Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 24-0096.02 Megan McCall x4215
HOUSE BILL 24-1175
House Committees Senate Committees
Transportation, Housing & Local Government Local Government & Housing
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
SENATE
Amended 2nd Reading
May 7, 2024
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.15
(2) "APPLICABLE QUALIFYING PROPERTY " MEANS EITHER16
"
QUALIFYING PROPERTY" AS DEFINED IN SECTION 29-4-1202 (1), OR17
"
QUALIFYING PROPERTY" AS DEFINED IN SECTION 29-4-1203 (1).18
(3) "APPLICABLE RIGHT" MEANS EITHER A LOCAL GOVERNMENT 'S19
1175-3- RIGHT OF FIRST REFUSAL AS SET FORTH IN SECTION 29-4-1202, OR RIGHT1
OF FIRST OFFER AS SET FORTH IN SECTION 29-4-1203.2
(4) "AREA MEDIAN INCOME" MEANS THE MEDIAN INCOME OF THE3
COUNTY IN WHICH A QUALIFYING PROPERTY IS LOCATED IN RELATION TO4
HOUSEHOLD SIZE, AS ESTABLISHED ANNUALLY BY THE UNITED STATES5
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.6
(5) "COLORADO HOUSING AND FINANCE AUTHORITY " MEANS THE7
C
OLORADO HOUSING AND FINANCE AUTHORITY CREATED IN SECTION8
29-4-704
(1).9
10
(6) "EXISTING AFFORDABLE HOUSING " MEANS HOUSING THAT IS11
SUBJECT TO ONE OR MORE RESTRICTED USE COVENANTS OR SIMILAR12
RECORDED AGREEMENTS TO ENSURE AFFORDABILITY AND THAT IS13
CONSISTENT WITH AFFORDABLE HOUSING FINANCIAL ASSISTANCE14
REQUIREMENTS. "EXISTING AFFORDABLE HOUSING " DOES NOT INCLUDE15
PROPERTIES FOR WHICH ALL RESTRICTED USE COVENANTS OR16
AFFORDABILITY REQUIREMENTS HAVE EXPIRED AS OF JUNE 1, 2024.17
18
(7) "LOCAL GOVERNMENT" MEANS:19
(a)
A CITY, CITY AND COUNTY, OR TOWN IF THE APPLICABLE20
QUALIFYING PROPERTY IS LOCATED WITHIN THE INCORPORATED AREA OF21
A CITY, A CITY AND COUNTY, OR A TOWN; AND22
(b)
A COUNTY IF THE APPLICABLE QUALIFYING PROPERTY IS23
LOCATED WITHIN THE UNINCORPORATED AREA OF A COUNTY .24
25
(8) "LOCAL OR REGIONAL HOUSING AUTHORITY" MEANS A26
HOUSING AUTHORITY CREATED PURSUANT TO SECTION 29-4-204 (1),27
1175
-4- 29-4-306 (1), 29-4-402, OR 29-4-503 (1).1
(9) (a) "LONG-TERM AFFORDABLE HOUSING" MEANS HOUSING FOR2
WHICH THE LOCAL GOVERNMENT ENSURES THAT AFFORDABILITY LEVELS3
AT AN APPLICABLE QUALIFYING PROPERTY ARE ON AVERAGE EQUAL TO OR4
GREATER THAN PREEXISTING LEVELS AT THE APPLICABLE QUALIFYING5
PROPERTY AND THAT THE AVERAGE ANNUAL RENTS AT THE APPLICABLE6
QUALIFYING PROPERTY DO NOT EXCEED THE RENT FOR HOUSEHOLDS OF A7
GIVEN SIZE AT A GIVEN AREA MEDIAN INCOME, AS ESTABLISHED8
ANNUALLY BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN9
DEVELOPMENT, FOR A MINIMUM OF FORTY YEARS, AND FOR WHICH THE10
LOCAL GOVERNMENT AGREES NOT TO RAISE RENT FOR ANY UNIT IN THE11
APPLICABLE QUALIFYING PROPERTY BY MORE THAN THE RENT INCREASE12
CAP; EXCEPT THAT THE RENT INCREASE CAP DOES NOT APPLY TO UNITS OF13
HOUSING THAT ARE SUBJECT TO RENT OR INCOME LIMITS ESTABLISHED14
PURSUANT TO LOCAL, STATE, FEDERAL, OR POLITICAL SUBDIVISION15
AFFORDABLE HOUSING PROGRAM GUIDELINES .16
(b) NOTHING IN THIS SUBSECTION (9) PREVENTS A LOCAL17
GOVERNMENT FROM PROVIDING AFFORDABILITY REQUIREMENTS BEYOND18
FORTY YEARS OR FOR UNITS TO BE AFFORDABLE TO RENTERS WITH19
INCOMES BELOW EXISTING AFFORDABILITY LEVELS , IN WHICH CASE THE20
LOCAL GOVERNMENT'S REQUIREMENTS APPLY FOR PURPOSES OF THE21
DEFINITION OF "LONG-TERM AFFORDABLE HOUSING" AS SET FORTH IN22
SUBSECTION (9)(a) OF THIS SECTION.23
(10) (a) "M
ATCHED OFFER" MEANS AN OFFER OF PURCHASE FOR A
24
QUALIFYING PROPERTY, AS DEFINED IN SECTION 29-4-1202 (1), FOR A25
PRICE AND WITH OTHER MATERIAL TERMS AND CONDITIONS THAT ARE AT26
LEAST AS FAVORABLE TO THOSE IN AN ARM'S-LENGTH, THIRD-PARTY OFFER27
1175
-5- THAT A RESIDENTIAL SELLER HAS RECEIVED AND IS WILLING TO ACCEPT1
FOR THE SALE OF THE QUALIFYING PROPERTY ; EXCEPT THAT, TO THE2
EXTENT THAT THERE ARE ANY PROVISIONS IN THE ARMS -LENGTH, THIRD3
PARTY OFFER THAT THE LOCAL GOVERNMENT IS PROHIBITED BY LAW FROM4
CONTRACTING FOR, THE LOCAL GOVERNMENT IS NOT REQUIRED TO5
INCLUDE SUCH PROVISIONS IN ITS OFFER FOR ITS OFFER TO BE A MATCHED6
OFFER.7
(b) "M
ATCHED OFFER" ALSO MEANS, IN THE ABSENCE OF AN
8
ARM'S-LENGTH, THIRD-PARTY OFFER, AN OFFER OF PURCHASE FOR A9
QUALIFYING PROPERTY, AS DEFINED IN SECTION 29-4-1202 (1), FOR A10
PRICE AND WITH OTHER MATERIAL TERMS AND CONDITIONS COMPARABLE11
TO THOSE FOR WHICH THE RESIDENTIAL SELLER WOULD SELL , AND A12
WILLING BUYER WOULD PURCHASE , THE QUALIFYING PROPERTY.13
(11) "M
ATERIAL TERMS AND CONDITIONS " MEANS, GENERALLY,
14
SIGNIFICANT TERMS AND CONDITIONS OF A CONTRACT SUCH AS SALE15
PRICE, EARNEST MONEY, REPRESENTATIONS, WARRANTIES, PROPERTY16
DESCRIPTION, AND PERFORMANCE UNDER THE CONTRACT AND , IF A17
RESIDENTIAL SELLER HAS RECEIVED AN OFFER FROM A THIRD -PARTY18
BUYER THAT IS ENTIRELY A CASH OFFER FOR THE THIRD -PARTY TO19
PURCHASE THE QUALIFYING PROPERTY , THE LOCAL GOVERNMENT , IN20
ACCORDANCE WITH SECTION 29-4-1202 (5)(a)(II), MUST AGREE TO CLOSE21
ON THE QUALIFYING PROPERTY WITHIN THE SAME TIME PERIOD AS SET22
FORTH IN THE THIRD-PARTY BUYER'S OFFER FOR PURPOSES OF A MATCHED23
OFFER. "MATERIAL TERMS AND CONDITIONS " EXCLUDES, BUT IS NOT24
LIMITED TO EXCLUDING, THE TYPE OF FINANCING OR PAYMENT METHOD OR25
THE PERIOD FOR CLOSING.26
(12) "MIXED-INCOME PROJECT" MEANS AN AFFORDABLE HOUSING27
1175
-6- DEVELOPMENT IN WHICH A PERCENTAGE OF UNITS HAVE RESTRICTED1
AVAILABILITY TO HOUSEHOLDS AT OR BELOW GIVEN AREA MEDIAN INCOME2
LEVELS, PROPORTIONAL TO THE DEMONSTRATED HOUSING NEEDS OF THE3
LOCAL COMMUNITY. THE PERCENTAGE OF INCOME RESTRICTED UNITS AND4
AFFORDABILITY LEVELS MUST COMPLY WITH LAWS ENACTED BY LOCAL5
GOVERNMENTS PROMOTING THE DEVELOPMENT OF NEW AFFORDABLE6
HOUSING UNITS PURSUANT TO SECTION 29-20-104 (1).7
(13) "RENT INCREASE CAP" MEANS A PERCENTAGE OF THE8
CURRENT ANNUAL RENT FOR AN APPLICABLE QUALIFYING PROPERTY THAT9
IS EQUAL TO THE GREATER OF:10
(a) T
HE AVERAGE ANNUAL PERCENTAGE CHANGE FOR THE11
PREVIOUS TWELVE MONTHS AT THE TIME OF THE CALCULATION IN THE12
U
NITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS13
CONSUMER PRICE INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL14
ITEMS AND ALL URBAN CONSUMERS , OR ITS SUCCESSOR INDEX; OR15
(b) T
HREE PERCENTAGE POINTS.16
(14)
"RESIDENTIAL SELLER" MEANS THE FEE SIMPLE OWNER OF AN17
APPLICABLE QUALIFYING PROPERTY . IF THERE IS MORE THAN ONE FEE18
SIMPLE OWNER OF AN APPLICABLE QUALIFYING PROPERTY , EACH FEE19
SIMPLE OWNER IS REFERRED TO IN THIS PART 12 JOINTLY AND SEVERALLY20
AS THE "RESIDENTIAL SELLER".21
22
29-4-1202. Right of first refusal - eligibility - process - notice23
- tolling - definition. (1) Definition of qualifying property. A
S USED IN24
THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES , "QUALIFYING25
PROPERTY" MEANS A MULTIFAMILY RESIDENTIAL OR MIXED -USE RENTAL26
PROPERTY
CONSISTING OF NOT LESS THAN FIVE UNITS THAT IS EXISTING27
1175
-7- AFFORDABLE HOUSING, EXCLUDING A MOBILE HOME PARK AS DEFINED IN1
SECTION 38-12-201.5 (6). FOR THE PURPOSE OF DETERMINING WHETHER2
A PROPERTY CONSISTS OF AT LEAST THE MINIMUM NUMBER OF UNITS SET3
FORTH IN THIS SUBSECTION (1) FOR A QUALIFYING PROPERTY, AN4
ACCESSORY DWELLING UNIT DOES NOT COUNT AS A UNIT .5
(2) Local government's right of first refusal. (a) I
N6
ACCORDANCE WITH THIS PART 12, THE LOCAL GOVERNMENT FOR THE7
JURISDICTION IN WHICH A QUALIFYING PROPERTY IS LOCATED HAS A RIGHT8
OF FIRST REFUSAL TO PURCHASE THE QUALIFYING PROPERTY WITH
A9
MATCHED OFFER.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
A MATCHED OFFER.20
(III) F
OR THE PURPOSE OF DETERMINING WHETHER AN OFFER BY
21
THE LOCAL GOVERNMENT IS A MATCHED OFFER , IT IS IMMATERIAL HOW22
THE OFFER WOULD BE FINANCED IF THE LOCAL GOVERNMENT HAS SECURED23
THE FINANCING OR DEMONSTRATES APPROVAL OF THE FINANCING IN24
CONNECTION WITH MAKING THE OFFER , NOTWITHSTANDING ANY25
REQUIREMENT OF APPROPRIATION BY A GOVERNING BODY FOR THE26
FINANCING. FOR PURPOSES OF THIS SECTION, A RESIDENTIAL SELLER SHALL27
1175
-8- NEGOTIATE IN GOOD FAITH WITH THE LOCAL GOVERNMENT THAT MAKES1
A MATCHED OFFER. THIS INCLUDES, BUT IS NOT LIMITED TO, EVALUATING2
AN OFFER FROM THE LOCAL GOVERNMENT OR ITS ASSIGNEE WITHOUT3
CONSIDERATION OF:4
(A) T
HE PERIOD FOR CLOSING;5
(B) T
HE TYPE OF FINANCING OR PAYMENT METHOD ;6
(C) W
HETHER OR NOT THE OFFER IS CONTINGENT ON A7
PARTICULAR FINANCING OR PAYMENT METHOD ;
EXCEPT THAT THE LOCAL8
GOVERNMENT MUST BE ABLE TO DEMONSTRATE THAT ITS FINANCING OR9
PAYMENT METHOD HAS BEEN APPROVED, NOTWITHSTANDING ANY10
REQUIREMENT OF APPROPRIATION BY A GOVERNING BODY FOR THE11
FINANCING OR PAYMENT METHOD ; AND12
(D) W
HETHER OR NOT THE OFFER IS CONTINGENT ON AN13
APPRAISAL, INSPECTION, REVIEW OF TITLE, OBTAINING TITLE INSURANCE,14
OR OTHER CUSTOMARY CONDITIONS FOR THE SALE OF SIMILAR PROPERTY .15
(IV) A
RESIDENTIAL SELLER SHALL NOT COLLUDE WITH A16
POTENTIAL BUYER FOR THE PRIMARY PURPOSE OF INFLATING A SALES17
PRICE ABOVE THE MARKET PRICE OF A QUALIFYING PROPERTY .18
(c) T
HE LOCAL GOVERNMENT 'S RIGHT OF FIRST REFUSAL19
CONCERNING THE QUALIFYING PROPERTY IS LIMITED TO PRESERVING OR20
CONVERTING THE QUALIFYING PROPERTY TO LONG -TERM AFFORDABLE21
HOUSING DIRECTLY OR THROUGH ANOTHER ENTITY TO WHICH THE LOCAL22
GOVERNMENT ASSIGNS ITS RIGHTS PURSUANT SUBSECTION (2)(f) OF THIS23
SECTION OR TRANSFERS THE QUALIFYING PROPERTY .24
(d) I
F A QUALIFYING PROPERTY IS CLASSIFIED AS MIXED-USE, THE
25
LOCAL GOVERNMENT'S OFFER MUST INCLUDE ANY COMMERCIAL PORTION26
OF THE QUALIFYING PROPERTY, BUT ONLY THE RESIDENTIAL PORTION OF27
1175
-9- THE QUALIFYING PROPERTY IS SUBJECT TO AFFORDABILITY1
REQUIREMENTS.2
(e) T
HE LOCAL GOVERNMENT , IN EXERCISING ITS RIGHT OF FIRST3
REFUSAL, MAY PARTNER WITH A NONPROFIT ENTITY , A PRIVATE ENTITY,
A4
QUASI-GOVERNMENTAL ENTITY, OR ANOTHER GOVERNMENTAL ENTITY TO5
CO-FINANCE, LEASE, OR MANAGE THE QUALIFYING PROPERTY FOR THE6
PUBLIC PURPOSE OF MAINTAINING THE QUALIFYING PROPERTY AS7
LONG-TERM AFFORDABLE HOUSING AS LONG AS THE LOCAL GOVERNMENT8
OR ITS ASSIGNEE MAINTAINS OWNERSHIP OF THE QUALIFYING PROPERTY9
EITHER DIRECTLY OR THROUGH A SPECIAL PURPOSE ENTITY OR AFFILIATE.10
(f) A
T ANY TIME, THE LOCAL GOVERNMENT MAY ASSIGN THE RIGHT11 OF FIRST REFUSAL WITH RESPECT TO A SPECIFIC QUALIFYING PROPERTY OR12
WITH RESPECT TO ALL QUALIFYING PROPERTIES IN THE LOCAL13
GOVERNMENT'S JURISDICTION TO A HOUSING AUTHORITY THAT IS WITHIN14
THE LOCAL GOVERNMENT 'S JURISDICTION, A REGIONAL HOUSING15
AUTHORITY THAT SERVES THE LOCAL GOVERNMENT 'S JURISDICTION, OR16
THE COLORADO HOUSING AND FINANCE AUTHORITY , SUBJECT TO THE17
REQUIREMENTS THAT THE QUALIFYING PROPERTY IS USED TO PRESERVE OR18
BE CONVERTED TO LONG -TERM AFFORDABLE HOUSING AND THAT ALL19
OTHER PROVISIONS OF THIS PART 12 APPLY TO THE ASSIGNEE. IF THE20
PROPOSED ASSIGNEE ACCEPTS THE ASSIGNMENT OF THE RIGHT OF FIRST21
REFUSAL IN WRITING, UPON ASSIGNMENT, THE ASSIGNEE ASSUMES ALL22
LIABILITY OF THE LOCAL GOVERNMENT REGARDING THE EXERCISE OF THE23
RIGHT OF FIRST REFUSAL AND IS RESPONSIBLE FOR PERFORMING ALL24
REQUIREMENTS PURSUANT TO THIS PART 12 WITH RESPECT TO A25
QUALIFYING PROPERTY AS IF THE ASSIGNEE WERE THE LOCAL26
GOVERNMENT. THE LOCAL GOVERNMENT MUST PROVIDE NOTICE OF ANY27
1175
-10- ASSIGNMENT AS FOLLOWS:1
(I) IF THE LOCAL GOVERNMENT HAS ASSIGNED ITS RIGHT OF FIRST2
REFUSAL WITH RESPECT TO ALL PROPERTIES WITHIN ITS JURISDICTION, THE3
LOCAL GOVERNMENT MUST POST A NOTICE IN A CONSPICUOUS LOCATION4
ON ITS WEBSITE INDICATING THAT THE LOCAL GOVERNMENT HAS ASSIGNED5
ITS RIGHT OF FIRST REFUSAL AND LISTING THE ASSIGNEE 'S NAME AND6
CONTACT INFORMATION TO RECEIVE NOTICES REQUIRED PURSUANT TO7
THIS SECTION. THE NOTICE POSTED IN ACCORDANCE WITH THIS8
SUBSECTION (2)(f)(I) MUST BE EFFECTIVE FOR AT LEAST THREE MONTHS9
AFTER IT IS POSTED AND MUST EXPLICITLY STATE THE DATE IT EXPIRES, IF10
ANY. ANY NOTICE POSTED BY THE LOCAL GOVERNMENT IN ACCORDANCE11
WITH THIS SUBSECTION (2)(f)(I) IS DEEMED CONSTRUCTIVE NOTICE TO THE12
RESIDENTIAL SELLER.13
(II) IF THE LOCAL GOVERNMENT HAS NOT POSTED NOTICE IN14
ACCORDANCE WITH SUBSECTION (2)(f)(I) OF THIS SECTION AND ASSIGNS15
ITS RIGHT OF FIRST REFUSAL WITH RESPECT TO ALL QUALIFYING16
PROPERTIES IN ITS JURISDICTION OR WITH RESPECT TO A QUALIFYING17
PROPERTY THAT IS THE SUBJECT OF THE NOTICE PROVIDED BY A18
RESIDENTIAL SELLER IN ACCORDANCE WITH SUBSECTION (3)(b) OF THIS19
SECTION AFTER RECEIPT OF SUCH NOTICE, THE LOCAL GOVERNMENT SHALL20
IMMEDIATELY NOTIFY THE RESIDENTIAL SELLER OF THE ASSIGNMENT AND21
OF THE ASSIGNEE'S ADDRESS TO RECEIVE ANY NOTICES THE RESIDENTIAL22
SELLER IS REQUIRED TO SEND IN ACCORDANCE WITH THIS SECTION ; EXCEPT23
THAT, IF THE SALE OF THE QUALIFYING PROPERTY THAT IS THE SUBJECT OF24
THE NOTICE PROVIDED BY THE RESIDENTIAL SELLER IN ACCORDANCE WITH25
SUBSECTION (3)(b) OF THIS SECTION HAS CONCLUDED, THEN NO NOTICE BY26
THE LOCAL GOVERNMENT OF THE ASSIGNMENT IS REQUIRED .27
1175
-11- 1
(g) (I) THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS THE2
RIGHT TO WAIVE THE RIGHT OF FIRST REFUSAL PROVIDED IN THIS SECTION.3
(II) (A) IF THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS4
WAIVED ITS RIGHT OF FIRST REFUSAL, IT SHALL POST A NOTICE IN A5
CONSPICUOUS LOCATION ON ITS WEBSITE INDICATING THAT THERE IS A6
WAIVER AND THAT RESIDENTIAL SELLERS WITH QUALIFYING PROPERTIES7
WITHIN ITS JURISDICTION DO NOT HAVE AN OBLIGATION TO COMPLY WITH8
THIS SECTION. THE LOCAL GOVERNMENT SHALL ALSO PROVIDE WRITTEN9
NOTICE TO THE COLORADO HOUSING AND FINANCE AUTHORITY OF THE10
WAIVER.11
(B) THE NOTICE POSTED OR PROVIDED IN ACCORDANCE WITH12
SUBSECTION (2)(g)(II)(A) OF THIS SECTION MUST BE EFFECTIVE FOR AT13
LEAST THREE MONTHS AFTER IT IS POSTED OR PROVIDED, AS APPLICABLE,14
AND MUST EXPLICITLY STATE THE DATE IT EXPIRES , IF ANY.15
(C) FAILURE TO POST OR PROVIDE NOTICE PURSUANT TO THIS16
SUBSECTION (2)(g)(II) DOES NOT OTHERWISE AFFECT THE LOCAL17
GOVERNMENT'S RIGHT OF FIRST REFUSAL.18
(3) Notices by residential seller. (a) (I) (A) NOT LESS THAN TWO19
YEARS BEFORE THE FINAL EXPIRATION OF THE LAST REMAINING 20
AFFORDABILITY RESTRICTION INCUMBENT TO A QUALIFYING PROPERTY 'S21
FUNDING SOURCES, A RESIDENTIAL SELLER SHALL PROVIDE NOTICE TO THE22
COLORADO HOUSING AND FINANCE AUTHORITY AND THE GOVERNING23
BODY OF THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING PROPERTY24
IS LOCATED OF THE EXPIRATION OF SUCH RESTRICTION. THE NOTICE MUST25
INCLUDE THE DATE OF EXPIRATION OF THE LAST REMAINING26
AFFORDABILITY RESTRICTION AND CONTACT INFORMATION FOR THE27
1175
-12- RESIDENTIAL SELLER.1
(B) NOTWITHSTANDING SUBSECTION (3)(a)(I)(A) OF THIS SECTION,2
WHETHER NOTICE IS PROVIDED PURSUANT TO SUBSECTION (3)(a)(I)(A) OF3
THIS SECTION IS NOT RELEVANT TO DETERMINING A RESIDENTIAL SELLER'S4
OR LOCAL GOVERNMENT'S COMPLIANCE WITH THE REQUIREMENTS OF THIS5
PART 12 AND IS NOT SUBJECT TO ANY PROVISIONS SET FORTH IN SECTION6
29-4-1206. PROVISION OF THE NOTICE REQUIRED BY SUBSECTION7
(3)(a)(I)(A) OF THIS SECTION IS NOT A TRIGGERING EVENT PURSUANT TO8
SUBSECTION (3)(b)(I) OF THIS SECTION.9
(II) N
OT LESS THAN SIX MONTHS BEFORE THE FINAL EXPIRATION10
OF
THE LAST REMAINING AFFORDABILITY RESTRICTION INCUMBENT TO11
A QUALIFYING PROPERTY'S FUNDING SOURCES, A RESIDENTIAL SELLER12
SHALL PROVIDE NOTICE TO THE COLORADO HOUSING AND FINANCE13
AUTHORITY AND THE GOVERNING BODY OF THE LOCAL GOVERNMENT IN14
WHICH THE QUALIFYING PROPERTY IS LOCATED OF THE EXPIRATION OF15
SUCH RESTRICTION. THE NOTICE MUST INDICATE WHETHER THE16
RESIDENTIAL SELLER ANTICIPATES THAT IT WILL RECAPITALIZE AND17
CONTINUE TO OPERATE THE QUALIFYING PROPERTY AT AFFORDABILITY18
LEVELS AT LEAST ON AVERAGE EQUAL TO WHAT HAS BEEN PROVIDED AT19
THE QUALIFYING PROPERTY, RETAIN OWNERSHIP OF THE QUALIFYING20
PROPERTY AND LET AFFORDABILITY REQUIREMENTS EXPIRE, OR SELL THE21
QUALIFYING PROPERTY UPON EXPIRATION OF THE RESTRICTIONS .22
(III) THE NOTICES PROVIDED TO THE COLORADO HOUSING AND23
FINANCE AUTHORITY PURSUANT TO THIS SUBSECTION (3)(a) DO NOT24
CREATE AN OBLIGATION OR REQUIREMENT FOR THE COLORADO HOUSING25
AND FINANCE AUTHORITY TO TAKE ACTION WITH RESPECT TO THE26
QUALIFYING PROPERTY OR TO PROVIDE ANY ENFORCEMENT OR27
1175
-13- COMPLIANCE MONITORING OF ANY REQUIREMENTS OF THIS PART 12.1
(b) (I) W
ITHIN FOURTEEN CALENDAR DAYS OF A TRIGGERING2
EVENT, A RESIDENTIAL SELLER SHALL PROVIDE NOTICE IN ACCORDANCE3
WITH THIS SUBSECTION (3)(b) AND SUBSECTION (3)(d) OF THIS SECTION TO4
THE GOVERNING BODY OF THE LOCAL GOVERNMENT IN WHICH THE5
QUALIFYING PROPERTY IS
LOCATED AND SHALL MAKE A GOOD FAITH6
EFFORT TO ENSURE THE NOTICE IS RECEIVED BY THE LOCAL GOVERNMENT.7
A
TRIGGERING EVENT IS THE FIRST TO OCCUR OF ANY OF THE FOLLOWING
8
EVENTS WHEN THE RESIDENTIAL SELLER :9
(A) M
ATERIALLY DEPARTS FROM ANY REPRESENTATION MADE IN10
THE NOTICES REQUIRED PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION11
AFTER AFFORDABILITY RESTRICTIONS EXPIRE IN A MANNER THAT12
INDICATES AN INTENT TO SELL THE QUALIFYING PROPERTY ;13
14
(B) SIGNS A LETTER OF INTENT, OPTION TO SELL OR BUY, OR OTHER15
CONDITIONAL WRITTEN AGREEMENT WITH A POTENTIAL BUYER FOR THE16
SALE OR TRANSFER OF THE QUALIFYING PROPERTY , WHICH INCLUDES THE17
ESTIMATED PRICE, TERMS, AND CONDITIONS OF THE PROPOSED SALE OR18
TRANSFER, EVEN IF THE PRICE, TERMS, OR CONDITIONS ARE SUBJECT TO19
CHANGE;20
21
(C) LISTS THE QUALIFYING PROPERTY FOR SALE; OR22
(D) MAKES A CONDITIONAL ACCEPTANCE OF AN OFFER FOR THE23
SALE OR TRANSFER OF THE QUALIFYING PROPERTY .24
25
(II) T
HE NOTICE REQUIRED PURSUANT TO THIS SUBSECTION (3)(b)26
MUST INCLUDE:27
1175
-14- (A) A GENERAL DESCRIPTION OF THE QUALIFYING PROPERTY TO BE1
SOLD, INCLUDING THE ADDRESS AND NAME OF THE PROPERTY , IF ANY, AND2
ANY ADDITIONAL DESCRIPTIONS OF THE QUALIFYING PROPERTY ON FILE3
WITH THE OFFICE OF THE ASSESSOR IN THE COUNTY IN WHICH THE4
QUALIFYING PROPERTY IS LOCATED ;5
(B) T
HE RESIDENTIAL SELLER'S ADDRESS AND, IF AVAILABLE,6
ELECTRONIC MAILING ADDRESS TO RECEIVE NOTICES FROM THE LOCAL7
GOVERNMENT;8
9
(C) THE PRICE, TERMS, AND CONDITIONS OF AN ACCEPTABLE OFFER10
THE RESIDENTIAL SELLER HAS RECEIVED TO SELL THE QUALIFYING11
PROPERTY OR THE PRICE, TERMS, AND CONDITIONS FOR WHICH THE12
RESIDENTIAL SELLER INTENDS TO SELL THE QUALIFYING PROPERTY ;13
(D) ANY TERMS OR CONDITIONS WHICH , IF NOT MET, WOULD BE14
SUFFICIENT GROUNDS, IN THE RESIDENTIAL SELLER'S DISCRETION AND IN15
COMPLIANCE WITH THIS PART 12 AND ANY OTHER APPLICABLE LAW , TO16
REJECT AN OFFER; AND17
(E) IF THE RESIDENTIAL SELLER HAS ENTERED INTO A CONTINGENT18
PURCHASE AND SALE AGREEMENT WITH A PROSPECTIVE BUYER , A COPY OF19
THE AGREEMENT.20
(III) T
HE PRICE, TERMS, AND CONDITIONS REQUIRED TO BE STATED21
IN THE NOTICE PURSUANT TO SUBSECTION (3)(b)(II)(C)
OF THIS SECTION22
MUST BE UNIVERSAL AND APPLICABLE TO ALL POTENTIAL BUYERS AND23
MUST NOT BE SPECIFIC TO OR PROHIBITIVE OF THE LOCAL GOVERNMENT24
MAKING A SUCCESSFUL OFFER TO PURCHASE THE QUALIFYING PROPERTY ,25
MUST NOT BE UNLAWFUL , AND MUST NOT INHIBIT THE EXERCISE OF THE26
RIGHT OF FIRST REFUSAL PROVIDED FOR IN THIS SECTION.27
1175
-15- (c) IF THE PRICE REQUIRED TO BE LISTED IN THE RESIDENTIAL1
SELLER'S NOTICE PURSUANT TO SUBSECTION (3)(b)(II)(C) OF THIS SECTION2
IS REDUCED BY FIVE PERCENT OR MORE OR THE TERMS OR CONDITIONS AS3
REQUIRED TO BE PROVIDED IN THE RESIDENTIAL SELLER 'S NOTICE4
PURSUANT TO SUBSECTION (3)(b)(II)(D) OF THIS SECTION MATERIALLY5
CHANGE, THE RESIDENTIAL SELLER SHALL WITHIN SEVEN DAYS OF THE6
CHANGE PROVIDE NOTICE TO THE LOCAL GOVERNMENT OF THE C HANGE7
AND THE LOCAL GOVERNMENT MAY EXERCISE , OR RE-EXERCISE, ITS RIGHT8
OF FIRST REFUSAL IN ACCORDANCE WITH THIS SECTION .9
(d) T
HE NOTICES GIVEN PURSUANT TO THIS SUBSECTION (3) MUST10
BE DELIVERED
TO THE APPLICABLE REPRESENTATIVE OF THE COLORADO11
HOUSING AND FINANCE AUTHORITY AND TO THE CLERK OF THE GOVERNING12
BODY OF THE LOCAL GOVERNMENT, AS APPLICABLE, BY ELECTRONIC MAIL;13
EXCEPT THAT, IF THERE IS NOT AN ELECTRONIC MAILING ADDRESS14
AVAILABLE FOR THE APPLICABLE REPRESENTATIVE OR THE CLERK, THEN15
BY HAND DELIVERY, UNITED STATES FIRST CLASS MAIL, OR OVERNIGHT16
DELIVERY.17
(e) THE LOCAL GOVERNMENT , EXCEPT AS OTHERWISE18
GOVERNED BY LAW OR COURT ORDER , SHALL SIGN A NONDISCLOSURE19
AGREEMENT WITH THE RESIDENTIAL SELLER AND , ONCE THE20
NONDISCLOSURE AGREEMENT IS EXECUTED , MAY SHARE THE INFORMATION21
CONTAINED IN THE NOTICES REQUIRED PURSUANT TO SUBSECTIONS (3)(b)22
AND (3)(c) OF THIS SECTION WITH ITS OFFICERS AND EMPLOYEES . IF THE23
LOCAL GOVERNMENT SHARES THE NOTICES REQUIRED PURSUANT TO24
SUBSECTIONS (3)(b) AND (3)(c) OF THIS SECTION WITH PROSPECTIVE25
ENTITIES THAT THE LOCAL GOVERNMENT PARTNERS WITH PURSUANT TO26
SUBSECTION (2)(e) OF THIS SECTION OR PROSPECTIVE ASSIGNEES27
1175
-16- PURSUANT TO SUBSECTION (2)(f) OF THIS SECTION FOR THE PURPOSES OF1
EVALUATING OR OBTAINING FINANCING FOR THE PROSPECTIVE2
TRANSACTION, THOSE ENTITIES THAT RECEIVE THE NOTICE MUST EACH3
SIGN A NONDISCLOSURE AGREEMENT FOR THE RESPECTIVE ENTITY WITH4
THE RESIDENTIAL SELLER . AN ENTITY THAT HAS EXECUTED A5
NONDISCLOSURE AGREEMENT PURSUANT TO THIS SUBSECTION (3)(e), MAY6
SHARE THE INFORMATION CONTAINED IN THE NOTICES REQUIRED7
PURSUANT TO SUBSECTIONS (3)(b) AND (3)(c) OF THIS SECTION WITH ITS8
OFFICERS, EMPLOYEES, AND ATTORNEYS AND WITH ITS ADVISORS AND9
PROSPECTIVE FINANCING PROVIDERS IF THE ADVISORS AND PROSPECTIVE10
FINANCING PROVIDERS ARE BOUND BY THE NONDISCLOSURE AGREEMENT11
OR BY A SIMILAR CONTRACTUAL , LEGAL, OR FIDUCIARY OBLIGATION OF12
CONFIDENTIALITY FOR THE PURPOSES OF EVALUATING OR OBTAINING13
FINANCING FOR THE PROSPECTIVE TRANSACTION . THE INFORMATION14
CONTAINED IN THE NOTICES REQUIRED UNDER SUBSECTIONS (3)(b) AND15
(3)(c)
OF THIS SECTION, EXCEPT FOR THE PROPERTY ADDRESS AND ANY
16
INFORMATION THAT IS PUBLICLY RECORDED , IS CONFIDENTIAL17
INFORMATION NOT SUBJECT TO PUBLIC DISCLOSURE .18
(4) (a) Notice by the local government to the residential seller.19
(I) T
HE LOCAL GOVERNMENT SHALL
MAKE A GOOD FAITH EFFORT TO20
PROVIDE NOTICE TO THE RESIDENTIAL SELLER AS SOON AS POSSIBLE BUT21
NOT LATER THAN FOURTEEN CALENDAR DAYS OF RECEIPT OF THE NOTICE22
REQUIRED PURSUANT TO SUBSECTION (3)(b) OR (3)(c) OF THIS SECTION OF23
THE LOCAL GOVERNMENT 'S INTENT, WITH RESPECT TO THE QUALIFYING24
PROPERTY THAT IS THE SUBJECT OF THE NOTICE, TO EITHER PRESERVE ITS25
RIGHT OF FIRST REFUSAL PROVIDED IN THIS SECTION OR WAIVE ITS RIGHT26
OF FIRST REFUSAL. THE NOTICE MUST BE DELIVERED BY ELECTRONIC MAIL;27
1175
-17- EXCEPT THAT, IF THE RESIDENTIAL SELLER HAS NOT PROVIDED AN1
ELECTRONIC MAILING ADDRESS , THEN BY HAND DELIVERY , UNITED2
S
TATES FIRST CLASS MAIL, OR OVERNIGHT DELIVERY TO THE ADDRESS3
PROVIDED BY THE RESIDENTIAL SELLER PURSUANT TO SUBSECTION4(3)(b)(II)(B) OF THIS SECTION.5
(II) T
HE NOTICE GIVEN PURSUANT TO SUBSECTION (4)(a)(I) OF THIS6
SECTION IS NONBINDING ON THE LOCAL GOVERNMENT .7
(III) I
F NO NOTICE IS GIVEN BY THE LOCAL GOVERNMENT , IF THE8
LOCAL GOVERNMENT FAILS TO MAKE AN OFFER WITHIN THE TIME PERIOD9
PROVIDED IN SUBSECTION (5) OF THIS SECTION, OR IF THE OFFER IS10
OTHERWISE NOT MADE IN ACCORDANCE WITH SUBSECTION (5) OF THIS11
SECTION, THE RESIDENTIAL SELLER MAY PROCEED WITH THE SALE OF THE12
QUALIFYING PROPERTY TO ANY BUYER . 13
(IV) IF THE LOCAL GOVERNMENT INTENDS TO ASSIGN ITS RIGHT OF14
FIRST REFUSAL IN ACCORDANCE WITH SUBSECTION (2)(f) OF THIS SECTION,15
THE LOCAL GOVERNMENT MUST DISCLOSE THE POTENTIAL ASSIGNEE IN16
THE NOTICE REQUIRED PURSUANT TO SUBSECTION (4)(a)(I) OF THIS17
SECTION AND PROVIDE A COPY OF THE NOTICE TO THE PROPOSED18
ASSIGNEE, FOR THE PROPOSED ASSIGNEE 'S CONSIDERATION IN19
DETERMINING WHETHER TO ACCEPT THE ASSIGNMENT .20
21
(b) Notice by the local government to the Colorado housing22
and finance authority. I
N CONNECTION WITH THE LOCAL GOVERNMENT
23
PROVIDING NOTICE TO THE RESIDENTIAL SELLER IN ACCORDANCE WITH24
SUBSECTION (4)(a)(I) OF THIS SECTION, THE LOCAL GOVERNMENT SHALL25
ALSO PROVIDE THE NOTICE TO THE COLORADO HOUSING AND FINANCE26
AUTHORITY INDICATING IF THE LOCAL GOVERNMENT INTENDS TO EITHER27
1175
-18- PRESERVE OR WAIVE ITS RIGHT OF FIRST REFUSAL WITH RESPECT TO THE1
QUALIFYING PROPERTY THAT IS THE SUBJECT OF THE NOTICE PROVIDED2
PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION AND IDENTIFYING ANY3
POTENTIAL ASSIGNEE THAT THE LOCAL GOVERNMENT INTENDS TO ASSIGN4
ITS RIGHT OF FIRST REFUSAL TO . THE NOTICE REQUIRED BY THIS5
SUBSECTION (4)(b) IS NONBINDING ON THE LOCAL GOVERNMENT .6
(5) Process to exercise right of first refusal. (a) (I) EXCEPT AS7
OTHERWISE PROVIDED IN SUBSECTION (6) OF THIS SECTION, THE LOCAL8
GOVERNMENT HAS THIRTY CALENDAR DAYS FROM PROVIDING NOTICE9
PURSUANT TO SUBSECTION (4)(a)(I) OF THIS SECTION TO MAKE AN OFFER10
TO PURCHASE THE QUALIFYING PROPERTY AND SHALL AGREE TO CLOSE ON11
THE QUALIFYING PROPERTY AND EXECUTE THE NECESSARY AGREEMENTS12
TO FINALIZE THE SALE OF THE QUALIFYING PROPERTY TO THE LOCAL13
GOVERNMENT WITHIN SIXTY CALENDAR DAYS OF THE ACCEPTANCE BY A14
RESIDENTIAL SELLER OF THE LOCAL GOVERNMENT 'S OFFER TO PURCHASE15
THE QUALIFYING PROPERTY AND THE EXECUTION OF THE NECESSARY16
AGREEMENTS IN CONNECTION WITH ACCEPTING THE OFFER .17
(II) NOTWITHSTANDING SUBSECTION (5)(a)(I) OF THIS SECTION18
AND EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (6) OF THIS SECTION,19
IF A RESIDENTIAL SELLER HAS RECEIVED AN OFFER FROM A THIRD-PARTY20
BUYER THAT IS AN ENTIRELY CASH OFFER FOR THE THIRD-PARTY BUYER TO21
PURCHASE THE QUALIFYING PROPERTY , THE LOCAL GOVERNMENT SHALL22
AGREE TO CLOSE ON THE QUALIFYING PROPERTY AND EXECUTE THE23
NECESSARY AGREEMENTS TO FINALIZE THE SALE OF THE QUALIFYING24
PROPERTY TO THE LOCAL GOVERNMENT WITHIN THE SAME TIME PERIOD AS25
IS SET FORTH IN THE THIRD-PARTY BUYER'S OFFER.26
(b) I
F A RESIDENTIAL SELLER REJECTS AN OFFER MADE BY THE27
1175
-19- LOCAL GOVERNMENT EXERCISING ITS RIGHT OF FIRST REFUSAL , THE1
RESIDENTIAL SELLER SHALL PROVIDE A WRITTEN EXPLANATION OF THE2
REJECTION AND SHALL INVITE THE LOCAL GOVERNMENT TO MAKE ONE3
SUBSEQUENT OFFER WITHIN FOURTEEN DAYS BY IDENTIFYING THE4
MATERIAL TERMS AND CONDITIONS THAT MUST BE INCLUDED IN THE5
SUBSEQUENT OFFER IN ORDER FOR THE RESIDENTIAL SELLER TO6
POTENTIALLY ACCEPT THE SUBSEQUENTLY MADE OFFER BY THE LOCAL7
GOVERNMENT. THE RESIDENTIAL SELLER SHALL HAVE FOURTEEN DAYS8
FROM THE DATE OF THE LOCAL GOVERNMENT 'S SUBSEQUENT OFFER TO9
EITHER ACCEPT OR REJECT THE SUBSEQUENT OFFER , AND IF THE LOCAL10
GOVERNMENT'S SUBSEQUENT OFFER IS REJECTED BY THE RESIDENTIAL11
SELLER, THE RESIDENTIAL SELLER SHALL PROVIDE A WRITTEN12
EXPLANATION OF THE REJECTION AND THE RESIDENTIAL SELLER 'S13
REJECTION OF THE SUBSEQUENT OFFER CONSTITUTES TERMINATION OF THE14
LOCAL GOVERNMENT 'S RIGHT OF FIRST REFUSAL TO PURCHASE THE15
QUALIFYING PROPERTY, SUBJECT TO THE LOCAL GOVERNMENT 'S RIGHT TO16
EXERCISE, OR RE-EXERCISE ITS RIGHT OF FIRST REFUSAL PURSUANT TO17
SUBSECTION (3)(c) OF THIS SECTION IF THE CONDITION SET FORTH IN18
SUBSECTION (3)(c) OF THIS SECTION OCCURS.19
(c) W
ITHIN SEVEN CALENDAR DAYS OF CLOSING ON THE SALE OF
20
THE QUALIFYING PROPERTY TO THE LOCAL GOVERNMENT , THE21
RESIDENTIAL SELLER SHALL MAIL NOTICE TO EACH RESIDENT OF THE22
QUALIFYING PROPERTY OF THE SALE OF THE QUALIFYING PROPERTY TO THE23
LOCAL GOVERNMENT. THE RESIDENTIAL SELLER SHALL ALSO POST A COPY24
OF THE NOTICE IN A CONSPICUOUS PLACE IN THE QUALIFYING PROPERTY .25
T
HE MAILED AND POSTED NOTICES MUST BE PROVIDED IN ENGLISH,
26
S
PANISH, AND ANY OTHER LANGUAGE KNOWN TO BE SPOKEN BY
27
1175
-20- RESIDENTS AT THE QUALIFYING PROPERTY AND MUST INCLUDE CONTACT1
INFORMATION FOR THE LOCAL GOVERNMENT , OR ITS ASSIGNEE, IF2
APPLICABLE, FOR RESIDENTS TO DIRECT QUESTIONS AND INPUT TO .3
(6) Extension of time. THE TIME PERIODS SET FORTH IN THIS4
SECTION MAY BE EXTENDED AND ANY TERMS OR CONDITIONS OF SALE MAY5
BE MODIFIED BY WRITTEN AGREEMENT BETWEEN THE LOCAL GOVERNMENT6
AND THE RESIDENTIAL SELLER OR, IF THE LOCAL GOVERNMENT HAS7
ASSIGNED ITS RIGHT OF FIRST REFUSAL , THE LOCAL GOVERNMENT'S8
ASSIGNEE AND THE RESIDENTIAL SELLER .9
10
(7) Certificate of compliance. WITHIN FOURTEEN CALENDAR11
DAYS OF RECEIPT OF NOTICE REQUIRED BY EITHER SUBSECTION (3)(b) OR12
(3)(c) OF THIS SECTION OR, IF THE LOCAL GOVERNMENT INTENDS TO13
EXERCISE ITS RIGHT OF FIRST REFUSAL, WITHIN FOURTEEN CALENDAR14
DAYS OF EITHER ACCEPTANCE BY A RESIDENTIAL SELLER OF THE LOCAL15
GOVERNMENT'S OFFER OR REJECTION BY A RESIDENTIAL SELLER OF THE16
LOCAL GOVERNMENT'S OFFER IN ACCORDANCE WITH SUBSECTION (5)(b) OF17
THIS SECTION, THE LOCAL GOVERNMENT OR ITS ASSIGNEE SHALL EXECUTE18
AND RECORD A CERTIFICATE OF COMPLIANCE IN THE REAL PROPERTY19
RECORDS OF THE COUNTY IN WHICH THE QUALIFYING PROPERTY IS20
SITUATED. THE CERTIFICATE OF COMPLIANCE MUST INCLUDE THE NAME OF21
THE RESIDENTIAL SELLER, A LEGAL DESCRIPTION OF THE QUALIFYING22
PROPERTY, AND A STATEMENT THAT THE RESIDENTIAL SELLER HAS23
COMPLIED WITH ALL APPLICABLE PROVISIONS OF THIS SECTION . THE24
RECORDED CERTIFICATE OF COMPLIANCE IS PRIMA FACIE EVIDENCE OF THE25
RESIDENTIAL SELLER'S COMPLIANCE WITH THIS SECTION AND MAY BE26
RELIED UPON BY A RESIDENTIAL SELLER, ANY PERSON CLAIMING AN27
1175
-21- INTEREST IN THE QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER,1
AND A TITLE INSURANCE ENTITY, AS DEFINED IN SECTION 10-11-102 (11).2
(8) Tenant qualifications. (a) T HE LOCAL GOVERNMENT OR ITS3
ASSIGNEE SHALL MAINTAIN AT THE QUALIFYING PROPERTY AFFORDABILITY4
LEVELS THAT ARE ON AVERAGE EQUAL TO OR GREATER THAN THE LEVELS5
PROVIDED AT THE TIME IT IS ACQUIRED BY THE LOCAL GOVERNMENT BOTH6
WITH RESPECT TO THE NUMBER OF AFFORDABLE UNITS AND THE AREA7
MEDIAN INCOMES USED TO DETERMINE RENT AND INCOME LIMITS. TENANT8
QUALIFICATIONS MUST COMPLY WITH FAIR HOUSING LAWS AND9
AFFORDABILITY REQUIREMENTS OF ANY NEW FUNDING SOURCES .10
(b) N
OTWITHSTANDING THE REQUIREMENTS AROUND LONG -TERM11
AFFORDABLE HOUSING SET FORTH IN THIS SECTION OR THE REQUIREMENTS12
IN SUBSECTION
(8)(a) OF THIS SECTION, RESIDENTS AT THE QUALIFYING13
PROPERTY AT THE TIME IT IS ACQUIRED BY THE LOCAL GOVERNMENT14
PURSUANT TO THIS SECTION MAY CONTINUE TO RESIDE AT THE QUALIFYING15
PROPERTY IRRESPECTIVE OF THEIR INCOME LEVEL FOR AT LEAST THE16
DURATION OF THEIR TENANCY AGREEMENT PURSUANT TO THE TENANCY17
AGREEMENT'S TERMS IN EFFECT AT THE TIME THE LOCAL GOVERNMENT18
ACQUIRES THE QUALIFYING PROPERTY . A LOCAL GOVERNMENT OR ITS19
ASSIGNEE MAY ONLY DECLINE TO RENEW A TENANT 'S LEASE IN ORDER TO20
COMPLY WITH GREATER AFFORDABILITY RESTRICTIONS AT THE21
QUALIFYING PROPERTY IN ACCORDANCE WITH SUBSECTION (8)(a) OF THIS22
SECTION OR IF THE RESIDENT IS DEMONSTRABLY VIOLATING ANY TERMS OF23
THE LEASE.24
(9) Application of a local government's right of first refusal25
laws. NOTHING IN THIS PART 12 RESTRICTS OR SUPERSEDES THE26
AUTHORITY OF A LOCAL GOVERNMENT TO ENACT LAWS FOR ITS27
1175
-22- JURISDICTION PROVIDING FOR THE LOCAL GOVERNMENT'S RIGHT OF FIRST1
REFUSAL TO PURCHASE PROPERTY FOR AFFORDABLE HOUSING THAT AT A2
MINIMUM COMPLY WITH THIS PART 12 AND IN THE EVENT OF CONFLICT3
BETWEEN A PROVISION IN THIS PART 12 AND A LOCAL GOVERNMENT'S4
LAWS, THE PROVISION MORE FAVORABLE TO THE LOCAL GOVERNMENT5
APPLIES; EXCEPT THAT THE PROVISIONS OF SUBSECTION (7) OF THIS6
SECTION AND THE PROVISIONS SET FORTH IN SECTION 29-4-1206 APPLY7
NOTWITHSTANDING ANY LAW ENACTED BY A LOCAL GOVERNMENT8
REGARDING THE LOCAL GOVERNMENT 'S RIGHT OF FIRST REFUSAL.9
29-4-1203. Right of first offer - eligibility - process - notice -10
definition. (1) Definition of qualifying property. A S USED IN THIS11
SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES , "QUALIFYING12
PROPERTY" MEANS A MULTIFAMILY RESIDENTIAL OR MIXED -USE RENTAL13
PROPERTY CONSISTING OF NOT MORE THAN ONE HUNDRED UNITS AND NOT14
LESS THAN FIFTEEN UNITS AND EXCLUDING EXISTING AFFORDABLE15
HOUSING AND A MOBILE HOME PARK AS DEFINED IN SECTION 38-12-201.516
(6). FOR THE PURPOSE OF DETERMINING WHETHER A PROPERTY CONSISTS17
OF AT LEAST THE MINIMUM NUMBER OF UNITS SET FORTH IN THIS18
SUBSECTION (1) FOR A QUALIFYING PROPERTY, AN ACCESSORY DWELLING19
UNIT DOES NOT COUNT AS A UNIT.20
(2) Local government's right of first offer. (a) I
N ACCORDANCE21
WITH THIS PART 12, THE LOCAL GOVERNMENT FOR THE JURISDICTION IN22
WHICH A QUALIFYING PROPERTY IS LOCATED HAS A RIGHT OF FIRST OFFER23
TO MAKE AN OFFER TO PURCHASE THE QUALIFYING PROPERTY BEFORE THE24
QUALIFYING PROPERTY IS LISTED FOR SALE TO THIRD PARTIES .25 26
(b) THE LOCAL GOVERNMENT'S RIGHT OF FIRST OFFER CONCERNING27
1175
-23- THE QUALIFYING PROPERTY IS LIMITED TO PRESERVING OR C ONVERTING1
THE QUALIFYING PROPERTY TO LONG -TERM AFFORDABLE HOUSING OR A2
MIXED-INCOME DEVELOPMENT DIRECTLY OR THROUGH ANOTHER ENTITY3
TO WHICH THE LOCAL GOVERNMENT ASSIGNS ITS RIGHTS PURSUANT TO4
SUBSECTION (2)(d) OF THIS SECTION OR TRANSFERS THE QUALIFYING5
PROPERTY. IF A QUALIFYING PROPERTY IS CLASSIFIED AS MIXED-USE, THE6
LOCAL GOVERNMENT'S OFFER MUST INCLUDE ANY COMMERCIAL PORTION7
OF THE QUALIFYING PROPERTY, BUT ONLY THE RESIDENTIAL PORTION OF8
THE QUALIFYING PROPERTY IS SUBJECT TO AFFORDABILITY9
REQUIREMENTS.10
(c) THE LOCAL GOVERNMENT , IN EXERCISING ITS RIGHT OF FIRST11
OFFER, MAY PARTNER WITH A NONPROFIT ENTITY , A PRIVATE ENTITY, A12
QUASI-GOVERNMENTAL ENTITY, OR ANOTHER GOVERNMENTAL ENTITY TO13
CO-FINANCE, LEASE, OR MANAGE THE QUALIFYING PROPERTY FOR THE14
PUBLIC PURPOSE OF MAINTAINING THE QUALIFYING PROPERTY AS15
LONG-TERM AFFORDABLE HOUSING OR A MIXED -INCOME DEVELOPMENT IF16
THE LOCAL GOVERNMENT OR ITS ASSIGNEE MAINTAINS OWNERSHIP OF THE17
QUALIFYING PROPERTY EITHER DIRECTLY OR THROUGH A SPECIAL PURPOSE18
ENTITY OR AFFILIATE.19
(d) AT ANY TIME, THE LOCAL GOVERNMENT MAY ASSIGN THE20
RIGHT OF FIRST OFFER REGARDING A QUALIFYING PROPERTY TO A LOCAL21
OR REGIONAL HOUSING AUTHORITY OR THE COLORADO HOUSING AND22
FINANCE AUTHORITY, SUBJECT TO THE REQUIREMENTS THAT THE23
QUALIFYING PROPERTY IS USED TO PRESERVE OR BE CONVERTED TO24
LONG-TERM AFFORDABLE HOUSING OR A MIXED -INCOME DEVELOPMENT25
AND THAT ALL OTHER PROVISIONS OF THIS PART 12 APPLY TO THE26
ASSIGNEE. THE ASSIGNEE MUST IMMEDIATELY NOTIFY THE RESIDENTIAL27
1175
-24- SELLER OF ANY ASSIGNMENT PURSUANT TO THIS SUBSECTION (2)(d), AND1
THE NOTICE MUST INCLUDE THE ASSIGNEE'S ADDRESS TO RECEIVE ANY2
NOTICES THAT THE RESIDENTIAL SELLER IS REQUIRED TO SEND IN3
ACCORDANCE WITH THIS SECTION. THE LOCAL GOVERNMENT REMAINS4
LIABLE FOR OBLIGATIONS PURSUANT TO THIS PART 12 ACCRUING PRIOR TO5
THE ASSIGNMENT AND UPON ASSIGNMENT, THE ASSIGNEE ASSUMES ALL6
LIABILITY OF THE LOCAL GOVERNMENT REGARDING THE EXERCISE OF THE7
RIGHT OF FIRST OFFER AND IS RESPONSIBLE FOR PERFORMING ALL8
REQUIREMENTS PURSUANT TO THIS PART 12, IN EACH CASE ACCRUING9
FROM AND AFTER THE ASSIGNMENT, WITH RESPECT TO A QUALIFYING10
PROPERTY AS IF THE ASSIGNEE WERE THE LOCAL GOVERNMENT . 11
(e) (I) THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS THE12
RIGHT TO WAIVE THE RIGHT OF FIRST OFFER PROVIDED IN THIS SECTION .13
(II) (A) IF THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS14
WAIVED ITS RIGHT OF FIRST OFFER, IT SHALL POST A NOTICE IN A15
CONSPICUOUS LOCATION ON ITS WEBSITE INDICATING THAT THERE IS A16
WAIVER AND THAT RESIDENTIAL SELLERS WITH QUALIFYING PROPERTIES17
WITHIN ITS JURISDICTION DO NOT HAVE AN OBLIGATION TO COMPLY WITH18
THIS SECTION.19
(B) THE NOTICE POSTED IN ACCORDANCE WITH SUBSECTION20
(2)(e)(II)(A) OF THIS SECTION MUST BE EFFECTIVE FOR AT LEAST THREE21
MONTHS AFTER IT IS POSTED AND MUST EXPLICITLY STATE THE DATE IT22
EXPIRES, IF ANY.23
(C) FAILURE TO POST NOTICE PURSUANT TO THIS SUBSECTION24
(2)(e)(II) DOES NOT OTHERWISE AFFECT THE LOCAL GOVERNMENT 'S RIGHT25
OF FIRST OFFER.26
(f) NOTWITHSTANDING ANYTHING IN THIS SECTION TO THE27
1175
-25- CONTRARY, AT ANY TIME PRIOR TO THE RESIDENTIAL SELLER AND THE1
LOCAL GOVERNMENT ENTERING INTO A CONTRACT FOR THE PURCHASE OF2
THE QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT, THE3
RESIDENTIAL SELLER MAY REJECT THE LOCAL GOVERNMENT'S OFFER AND4
OTHERWISE TERMINATE NEGOTIATIONS WITH THE LOCAL GOVERNMENT .5
(g) IF THE LOCAL GOVERNMENT WAIVES OR IS DEEMED TO HAVE6
WAIVED ITS RIGHT OF FIRST OFFER IN ACCORDANCE WITH THIS SECTION OR7
IF A RESIDENTIAL SELLER REJECTS THE LOCAL GOVERNMENT'S OFFER IN8
ACCORDANCE WITH SUBSECTION (2)(f) OF THIS SECTION, THE RESIDENTIAL9
SELLER HAS NO OBLIGATION TO PROVIDE INITIAL OR ADDITIONAL NOTICE,10
AS APPLICABLE, TO THE LOCAL GOVERNMENT OR OTHERWISE OFFER OR11
RE-OFFER, AS APPLICABLE, THE QUALIFYING PROPERTY TO THE LOCAL12
GOVERNMENT PURSUANT TO ANY PROVISION OF THIS SECTION UNLESS A13
TRANSACTION FOR THE SALE OF THE QUALIFYING PROPERTY DOES NOT14
CLOSE WITHIN TWELVE MONTHS OF EITHER THE LOCAL GOVERNMENT'S15
WAIVER OR DEEMED WAIVER OR REJECTION BY THE RESIDENTIAL SELLER16
OF THE LOCAL GOVERNMENT'S OFFER, WHICHEVER IS EARLIER; EXCEPT17
THAT, IF THE CONTRACT FOR SALE TO A THIRD PARTY HAS A DURATION18
LONGER THAN TWELVE MONTHS, THEN THE TWELVE MONTH PERIOD IS19
EXTENDED TO MATCH THE TERM OF THE CONTRACT .20
(3) Notice requirements generally. (a) (I) ANY NOTICES21
REQUIRED TO BE PROVIDED TO THE LOCAL GOVERNMENT PURSUANT TO22
THIS SECTION MUST BE DELIVERED TO THE CLERK OF THE GOVERNING23
BODY OF THE LOCAL GOVERNMENT BY ELECTRONIC MAIL; EXCEPT THAT IF24
THERE IS NOT AN ELECTRONIC MAILING ADDRESS AVAILABLE FOR THE25
CLERK, THEN BY HAND DELIVERY, UNITED STATES FIRST CLASS MAIL, OR26
OVERNIGHT DELIVERY.27
1175
-26- (II) NOTWITHSTANDING SUBSECTION (3)(a)(I) OF THIS SECTION, IF1
THE LOCAL GOVERNMENT ASSIGNS ITS RIGHT OF FIRST OFFER AND THE2
ASSIGNEE PROVIDES NOTICE OF THE ASSIGNMENT TO THE RESIDENTIAL3
SELLER PURSUANT TO SUBSECTION (2)(d) OF THIS SECTION, THEN UPON4
AND AFTER RECEIPT OF NOTICE OF THE ASSIGNMENT, THE RESIDENTIAL5
SELLER SHALL SEND BY ELECTRONIC MAIL ANY REQUIRED NOTICES6
PURSUANT TO THIS SECTION TO THE ADDRESS SPECIFIED BY THE ASSIGNEE;7
EXCEPT THAT, IF THERE IS NOT AN ELECTRONIC MAILING ADDRESS8
PROVIDED BY THE ASSIGNEE, THEN BY HAND DELIVERY, UNITED STATES9
FIRST CLASS MAIL, OR OVERNIGHT DELIVERY.10
(b) ANY NOTICES PROVIDED TO THE RESIDENTIAL SELLER11
PURSUANT TO THIS SECTION MUST BE DELIVERED TO THE PHYSICAL12
ADDRESS PROVIDED BY THE RESIDENTIAL SELLER IN ACCORDANCE WITH13
SUBSECTION (5)(a)(II) OF THIS SECTION OR, UPON ELECTION BY THE14
RESIDENTIAL SELLER, BY ELECTRONIC MAIL TO THE ELECTRONIC MAILING15
ADDRESS PROVIDED BY THE RESIDENTIAL SELLER TO THE LOCAL16
GOVERNMENT.17
(c) ANY NOTICE PROVIDED PURSUANT TO THIS SECTION IS DEEMED18
DELIVERED ON THE DATE IT IS SENT BY ELECTRONIC MAIL, THE DATE IT IS19
HAND DELIVERED, THE DATE AFTER THE DAY IT IS DEPOSITED FOR20
DELIVERY BY OVERNIGHT DELIVERY, OR THE DATE THAT IS TWO BUSINESS21
DAYS AFTER THE DAY IT IS DEPOSITED IN THE UNITED STATES MAIL, AS22
APPLICABLE.23
(4) Notice by residential seller, local government's intent, and24
nondisclosure agreement. (a) B EFORE A RESIDENTIAL SELLER ENTERS25
INTO AN AGREEMENT WITH A LICENSED BROKER TO SOLICIT AND PROCURE26
PURCHASERS FOR A QUALIFYING PROPERTY OR OTHERWISE LISTS A27
1175
-27- QUALIFYING PROPERTY FOR SALE ON THE MULTIPLE LISTING SERVICE, THE1
RESIDENTIAL SELLER SHALL PROVIDE NOTICE TO THE GOVERNING BODY OF2
THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING PROPERTY IS3
LOCATED THAT THE RESIDENTIAL SELLER INTENDS TO SELL THE4
QUALIFYING PROPERTY.5
(b) THE LOCAL GOVERNMENT HAS SEVEN CALENDAR DAYS FROM6
THE DATE OF RECEIVING THE NOTICE REQUIRED BY SUBSECTION (4)(a) OF7
THIS SECTION TO PROVIDE A WRITTEN RESPONSE TO THE RESIDENTIAL8
SELLER INDICATING THAT THE LOCAL GOVERNMENT EITHER :9
(I) IS INTERESTED IN RECEIVING DUE DILIGENCE INFORMATION ON10
THE QUALIFYING PROPERTY SO THAT IT CAN EVALUATE WHETHER IT11
WANTS TO MAKE AN OFFER TO PURCHASE THE QUALIFYING PROPERTY ,12
WHICH RESPONSE MUST CONTAIN A NONDISCLOSURE AGREEMENT IN A13
FORM ACCEPTABLE TO THE RESIDENTIAL SELLER THAT THE LOCAL14
GOVERNMENT HAS EXECUTED, EXCEPT AS OTHERWISE GOVERNED BY LAW15
OR COURT ORDER; OR16
(II) WAIVES ANY RIGHT OF THE LOCAL GOVERNMENT TO PURCHASE17
THE QUALIFYING PROPERTY.18
(c) IF THE LOCAL GOVERNMENT DOES NOT RESPOND WITHIN THE19
SEVEN-DAY PERIOD REQUIRED BY SUBSECTION (4)(b) OF THIS SECTION, IT20
IS DEEMED TO HAVE WAIVED ITS RIGHT OF FIRST OFFER WITH RESPECT TO21
THE QUALIFYING PROPERTY.22
(5) Residential seller's notice of terms. (a) IF THE LOCAL23
GOVERNMENT PROVIDES NOTICE IN ACCORDANCE WITH SUBSECTION (4)(b)24
OF THIS SECTION, THE RESIDENTIAL SELLER HAS FIVE CALENDAR DAYS25
FROM RECEIPT OF THE NOTICE TO PROVIDE A NOTICE TO THE LOCAL26
GOVERNMENT THAT INCLUDES :27
1175
-28- (I) THE ADDRESS AND NAME OF THE QUALIFYING PROPERTY, IF1
ANY, AND THE LEGAL DESCRIPTION OF THE QUALIFYING PROPERTY ;2
(II) T
HE RESIDENTIAL SELLER'S ADDRESS AND, IF AVAILABLE,3
ELECTRONIC MAILING ADDRESS TO RECEIVE NOTICES FROM THE LOCAL4
GOVERNMENT;5 (III) A RENT ROLL FOR THE QUALIFYING PROPERTY SHOWING6
THE AMOUNT OF RENT CHARGED TO TENANTS AT THE QUALIFYING7
PROPERTY;8
(IV) THE VACANCY RATE, OPERATING EXPENSES AND INCOME, AND9
COMMON AREA AMENITIES AT THE QUALIFYING PROPERTY ;10
(V) ANY MARKETING MATERIALS THAT THE RESIDENTIAL SELLER11
HAS PREPARED ON OR BEFORE THE DATE OF SUCH NOTICE AND12
ANTICIPATES USING IN CONNECTION WITH LISTING THE QUALIFYING13
PROPERTY FOR SALE;14
(VI) A CURRENT TITLE COMMITMENT ; AND15
(VII) THE RESIDENTIAL SELLER'S EXECUTED VERSION OF THE16
NONDISCLOSURE AGREEMENT .17
(b) SUBJECT TO AND PURSUANT TO THE NONDISCLOSURE18
AGREEMENT EXECUTED IN ACCORDANCE WITH SUBSECTION (4)(b) OF THIS19
SECTION, THE LOCAL GOVERNMENT MAY SHARE THE INFORMATION20
CONTAINED IN THE NOTICES REQUIRED PURSUANT TO THIS SUBSECTION (5)21
WITH ITS OFFICERS AND EMPLOYEES FOR THE PURPOSES OF EVALUATING OR22
OBTAINING FINANCING FOR THE PROSPECTIVE TRANSACTION . AGENTS OF23
THE LOCAL GOVERNMENT AND PROSPECTIVE ENTITIES THAT THE LOCAL24
GOVERNMENT PARTNERS WITH PURSUANT TO SUBSECTION (2)(c) OF THIS25
SECTION OR PROSPECTIVE ASSIGNEES PURSUANT TO SUBSECTION (2)(d) OF26
THIS SECTION MUST EACH SIGN A NONDISCLOSURE AGREEMENT FOR THE27
1175
-29- RESPECTIVE ENTITY. AN ENTITY THAT HAS EXECUTED A NONDISCLOSURE1
AGREEMENT MAY SHARE THE INFORMATION CONTAINED IN THE NOTICES2
REQUIRED PURSUANT TO THIS SUBSECTION (5) WITH ITS OFFICERS AND3
EMPLOYEES FOR THE PURPOSES OF EVALUATING OR OBTAINING FINANCING4
FOR THE PROSPECTIVE TRANSACTION . THE INFORMATION CONTAINED IN5
THE NOTICE MUST BE KEPT CONFIDENTIAL AND IS CONFIDENTIAL6
INFORMATION NOT SUBJECT TO PUBLIC DISCLOSURE . 7
(6) Notice by the local government. (a) A LOCAL GOVERNMENT8
HAS FOURTEEN CALENDAR DAYS FROM THE DATE OF RECEIVING THE9
NOTICE REQUIRED BY SUBSECTION (5)(a) OF THIS SUBSECTION TO PROVIDE10
A WRITTEN RESPONSE TO THE RESIDENTIAL SELLER THAT EITHER :11
(I) M
AKES AN OFFER TO PURCHASE THE QUALIFYING PROPERTY12 SETTING FORTH THE PRICE, TERMS, AND CONDITIONS OF THE OFFER; OR13
(II) W
AIVES ANY RIGHT OF THE LOCAL GOVERNMENT TO PURCHASE14
THE QUALIFYING PROPERTY.15(b) IF THE LOCAL GOVERNMENT DOES NOT PROVIDE A RESPONSE16
WITHIN THE FOURTEEN-DAY PERIOD SET FORTH IN SUBSECTION (6)(a) OF17
THIS SECTION, THE LOCAL GOVERNMENT'S RIGHT OF FIRST OFFER IS18
DEEMED WAIVED.19
(7) Process after offer is made. (a) T HE RESIDENTIAL SELLER HAS20
FOURTEEN CALENDAR DAYS AFTER RECEIPT OF THE LOCAL GOVERNMENT 'S21
OFFER MADE PURSUANT TO SUBSECTION (6)(a)(I) OF THIS SECTION TO22
NOTIFY THE LOCAL GOVERNMENT THAT IT EITHER ACCEPTS OR REJECTS23
THE OFFER. DURING THIS PERIOD, THE RESIDENTIAL SELLER MAY INITIATE24
NEGOTIATIONS IN GOOD FAITH WITH THE LOCAL GOVERNMENT WHICH MAY25
INCLUDE DISCUSSING ALTERNATIVE PRICE , TERMS, OR CONDITIONS FOR26
THE PURCHASE OF THE QUALIFYING PROPERTY . IF THE RESIDENTIAL27
1175
-30- SELLER DOES NOT PROVIDE NOTICE OF ITS ACCEPTANCE OR REJECTION OF1
THE LOCAL GOVERNMENT 'S OFFER IN THE FOURTEEN DAY PERIOD2
PURSUANT TO THIS SUBSECTION (7)(a), THE OFFER IS DEEMED REJECTED.3
(b) I
F THE RESIDENTIAL SELLER ACCEPTS THE LOCAL4
GOVERNMENT'S OFFER OR ACCEPTS AN OFFER NEGOTIATED WITH THE
5
LOCAL GOVERNMENT , THE LOCAL GOVERNMENT AND THE RESIDENTIAL6
SELLER HAVE THIRTY CALENDAR DAYS AFTER THE DATE OF THE7
RESIDENTIAL SELLER'S RECEIPT OF THE LOCAL GOVERNMENT'S NOTICE8
PROVIDED IN ACCORDANCE WITH SUBSECTION (6)(a)(I) OF THIS SECTION9
TO NEGOTIATE AND EXECUTE A CONTRACT FOR THE PURCHASE OF THE10
QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT . THE CONTRACT11
MUST REQUIRE THE TRANSACTION TO CLOSE NO LATER THAN SIXTY DAYS12
AFTER ITS EXECUTION, UNLESS BOTH PARTIES AGREE TO OTHER TERMS .13
(8) Certificate of compliance. WITHIN FOURTEEN CALENDAR14
DAYS OF RECEIPT OF NOTICE REQUIRED BY SUBSECTION (4)(a) OF THIS15
SECTION UNLESS THE LOCAL GOVERNMENT PROVIDES NOTICE PURSUANT16
TO SUBSECTION (4)(b) OF THIS SECTION AND THEN WITHIN FOURTEEN17
CALENDAR DAYS OF RECEIPT OF THE NOTICE REQUIRED BY SUBSECTION18
(5)(a) OF THIS SECTION, THE LOCAL GOVERNMENT OR ITS ASSIGNEE SHALL19
EXECUTE AND RECORD A CERTIFICATE OF COMPLIANCE IN THE REAL20
PROPERTY RECORDS OF THE COUNTY IN WHICH THE QUALIFYING PROPERTY21
IS SITUATED. THE CERTIFICATE OF COMPLIANCE MUST INCLUDE THE NAME22
OF THE RESIDENTIAL SELLER, A LEGAL DESCRIPTION OF THE QUALIFYING23
PROPERTY, AND A STATEMENT THAT THE RESIDENTIAL SELLER HAS24
COMPLIED WITH ALL THE APPLICABLE PROVISIONS OF THIS SECTION. THE25
RECORDED CERTIFICATE OF COMPLIANCE IS PRIMA FACIE EVIDENCE OF THE26
RESIDENTIAL SELLER'S COMPLIANCE WITH THIS SECTION AND MAY BE27
1175
-31- RELIED UPON BY A RESIDENTIAL SELLER, ANY PERSON CLAIMING AN1
INTEREST IN THE QUALIFYING PROPERTY THRO UGH A RESIDENTIAL SELLER,2
AND A TITLE INSURANCE ENTITY, AS DEFINED IN SECTION 10-11-102 (11).3
4
29-4-1204. General provisions applicable to a local5
government's right of first refusal and right of first offer.6
(1) N
OTHING IN THIS PART 12 REQUIRES A LOCAL GOVERNMENT TO7
EXERCISE ITS RIGHT OF FIRST REFUSAL SET FORTH IN SECTION 29-4-12028
OR ITS RIGHT OF FIRST OFFER SET FORTH IN SECTION 29-4-1203 AND A9
LOCAL GOVERNMENT MUST PROMPTLY NOTIFY A RESIDENTIAL SELLER OF10
ITS INTENT NOT TO EXERCISE ITS RIGHT OF FIRST
OFFER AS SET FORTH IN11
SECTIONS 29-4-1203 (4)(b)(II) AND (6)(a)(II).12
(2) A
NY ACTION BY THE LOCAL GOVERNMENT REQUIRED OR13
PERMITTED PURSUANT TO THIS PART 12 MAY BE PERFORMED , AS IS14
APPLICABLE AND TO THE EXTENT PERMITTED BY LAW , BY THE COUNTY15
MANAGER OF A COUNTY , THE MAYOR OR CITY MANAGER OF A CITY OR16
TOWN, OR ANOTHER OFFICER DESIGNATED BY THE GOVERNING BODY OF17
THE LOCAL GOVERNMENT .18
(3) A
NY ACTIONS OF AN AGENT WORKING ON BEHALF OF A19
RESIDENTIAL SELLER FOR PURPOSES OF THIS PART 12 ARE ATTRIBUTABLE20
TO THE RESIDENTIAL SELLER. NOTWITHSTANDING ANY OTHER PROVISION21
OF THIS PART 12 TO THE CONTRARY, A POLITICAL SUBDIVISION OR A22
HOUSING AUTHORITY IN THE STATE THAT ENGAGES IN ACTIVITIES TO23
CREATE OR PRESERVE
AFFORDABLE HOUSING FOR AN APPLICABLE24
QUALIFYING PROPERTY IS NOT CONSIDERED AN AGENT WORKING ON25
BEHALF OF A RESIDENTIAL SELLER FOR PURPOSES OF THIS PART 12.26
(4) N
OTHING WITHIN THIS PART 12 LIMITS THE LOCAL27
1175
-32- GOVERNMENT'S ABILITY TO CONDEMN AN APPLICABLE QUALIFYING1
PROPERTY ACQUIRED PURSUANT TO THIS PART 12 TO THE EXTENT2
PERMITTED BY APPLICABLE LAW .3
(5) I
F A LOCAL GOVERNMENT HAS ADOPTED LONG -TERM4
AFFORDABILITY REQUIREMENTS THAT ARE GREATER THAN THE5
REQUIREMENTS SET FORTH IN THIS PART 12, THE LOCAL GOVERNMENT 'S6
REQUIREMENTS APPLY TO THIS PART 12.
NOTHING IN THIS PART 127
OVERRIDES ANY LOCAL AFFORDABLE HOUSING LAWS .8
29-4-1205. Exemptions. (1) THIS PART 12 DOES NOT APPLY TO9
ANY SALE, TRANSFER, OR CONVEYANCE OF AN APPLICABLE QUALIFYING10
PROPERTY BY A RESIDENTIAL SELLER:11
(a) MADE TO, IF WHOLLY OR MAJORITY OWNED, DIRECTLY OR12
INDIRECTLY, BY, BENEFICIALLY HELD, ALL OR IN PART, IN COMMON WITH,13
OR UNDER COMMON OWNERSHIP OR CONTROL WITH THE RESIDENTIAL14
SELLER, ONE OR MORE PARTNERSHIPS, LIMITED LIABILITY COMPANIES,15
CORPORATIONS, OR OTHER ENTITIES, MADE FOR TAX OR ESTATE PURPOSES16
BETWEEN CLOSELY HELD PARTNERS, MEMBERS OF ONE OR MORE LIMITED17
LIABILITY COMPANIES, MEMBERS OF ONE OR MORE CORPORATIONS , OR18
MEMBERS, TRUSTEES, MANAGERS, OR PARTNERS OF ONE OR MORE OTHER19
ENTITIES, OR IF THE UNITED STATES, OR ANY AGENCY OR20
INSTRUMENTALITY THEREOF , OR THE STATE, OR ANY POLITICAL21
SUBDIVISION OF THE STATE, IS THE RESIDENTIAL SELLER OF OR IS A22
THIRD-PARTY BUYER OF THE APPLICABLE QUALIFYING PROPERTY ;23
(b) M
ADE TO THE STATE, A LOCAL GOVERNMENT, THE COLORADO24
HOUSING AND FINANCE AUTHORITY , ANY PUBLIC HOUSING AUTHORITY ,25
AND ANY OTHER POLITICAL SUBDIVISION OF THE STATE ;26
(c) M
ADE TO
AN AFFORDABLE HOUSING PROVIDER THAT HAS27
1175
-33- PROVIDED NOTICE OF INTENT TO PURCHASE THE APPLICABLE QUALIFYING1
PROPERTY AND COMMITS TO PROVIDING LONG-TERM AFFORDABLE2
HOUSING;3
(d) I
F THE APPLICABLE QUALIFYING PROPERTY IS SOLD ,4
TRANSFERRED, OR CONVEYED IN A FORECLOSURE ACTION OR BY A DEED IN5
LIEU OF
FORECLOSURE, IF THE APPLICABLE QUALIFYING PROPERTY IS SOLD,6
TRANSFERRED, OR CONVEYED BY A PARTY THAT ACQUIRES THE7
APPLICABLE QUALIFYING PROPERTY IN A FORECLOSURE ACTION OR BY A8
DEED IN LIEU OF FORECLOSURE, OR IF THE APPLICABLE QUALIFYING9
PROPERTY IS SUBSEQUENTLY TRANSFERRED BY A10
GOVERNMENT-SPONSORED ENTERPRISE TO A DIRECT OR INDIRECT WHOLLY11
OWNED SUBSIDIARY, AFFILIATED LENDER, OR OTHER THIRD PARTY;12
(e) IF, ON OR AFTER THE EFFECTIVE DATE OF THIS PART 12, THE13
APPLICABLE QUALIFYING PROPERTY HAS A PREEXISTING AGREEMENT THAT14
BESTOWS A RIGHT OF FIRST REFUSAL, RIGHT OF FIRST OFFER, OR OTHER15
CONTINGENT PROPERTY RIGHT REGARDING THE APPLICABLE QUALIFYING16
PROPERTY TO A THIRD PARTY; EXCEPT THAT, UPON EXPIRATION OF THE17
AGREEMENT, THE PROVISIONS OF THIS PART 12 APPLY TO ANY SALE,18
TRANSFER, OR CONVEYANCE OF THE APPLICABLE QUALIFYING PROPERTY19
BY THE RESIDENTIAL SELLER; 20
(f) IF THE RESIDENTIAL SELLER HAS APPLIED FOR , IS IN THE21
PROCESS OF, OR HAS SUCCESSFULLY RESYNDICATED OR RECAPITALIZED22
THE APPLICABLE QUALIFYING PROPERTY IN CONNECTION WITH AN23
AFFORDABLE HOUSING PROGRAM OFFERED BY THE FEDERAL, STATE, OR24
LOCAL GOVERNMENT OR A POLITICAL SUBDIVISION OR ANY PUBLIC ENTITY,25
AND THE RESIDENTIAL SELLER PROVIDES NOTICE AND DEMONSTRABLE26
EVIDENCE OF THIS TO THE LOCAL GOVERNMENT; EXCEPT THAT, IF THE27
1175
-34- RESIDENTIAL SELLER IS NOT SUCCESSFUL IN RESYNDICATING OR1
RECAPITALIZING AN APPLICABLE QUALIFYING PROPERTY IN CONNECTION2
WITH AN AFFORDABLE HOUSING PROGRAM OFFERED BY THE FEDERAL,3
STATE, OR LOCAL GOVERNMENT OR A POLITICAL SUBDIVISION OR ANY4
PUBLIC ENTITY THEN THE RIGHT OF FIRST REFUSAL OR THE RIGHT OF FIRST5
OFFER, AS APPLICABLE, AND THE REQUIREMENTS SET FORTH IN THIS PART6
12 APPLY;7
(g) M
ADE TO A FAMILY MEMBER , AS DEFINED IN SECTION
8
8-13.3-503
(11), OF THE RESIDENTIAL SELLER;
9
(h) M
ADE TO A TRUST IF THE BENEFICIARY OF THE TRUST IS THE
10
SPOUSE, PARTNER IN A CIVIL UNION, LEGALLY RECOGNIZED CHILD , OR11
OTHER FAMILY MEMBER OF THE RESIDENTIAL SELLER ;12
(i) M
ADE PURSUANT TO A WILL , DESCENT, OR INTESTATE
13
DISTRIBUTION; OR14
(j) M
ADE PURSUANT TO AN ACTION IN EMINENT DOMAIN OR IN
15
RESPONSE TO A THREAT OF EMINENT DOMAIN .16
(2) THE RIGHT OF FIRST OFFER SET FORTH IN SECTION17
29-4-1203
DOES NOT APPLY TO ANY SALE, TRANSFER, OR CONVEYANCE OF18
A QUALIFYING PROPERTY, AS DEFINED IN SECTION 29-4-1203 (1), BY A19
RESIDENTIAL SELLER:20
21
(a) MADE PURSUANT TO A COURT ORDER ;22
(b) MADE BETWEEN JOINT TENANTS OR TENANTS IN COMMON ; 23
(c) IF THE FIRST CERTIFICATE OF OCCUPANCY FOR THE QUALIFYING24
PROPERTY WAS ISSUED WITHIN THIRTY YEARS PRECEDING THE DATE THAT25
THE RESIDENTIAL SELLER WILL LIST THE QUALIFYING PROPERTY FOR SALE;26
(d) IF THE QUALIFYING PROPERTY IS BEING SOLD, TRANSFERRED,27
1175
-35- OR CONVEYED AS PART OF A TRANSACTION INVOLVING MULTIPLE1
PROPERTIES WHICH INCLUDES AT LEAST ONE PROPERTY LOCATED IN A2
JURISDICTION THAT IS OUTSIDE OF THE JURISDICTION OF THE LOCAL3
GOVERNMENT;4
(e) THAT DOES NOT INVOLVE THE SALE, TRANSFER, OR5
CONVEYANCE OF ALL OR SUBSTANTIALLY ALL OF THE QUALIFYING6
PROPERTY; OR7
(f) THAT IS A SALE, TRANSFER, OR CONVEYANCE, DIRECTLY OR8
INDIRECTLY, OF OWNERSHIP INTERESTS IN THE RESIDENTIAL SELLER .9
10
29-4-1206. Remedies for noncompliance.11
(1) (a) N
OTWITHSTANDING SUBSECTION
(1)(b) OF THIS SECTION AND12
SUBJECT TO THE AVAILABILITY OF RESOURCES , IT IS THE RESPONSIBILITY13
OF THE ATTORNEY GENERAL'S OFFICE TO ENFORCE THE PROVISIONS OF THIS14
PART 12, AND THE ATTORNEY GENERAL MAY INTERVENE IN ANY ACTION15
BROUGHT PURSUANT TO SUBSECTION (1)(b) OF THIS SECTION.16
17
(b) THE ATTORNEY GENERAL'S OFFICE, THE LOCAL GOVERNMENT,18
OR THE LOCAL GOVERNMENT'S ASSIGNEE MAY BRING A CIVIL ACTION19
AGAINST A RESIDENTIAL SELLER FOR ANY VIOLATION OF THIS PART 12.20
(c) THE REMEDIES FOR ANY ACTION BROUGHT PURSUANT TO THIS21
SUBSECTION (1) ARE LIMITED TO MONETARY DAMAGES AND STATUTORY22
PENALTIES AGAINST THE RESIDENTIAL SELLER. ANY PERSON CLAIMING AN23
INTEREST IN AN APPLICABLE QUALIFYING PROPERTY THROUGH A24
RESIDENTIAL SELLER SHALL TAKE TITLE TO THE APPLICABLE QUALIFYING25
PROPERTY FREE OF ANY RIGHTS OR CLAIMS SET FORTH IN THIS PART 12.26
27
1175
-36- (2) IF A COURT FINDS THAT A RESIDENTIAL SELLER IS IN MATERIAL1
VIOLATION OF THIS PART 12, THE COURT SHALL AWARD A STATUTORY2
PENALTY THAT IS NOT LESS THAN TEN THOUSAND DOLLARS FOR A FIRST3
OFFENSE AND NOT LESS THAN THIRTY THOUSAND DOLLARS FOR ANY4
SUBSEQUENT OFFENSES; EXCEPT THAT THE COURT SHALL NOT AWARD A5
STATUTORY PENALTY THAT IS MORE THAN ONE HUNDRED THOUSAND6
DOLLARS.7
(3) A COURT MAY ALSO AWARD REASONABLE ATTORNEY FEES AND8
COSTS TO A PREVAILING PARTY. 9
(4) THE REMEDIES PROVIDED IN THIS SECTION ARE THE SOLE10
AND EXCLUSIVE REMEDIES PURSUANT TO A CIVIL ACTION BROUGHT11
PURSUANT TO THIS SECTION FOR A VIOLATION OF THIS PART 12 BY A12
RESIDENTIAL SELLER.13
29-4-1207. Termination of right of first refusal and right14
of first offer. T
HE RIGHTS OF FIRST REFUSAL AND FIRST OFFER
15
ESTABLISHED IN THIS PART 12 TERMINATE ON DECEMBER 31, 2029. A16
RESIDENTIAL SELLER IS NOT REQUIRED TO PROVIDE NOTICES REQUIRED17
PURSUANT TO THIS PART 12 AFTER DECEMBER 31, 2029, AND A LOCAL18
GOVERNMENT SHALL NOT EXERCISE THE RIGHT OF FIRST REFUSAL OR THE19
RIGHT OF FIRST OFFER PURSUANT TO THIS PART 12 AFTER DECEMBER 31,20
2029;
EXCEPT THAT, IF THE LOCAL GOVERNMENT OR ITS ASSIGNEE , HAS
21
EXERCISED THE RIGHT OF FIRST REFUSAL OR THE RIGHT OF FIRST OFFER22
PURSUANT TO THIS PART 12 BEFORE DECEMBER 31, 2029, AND THE23
PROCESS HAS NOT CONCLUDED , THEN THE PROCESS SHALL CONTINUE24
UNTIL IT CONCLUDES IN ACCORDANCE WITH THIS PART 1225
NOTWITHSTANDING THE TERMINATION DATE SET FORTH IN THIS SECTION .26
29-4-1208. Repeal of part. T
HIS PART 12 IS REPEALED EFFECTIVE
27
1175
-37- JULY 1, 2031.1
SECTION 2. In Colorado Revised Statutes, 24-31-101, amend2
(1)(i)(XVII) and (1)(i)(XVIII); and add (1)(i)(XIX) as follows:3
24-31-101. Powers and duties of attorney general. (1) The4
attorney general:5
(i) May independently initiate and bring civil and criminal actions6
to enforce state laws, including actions brought pursuant to:7
(XVII) The "Rental Application Fairness Act", part 9 of article 128
of title 38; and9
(XVIII) The "Reproductive Health Equity Act", part 4 of article10
6 of title 25;
AND11
(XIX) P
ART 12 OF ARTICLE 4 OF TITLE 29.12
SECTION 3. Act subject to petition - effective date -13
applicability. (1) This act takes effect at 12:01 a.m. on the day following14
the expiration of the ninety-day period after final adjournment of the15
general assembly; except that, if a referendum petition is filed pursuant16
to section 1 (3) of article V of the state constitution against this act or an17
item, section, or part of this act within such period, then the act, item,18
section, or part will not take effect unless approved by the people at the19
general election to be held in November 2024 and, in such case, will take20
effect on the date of the official declaration of the vote thereon by the21
governor.22
(2) This act applies to all qualifying properties for the right of first23
refusal that are listed for sale on or after the effective date of this act but24
for which a residential seller has not accepted an offer to purchase the25
qualifying property and executed the necessary agreements in connection26
1175
-38- with accepting the offer and to all qualifying properties for the right of1
first offer on or after the effective date of this act that do not have active2
listings as of the effective date of this act.3
1175
-39-