGHT OF FIRST11
REFUSAL WITH RESPECT TO ALL PROPERTIES WITHIN ITS JURISDICTION, THE12
LOCAL GOVERNMENT MUST POST A NOTICE IN A CONSPICUOUS LOCATION13
ON ITS WEBSITE INDICATING THAT THE LOCAL GOVERNMENT HAS ASSIGNED14
ITS RIGHT OF FIRST REFUSAL AND LISTING THE ASSIGNEE 'S NAME AND15
CONTACT INFORMATION TO RECEIVE NOTICES REQUIRED PURSUANT TO16
THIS SECTION. THE NOTICE POSTED IN ACCORDANCE WITH THIS17
SUBSECTION (2)(f)(I) MUST BE EFFECTIVE FOR AT LEAST THREE MONTHS18
AFTER IT IS POSTED AND MUST EXPLICITLY STATE THE DATE IT EXPIRES, IF19
ANY. ANY NOTICE POSTED BY THE LOCAL GOVERNMENT IN ACCORDANCE20
WITH THIS SUBSECTION (2)(f)(I) IS DEEMED CONSTRUCTIVE NOTICE TO THE21
RESIDENTIAL SELLER.22
(II) IF THE LOCAL GOVERNMENT HAS NOT POSTED NOTICE IN23
ACCORDANCE WITH SUBSECTION (2)(f)(I) OF THIS SECTION AND ASSIGNS24
ITS RIGHT OF FIRST REFUSAL WITH RESPECT TO ALL QUALIFYING25
PROPERTIES IN ITS JURISDICTION OR WITH RESPECT TO A QUALIFYING26
PROPERTY THAT IS THE SUBJECT OF THE NOTICE PROVIDED BY A27
1175
-10- RESIDENTIAL SELLER IN ACCORDANCE WITH SUBSECTION (3)(b) OF THIS1
SECTION AFTER RECEIPT OF SUCH NOTICE, THE LOCAL GOVERNMENT SHALL2
IMMEDIATELY NOTIFY THE RESIDENTIAL SELLER OF THE ASSIGNMENT AND3
OF THE ASSIGNEE'S ADDRESS TO RECEIVE ANY NOTICES THE RESIDENTIAL4
SELLER IS REQUIRED TO SEND IN ACCORDANCE WITH THIS SECTION; EXCEPT5
THAT, IF THE SALE OF THE QUALIFYING PROPERTY THAT IS THE SUBJECT OF6
THE NOTICE PROVIDED BY THE RESIDENTIAL SELLER IN ACCORDANCE WITH7
SUBSECTION (3)(b) OF THIS SECTION HAS CONCLUDED, THEN NO NOTICE BY8
THE LOCAL GOVERNMENT OF THE ASSIGNMENT IS REQUIRED .9
10
(g) (I) THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS THE11
RIGHT TO WAIVE THE RIGHT OF FIRST REFUSAL PROVIDED IN THIS SECTION.12
(II) (A) IF THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS13
WAIVED ITS RIGHT OF FIRST REFUSAL, IT SHALL POST A NOTICE IN A14
CONSPICUOUS LOCATION ON ITS WEBSITE INDICATING THAT THERE IS A15
WAIVER AND THAT RESIDENTIAL SELLERS WITH QUALIFYING PROPERTIES16
WITHIN ITS JURISDICTION DO NOT HAVE AN OBLIGATION TO COMPLY WITH17
THIS SECTION.18
(B) THE NOTICE POSTED IN ACCORDANCE WITH SUBSECTION19
(2)(g)(II)(A) OF THIS SECTION MUST BE EFFECTIVE FOR AT LEAST THREE20
MONTHS AFTER IT IS POSTED AND MUST EXPLICITLY STATE THE DATE IT21
EXPIRES, IF ANY.22
(C) FAILURE TO POST NOTICE PURSUANT TO THIS SUBSECTION23
(2)(g)(II) DOES NOT OTHERWISE AFFECT THE LOCAL GOVERNMENT 'S RIGHT24
OF FIRST REFUSAL.25
(3) Notices by residential seller. (a) (I) (A) NOT LESS THAN TWO26
YEARS BEFORE THE FINAL EXPIRATION OF THE LAST REMAINING EXISTING27
1175
-11- AFFORDABILITY RESTRICTION INCUMBENT TO A QUALIFYING PROPERTY 'S1
FUNDING SOURCES, A RESIDENTIAL SELLER SHALL PROVIDE NOTICE TO THE2
COLORADO HOUSING AND FINANCE AUTHORITY AND THE GOVERNING3
BODY OF THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING PROPERTY4
IS LOCATED OF THE EXPIRATION OF SUCH RESTRICTIONS. THE NOTICE MUST5
INCLUDE THE DATE OF EXPIRATION OF THE LAST REMAINING6
AFFORDABILITY RESTRICTION AND CONTACT INFORMATION FOR THE7
RESIDENTIAL SELLER.8
(B) NOTWITHSTANDING SUBSECTION (3)(a)(I)(A) OF THIS SECTION,9
WHETHER NOTICE IS PROVIDED PURSUANT TO SUBSECTION (3)(a)(I)(A) OF10
THIS SECTION IS NOT RELEVANT TO DETERMINING A RESIDENTIAL SELLER'S11
OR LOCAL GOVERNMENT'S COMPLIANCE WITH THE REQUIREMENTS OF THIS12
PART 12 AND IS NOT SUBJECT TO ANY PROVISIONS SET FORTH IN SECTION13
29-4-1206. PROVISION OF THE NOTICE REQUIRED BY SUBSECTION14
(3)(a)(I)(A) OF THIS SECTION IS NOT A TRIGGERING EVENT PURSUANT TO15
SUBSECTION (3)(b)(I) OF THIS SECTION.16
(II) N
OT LESS THAN SIX MONTHS BEFORE THE FINAL EXPIRATION17
OF
THE LAST REMAINING EXISTING AFFORDABILITY RESTRICTION18
INCUMBENT TO A QUALIFYING PROPERTY 'S FUNDING SOURCES , A19
RESIDENTIAL SELLER SHALL PROVIDE NOTICE TO THE COLORADO HOUSING20
AND FINANCE AUTHORITY AND THE GOVERNING BODY OF THE LOCAL21
GOVERNMENT IN WHICH THE QUALIFYING PROPERTY IS LOCATED OF THE22
EXPIRATION OF SUCH RESTRICTIONS. THE NOTICE MUST INDICATE23
WHETHER THE RESIDENTIAL SELLER ANTICIPATES THAT IT WILL24
RECAPITALIZE AND CONTINUE TO OPERATE THE QUALIFYING PROPERTY AT25
AFFORDABILITY LEVELS AT LEAST ON AVERAGE EQUAL TO WHAT HAS BEEN26
PROVIDED AT THE QUALIFYING PROPERTY, RETAIN OWNERSHIP OF THE27
1175
-12- QUALIFYING PROPERTY AND LET AFFORDABILITY REQUIREMENTS EXPIRE,1
OR SELL THE QUALIFYING PROPERTY UPON EXPIRATION OF THE2
RESTRICTIONS.3
(III) THE NOTICES PROVIDED TO THE COLORADO HOUSING AND4
FINANCE AUTHORITY PURSUANT TO THIS SUBSECTION (3)(a) DO NOT5
CREATE AN OBLIGATION OR REQUIREMENT FOR THE COLORADO HOUSING6
AND FINANCE AUTHORITY TO TAKE ACTION WITH RESPECT TO THE7
QUALIFYING PROPERTY OR TO PROVIDE ANY ENFORCEMENT OR8
COMPLIANCE MONITORING OF ANY REQUIREMENTS OF THIS PART 12.9
(b) (I) W
ITHIN FOURTEEN CALENDAR DAYS OF A TRIGGERING10
EVENT, A RESIDENTIAL SELLER SHALL PROVIDE NOTICE IN ACCORDANCE11
WITH THIS SUBSECTION (3)(b) AND SUBSECTION (3)(d) OF THIS SECTION TO12
THE GOVERNING BODY OF THE LOCAL GOVERNMENT IN WHICH THE13
QUALIFYING PROPERTY IS
LOCATED AND SHALL MAKE A GOOD FAITH14
EFFORT TO ENSURE THE NOTICE IS RECEIVED BY THE LOCAL GOVERNMENT.15
A
TRIGGERING EVENT IS ANY TIME THE RESIDENTIAL SELLER :16
(A) M
ATERIALLY DEPARTS FROM ANY REPRESENTATION MADE IN17
THE NOTICES REQUIRED PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION18
AFTER AFFORDABILITY RESTRICTIONS EXPIRE IN A MANNER THAT19
INDICATES AN INTENT TO SELL THE QUALIFYING PROPERTY ;20
(B) S
IGNS A CONTRACT WITH A REAL ESTATE BROKER OR21
BROKERAGE FIRM TO LIST THE QUALIFYING PROPERTY FOR SALE OR TO22
SELL OR TRANSFER THE QUALIFYING PROPERTY ;23
(C) S
IGNS A LETTER OF INTENT, OPTION TO SELL OR BUY, OR OTHER24
CONDITIONAL WRITTEN AGREEMENT WITH A POTENTIAL BUYER FOR THE25
SALE OR TRANSFER OF THE QUALIFYING PROPERTY , WHICH INCLUDES THE26
ESTIMATED PRICE, TERMS, AND CONDITIONS OF THE PROPOSED SALE OR27
1175
-13- TRANSFER, EVEN IF THE PRICE, TERMS, OR CONDITIONS ARE SUBJECT TO1
CHANGE;2
(D) S
IGNS A CONTRACT WITH A POTENTIAL BUYER 'S REAL ESTATE3
BROKER OR BROKERAGE FIRM RELATED TO THE POTENTIAL SALE OR4
TRANSFER OF THE QUALIFYING PROPERTY ;5
(E) P
ROVIDES A SIGNED PROPERTY DISCLOSURE FORM FOR THE6
QUALIFYING PROPERTY TO A POTENTIAL BUYER ;7
(F) L
ISTS THE QUALIFYING PROPERTY FOR SALE;8
(G) M
AKES A CONDITIONAL ACCEPTANCE OF AN OFFER FOR THE9
SALE OR TRANSFER OF THE QUALIFYING PROPERTY ;10
(H) T
AKES ANY OTHER ACTION DEMONSTRATING AN INTENT TO11
SELL THE QUALIFYING PROPERTY ;
EXCEPT THAT ANY ACTION TAKEN TO12
ENGAGE WITH A POLITICAL SUBDIVISION OR A HOUSING AUTHORITY IN THE13
STATE TO FACILITATE NEGOTIATIONS BETWEEN THE RESIDENTIAL SELLER14
AND A THIRD-PARTY TO CREATE OR PRESERVE AFFORDABLE HOUSING FOR15
A QUALIFYING PROPERTY IS NOT A TRIGGERING EVENT UNTIL ANOTHER16
ACTION SET FORTH IN THIS SUBSECTION (3)(b)(I) OCCURS; OR17
(I) R
ECEIVES A NOTICE THAT A CERTIFICATE OF LEVY HAS BEEN18
FILED RELATED TO THE QUALIFYING PROPERTY PURS UANT TO SECTION19
13-56-101.20
(II) T
HE NOTICE REQUIRED PURSUANT TO THIS SUBSECTION (3)(b)21
MUST INCLUDE:22
(A) A
GENERAL DESCRIPTION OF THE QUALIFYING PROPERTY TO BE23
SOLD, INCLUDING THE ADDRESS AND NAME OF THE PROPERTY , IF ANY, AND24
ANY ADDITIONAL DESCRIPTIONS OF THE QUALIFYING PROPERTY ON FILE25
WITH THE OFFICE OF THE ASSESSOR IN THE COUNTY IN WHICH THE26
QUALIFYING PROPERTY IS LOCATED ;27
1175
-14- (B) THE RESIDENTIAL SELLER'S ADDRESS AND, IF AVAILABLE,1
ELECTRONIC MAILING ADDRESS TO RECEIVE NOTICES FROM THE LOCAL2
GOVERNMENT;3
(C) T
HE NAMES AND MAILING ADDRESSES THAT THE RESIDENTIAL4
SELLER HAS ON RECORD FOR EVERY TENANT RESIDING AT THE QUALIFYING5
PROPERTY;6
(D) T
HE PRICE, TERMS, AND CONDITIONS OF AN ACCEPTABLE OFFER7
THE RESIDENTIAL SELLER HAS RECEIVED TO SELL THE QUALIFYING8
PROPERTY OR THE PRICE, TERMS, AND CONDITIONS FOR WHICH THE9
RESIDENTIAL SELLER INTENDS TO SELL THE QUALIFYING PROPERTY ;10
(E) A
NY TERMS OR CONDITIONS WHICH , IF NOT MET, WOULD BE11
SUFFICIENT GROUNDS, IN THE RESIDENTIAL SELLER'S DISCRETION AND IN12
COMPLIANCE WITH THIS PART 12 AND ANY OTHER APPLICABLE LAW , TO13
REJECT AN OFFER; AND14
(F) I
F THE RESIDENTIAL SELLER HAS ENTERED INTO A CONTINGENT15
PURCHASE AND SALE AGREEMENT WITH A PROSPECTIVE BUYER , A COPY OF16
THE AGREEMENT.17
(III) T
HE PRICE, TERMS, AND CONDITIONS REQUIRED TO BE STATED18
IN THE NOTICE PURSUANT TO SUBSECTION (3)(b)(II)(D) OF THIS SECTION19
MUST BE UNIVERSAL AND APPLICABLE TO ALL POTENTIAL BUYERS AND20
MUST NOT BE SPECIFIC TO OR PROHIBITIVE OF THE LOCAL GOVERNMENT21
MAKING A SUCCESSFUL OFFER TO PURCHASE THE QUALIFYING PROPERTY ,22
MUST NOT BE UNLAWFUL , AND MUST NOT INHIBIT THE EXERCISE OF THE23
RIGHT OF FIRST REFUSAL PROVIDED FOR IN THIS SECTION.24
(c) I
F THE PRICE, TERMS, OR CONDITIONS AS REQUIRED TO BE25
PROVIDED IN THE RESIDENTIAL SELLER 'S NOTICE PURSUANT TO26
SUBSECTIONS (3)(b)(II)(C) AND (3)(b)(II)(D) OF THIS SECTION27
1175
-15- MATERIALLY CHANGE , THE RESIDENTIAL SELLER SHALL WITHIN SEVEN1
DAYS OF THE CHANGE PROVIDE NOTICE TO THE LOCAL GOVERNMENT OF2
THE CHANGE AND THE LOCAL GOVERNMENT MAY EXERCISE , OR3
RE-EXERCISE, ITS RIGHT OF FIRST REFUSAL IN ACCORDANCE WITH THIS4
SECTION.5
(d) T
HE NOTICES GIVEN PURSUANT TO THIS SUBSECTION (3) MUST6
BE DELIVERED
TO THE APPLICABLE REPRESENTATIVE OF THE COLORADO7
HOUSING AND FINANCE AUTHORITY AND TO THE CLERK OF THE GOVERNING8
BODY OF THE LOCAL GOVERNMENT, AS APPLICABLE, BY ELECTRONIC MAIL;9
EXCEPT THAT, IF THERE IS NOT AN ELECTRONIC MAILING ADDRESS10
AVAILABLE FOR THE APPLICABLE REPRESENTATIVE OR THE CLERK, THEN11
BY HAND DELIVERY, UNITED STATES FIRST CLASS MAIL, OR OVERNIGHT12
DELIVERY.13
(e) T
HE LOCAL GOVERNMENT MAY SHARE THE INFORMATION14
CONTAINED IN THE NOTICES REQUIRED PURSUANT TO THIS SUBSECTION (3)15
WITH ITS OFFICERS, EMPLOYEES, AGENTS, AND PROSPECTIVE ASSIGNEES OR16
PROSPECTIVE ENTITIES THAT THE LOCAL GOVERNMENT PARTNERS WITH17
PURSUANT TO
SUBSECTIONS (2)(e) AND (2)(f) OF THIS SECTION FOR THE18
PURPOSES OF EVALUATING OR OBTAINING FINANCING FOR THE19
PROSPECTIVE TRANSACTION. THE NAMES AND MAILING ADDRESSES FOR20
TENANTS RESIDING AT THE QUALIFYING PROPERTY MUST BE KEPT21
CONFIDENTIAL, AND ANY OTHER INFORMATION CONTAINED IN THE NOTICE22
MUST BE KEPT CONFIDENTIAL IF THE RESIDENTIAL SELLER SO REQUESTS23
AND, TOGETHER WITH THE NAMES AND MAILING ADDRESSES FOR TENANTS24
RESIDING AT THE QUALIFYING PROPERTY, IS CONFIDENTIAL INFORMATION25
NOT SUBJECT TO PUBLIC DISCLOSURE; EXCEPT THAT THE OCCURRENCE OF26
A TRIGGERING EVENT, THE LOCATION OF THE QUALIFYING PROPERTY , AND27
1175
-16- THE IDENTITY OF THE RESIDENTIAL SELLER ARE NOT CONFIDENTIAL AND1
ARE SUBJECT TO PUBLIC DISCLOSURE.2
(4) (a) Notice by the local government to the residential seller.3
(I) T
HE LOCAL GOVERNMENT SHALL
MAKE A GOOD FAITH EFFORT TO4
PROVIDE NOTICE TO THE RESIDENTIAL SELLER AS SOON AS POSSIBLE BUT5
NOT LATER THAN FOURTEEN CALENDAR DAYS OF RECEIPT OF THE NOTICE6
REQUIRED PURSUANT TO SUBSECTION (3)(b) OR (3)(c) OF THIS SECTION OF7
THE LOCAL GOVERNMENT 'S INTENT, WITH RESPECT TO THE QUALIFYING8
PROPERTY THAT IS THE SUBJECT OF THE NOTICE, TO EITHER PRESERVE ITS9
RIGHT OF FIRST REFUSAL PROVIDED IN THIS SECTION OR WAIVE ITS RIGHT10
OF FIRST REFUSAL. THE NOTICE MUST BE DELIVERED BY ELECTRONIC MAIL;11
EXCEPT THAT, IF THE RESIDENTIAL SELLER HAS NOT PROVIDED AN12
ELECTRONIC MAILING ADDRESS , THEN BY HAND DELIVERY , UNITED13
S
TATES FIRST CLASS MAIL, OR OVERNIGHT DELIVERY TO THE ADDRESS14
PROVIDED BY THE RESIDENTIAL SELLER PURSUANT TO SUBSECTION15 (3)(b)(II)(B) OF THIS SECTION.16
(II) T
HE NOTICE GIVEN PURSUANT TO SUBSECTION (4)(a)(I) OF THIS17
SECTION IS NONBINDING ON THE LOCAL GOVERNMENT .18
(III) I
F NO NOTICE IS GIVEN BY THE LOCAL GOVERNMENT , IF THE19
LOCAL GOVERNMENT FAILS TO MAKE AN OFFER WITHIN THE TIME PERIOD20
PROVIDED IN SUBSECTION (5) OF THIS SECTION, OR IF THE OFFER IS21
OTHERWISE NOT MADE IN ACCORDANCE WITH SUBSECTION (5) OF THIS22
SECTION, THE RESIDENTIAL SELLER MAY PROCEED WITH THE SALE OF THE23
QUALIFYING PROPERTY TO ANY BUYER . 24
(IV) IF THE LOCAL GOVERNMENT INTENDS TO ASSIGN ITS RIGHT OF25
FIRST REFUSAL IN ACCORDANCE WITH SUBSECTION (2)(f) OF THIS SECTION,26
THE LOCAL GOVERNMENT MUST DISCLOSE THE POTENTIAL ASSIGNEE IN27
1175
-17- THE NOTICE REQUIRED PURSUANT TO SUBSECTION (4)(a)(I) OF THIS1
SECTION AND PROVIDE A COPY OF THE NOTICE TO THE PROPOSED2
ASSIGNEE, FOR THE PROPOSED ASSIGNEE 'S CONSIDERATION IN3
DETERMINING WHETHER TO ACCEPT THE ASSIGNMENT .4
(b) Notice by the local government to residents of the5
qualifying property. (I) (A) U
PON GIVING NOTICE TO A RESIDENTIAL6
SELLER
OF ITS INTENT TO MAKE AN OFFER TO PURCHASE THE QUALIFYING7
PROPERTY PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION, THE LOCAL8
GOVERNMENT SHALL PROVIDE NOTICE TO EACH RESIDENT OF THE9
QUALIFYING PROPERTY WHO IS IDENTIFIED PURSUANT TO SUBSECTION10
(3)(b)(II)(C)
OF THIS SECTION IN THE SELLER'S NOTICE INFORMING THE11
RESIDENT THAT THERE IS INTEREST BY THE LOCAL GOVERNMENT OR AN12
ASSIGNEE IN PURCHASING THE QUALIFYING PROPERTY AND PROVIDING A13
DATE, TIME, AND LOCATION THAT THE LOCAL GOVERNMENT WILL HOLD A14
MEETING FOR RESIDENTS TO ATTEND FOR INFORMATION REGARDING A15
POTENTIAL PURCHASE OF THE PROPERTY BY THE LOCAL GOVERNMENT .16
(B) T
HE LOCAL GOVERNMENT SHALL PROVIDE A SECOND NOTICE17
TO THE RESIDENTS OF A QUALIFYING PROPERTY UPON THE ACCEPTANCE BY18
A RESIDENTIAL SELLER OF THE LOCAL GOVERNMENT 'S OFFER TO PURCHASE19
THE QUALIFYING PROPERTY AND THE EXECUTION OF THE NECESSARY20
AGREEMENTS IN CONNECTION WITH ACCEPTANCE OF THE OFFER .21
(C) T
HE LOCAL GOVERNMENT SHALL PROVIDE A THIRD NOTICE TO22
THE RESIDENTS OF A QUALIFYING PROPERTY UPON CLOSING ON THE23
QUALIFYING PROPERTY AND EXECUTING THE NECESSARY AGREEMENTS TO24
FINALIZE THE SALE OF THE QUALIFYING PROPERTY TO THE LOCAL25
GOVERNMENT. THE NOTICE MUST INCLUDE CONTACT INFORMATION FOR26
THE ENTITY THAT WILL PROVIDE MANAGEMENT SERVICES TO THE27
1175
-18- QUALIFYING PROPERTY.1
(II) T
HE LOCAL GOVERNMENT SHALL MAIL THE NOTICES REQUIRED2
PURSUANT TO SUBSECTION (4)(b)(I) OF THIS SECTION TO THE RESIDENTS3
OF A QUALIFYING PROPERTY USING THE MOST RECENT ADDRESS OF EACH4
RESIDENT. THE RESIDENTIAL SELLER SHALL PROVIDE UPDATED MAILING5
ADDRESSES FOR RESIDENTS UPON REQUEST BY THE LOCAL GOVERNMENT .6
T
HE LOCAL GOVERNMENT SHALL ALSO POST A COPY OF THE NOTICES IN A7
CONSPICUOUS PLACE IN THE QUALIFYING PROPERTY . THE MAILED AND8
POSTED NOTICES MUST BE PROVIDED IN ENGLISH, SPANISH, AND ANY9
OTHER LANGUAGE KNOWN TO BE SPOKEN BY RESIDENTS AT THE10
QUALIFYING PROPERTY.11
(III) T
HE MEETING HELD BY THE LOCAL GOVERNMENT AS12
REQUIRED BY SUBSECTION (4)(b)(I)(A) OF THIS SECTION MUST BE IN AN13
ACCESSIBLE SPACE, AND SPANISH TRANSLATION SERVICES AND , IF14
AVAILABLE, VIRTUAL MEETING OPTIONS MUST BE PROVIDED , ALL AT NO15
COST TO THE RESIDENTS.16
(5) Process to exercise right of first refusal. (a)
(I) EXCEPT AS17
OTHERWISE PROVIDED IN SUBSECTION (6) OF THIS SECTION, THE LOCAL18
GOVERNMENT HAS THIRTY CALENDAR DAYS FROM PROVIDING NOTICE19
PURSUANT TO SUBSECTION (4)(a)(I) OF THIS SECTION TO MAKE AN OFFER20
TO PURCHASE THE QUALIFYING PROPERTY AND SHALL AGREE TO CLOSE ON21
THE QUALIFYING PROPERTY AND EXECUTE THE NECESSARY AGREEMENTS22
TO FINALIZE THE SALE OF THE QUALIFYING PROPERTY TO THE LOCAL23
GOVERNMENT WITHIN SIXTY CALENDAR DAYS OF THE ACCEPTANCE BY A24
RESIDENTIAL SELLER OF THE LOCAL GOVERNMENT 'S OFFER TO PURCHASE25
THE QUALIFYING PROPERTY AND THE EXECUTION OF THE NECESSARY26
AGREEMENTS IN CONNECTION WITH ACCEPTING THE OFFER .27
1175
-19- (II) NOTWITHSTANDING SUBSECTION (5)(a)(I) OF THIS SECTION1
AND EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (6) OF THIS SECTION,2
IF A RESIDENTIAL SELLER HAS RECEIVED AN OFFER FROM A THIRD-PARTY3
BUYER THAT IS AN ENTIRELY CASH OFFER FOR THE THIRD-PARTY BUYER TO4
PURCHASE THE QUALIFYING PROPERTY , THE LOCAL GOVERNMENT SHALL5
AGREE TO CLOSE ON THE QUALIFYING PROPERTY AND EXECUTE THE6
NECESSARY AGREEMENTS TO FINALIZE THE SALE OF THE QUALIFYING7
PROPERTY TO THE LOCAL GOVERNMENT WITHIN THE SAME TIME PERIOD AS8
IS SET FORTH IN THE THIRD-PARTY BUYER'S OFFER.9
(b) I
F A RESIDENTIAL SELLER REJECTS AN OFFER MADE BY THE10
LOCAL GOVERNMENT EXERCISING ITS RIGHT OF FIRST REFUSAL , THE11
RESIDENTIAL SELLER SHALL PROVIDE A WRITTEN EXPLANATION OF THE12
REJECTION AND SHALL INVITE THE LOCAL GOVERNMENT TO MAKE
ONE13
SUBSEQUENT OFFER WITHIN FOURTEEN DAYS BY IDENTIFYING THE TERMS14
AND CONDITIONS THAT MUST BE INCLUDED IN THE SUBSEQUENT OFFER IN15
ORDER FOR THE RESIDENTIAL SELLER TO POTENTIALLY ACCEPT THE16
SUBSEQUENTLY MADE OFFER BY THE LOCAL GOVERNMENT AND THE LOCAL17
GOVERNMENT MAY RE -EXERCISE ITS RIGHT OF FIRST REFUSAL IN18
ACCORDANCE WITH THIS SECTION BY PROVIDING NOTICE OF ITS INTENT19
TO PRESERVE ITS RIGHT OF FIRST REFUSAL IN ACCORDANCE WITH20
SUBSECTION (4)(a) OF THIS SECTION.21
(6) Extension of time. THE TIME PERIODS SET FORTH IN THIS22
SECTION MAY BE EXTENDED AND ANY TERMS OR CONDITIONS OF SALE MAY23
BE MODIFIED BY WRITTEN AGREEMENT BETWEEN THE LOCAL GOVERNMENT24
AND THE RESIDENTIAL SELLER OR, IF THE LOCAL GOVERNMENT HAS25
ASSIGNED ITS RIGHT OF FIRST REFUSAL , THE LOCAL GOVERNMENT'S26
ASSIGNEE AND THE RESIDENTIAL SELLER .27
1175
-20- 1
(7) Certificate of compliance. WITHIN FOURTEEN CALENDAR2
DAYS OF RECEIPT OF NOTICE REQUIRED BY EITHER SUBSECTION (3)(b) OR3
(3)(c) OF THIS SECTION OR, IF THE LOCAL GOVERNMENT INTENDS TO4
EXERCISE ITS RIGHT OF FIRST REFUSAL, WITHIN FOURTEEN CALENDAR5
DAYS OF EITHER ACCEPTANCE BY A RESIDENTIAL SELLER OF THE LOCAL6
GOVERNMENT'S OFFER OR REJECTION BY A RESIDENTIAL SELLER OF THE7
LOCAL GOVERNMENT'S OFFER IN ACCORDANCE WITH SUBSECTION (5)(b) OF8
THIS SECTION, THE LOCAL GOVERNMENT OR ITS ASSIGNEE SHALL EXECUTE9
AND RECORD A CERTIFICATE OF COMPLIANCE IN THE REAL PROPERTY10
RECORDS OF THE COUNTY IN WHICH THE QUALIFYING PROPERTY IS11
SITUATED. THE CERTIFICATE OF COMPLIANCE MUST INCLUDE THE NAME OF12
THE RESIDENTIAL SELLER, A LEGAL DESCRIPTION OF THE QUALIFYING13
PROPERTY, AND A STATEMENT THAT THE RESIDENTIAL SELLER HAS14
COMPLIED WITH ALL APPLICABLE PROVISIONS OF THIS SECTION . THE15
RECORDED CERTIFICATE OF COMPLIANCE IS PRIMA FACIE EVIDENCE OF THE16
RESIDENTIAL SELLER'S COMPLIANCE WITH THIS SECTION AND MAY BE17
RELIED UPON BY A RESIDENTIAL SELLER, ANY PERSON CLAIMING AN18
INTEREST IN THE QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER,19
AND A TITLE INSURANCE ENTITY, AS DEFINED IN SECTION 10-11-102 (11).20
(8) Tenant qualifications. (a) T HE LOCAL GOVERNMENT OR ITS21
ASSIGNEE SHALL MAINTAIN AT THE QUALIFYING PROPERTY AFFORDABILITY22
LEVELS THAT ARE ON AVERAGE EQUAL TO OR GREATER THAN THE LEVELS23
PROVIDED AT THE TIME IT IS ACQUIRED BY THE LOCAL GOVERNMENT BOTH24
WITH RESPECT TO THE NUMBER OF AFFORDABLE UNITS AND THE AREA25
MEDIAN INCOMES USED TO DETERMINE RENT AND INCOME LIMITS. TENANT26
QUALIFICATIONS MUST COMPLY WITH FAIR HOUSING LAWS AND27
1175
-21- AFFORDABILITY REQUIREMENTS OF ANY NEW FUNDING SOURCES .1
(b) N
OTWITHSTANDING THE REQUIREMENTS AROUND LONG -TERM2
AFFORDABLE HOUSING SET FORTH IN THIS SECTION OR THE REQUIREMENTS3
IN SUBSECTION
(8)(a) OF THIS SECTION, RESIDENTS AT THE QUALIFYING4
PROPERTY AT THE TIME IT IS ACQUIRED BY THE LOCAL GOVERNMENT5
PURSUANT TO THIS SECTION MAY CONTINUE TO RESIDE AT THE QUALIFYING6
PROPERTY IRRESPECTIVE OF THEIR INCOME LEVEL FOR AT LEAST THE7
DURATION OF THEIR TENANCY AGREEMENT PURSUANT TO THE TENANCY8
AGREEMENT'S TERMS IN EFFECT AT THE TIME THE LOCAL GOVERNMENT9
ACQUIRES THE QUALIFYING PROPERTY . A LOCAL GOVERNMENT OR ITS10
ASSIGNEE MAY ONLY DECLINE TO RENEW A TENANT 'S LEASE IN ORDER TO11
COMPLY WITH GREATER AFFORDABILITY RESTRICTIONS AT THE PROPERTY12
IN ACCORDANCE WITH SUBSECTION (8)(a) OF THIS SECTION OR IF THE13
RESIDENT IS DEMONSTRABLY VIOLATING ANY TERMS OF THE LEASE .14
(9) Application of a local government's right of first refusal15
laws. NOTHING IN THIS PART 12 RESTRICTS OR SUPERSEDES THE16
AUTHORITY OF A LOCAL GOVERNMENT TO ENACT LAWS FOR ITS17
JURISDICTION PROVIDING FOR THE LOCAL GOVERNMENT'S RIGHT OF FIRST18
REFUSAL TO PURCHASE PROPERTY FOR AFFORDABLE HOUSING THAT AT A19
MINIMUM COMPLY WITH THIS PART 12 AND IN THE EVENT OF CONFLICT20
BETWEEN A PROVISION IN THIS PART 12 AND A LOCAL GOVERNMENT'S21
LAWS, THE PROVISION MORE FAVORABLE TO THE LOCAL GOVERNMENT22
APPLIES.23
29-4-1203. Right of first offer - eligibility - process - notice -24
definition - repeal. (1) Definition of qualifying property. A
S USED IN25
THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES , "QUALIFYING26
PROPERTY" MEANS A MULTIFAMILY RESIDENTIAL OR MIXED -USE RENTAL27
1175
-22- PROPERTY CONSISTING OF NOT MORE THAN ONE HUNDRED UNITS AND NOT1
LESS THAN FIFTEEN UNITS AND EXCLUDING EXISTING AFFORDABLE2
HOUSING AND A MOBILE HOME PARK AS DEFINED IN SECTION 38-12-201.53
(6). FOR THE PURPOSE OF DETERMINING WHETHER A PROPERTY CONSISTS4
OF AT LEAST THE MINIMUM NUMBER OF UNITS SET FORTH IN THIS5
SUBSECTION (1) FOR A QUALIFYING PROPERTY, AN ACCESSORY DWELLING6
UNIT DOES NOT COUNT AS A UNIT.7
(2) Local government's right of first offer. (a) I
N ACCORDANCE8
WITH THIS PART 12, THE LOCAL GOVERNMENT FOR THE JURISDICTION IN9
WHICH A QUALIFYING PROPERTY IS LOCATED HAS A RIGHT OF FIRST OFFER10
TO MAKE AN OFFER TO PURCHASE THE QUALIFYING PROPERTY BEFORE THE11
QUALIFYING PROPERTY IS LISTED FOR SALE TO THIRD PARTIES .12 13
(b) THE LOCAL GOVERNMENT'S RIGHT OF FIRST OFFER CONCERNING14
THE QUALIFYING PROPERTY IS LIMITED TO PRESERVING OR CONVERTING15
THE QUALIFYING PROPERTY TO LONG -TERM AFFORDABLE HOUSING OR A16
MIXED-INCOME DEVELOPMENT DIRECTLY OR THROUGH ANOTHER ENTITY17
TO WHICH THE LOCAL GOVERNMENT ASSIGNS ITS RIGHTS PURSUANT TO18
SUBSECTION (2)(e) OF THIS SECTION OR TRANSFERS THE QUALIFYING19
PROPERTY. IF A QUALIFYING PROPERTY IS CLASSIFIED AS MIXED-USE, THE20
LOCAL GOVERNMENT'S OFFER MUST INCLUDE ANY COMMERCIAL PORTION21
OF THE QUALIFYING PROPERTY BUT ONLY THE RESIDENTIAL PORTION OF22
THE QUALIFYING PROPERTY IS SUBJECT TO AFFORDABILITY23
REQUIREMENTS.24
(c) THE LOCAL GOVERNMENT , IN EXERCISING ITS RIGHT OF FIRST25
OFFER, MAY PARTNER WITH A NONPROFIT ENTITY , A PRIVATE ENTITY, A26
QUASI-GOVERNMENTAL ENTITY, OR ANOTHER GOVERNMENTAL ENTITY TO27
1175
-23- CO-FINANCE, LEASE, OR MANAGE THE QUALIFYING PROPERTY FOR THE1
PUBLIC PURPOSE OF MAINTAINING THE QUALIFYING PROPERTY AS2
LONG-TERM AFFORDABLE HOUSING OR A MIXED -INCOME DEVELOPMENT IF3
THE LOCAL GOVERNMENT OR ITS ASSIGNEE MAINTAINS OWNERSHIP OF THE4
QUALIFYING PROPERTY EITHER DIRECTLY OR THROUGH A SPECIAL PURPOSE5
ENTITY OR AFFILIATE.6
(d) AT ANY TIME, THE LOCAL GOVERNMENT MAY ASSIGN THE7
RIGHT OF FIRST OFFER REGARDING A QUALIFYING PROPERTY TO A LOCAL8
OR REGIONAL HOUSING AUTHORITY OR THE COLORADO HOUSING AND9
FINANCE AUTHORITY, SUBJECT TO THE REQUIREMENTS THAT THE10
QUALIFYING PROPERTY IS USED TO PRESERVE OR BE CONVERTED TO11
LONG-TERM AFFORDABLE HOUSING OR A MIXED -INCOME DEVELOPMENT12
AND THAT ALL OTHER PROVISIONS OF THIS PART 12 APPLY TO THE13
ASSIGNEE. THE ASSIGNEE MUST IMMEDIATELY NOTIFY THE RESIDENTIAL14
SELLER OF ANY ASSIGNMENT PURSUANT TO THIS SUBSECTION (2)(d), AND15
THE NOTICE MUST INCLUDE THE ASSIGNEE'S ADDRESS TO RECEIVE ANY16
NOTICES THAT THE RESIDENTIAL SELLER IS REQUIRED TO SEND IN17
ACCORDANCE WITH THIS SECTION. THE LOCAL GOVERNMENT REMAINS18
LIABLE FOR OBLIGATIONS PURSUANT TO THIS PART 12 ACCRUING PRIOR TO19
THE ASSIGNMENT AND UPON ASSIGNMENT , THE ASSIGNEE ASSUMES ALL20
LIABILITY OF THE LOCAL GOVERNMENT REGARDING THE EXERCISE OF THE21
RIGHT OF FIRST OFFER AND IS RESPONSIBLE FOR PERFORMING ALL22
REQUIREMENTS PURSUANT TO THIS PART 12, IN EACH CASE ACCRUING23
FROM AND AFTER THE ASSIGNMENT, WITH RESPECT TO A QUALIFYING24
PROPERTY AS IF THE ASSIGNEE WERE THE LOCAL GOVERNMENT . 25
(e) (I) THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS THE26
RIGHT TO WAIVE THE RIGHT OF FIRST OFFER PROVIDED IN THIS SECTION .27
1175
-24- (II) (A) IF THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS1
WAIVED ITS RIGHT OF FIRST OFFER, IT SHALL POST A NOTICE IN A2
CONSPICUOUS LOCATION ON ITS WEBSITE INDICATING THAT THERE IS A3
WAIVER AND THAT RESIDENTIAL SELLERS WITH QUALIFYING PROPERTIES4
WITHIN ITS JURISDICTION DO NOT HAVE AN OBLIGATION TO COMPLY WITH5
THIS SECTION.6
(B) THE NOTICE POSTED IN ACCORDANCE WITH SUBSECTION7
(2)(e)(II)(A) OF THIS SECTION MUST BE EFFECTIVE FOR AT LEAST THREE8
MONTHS AFTER IT IS POSTED AND MUST EXPLICITLY STATE THE DATE IT9
EXPIRES, IF ANY.10
(C) FAILURE TO POST NOTICE PURSUANT TO THIS SUBSECTION11
(2)(e)(II) DOES NOT OTHERWISE AFFECT THE LOCAL GOVERNMENT 'S RIGHT12
OF FIRST OFFER.13
(f) NOTWITHSTANDING ANYTHING IN THIS SECTION TO THE14
CONTRARY, AT ANY TIME PRIOR TO THE RESIDENTIAL SELLER AND THE15
LOCAL GOVERNMENT ENTERING INTO A CONTRACT FOR THE PURCHASE OF16
THE QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT, THE17
RESIDENTIAL SELLER MAY REJECT THE LOCAL GOVERNMENT'S OFFER AND18
OTHERWISE TERMINATE NEGOTIATIONS WITH THE LOCAL GOVERNMENT .19
(g) IF THE LOCAL GOVERNMENT WAIVES OR IS DEEMED TO HAVE20
WAIVED ITS RIGHT OF FIRST OFFER IN ACCORDANCE WITH THIS SECTION OR21
IF A RESIDENTIAL SELLER REJECTS THE LOCAL GOVERNMENT'S OFFER IN22
ACCORDANCE WITH SUBSECTION (2)(f) OF THIS SECTION, THE RESIDENTIAL23
SELLER HAS NO OBLIGATION TO PROVIDE INITIAL OR ADDITIONAL NOTICE,24
AS APPLICABLE, TO THE LOCAL GOVERNMENT OR OTHERWISE OFFER OR25
RE-OFFER, AS APPLICABLE, THE QUALIFYING PROPERTY TO THE LOCAL26
GOVERNMENT PURSUANT TO ANY PROVISION OF THIS SECTION UNLESS A27
1175
-25- TRANSACTION FOR THE SALE OF THE QUALIFYING PROPERTY DOES NOT1
CLOSE WITHIN TWELVE MONTHS OF EITHER THE LOCAL GOVERNMENT'S2
WAIVER OR DEEMED WAIVER OR REJECTION BY THE RESIDENTIAL SELLER3
OF THE LOCAL GOVERNMENT 'S OFFER, WHICHEVER IS EARLIER; EXCEPT4
THAT, IF THE CONTRACT FOR SALE TO A THIRD PARTY HAS A DURATION5
LONGER THAN TWELVE MONTHS , THEN THE TWELVE MONTH PERIOD IS6
EXTENDED TO MATCH THE TERM OF THE CONTRACT .7
(3) Notice requirements generally. (a) (I) ANY NOTICES8
REQUIRED TO BE PROVIDED TO THE LOCAL GOVERNMENT PURSUANT TO9
THIS SECTION MUST BE DELIVERED TO THE CLERK OF THE GOVERNING10
BODY OF THE LOCAL GOVERNMENT BY ELECTRONIC MAIL; EXCEPT THAT IF11
THERE IS NOT AN ELECTRONIC MAILING ADDRESS AVAILABLE FOR THE12
CLERK, THEN BY HAND DELIVERY, UNITED STATES FIRST CLASS MAIL, OR13
OVERNIGHT DELIVERY.14
(II) NOTWITHSTANDING SUBSECTION (3)(a)(I) OF THIS SECTION, IF15
THE LOCAL GOVERNMENT ASSIGNS ITS RIGHT OF FIRST OFFER AND THE16
ASSIGNEE PROVIDES NOTICE OF THE ASSIGNMENT TO THE RESIDENTIAL17
SELLER PURSUANT TO SUBSECTION (2)(d) OF THIS SECTION, THEN UPON18
AND AFTER RECEIPT OF NOTICE OF THE ASSIGNMENT, THE RESIDENTIAL19
SELLER SHALL SEND BY ELECTRONIC MAIL ANY REQUIRED NOTICES20
PURSUANT TO THIS SECTION TO THE ADDRESS SPECIFIED BY THE ASSIGNEE;21
EXCEPT THAT, IF THERE IS NOT AN ELECTRONIC MAILING ADDRESS22
PROVIDED BY THE ASSIGNEE, THEN BY HAND DELIVERY, UNITED STATES23
FIRST CLASS MAIL, OR OVERNIGHT DELIVERY.24
(b) ANY NOTICES PROVIDED TO THE RESIDENTIAL SELLER25
PURSUANT TO THIS SECTION MUST BE DELIVERED TO THE PHYSICAL26
ADDRESS PROVIDED BY THE RESIDENTIAL SELLER IN ACCORDANCE WITH27
1175
-26- SUBSECTION (5)(a)(II) OF THIS SECTION OR, UPON ELECTION BY THE1
RESIDENTIAL SELLER, BY ELECTRONIC MAIL TO THE ELECTRONIC MAILING2
ADDRESS PROVIDED BY THE RESIDENTIAL SELLER TO THE LOCAL3
GOVERNMENT.4
(c) ANY NOTICE PROVIDED PURSUANT TO THIS SECTION IS DEEMED5
DELIVERED ON THE DATE IT IS SENT BY ELECTRONIC MAIL, THE DATE IT IS6
HAND DELIVERED, THE DATE AFTER THE DAY IT IS DEPOSITED FOR7
DELIVERY BY OVERNIGHT DELIVERY, OR THE DATE THAT IS TWO BUSINESS8
DAYS AFTER THE DAY IT IS DEPOSITED IN THE UNITED STATES MAIL, AS9
APPLICABLE.10
(4) Notice by residential seller, local government's intent, and11
nondisclosure agreement. (a) B EFORE A RESIDENTIAL SELLER ENTERS12
INTO AN AGREEMENT WITH A LICENSED BROKER TO SOLICIT AND PROCURE13
PURCHASERS FOR A QUALIFYING PROPERTY OR OTHERWISE LISTS A14
QUALIFYING PROPERTY FOR SALE ON THE MULTIPLE LISTING SERVICE, THE15
RESIDENTIAL SELLER SHALL PROVIDE NOTICE TO THE GOVERNING BODY OF16
THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING PROPERTY IS17
LOCATED THAT THE RESIDENTIAL SELLER INTENDS TO SELL THE18
QUALIFYING PROPERTY.19
(b) THE LOCAL GOVERNMENT HAS SEVEN CALENDAR DAYS FROM20
THE DATE OF RECEIVING THE NOTICE REQUIRED BY SUBSECTION (4)(a) OF21
THIS SECTION TO PROVIDE A WRITTEN RESPONSE TO THE RESIDENTIAL22
SELLER INDICATING THAT THE LOCAL GOVERNMENT EITHER :23
(I) IS INTERESTED IN RECEIVING DUE DILIGENCE INFORMATION ON24
THE QUALIFYING PROPERTY SO THAT IT CAN EVALUATE WHETHER IT25
WANTS TO MAKE AN OFFER TO PURCHASE THE QUALIFYING PROPERTY ,26
WHICH RESPONSE MUST CONTAIN A NONDISCLOSURE AGREEMENT IN A27
1175
-27- FORM ACCEPTABLE TO THE RESIDENTIAL SELLER THAT THE LOCAL1
GOVERNMENT HAS EXECUTED ; OR2
(II) WAIVES ANY RIGHT OF THE LOCAL GOVERNMENT TO PURCHASE3
THE QUALIFYING PROPERTY.4
(c) IF THE LOCAL GOVERNMENT DOES NOT RESPOND WITHIN THE5
SEVEN-DAY PERIOD REQUIRED BY SUBSECTION (4)(b) OF THIS SECTION, IT6
IS DEEMED TO HAVE WAIVED ITS RIGHT OF FIRST OFFER WITH RESPECT TO7
THE QUALIFYING PROPERTY.8
(5) Residential seller's notice of terms. (a) IF THE LOCAL9
GOVERNMENT PROVIDES NOTICE IN ACCOR DANCE WITH SUBSECTION (4)(b)10
OF THIS SECTION, THE RESIDENTIAL SELLER HAS FIVE CALENDAR DAYS11
FROM RECEIPT OF THE NOTICE TO PROVIDE A NOTICE TO THE LOCAL12
GOVERNMENT THAT INCLUDES :13
(I) THE ADDRESS AND NAME OF THE QUALIFYING PROPERTY , IF14
ANY, AND THE LEGAL DESCRIPTION OF THE QUALIFYING PROPERTY ;15
(II) T
HE RESIDENTIAL SELLER'S ADDRESS AND, IF AVAILABLE,16
ELECTRONIC MAILING ADDRESS TO RECEIVE NOTICES FROM THE LOCAL17
GOVERNMENT;18 (III) A RENT ROLL FOR THE QUALIFYING PROPERTY SHOWING19
THE AMOUNT OF RENT CHARGED TO TENANTS AT THE QUALIFYING20
PROPERTY;21
(IV) THE VACANCY RATE, OPERATING EXPENSES AND INCOME, AND22
COMMON AREA AMENITIES AT THE QUALIFYING PROPERTY ;23
(V) ANY MARKETING MATERIALS THAT THE RESIDENTIAL SELLER24
HAS PREPARED ON OR BEFORE THE DATE OF SUCH NOTICE AND25
ANTICIPATES USING IN CONNECTION WITH LISTING THE QUALIFYING26
PROPERTY FOR SALE;27
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-28- (VI) A CURRENT TITLE COMMITMENT ; AND1
(VII) THE RESIDENTIAL SELLER'S EXECUTED VERSION OF THE2
NONDISCLOSURE AGREEMENT .3
(b) SUBJECT TO AND PURSUANT TO THE NONDISCLOSURE4
AGREEMENT EXECUTED IN ACCORDANCE WITH SUBSECTION (4)(b) OF THIS5
SECTION, THE LOCAL GOVERNMENT MAY SHARE THE INFORMATION6
CONTAINED IN THE NOTICES REQUIRED PURSUANT TO THIS SUBSECTION (5)7
WITH ITS OFFICERS, EMPLOYEES, AGENTS, AND PROSPECTIVE ASSIGNEES OR8
PROSPECTIVE ENTITIES THAT THE LOCAL GOVERNMENT PARTNERS WITH9
PURSUANT TO SUBSECTIONS (2)(c) AND (2)(d) OF THIS SECTION FOR THE10
PURPOSES OF EVALUATING OR OBTAINING FINANCING FOR THE11
PROSPECTIVE TRANSACTION. THE INFORMATION CONTAINED IN THE NOTICE12
MUST BE KEPT CONFIDENTIAL AND IS CONFIDENTIAL INFORMATION NOT13
SUBJECT TO PUBLIC DISCLOSURE. 14
(6) Notice by the local government. (a) A LOCAL GOVERNMENT15
HAS FOURTEEN CALENDAR DAYS FROM THE DATE OF RECEIVING THE16
NOTICE REQUIRED BY SUBSECTION (5)(a) OF THIS SUBSECTION TO PROVIDE17
A WRITTEN RESPONSE TO THE RESIDENTIAL SELLER THAT EITHER :18
(I) M
AKES AN OFFER TO PURCHASE THE QUALIFYING PROPERTY19 SETTING FORTH THE PRICE, TERMS, AND CONDITIONS OF THE OFFER; OR20
(II) W
AIVES ANY RIGHT OF THE LOCAL GOVERNMENT TO PURCHASE21
THE QUALIFYING PROPERTY.22(b) IF THE LOCAL GOVERNMENT DOES NOT PROVIDE A RESPONSE23
WITHIN THE FOURTEEN-DAY PERIOD SET FORTH IN SUBSECTION (6)(a) OF24
THIS SECTION, THE LOCAL GOVERNMENT'S RIGHT OF FIRST OFFER IS25
DEEMED WAIVED.26
(7) Process after offer is made. (a) T HE RESIDENTIAL SELLER HAS27
1175
-29- FOURTEEN CALENDAR DAYS AFTER RECEIPT OF THE LOCAL GOVERNMENT 'S1
OFFER MADE PURSUANT TO SUBSECTION (6)(a)(I) OF THIS SECTION TO2
NOTIFY THE LOCAL GOVERNMENT THAT IT EITHER ACCEPTS OR REJECTS3
THE OFFER. DURING THIS PERIOD, THE RESIDENTIAL SELLER MAY INITIATE4
NEGOTIATIONS IN GOOD FAITH WITH THE LOCAL GOVERNMENT WHICH MAY5
INCLUDE DISCUSSING ALTERNATIVE PRICE , TERMS, OR CONDITIONS FOR6
THE PURCHASE OF THE QUALIFYING PROPERTY . IF THE RESIDENTIAL7
SELLER DOES NOT PROVIDE NOTICE OF ITS ACCEPTANCE OR REJECTION OF8
THE LOCAL GOVERNMENT'S OFFER IN THE FOURTEEN DAY PERIOD9
PURSUANT TO THIS SUBSECTION (7)(a), THE OFFER IS DEEMED REJECTED.10
(b) I
F THE RESIDENTIAL SELLER ACCEPTS THE LOCAL11
GOVERNMENT'S OFFER OR ACCEPTS AN OFFER NEGOTIATED WITH THE
12
LOCAL GOVERNMENT, THE LOCAL GOVERNMENT AND THE RESIDENTIAL13
SELLER HAVE THIRTY CALENDAR DAYS AFTER THE DATE OF THE14
RESIDENTIAL SELLER'S RECEIPT OF THE LOCAL GOVERNMENT'S NOTICE15
PROVIDED IN ACCORDANCE WITH SUBSECTION (6)(a)(I) OF THIS SECTION16
TO NEGOTIATE AND EXECUTE A CONTRACT FOR THE PURCHASE OF THE17
QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT. THE CONTRACT18
MUST REQUIRE THE TRANSACTION TO CLOSE NO LATER THAN SIXTY DAYS19
AFTER ITS EXECUTION, UNLESS BOTH PARTIES AGREE TO OTHER TERMS .20
(8) Certificate of compliance. WITHIN FOURTEEN CALENDAR21
DAYS OF RECEIPT OF NOTICE REQUIRED BY SUBSECTION (4)(a) OF THIS22
SECTION UNLESS THE LOCAL GOVERNMENT PROVIDES NOTICE PURSUANT23
TO SUBSECTION (4)(b) OF THIS SECTION AND THEN WITHIN FOURTEEN24
CALENDAR DAYS OF RECEIPT OF THE NOTICE REQUIRED BY SUBSECTION25
(5)(a) OF THIS SECTION, THE LOCAL GOVERNMENT OR ITS ASSIGNEE SHALL26
EXECUTE AND RECORD A CERTIFICATE OF COMPLIANCE IN THE REAL27
1175
-30- PROPERTY RECORDS OF THE COUNTY IN WHICH THE QUALIFYING PROPERTY1
IS SITUATED. THE CERTIFICATE OF COMPLIANCE MUST INCLUDE THE NAME2
OF THE RESIDENTIAL SELLER, A LEGAL DESCRIPTION OF THE QUALIFYING3
PROPERTY, AND A STATEMENT THAT THE RESIDENTIAL SELLER HAS4
COMPLIED WITH ALL THE APPLICABLE PROVISIONS OF THIS SECTION. THE5
RECORDED CERTIFICATE OF COMPLIANCE IS PRIMA FACIE EVIDENCE OF THE6
RESIDENTIAL SELLER'S COMPLIANCE WITH THIS SECTION AND MAY BE7
RELIED UPON BY A RESIDENTIAL SELLER , ANY PERSON CLAIMING AN8
INTEREST IN THE QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER,9
AND A TITLE INSURANCE ENTITY, AS DEFINED IN SECTION 10-11-102 (11).10
(9) Repeal. T HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,11
2029.12
29-4-1204. General provisions applicable to a local13
government's right of first refusal and right of first offer.14
(1) N
OTHING IN THIS PART 12 REQUIRES A LOCAL GOVERNMENT TO15
EXERCISE ITS RIGHT OF FIRST REFUSAL SET FORTH IN SECTION 29-4-120216
OR ITS RIGHT OF FIRST OFFER SET FORTH IN SECTION 29-4-1203 AND A17
LOCAL GOVERNMENT MUST PROMPTLY NOTIFY A RESIDENTIAL SELLER OF18
ITS INTENT NOT TO EXERCISE ITS RIGHT OF FIRST
OFFER AS SET FORTH IN19
SECTIONS 29-4-1203 (4)(b)(II) AND (6)(a)(II).20
(2) A
NY ACTION BY THE LOCAL GOVERNMENT REQUIRED OR21
PERMITTED PURSUANT TO THIS PART 12 MAY BE PERFORMED , AS IS22
APPLICABLE AND TO THE EX TENT PERMITTED BY LAW , BY THE COUNTY23
MANAGER OF A COUNTY , THE MAYOR OR CITY MANAGER OF A CITY OR24
TOWN, OR ANOTHER OFFICER DESIGNATED BY THE GOVERNING BODY OF25
THE LOCAL GOVERNMENT .26
(3) A
NY ACTIONS OF AN AGENT WORKING ON BEHALF OF A27
1175
-31- RESIDENTIAL SELLER FOR PURPOSES OF THIS PART 12 ARE ATTRIBUTABLE1
TO THE RESIDENTIAL SELLER. NOTWITHSTANDING ANY OTHER PROVISION2
OF THIS PART 12 TO THE CONTRARY, A POLITICAL SUBDIVISION OR A3
HOUSING AUTHORITY IN THE STATE THAT ENGAGES IN ACTIVITIES TO4
CREATE OR PRESERVE AFFORDABLE HOUSING FOR AN APPLICABLE5
QUALIFYING PROPERTY IS NOT CONSIDERED AN AGENT WORKING ON6
BEHALF OF A RESIDENTIAL SELLER FOR PURPOSES OF THIS PART 12.7
(4) N
OTHING WITHIN THIS PART 12 LIMITS THE LOCAL8
GOVERNMENT'S ABILITY TO CONDEMN AN APPLICABLE QUALIFYING9
PROPERTY ACQUIRED PURSUANT TO THIS PART 12 TO THE EXTENT10
PERMITTED BY APPLICABLE LAW .11
(5) I
F A LOCAL GOVERNMENT HAS ADOPTED LONG -TERM12
AFFORDABILITY REQUIREMENTS THAT ARE GREATER THAN THE13
REQUIREMENTS SET FORTH IN THIS PART 12, THE LOCAL GOVERNMENT 'S14
REQUIREMENTS APPLY TO THIS PART 12.
NOTHING IN THIS PART 1215
OVERRIDES ANY LOCAL AFFORDABLE HOUSING LAWS .16
29-4-1205. Exemptions - repeal. (1) T
HIS PART 12 DOES NOT17
APPLY TO ANY SALE, TRANSFER, OR CONVEYANCE OF AN APPLICABLE18
QUALIFYING PROPERTY BY A RESIDENTIAL SELLER :19 (a) MADE TO, IF WHOLLY OR MAJORITY OWNED , DIRECTLY OR20
INDIRECTLY, BY, BENEFICIALLY HELD, ALL OR IN PART, IN COMMON WITH,21
OR UNDER COMMON OWNERSHIP OR CONTROL WITH THE RESIDENTIAL22
SELLER, ONE OR MORE PARTNERSHIPS, LIMITED LIABILITY COMPANIES,23
CORPORATIONS, OR OTHER ENTITIES, MADE FOR TAX OR ESTATE PURPOSES24
BETWEEN CLOSELY HELD PARTNERS, MEMBERS OF ONE OR MORE LIMITED25
LIABILITY COMPANIES, MEMBERS OF ONE OR MORE CORPORATIONS, OR26
MEMBERS, TRUSTEES, MANAGERS, OR PARTNERS OF ONE OR MORE OTHER27
1175
-32- ENTITIES, OR IF THE UNITED STATES, OR ANY AGENCY OR1
INSTRUMENTALITY THEREOF , OR THE STATE, OR ANY POLITICAL2
SUBDIVISION OF THE STATE, IS THE RESIDENTIAL SELLER OF OR IS A3
THIRD-PARTY BUYER OF THE APPLICABLE QUALIFYING PROPERTY ;4
(b) M
ADE TO THE STATE, A LOCAL GOVERNMENT, THE COLORADO5
HOUSING AND FINANCE AUTHORITY , ANY PUBLIC HOUSING AUTHORITY ,6
AND ANY OTHER POLITICAL SUBDIVISION OF THE STATE ;7
(c) M
ADE TO
AN AFFORDABLE HOUSING PROVIDER THAT HAS8
PROVIDED NOTICE OF INTENT TO PURCHASE THE APPLICABLE QUALIFYING9
PROPERTY AND COMMITS TO PROVIDING LONG -TERM AFFORDABLE10
HOUSING;11
(d) I
F THE APPLICABLE QUALIFYING PROPERTY IS SOLD ,12
TRANSFERRED, OR CONVEYED IN A FORECLOSURE ACTION OR BY A DEED IN13
LIEU OF
FORECLOSURE, IF THE APPLICABLE QUALIFYING PROPERTY IS SOLD,14
TRANSFERRED, OR CONVEYED BY A PARTY THAT ACQUIRES THE15
APPLICABLE QUALIFYING PROPERTY IN A FORECLOSURE ACTION OR BY A16
DEED IN LIEU OF FORECLOSURE, OR IF THE APPLICABLE QUALIFYING17
PROPERTY IS SUBSEQUENTLY TRANSFERRED BY A18
GOVERNMENT-SPONSORED ENTERPRISE TO A DIRECT OR INDIRECT WHOLLY19
OWNED SUBSIDIARY, AFFILIATED LENDER, OR OTHER THIRD PARTY;20
(e) IF, ON OR AFTER THE EFFECTIVE DATE OF THIS PART 12, THE21
APPLICABLE QUALIFYING PROPERTY HAS A PREEXISTING AGREEMENT THAT22
BESTOWS A RIGHT OF FIRST REFUSAL, RIGHT OF FIRST OFFER, OR OTHER23
CONTINGENT PROPERTY RIGHT REGARDING THE APPLICABLE QUALIFYING24
PROPERTY TO A THIRD PARTY; EXCEPT THAT, UPON EXPIRATION OF THE25
AGREEMENT, THE PROVISIONS OF THIS PART 12 APPLY TO ANY SALE,26
TRANSFER, OR CONVEYANCE OF THE APPLICABLE QUALIFYING PROPERTY27
1175
-33- BY THE RESIDENTIAL SELLER; OR1
(f) IF THE RESIDENTIAL SELLER HAS APPLIED FOR , IS IN THE2
PROCESS OF, OR HAS SUCCESSFULLY RESYNDICATED OR RECAPITALIZED3
THE APPLICABLE QUALIFYING PROPERTY IN CONNECTION WITH AN4
AFFORDABLE HOUSING PROGRAM OFFERED BY THE FEDERAL, STATE, OR5
LOCAL GOVERNMENT OR A POLITICAL SUBDIVISION OR ANY PUBLIC ENTITY,6
AND THE RESIDENTIAL SELLER PROVIDES NOTICE AND DEMONSTRABLE7
EVIDENCE OF THIS TO THE LOCAL GOVERNMENT ; EXCEPT THAT, IF THE8
RESIDENTIAL SELLER IS NOT SUCCESSFUL IN RESYNDICATING OR9
RECAPITALIZING AN APPLICABLE QUALIFYING PROPERTY IN CONNECTION10
WITH AN AFFORDABLE HOUSING PROGRAM OFFERED BY THE FEDERAL ,11
STATE, OR LOCAL GOVERNMENT OR A POLITICAL SUBDIVISION OR ANY12
PUBLIC ENTITY THEN THE RIGHT OF FIRST REFUSAL OR THE RIGHT OF FIRST13
OFFER, AS APPLICABLE, AND THE REQUIREMENTS SET FORTH IN THIS PART14
12 APPLY.15
(2) (a) THE RIGHT OF FIRST OFFER SET FORTH IN SECTION16
29-4-1203
DOES NOT APPLY TO ANY SALE, TRANSFER, OR CONVEYANCE OF17
A QUALIFYING PROPERTY, AS DEFINED IN SECTION 29-4-1203 (1), BY A18
RESIDENTIAL SELLER:19
(I) M
ADE TO A FAMILY MEMBER , AS DEFINED IN SECTION20
8-13.3-503
(11), OF THE RESIDENTIAL SELLER;21
(II) M
ADE TO A TRUST IF THE BENEFICIARY OF THE TRUST IS THE22
SPOUSE, PARTNER IN A CIVIL UNION, LEGALLY RECOGNIZED CHILD , OR23
OTHER FAMILY MEMBER OF THE RESIDENTIAL SELLER ;24
(III) M
ADE PURSUANT TO A WILL , DESCENT, OR INTESTATE25
DISTRIBUTION;26
(IV) M
ADE PURSUANT TO AN ACTION IN EMINENT
DOMAIN OR IN27
1175
-34- RESPONSE TO A THREAT OF EMINENT DOMAIN ;1
(V) M
ADE PURSUANT TO A COURT ORDER ;2
(VI) M
ADE BETWEEN JOINT TENANTS OR TENANTS IN COMMON ;
3
(VII) I
F THE FIRST CERTIFICATE OF OCCUPANCY FOR THE4
QUALIFYING PROPERTY WAS ISSUED WITHIN
THIRTY YEARS PRECEDING THE5
DATE THAT THE RESIDENTIAL SELLER WILL LIST THE QUALIFYING6
PROPERTY FOR SALE;7
(VIII) IF THE QUALIFYING PROPERTY IS BEING SOLD, TRANSFERRED,8
OR CONVEYED AS PART OF A TRANSACTION INVOLVING MULTIPLE9
PROPERTIES WHICH INCLUDES AT LEAST ONE PROPERTY LOCATED IN A10
JURISDICTION THAT IS OUTSIDE OF THE JURISDICTION OF THE LOCAL11
GOVERNMENT;12
(IX) THAT DOES NOT INVOLVE THE SALE, TRANSFER, OR13
CONVEYANCE OF ALL OR SUBSTANTIALLY ALL OF THE QUALIFYING14
PROPERTY; OR15
(X) THAT IS A SALE, TRANSFER, OR CONVEYANCE, DIRECTLY OR16
INDIRECTLY, OF OWNERSHIP INTERESTS IN THE RESIDENTIAL SELLER .17
(b) T
HIS SUBSECTION
(2) IS REPEALED, EFFECTIVE DECEMBER 31,18
2029.19
29-4-1206. Remedies for noncompliance.20
(1) (a) N
OTWITHSTANDING SUBSECTION
(1)(b) OF THIS SECTION AND21
SUBJECT TO THE AVAILABILITY OF RESOURCES , IT IS THE RESPONSIBILITY22
OF THE ATTORNEY GENERAL'S OFFICE TO ENFORCE THE PROVISIONS OF THIS23
PART 12, AND THE ATTORNEY GENERAL MAY INTERVENE IN ANY ACTION24
BROUGHT PURSUANT TO SUBSECTION (1)(b) OF THIS SECTION.25
26
(b) THE ATTORNEY GENERAL'S OFFICE, THE LOCAL GOVERNMENT,27
1175
-35- OR THE LOCAL GOVERNMENT'S ASSIGNEE MAY BRING A CIVIL ACTION1
AGAINST A RESIDENTIAL SELLER FOR ANY VIOLATION OF THIS PART 12.2
(c) THE REMEDIES FOR ANY ACTION BROUGHT PURSUANT TO THIS3
SUBSECTION (1) ARE LIMITED TO MONETARY DAMAGES AND STATUTORY4
PENALTIES AGAINST THE RESIDENTIAL SELLER. ANY PERSON CLAIMING AN5
INTEREST IN AN APPLICABLE QUALIFYING PROPERTY THROUGH A6
RESIDENTIAL SELLER SHALL TAKE TITLE TO THE APPLICABLE QUALIFYING7
PROPERTY FREE OF ANY RIGHTS OR CLAIMS SET FORTH IN THIS PART 12.8
9
(2) IF A COURT FINDS THAT A RESIDENTIAL SELLER IS IN MATERIAL10
VIOLATION OF THIS PART 12, THE COURT SHALL AWARD A STATUTORY11
PENALTY THAT IS NOT LESS THAN TEN THOUSAND DOLLARS FOR A FIRST12
OFFENSE AND NOT LESS THAN THIRTY THOUSAND DOLLARS FOR ANY13
SUBSEQUENT OFFENSES; EXCEPT THAT THE COURT SHALL NOT AWARD A14
STATUTORY PENALTY THAT IS MORE THAN ONE HUNDRED THOUSAND15
DOLLARS.16
(3) A COURT MAY ALSO AWARD REASONABLE ATTORNEY FEES AND17
COSTS TO A PREVAILING PARTY. 18
(4) THE REMEDIES PROVIDED IN THIS SECTION ARE THE SOLE19
AND EXCLUSIVE REMEDIES PURSUANT TO A CIVIL ACTION BROUGHT20
PURSUANT TO THIS SECTION FOR A VIOLATION OF THIS PART 12 BY A21
RESIDENTIAL SELLER.22
29-4-1207. Termination of right of first offer. T
HE RIGHT OF23
FIRST OFFER ESTABLISHED IN THIS PART 12 TERMINATES ON DECEMBER 31,24
2029.25
SECTION 2. In Colorado Revised Statutes, 24-31-101, amend26
(1)(i)(XVII) and (1)(i)(XVIII); and add (1)(i)(XIX) as follows:27
1175
-36- 24-31-101. Powers and duties of attorney general. (1) The1
attorney general:2
(i) May independently initiate and bring civil and criminal actions3
to enforce state laws, including actions brought pursuant to:4
(XVII) The "Rental Application Fairness Act", part 9 of article 125
of title 38; and6
(XVIII) The "Reproductive Health Equity Act", part 4 of article7
6 of title 25;
AND8
(XIX) P
ART 12 OF ARTICLE 4 OF TITLE 29.9
SECTION 3. Act subject to petition - effective date -10
applicability. (1) This act takes effect at 12:01 a.m. on the day following11
the expiration of the ninety-day period after final adjournment of the12
general assembly; except that, if a referendum petition is filed pursuant13
to section 1 (3) of article V of the state constitution against this act or an14
item, section, or part of this act within such period, then the act, item,15
section, or part will not take effect unless approved by the people at the16
general election to be held in November 2024 and, in such case, will take17
effect on the date of the official declaration of the vote thereon by the18
governor.19
(2) This act applies to all qualifying properties for the right of first20
refusal that are listed for sale on or after the effective date of this act but21
for which a residential seller has not accepted an offer to purchase the22
qualifying property and executed the necessary agreements in connection23
with accepting the offer and to all qualifying properties for the right of24
first offer on or after the effective date of this act that do not have active25
listings as of the effective date of this act.26
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-37-