HOUSE BILL 24-1175
BY REPRESENTATIVE(S) Boesenecker and Sirota, Amabile, Bacon,
Brown, Clifford, deGruy Kennedy, Epps, Froelich, Garcia, Hernandez,
Herod, Jodeh, Joseph, Kipp, Lindsay, Mabrey, Marvin, McCormick, Ricks,
Rutinel, Velasco, Vigil, Weissman, Willford, McCluskie, Daugherty,
Duran, Lieder, Ortiz, Titone;
also SENATOR(S) Winter F. and Jaquez Lewis, Bridges, Cutter, Exum,
Hinrichsen.
C
ONCERNING A LOCAL GOVERNMENT RIGHT OF FIRST REFUSAL OR OFFER TO
PURCHASE QUALIFYING MULTIFAMILY PROPERTY FOR THE PURPOSE OF
PROVIDING LONG
-TERM AFFORDABLE HOUSING OR MIXED -INCOME
DEVELOPMENT
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add part 12 to article
4 of title 29 as follows:
PART 12
LOCAL GOVERNMENT RIGHT OF FIRST REFUSAL OR FIRST
OFFER TO PURCHASE MULTIFAMILY HOUSING
29-4-1201. Definitions. A
S USED IN THIS PART 12, UNLESS THE
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. CONTEXT OTHERWISE REQUIRES :
(1) "A
FFORDABLE HOUSING FINANCIAL ASSISTANCE " MEANS LOANS,
GRANTS, EQUITY, BONDS, OR TAX CREDITS PROVIDED TO A MULTIFAMILY
RENTAL PROPERTY FROM ANY SOURCE TO SUPPORT THE CREATION
,
PRESERVATION, OR REHABILITATION OF AFFORDABLE HOUSING THAT , AS A
CONDITION OF FUNDING
, ENCUMBERS THE PROPERTY WITH A RESTRICTED USE
COVENANT OR SIMILAR RECORDED AGREEMENT TO ENSURE AFFORDABILITY
.
(2) "A
PPLICABLE QUALIFYING PROPERTY " MEANS EITHER
"QUALIFYING PROPERTY" AS DEFINED IN SECTION 29-4-1202 (1), OR
"QUALIFYING PROPERTY" AS DEFINED IN SECTION 29-4-1203 (1).
(3) "A
PPLICABLE RIGHT" MEANS EITHER A LOCAL GOVERNMENT 'S
RIGHT OF FIRST REFUSAL AS SET FORTH IN SECTION
29-4-1202, OR RIGHT OF
FIRST OFFER AS SET FORTH IN SECTION
29-4-1203.
(4) "A
REA MEDIAN INCOME" MEANS THE MEDIAN INCOME OF THE
COUNTY IN WHICH A QUALIFYING PROPERTY IS LOCATED IN RELATION TO
HOUSEHOLD SIZE
, AS ESTABLISHED ANNUALLY BY THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
.
(5) "C
OLORADO HOUSING AND FINANCE AUTHORITY " MEANS THE
COLORADO HOUSING AND FINANCE AUTHORITY CREATED IN SECTION
29-4-704 (1).
(6) "E
XISTING AFFORDABLE HOUSING " MEANS HOUSING THAT IS
SUBJECT TO ONE OR MORE RESTRICTED USE COVENANTS OR SIMILAR
RECORDED AGREEMENTS TO ENSURE AFFORDABILITY AND THAT IS
CONSISTENT WITH AFFORDABLE HOUSING FINANCIAL ASSISTANCE
REQUIREMENTS
. "EXISTING AFFORDABLE HOUSING " DOES NOT INCLUDE
PROPERTIES FOR WHICH ALL RESTRICTED USE COVENANTS OR AFFORDABILITY
REQUIREMENTS HAVE EXPIRED AS OF
JUNE 1, 2024.
(7) "L
OCAL GOVERNMENT" MEANS:
(a)
A CITY, CITY AND COUNTY, OR TOWN IF THE APPLICABLE
QUALIFYING PROPERTY IS LOCATED WITHIN THE INCORPORATED AREA OF A
CITY
, A CITY AND COUNTY, OR A TOWN; AND
PAGE 2-HOUSE BILL 24-1175 (b) A COUNTY IF THE APPLICABLE QUALIFYING PROPERTY IS
LOCATED WITHIN THE UNINCORPORATED AREA OF A COUNTY
.
(8) "L
OCAL OR REGIONAL HOUSING AUTHORITY " MEANS A HOUSING
AUTHORITY CREATED PURSUANT TO SECTION
29-4-204 (1), 29-4-306 (1),
29-4-402,
OR 29-4-503 (1).
(9) (a) "L
ONG-TERM AFFORDABLE HOUSING " MEANS HOUSING FOR
WHICH THE LOCAL GOVERNMENT ENSURES THAT AFFORDABILITY LEVELS AT
AN APPLICABLE QUALIFYING PROPERTY ARE ON AVERAGE EQUAL TO OR
GREATER THAN PREEXISTING LEVELS AT THE APPLICABLE QUALIFYING
PROPERTY AND THAT THE AVERAGE ANNUAL RENTS AT THE APPLICABLE
QUALIFYING PROPERTY DO NOT EXCEED THE RENT FOR HOUSEHOLDS OF A
GIVEN SIZE AT A GIVEN AREA MEDIAN INCOME
, AS ESTABLISHED ANNUALLY
BY THE
UNITED STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
, FOR A MINIMUM OF FORTY YEARS , AND FOR WHICH THE
LOCAL GOVERNMENT AGREES NOT TO RAISE RENT FOR ANY UNIT IN THE
APPLICABLE QUALIFYING PROPERTY BY MORE THAN THE RENT INCREASE CAP
;
EXCEPT THAT THE RENT INCREASE CAP DOES NOT APPLY TO UNITS OF
HOUSING THAT ARE SUBJECT TO RENT OR INCOME LIMITS ESTABLISHED
PURSUANT TO LOCAL
, STATE, FEDERAL, OR POLITICAL SUBDIVISION
AFFORDABLE HOUSING PROGRAM GUIDELINES
.
(b) N
OTHING IN THIS SUBSECTION (9) PREVENTS A LOCAL
GOVERNMENT FROM PROVIDING AFFORDABILITY REQUIREMENTS BEYOND
FORTY YEARS OR FOR UNITS TO BE AFFORDABLE TO RENTERS WITH INCOMES
BELOW EXISTING AFFORDABILITY LEVELS
, IN WHICH CASE THE LOCAL
GOVERNMENT
'S REQUIREMENTS APPLY FOR PURPOSES OF THE DEFINITION OF
"LONG-TERM AFFORDABLE HOUSING" AS SET FORTH IN SUBSECTION (9)(a) OF
THIS SECTION
.
(10) (a) "M
ATCHED OFFER" MEANS AN OFFER OF PURCHASE FOR A
QUALIFYING PROPERTY
, AS DEFINED IN SECTION 29-4-1202 (1), FOR A PRICE
AND WITH OTHER MATERIAL TERMS AND CONDITIONS THAT ARE AT LEAST AS
FAVORABLE TO THOSE IN AN ARM
'S-LENGTH, THIRD-PARTY OFFER THAT A
RESIDENTIAL SELLER HAS RECEIVED AND IS WILLING TO ACCEPT FOR THE
SALE OF THE QUALIFYING PROPERTY
; EXCEPT THAT, TO THE EXTENT THAT
THERE ARE ANY PROVISIONS IN THE ARM
'S-LENGTH, THIRD-PARTY OFFER
THAT THE LOCAL GOVERNMENT IS PROHIBITED BY LAW FROM CONTRACTING
FOR
, THE LOCAL GOVERNMENT IS NOT REQUIRED TO INCLUDE SUCH
PAGE 3-HOUSE BILL 24-1175 PROVISIONS IN ITS OFFER FOR ITS OFFER TO BE A MATCHED OFFER .
(b) "M
ATCHED OFFER" ALSO MEANS, IN THE ABSENCE OF AN
ARM
'S-LENGTH, THIRD-PARTY OFFER, AN OFFER OF PURCHASE FOR A
QUALIFYING PROPERTY
, AS DEFINED IN SECTION 29-4-1202 (1), FOR A PRICE
AND WITH OTHER MATERIAL TERMS AND CONDITIONS COMPARABLE TO
THOSE FOR WHICH THE RESIDENTIAL SELLER WOULD SELL
, AND A WILLING
BUYER WOULD PURCHASE
, THE QUALIFYING PROPERTY.
(11) "M
ATERIAL TERMS AND CONDITIONS " MEANS, GENERALLY,
SIGNIFICANT TERMS AND CONDITIONS OF A CONTRACT SUCH AS SALE PRICE ,
EARNEST MONEY, REPRESENTATIONS, WARRANTIES, PROPERTY DESCRIPTION,
AND PERFORMANCE UNDER THE CONTRACT AND , IF A RESIDENTIAL SELLER
HAS RECEIVED AN OFFER FROM A THIRD
-PARTY BUYER THAT IS ENTIRELY A
CASH OFFER FOR THE THIRD
-PARTY TO PURCHASE THE QUALIFYING
PROPERTY
, THE LOCAL GOVERNMENT , IN ACCORDANCE WITH SECTION
29-4-1202 (5)(a)(II), MUST AGREE TO CLOSE ON THE QUALIFYING PROPERTY
WITHIN THE SAME TIME PERIOD AS SET FORTH IN THE THIRD
-PARTY BUYER'S
OFFER FOR PURPOSES OF A MATCHED OFFER
. "MATERIAL TERMS AND
CONDITIONS
" EXCLUDES, BUT IS NOT LIMITED TO EXCLUDING, THE TYPE OF
FINANCING OR PAYMENT METHOD OR THE PERIOD FOR CLOSING
.
(12) "M
IXED-INCOME PROJECT" MEANS AN AFFORDABLE HOUSING
DEVELOPMENT IN WHICH A PERCENTAGE OF UNITS HAVE RESTRICTED
AVAILABILITY TO HOUSEHOLDS AT OR BELOW GIVEN AREA MEDIAN INCOME
LEVELS
, PROPORTIONAL TO THE DEMONSTRATED HOUSING NEEDS OF THE
LOCAL COMMUNITY
. THE PERCENTAGE OF INCOME RESTRICTED UNITS AND
AFFORDABILITY LEVELS MUST COMPLY WITH LAWS ENACTED BY LOCAL
GOVERNMENTS PROMOTING THE DEVELOPMENT OF NEW AFFORDABLE
HOUSING UNITS PURSUANT TO SECTION
29-20-104 (1).
(13) "R
ENT INCREASE CAP" MEANS A PERCENTAGE OF THE CURRENT
ANNUAL RENT FOR AN APPLICABLE QUALIFYING PROPERTY THAT IS EQUAL TO
THE GREATER OF
:
(a) T
HE AVERAGE ANNUAL PERCENTAGE CHANGE FOR THE PREVIOUS
TWELVE MONTHS AT THE TIME OF THE CALCULATION IN THE
UNITED STATES
DEPARTMENT OF LABOR
'S BUREAU OF LABOR STATISTICS CONSUMER PRICE
INDEX FOR
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS AND ALL URBAN
CONSUMERS
, OR ITS SUCCESSOR INDEX; OR
PAGE 4-HOUSE BILL 24-1175 (b) THREE PERCENTAGE POINTS.
(14) "R
ESIDENTIAL SELLER" MEANS THE FEE SIMPLE OWNER OF AN
APPLICABLE QUALIFYING PROPERTY
. IF THERE IS MORE THAN ONE FEE SIMPLE
OWNER OF AN APPLICABLE QUALIFYING PROPERTY
, EACH FEE SIMPLE OWNER
IS REFERRED TO IN THIS PART
12 JOINTLY AND SEVERALLY AS THE
"RESIDENTIAL SELLER".
29-4-1202. Right of first refusal - eligibility - process - notice -
tolling - definition. (1) Definition of qualifying property. A
S USED IN
THIS SECTION
, UNLESS THE CONTEXT OTHERWISE REQUIRES , "QUALIFYING
PROPERTY
" MEANS A MULTIFAMILY RESIDENTIAL OR MIXED -USE RENTAL
PROPERTY CONSISTING OF NOT LESS THAN FIVE UNITS THAT IS EXISTING
AFFORDABLE HOUSING
, EXCLUDING A MOBILE HOME PARK AS DEFINED IN
SECTION
38-12-201.5 (6). FOR THE PURPOSE OF DETERMINING WHETHER A
PROPERTY CONSISTS OF AT LEAST THE MINIMUM NUMBER OF UNITS SET
FORTH IN THIS SUBSECTION
(1) FOR A QUALIFYING PROPERTY, AN ACCESSORY
DWELLING UNIT DOES NOT COUNT AS A UNIT
.
(2) Local government's right of first refusal. (a) I
N ACCORDANCE
WITH THIS PART
12, THE LOCAL GOVERNMENT FOR THE JURISDICTION IN
WHICH A QUALIFYING PROPERTY IS LOCATED HAS A RIGHT OF FIRST REFUSAL
TO PURCHASE THE QUALIFYING PROPERTY WITH A MATCHED OFFER
.
(b) (I) A
NY PURCHASE AND SALE AGREEMENT FOR THE CONVEYANCE
OF A QUALIFYING PROPERTY BY A RESIDENTIAL SELLER IS CONTINGENT UPON
THE RIGHT OF FIRST REFUSAL SET FORTH IN THIS SECTION
.
(II) I
F THE LOCAL GOVERNMENT PROVIDES NOTICE PURSUANT TO
SUBSECTION
(4)(a)(I) OF THIS SECTION TO A RESIDENTIAL SELLER THAT THE
LOCAL GOVERNMENT MAY EXERCISE ITS RIGHT OF FIRST REFUSAL
, THE
RESIDENTIAL SELLER SHALL NOT PROCEED WITH THE SALE OF THE
QUALIFYING PROPERTY TO ANY OTHER PARTY AND THE LOCAL GOVERNMENT
SHALL HAVE A RIGHT TO MAKE A MATCHED OFFER
.
(III) F
OR THE PURPOSE OF DETERMINING WHETHER AN OFFER BY THE
LOCAL GOVERNMENT IS A MATCHED OFFER
, IT IS IMMATERIAL HOW THE
OFFER WOULD BE FINANCED IF THE LOCAL GOVERNMENT HAS SECURED THE
FINANCING OR DEMONSTRATES APPROVAL OF THE FINANCING IN CONNECTION
WITH MAKING THE OFFER
, NOTWITHSTANDING ANY REQUIREMENT OF
PAGE 5-HOUSE BILL 24-1175 APPROPRIATION BY A GOVERNING BODY FOR THE FINANCING . FOR PURPOSES
OF THIS SECTION
, A RESIDENTIAL SELLER SHALL NEGOTIATE IN GOOD FAITH
WITH THE LOCAL GOVERNMENT THAT MAKES A MATCHED OFFER
. THIS
INCLUDES
, BUT IS NOT LIMITED TO, EVALUATING AN OFFER FROM THE LOCAL
GOVERNMENT OR ITS ASSIGNEE WITHOUT CONSIDERATION OF
:
(A) T
HE PERIOD FOR CLOSING;
(B) T
HE TYPE OF FINANCING OR PAYMENT METHOD ;
(C) W
HETHER OR NOT THE OFFER IS CONTINGENT ON A PARTICULAR
FINANCING OR PAYMENT METHOD
; EXCEPT THAT THE LOCAL GOVERNMENT
MUST BE ABLE TO DEMONSTRATE THAT ITS FINANCING OR PAYMENT METHOD
HAS BEEN APPROVED
, NOTWITHSTANDING ANY REQUIREMENT OF
APPROPRIATION BY A GOVERNING BODY FOR THE FI NANCING OR PAYMENT
METHOD
; AND
(D) WHETHER OR NOT THE OFFER IS CONTINGENT ON AN APPRAISAL ,
INSPECTION, REVIEW OF TITLE, OBTAINING TITLE INSURANCE, OR OTHER
CUSTOMARY CONDITIONS FOR THE SALE OF SIMILAR PROPERTY
.
(IV) A
RESIDENTIAL SELLER SHALL NOT COLLUDE WITH A POTENTIAL
BUYER FOR THE PRIMARY PURPOSE OF INFLATING A SALES PRICE ABOVE THE
MARKET PRICE OF A QUALIFYING PROPERTY
.
(c) T
HE LOCAL GOVERNMENT 'S RIGHT OF FIRST REFUSAL
CONCERNING THE QUALIFYING PROPERTY IS LIMITED TO PRESERVING OR
CONVERTING THE QUALIFYING PROPERTY TO LONG
-TERM AFFORDABLE
HOUSING DIRECTLY OR THR OUGH ANOTHER ENTITY TO WHICH THE LOCAL
GOVERNMENT ASSIGNS ITS RIGHTS PURS UANT SUBSECTION
(2)(f) OF THIS
SECTION OR TRANSFERS THE QUALIFYING PROPERTY
.
(d) I
F A QUALIFYING PROPERTY IS CLASSIFIED AS MIXED -USE, THE
LOCAL GOVERNMENT
'S OFFER MUST INCLUDE ANY COMMERCIAL PORTION OF
THE QUALIFYING PROPERTY
, BUT ONLY THE RESIDENTIAL PORTION OF THE
QUALIFYING PROPERTY IS SUBJECT TO AFFORDABILITY REQUIREMENTS
.
(e) T
HE LOCAL GOVERNMENT , IN EXERCISING ITS RIGHT OF FIRST
REFUSAL
, MAY PARTNER WITH A NONPROFIT ENTITY , A PRIVATE ENTITY, A
QUASI
-GOVERNMENTAL ENTITY , OR ANOTHER GOVERNMENTAL ENTITY TO
PAGE 6-HOUSE BILL 24-1175 CO-FINANCE, LEASE, OR MANAGE THE QUALIFYING PROPERTY FOR THE
PUBLIC PURPOSE OF MAINTAINING THE QUALIFYING PROPERTY AS
LONG
-TERM AFFORDABLE HOUSING AS L ONG AS THE LOCAL GOVERNMENT OR
ITS ASSIGNEE MAINTAINS OWNERSHIP OF THE QUALIFYING PROPERTY EITHER
DIRECTLY OR THROUGH A SPECIAL PURPOSE ENTITY OR AFFILIATE
.
(f) A
T ANY TIME, THE LOCAL GOVERNMENT MAY ASSIGN THE RIGHT
OF FIRST REFUSAL WITH RESPECT TO A SPECIFIC QUALIFYING PROPERTY OR
WITH RESPECT TO ALL QUALIFYING PROPERTIES IN THE LOCAL
GOVERNMENT
'S JURISDICTION TO A HOUSING AUTHORITY THAT IS WITHIN THE
LOCAL GOVERNMENT
'S JURISDICTION, A REGIONAL HOUSING AUTHORITY
THAT SERVES THE LOCAL GOVERNMENT
'S JURISDICTION, OR THE COLORADO
HOUSING AND FINANCE AUTHORITY
, SUBJECT TO THE REQUIREMENTS THAT
THE QUALIFYING PROPERTY IS USED TO PRESERVE OR BE CONVERTED TO
LONG
-TERM AFFORDABLE HOUSING AND THAT ALL OTHER PROVISIONS OF
THIS PART
12 APPLY TO THE ASSIGNEE. IF THE PROPOSED ASSIGNEE ACCEPTS
THE ASSIGNMENT OF THE RIGHT OF FIRST REFUSAL IN WRITING
, UPON
ASSIGNMENT
, THE ASSIGNEE ASSUMES ALL LIABILITY OF THE LOCAL
GOVERNMENT REGARDING THE EXERCISE OF THE RIGHT OF FIRST REFUSAL
AND IS RESPONSIBLE FOR PERFORMING ALL REQUIREMENTS PURSUANT TO
THIS PART
12 WITH RESPECT TO A QUALIFYING PROPERTY AS IF THE ASSIGNEE
WERE THE LOCAL GOVERNMENT
. THE LOCAL GOVERNMENT MUST PROVIDE
NOTICE OF ANY ASSIGNMENT AS FOLLOWS
:
(I) I
F THE LOCAL GOVERNMENT HAS ASSIGNED ITS RIGHT OF FIRST
REFUSAL WITH RESPECT TO ALL PROPERTIES WITHIN ITS JURISDICTION
, THE
LOCAL GOVERNMENT MUST POST A NOTICE IN A CONSPICUOUS LOCATION ON
ITS WEBSITE INDICATING THAT THE LOCAL GOVERNMENT HAS ASSIGNED ITS
RIGHT OF FIRST REFUSAL AND LISTING THE ASSIGNEE
'S NAME AND CONTACT
INFORMATION TO RECEIVE NOTICES REQUIRED PURSUANT TO THIS SECTION
.
T
HE NOTICE POSTED IN ACCORDANCE WITH THIS SUBSECTION (2)(f)(I) MUST
BE EFFECTIVE FOR AT LEAST THREE MONTHS AFTER IT IS POSTED AND MUST
EXPLICITLY STATE THE DATE IT EXPIRES
, IF ANY. ANY NOTICE POSTED BY THE
LOCAL GOVERNMENT IN ACCORDANCE WITH THIS SUBSECTION
(2)(f)(I) IS
DEEMED CONSTRUCTIVE NOTICE TO THE RESIDENTIAL SELLER
.
(II) I
F THE LOCAL GOVERNMENT HAS NOT POSTED NOTICE IN
ACCORDANCE WITH SUBSECTION
(2)(f)(I) OF THIS SECTION AND ASSIGNS ITS
RIGHT OF FIRST REFUSAL WITH RESPECT TO ALL QUALIFYING PROPERTIES IN
ITS JURISDICTION OR WITH RESPECT TO A QUALIFYING PROPERTY THAT IS THE
PAGE 7-HOUSE BILL 24-1175 SUBJECT OF THE NOTICE PROVIDED BY A RESIDENTIAL SELLER IN
ACCORDANCE WITH SUBSECTION
(3)(b) OF THIS SECTION AFTER RECEIPT OF
SUCH NOTICE
, THE LOCAL GOVERNMENT SHALL IMMEDIATELY NOTIFY THE
RESIDENTIAL SELLER OF THE ASSIGNMENT AND OF THE ASSIGNEE
'S ADDRESS
TO RECEIVE ANY NOTICES THE RESIDENTIAL SELLER IS REQUIRED TO SEND IN
ACCORDANCE WITH THIS SECTION
; EXCEPT THAT, IF THE SALE OF THE
QUALIFYING PROPERTY THAT IS THE SUBJECT OF THE NOTICE PROVIDED BY
THE RESIDENTIAL SELLER IN ACCORDANCE WITH SUBSECTION
(3)(b) OF THIS
SECTION HAS CONCLUDED
, THEN NO NOTICE BY THE LOCAL GOVERNMENT OF
THE ASSIGNMENT IS REQUIRED
.
(g) (I) T
HE GOVERNING BODY OF A LOCAL GOVERNMENT HAS THE
RIGHT TO WAIVE THE RIGHT OF FIRST REFUSAL PROVIDED IN THIS SECTION
.
(II) (A) I
F THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS
WAIVED ITS RIGHT OF FIRST REFUSAL
, IT SHALL POST A NOTICE IN A
CONSPICUOUS LOCATION ON ITS WEBSITE INDICATING THAT THERE IS A
WAIVER AND THAT RESIDENTIAL SELLERS WITH QUALIFYING PROPERTIES
WITHIN ITS JURISDICTION DO NOT HAVE AN OBLIGATION TO COMPLY WITH
THIS SECTION
. THE LOCAL GOVERNMENT SHALL ALSO PROVIDE WRITTEN
NOTICE TO THE
COLORADO HOUSING AND FINANCE AUTHORITY OF THE
WAIVER
.
(B) T
HE NOTICE POSTED OR PROVIDED IN ACCORDANCE WITH
SUBSECTION
(2)(g)(II)(A) OF THIS SECTION MUST BE EFFECTIVE FOR AT
LEAST THREE MONTHS AFTER IT IS POSTED OR PROVIDED
, AS APPLICABLE,
AND MUST EXPLICITLY STATE THE DATE IT EXPIRES , IF ANY.
(C) F
AILURE TO POST OR PROVIDE NOTICE PURSUANT TO THIS
SUBSECTION
(2)(g)(II) DOES NOT OTHERWISE AFFECT THE LOCAL
GOVERNMENT
'S RIGHT OF FIRST REFUSAL.
(3) Notices by residential seller. (a) (I) (A) N
OT LESS THAN TWO
YEARS BEFORE THE FINAL EXPIRATION OF THE LAST REMAINING
AFFORDABILITY RESTRICTION INCUMBENT TO A QUALIFYING PROPERTY
'S
FUNDING SOURCES
, A RESIDENTIAL SELLER SHALL PROVIDE NOTICE TO THE
COLORADO HOUSING AND FINANCE AUTHORITY AND THE GOVERNING BODY
OF THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING PROPERTY IS
LOCATED OF THE EXPIRATION OF SUCH RESTRICTION
. THE NOTICE MUST
INCLUDE THE DATE OF EXPIRATION OF THE LAST REMAINING AFFORDABILITY
PAGE 8-HOUSE BILL 24-1175 RESTRICTION AND CONTACT INFORMATION FOR THE RESIDENTIAL SELLER .
(B) N
OTWITHSTANDING SUBSECTION (3)(a)(I)(A) OF THIS SECTION,
WHETHER NOTICE IS PROVIDED PURSUANT TO SUBSECTION (3)(a)(I)(A) OF
THIS SECTION IS NOT RELEVANT TO DETERMINING A RESIDENTIAL SELLER
'S
OR LOCAL GOVERNMENT
'S COMPLIANCE WITH THE REQUIREMENTS OF THIS
PART
12 AND IS NOT SUBJECT TO ANY PROVISIONS SET FORTH IN SECTION
29-4-1206. PROVISION OF THE NOTICE REQUIRED BY SUBSECTION
(3)(a)(I)(A) OF THIS SECTION IS NOT A TRIGGERING EVENT PURSUANT TO
SUBSECTION
(3)(b)(I) OF THIS SECTION.
(II) N
OT LESS THAN SIX MONTHS BEFORE THE FINAL EXPIRATION OF
THE LAST REMAINING AFFORDABILITY RESTRICTION INCUMBENT TO A
QUALIFYING PROPERTY
'S FUNDING SOURCES, A RESIDENTIAL SELLER SHALL
PROVIDE NOTICE TO THE
COLORADO HOUSING AND FINANCE AUTHORITY AND
THE GOVERNING BODY OF THE LOCAL GOVERNMENT IN WHICH THE
QUALIFYING PROPERTY IS LOCATED OF THE EXPIRATION OF SUCH
RESTRICTION
. THE NOTICE MUST INDICATE WHETHER THE RESIDENTIAL
SELLER ANTICIPATES THAT IT WILL RECAPITALIZE AND CONTINUE TO
OPERATE THE QUALIFYING PROPERTY AT AFFORDABILITY LEVELS AT LEAST
ON AVERAGE EQUAL TO WHAT HAS BEEN PROVIDED AT THE QUALIFYING
PROPERTY
, RETAIN OWNERSHIP OF THE QUALIFYING PROPERTY AND LET
AFFORDABILITY REQUIREMENTS EXPIRE
, OR SELL THE QUALIFYING PROPERTY
UPON EXPIRATION OF THE RESTRICTIONS
.
(III) T
HE NOTICES PROVIDED TO THE COLORADO HOUSING AND
FINANCE AUTHORITY PURSUANT TO THIS SUBSECTION
(3)(a) DO NOT CREATE
AN OBLIGATION OR REQUIREMENT FOR THE
COLORADO HOUSING AND
FINANCE AUTHORITY TO TAKE ACTION WITH RESPECT TO THE QUALIFYING
PROPERTY OR TO PROVIDE ANY ENFORCEMENT OR COMPLIANCE MONITORING
OF ANY REQUIREMENTS OF THIS PART
12.
(b) (I) W
ITHIN FOURTEEN CALENDAR DAYS OF A TRIGGERING EVENT ,
A RESIDENTIAL SELLER SHALL PROVIDE NOTICE IN ACCORDANCE WITH THIS
SUBSECTION
(3)(b) AND SUBSECTION (3)(d) OF THIS SECTION TO THE
GOVERNING BODY OF THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING
PROPERTY IS LOCATED AND SHALL MAKE A GOOD FAITH EFFORT TO ENSURE
THE NOTICE IS RECEIVED BY THE LOCAL GOVERNMENT
. A TRIGGERING EVENT
IS THE FIRST TO OCCUR OF ANY OF THE FOLLOWING EVENTS WHEN THE
RESIDENTIAL SELLER
:
PAGE 9-HOUSE BILL 24-1175 (A) MATERIALLY DEPARTS FROM ANY REPRESENTATION MADE IN
THE NOTICES REQUIRED PURSUANT TO SUBSECTION
(3)(a) OF THIS SECTION
AFTER AFFORDABILITY RESTRICTIONS EXPIRE IN A MANNER THAT INDICATES
AN INTENT TO SELL THE QUALIFYING PROPERTY
;
(B) S
IGNS A LETTER OF INTENT, OPTION TO SELL OR BUY, OR OTHER
CONDITIONAL WRITTEN AGREEMENT WITH A POTENTIAL BUYER FOR THE SALE
OR TRANSFER OF THE QUALIFYING PROPERTY
, WHICH INCLUDES THE
ESTIMATED PRICE
, TERMS, AND CONDITIONS OF THE PROPOSED SALE OR
TRANSFER
, EVEN IF THE PRICE, TERMS, OR CONDITIONS ARE SUBJECT TO
CHANGE
;
(C) L
ISTS THE QUALIFYING PROPERTY FOR SALE; OR
(D) MAKES A CONDITIONAL ACCEPTANCE OF AN OFFER FOR THE SALE
OR TRANSFER OF THE QUALIFYING PROPERTY
.
(II) T
HE NOTICE REQUIRED PURSUANT TO THIS SUBSECTION (3)(b)
MUST INCLUDE:
(A) A
GENERAL DESCRIPTION OF THE QUALIFYING PROPERTY TO BE
SOLD
, INCLUDING THE ADDRESS AND NAME OF THE PROPERTY , IF ANY, AND
ANY ADDITIONAL DESCRIPTIONS OF THE QUALIFYING PROPERTY ON FILE WITH
THE OFFICE OF THE ASSESSOR IN THE COUNTY IN WHICH THE QUALIFYING
PROPERTY IS LOCATED
;
(B) T
HE RESIDENTIAL SELLER'S ADDRESS AND, IF AVAILABLE,
ELECTRONIC MAILING ADDRESS TO RECEIVE NOTICES FROM THE LOCAL
GOVERNMENT
;
(C) T
HE PRICE, TERMS, AND CONDITIONS OF AN ACCEPTABLE OFFER
THE RESIDENTIAL SELLER HAS RECEIVED TO SELL THE QUALIFYING PROPERTY
OR THE PRICE
, TERMS, AND CONDITIONS FOR WHICH THE RESIDENTIAL SELLER
INTENDS TO SELL THE QUALIFYING PROPERTY
;
(D) A
NY TERMS OR CONDITIONS WHICH , IF NOT MET, WOULD BE
SUFFICIENT GROUNDS
, IN THE RESIDENTIAL SELLER'S DISCRETION AND IN
COMPLIANCE WITH THIS PART
12 AND ANY OTHER APPLICABLE LAW , TO
REJECT AN OFFER
; AND
PAGE 10-HOUSE BILL 24-1175 (E) IF THE RESIDENTIAL SELLER HAS ENTERED INTO A CONTINGENT
PURCHASE AND SALE AGREEMENT WITH A PROSPECTIVE BUYER
, A COPY OF
THE AGREEMENT
.
(III) T
HE PRICE, TERMS, AND CONDITIONS REQUIRED TO BE STATED
IN THE NOTICE PURSUANT TO SUBSECTION
(3)(b)(II)(C) OF THIS SECTION
MUST BE UNIVERSAL AND APPLICABLE TO ALL POTENTIAL BUYERS AND MUST
NOT BE SPECIFIC TO OR PROHIBITIVE OF THE LOCAL GOVERNMENT MAKING
A SUCCESSFUL OFFER TO PURCHASE THE QUALIFYING PROPERTY
, MUST NOT
BE UNLAWFUL
, AND MUST NOT INHIBIT THE EXERCISE OF THE RIGHT OF FIRST
REFUSAL PROVIDED FOR IN THIS SECTION
.
(c) I
F THE PRICE REQUIRED TO BE LISTED IN THE RESIDENTIAL
SELLER
'S NOTICE PURSUANT TO SUBSECTION (3)(b)(II)(C) OF THIS SECTION
IS REDUCED BY FIVE PERCENT OR MORE OR THE TERMS OR CONDITIONS AS
REQUIRED TO BE PROVIDED IN THE RESIDENTIAL SELLER
'S NOTICE PURSUANT
TO SUBSECTION
(3)(b)(II)(D) OF THIS SECTION MATERIALLY CHANGE , THE
RESIDENTIAL SELLER SHALL WITHIN SEVEN DAYS OF THE CHANGE PROVIDE
NOTICE TO THE LOCAL GOVERNMENT OF THE CHANGE AND THE LOCAL
GOVERNMENT MAY EXERCISE
, OR RE-EXERCISE, ITS RIGHT OF FIRST REFUSAL
IN ACCORDANCE WITH THIS SECTION
.
(d) T
HE NOTICES GIVEN PURSUANT TO THIS SUBSECTION (3) MUST BE
DELIVERED TO THE APPLICABLE REPRESENTATIVE OF THE
COLORADO
HOUSING AND FINANCE AUTHORITY AND TO THE CLERK OF THE GOVERNING
BODY OF THE LOCAL GOVERNMENT
, AS APPLICABLE, BY ELECTRONIC MAIL;
EXCEPT THAT, IF THERE IS NOT AN ELECTRONIC MAILING ADDRESS
AVAILABLE FOR THE APPLICABLE REPRESENTATIVE OR THE CLERK
, THEN BY
HAND DELIVERY
, UNITED STATES FIRST CLASS MAIL, OR OVERNIGHT
DELIVERY
.
(e) T
HE LOCAL GOVERNMENT, EXCEPT AS OTHERWISE GOVERNED BY
LAW OR COURT ORDER
, SHALL SIGN A NONDISCLOSURE AGREEMENT WITH
THE RESIDENTIAL SELLER AND
, ONCE THE NONDISCLOSURE AGREEMENT IS
EXECUTED
, MAY SHARE THE INFORMATION CONTAINED IN THE NOTICES
REQUIRED PURSUANT TO SUBSECTIONS
(3)(b) AND (3)(c) OF THIS SECTION
WITH ITS OFFICERS AND EMPLOYEES
. IF THE LOCAL GOVERNMENT SHARES
THE NOTICES REQUIRED PURSUANT TO SUBSECTIONS
(3)(b) AND (3)(c) OF
THIS SECTION WITH PROSPECTIVE ENTITIES THAT THE LOCAL GOVERNMENT
PARTNERS WITH PURSUANT TO SUBSECTION
(2)(e) OF THIS SECTION OR
PAGE 11-HOUSE BILL 24-1175 PROSPECTIVE ASSIGNEES PURSUANT TO SUBSECTION (2)(f) OF THIS SECTION
FOR THE PURPOSES OF EVALUATING OR OBTAINING FINANCING FOR THE
PROSPECTIVE TRANSACTION
, THOSE ENTITIES THAT RECEIVE THE NOTICE
MUST EACH SIGN A NONDISCLOSURE AGREEMENT FOR THE RESPECTIVE
ENTITY WITH THE RESIDENTIAL SELLER
. AN ENTITY THAT HAS EXECUTED A
NONDISCLOSURE AGREEMENT PURSUANT TO THIS SUBSECTION
(3)(e), MAY
SHARE THE INFORMATION CONTAINED IN THE NOTICES REQUIRED PURSUANT
TO SUBSECTIONS
(3)(b) AND (3)(c) OF THIS SECTION WITH ITS OFFICERS,
EMPLOYEES, AND ATTORNEYS AND WITH ITS ADVISORS AND PROSPECTIVE
FINANCING PROVIDERS IF THE ADVISORS AND PROSPECTIVE FINANCING
PROVIDERS ARE BOUND BY THE NONDISCLOSURE AGREEMENT OR BY A
SIMILAR CONTRACTUAL
, LEGAL, OR FIDUCIARY OBLIGATION OF
CONFIDENTIALITY FOR THE PURPOSES OF EVALUATING OR OBTAINING
FINANCING FOR THE PROSPECTIVE TRANSACTION
. THE INFORMATION
CONTAINED IN THE NOTICES REQUIRED UNDER SUBSECTIONS
(3)(b) AND
(3)(c) OF THIS SECTION, EXCEPT FOR THE PROPERTY ADDRESS AND ANY
INFORMATION THAT IS PUBLICLY RECORDED
, IS CONFIDENTIAL INFORMATION
NOT SUBJECT TO PUBLIC DISCLOSURE
.
(4) (a) Notice by the local government to the residential seller.
(I) T
HE LOCAL GOVERNMENT SHALL MAKE A GOOD FAITH EFFORT TO
PROVIDE NOTICE TO THE RESIDENTIAL SELLER AS SOON AS POSSIBLE BUT NOT
LATER THAN FOUR TEEN CALENDAR DAYS OF RECEIPT OF THE NOTICE
REQUIRED PURSUANT TO SUBSECTION
(3)(b) OR (3)(c) OF THIS SECTION OF
THE LOCAL GOVERNMENT
'S INTENT, WITH RESPECT TO THE QUALIFYING
PROPERTY THAT IS THE SUBJECT OF THE NOTICE
, TO EITHER PRESERVE ITS
RIGHT OF FIRST REFUSAL PROVIDED IN THIS SECTION OR WAIVE ITS RIGHT OF
FIRST REFUSAL
. THE NOTICE MUST BE DELIVERED BY ELECTRONIC MAIL ;
EXCEPT THAT, IF THE RESIDENTIAL SELLER HAS NOT PROVIDED AN
ELECTRONIC MAILING ADDRESS
, THEN BY HAND DELIVERY, UNITED STATES
FIRST CLASS MAIL
, OR OVERNIGHT DELIVERY TO THE ADDRESS PROVIDED BY
THE RESIDENTIAL SELLER PURSUANT TO SUBSECTION
(3)(b)(II)(B) OF THIS
SECTION
.
(II) T
HE NOTICE GIVEN PURSUANT TO SUBSECTION (4)(a)(I) OF THIS
SECTION IS NONBINDING ON THE LOCAL GOVERNMENT
.
(III) I
F NO NOTICE IS GIVEN BY THE LOCAL GOVERNMENT , IF THE
LOCAL GOVERNMENT FAILS TO MAKE AN OFFER WITHIN THE TIME PERIOD
PROVIDED IN SUBSECTION
(5) OF THIS SECTION, OR IF THE OFFER IS
PAGE 12-HOUSE BILL 24-1175 OTHERWISE NOT MADE IN ACCORDANCE WITH SUBSECTION (5) OF THIS
SECTION
, THE RESIDENTIAL SELLER MAY PROCEED WITH THE SALE OF THE
QUALIFYING PROPERTY TO ANY BUYER
.
(IV) I
F THE LOCAL GOVERNMENT INTENDS TO ASSIGN ITS RIGHT OF
FIRST REFUSAL IN ACCORDANCE WITH SUBSECTION
(2)(f) OF THIS SECTION,
THE LOCAL GOVERNMENT MUST DISCLOSE THE POTENTIAL ASSIGNEE IN THE
NOTICE REQUIRED PURSUANT TO SUBSECTION
(4)(a)(I) OF THIS SECTION AND
PROVIDE A COPY OF THE NOTICE TO THE PROPOSED ASSIGNEE
, FOR THE
PROPOSED ASSIGNEE
'S CONSIDERATION IN DETERMINING WHETHER TO
ACCEPT THE ASSIGNMENT
.
(b) Notice by the local government to the Colorado housing and
finance authority. I
N CONNECTION WITH THE LOCAL GOVERNMENT
PROVIDING NOTICE TO THE RESIDENTIAL SELLER IN ACCORDANCE WITH
SUBSECTION
(4)(a)(I) OF THIS SECTION, THE LOCAL GOVERNMENT SHALL
ALSO PROVIDE THE NOTICE TO THE
COLORADO HOUSING AND FINANCE
AUTHORITY INDICATING IF THE LOCAL GOVERNMENT INTENDS TO EITHER
PRESERVE OR WAIVE ITS RIGHT OF FIRST REFUSAL WITH RESPECT TO THE
QUALIFYING PROPERTY THAT IS THE SUBJECT OF THE NOTICE PROVIDED
PURSUANT TO SUBSECTION
(3)(b) OF THIS SECTION AND IDENTIFYING ANY
POTENTIAL ASSIGNEE THAT THE LOCAL GOVERNMENT INTENDS TO ASSIGN ITS
RIGHT OF FIRST REFUSAL TO
. THE NOTICE REQUIRED BY THIS SUBSECTION
(4)(b) IS NONBINDING ON THE LOCAL GOVERNMENT .
(5) Process to exercise right of first refusal. (a) (I) E
XCEPT AS
OTHERWISE PROVIDED IN SUBSECTION
(6) OF THIS SECTION, THE LOCAL
GOVERNMENT HAS THIRTY CALENDAR DAYS FROM PROVIDING NOTICE
PURSUANT TO SUBSECTION
(4)(a)(I) OF THIS SECTION TO MAKE AN OFFER TO
PURCHASE THE QUALIFYING PROPERTY AND SHALL AGREE TO CLOSE ON THE
QUALIFYING PROPERTY AND EXECUTE THE NECESSARY AGREEMENTS TO
FINALIZE THE SALE OF THE QUALIFYING PROPERTY TO THE LOCAL
GOVERNMENT WITHIN SIXTY CALENDAR DAYS OF THE ACCEPTANCE BY A
RESIDENTIAL SELLER OF THE LOCAL GOVERNMENT
'S OFFER TO PURCHASE THE
QUALIFYING PROPERTY AND THE EXECUTION OF THE NECESSARY
AGREEMENTS IN CONNECTION WITH ACCEPTING THE OFFER
.
(II) N
OTWITHSTANDING SUBSECTION (5)(a)(I) OF THIS SECTION AND
EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION
(6) OF THIS SECTION, IF A
RESIDENTIAL SELLER HAS RECEIVED AN OFFER FROM A THIRD
-PARTY BUYER
PAGE 13-HOUSE BILL 24-1175 THAT IS AN ENTIRELY CASH OFFER FOR THE THIRD -PARTY BUYER TO
PURCHASE THE QUALIFYING PROPERTY
, THE LOCAL GOVERNMENT SHALL
AGREE TO CLOSE ON THE QUALIFYING PROPERTY AND EXECUTE THE
NECESSARY AGREEMENTS TO FINALIZE THE SALE OF THE QUALIFYING
PROPERTY TO THE LOCAL GOVERNMENT WITHIN THE SAME TIME PERIOD AS
IS SET FORTH IN THE THIRD
-PARTY BUYER'S OFFER.
(b) I
F A RESIDENTIAL SELLER REJECTS AN OFFER MADE BY THE LOCAL
GOVERNMENT EXERCISING ITS RIGHT OF FIRST REFUSAL
, THE RESIDENTIAL
SELLER SHALL PROVIDE A WRITTEN EXPLANATION OF THE REJECTION AND
SHALL INVITE THE LOCAL GOVERNMENT TO MAKE ONE SUBSEQUENT OFFER
WITHIN FOURTEEN DAYS BY IDENTIFYING THE MATERIAL TERMS AND
CONDITIONS THAT MUST BE INCLUDED IN THE SUBSEQUENT OFFER IN ORDER
FOR THE RESIDENTIAL SELLER TO POTENTIALLY ACCEPT THE SUBSEQUENTLY
MADE OFFER BY THE LOCAL GOVERNMENT
. THE RESIDENTIAL SELLER SHALL
HAVE FOURTEEN DAYS FROM THE DATE OF THE LOCAL GOVERNMENT
'S
SUBSEQUENT OFFER TO EITHER ACCEPT OR REJECT THE SUBSEQUENT OFFER
,
AND IF THE LOCAL GOVERNMENT 'S SUBSEQUENT OFFER IS REJECTED BY THE
RESIDENTIAL SELLER
, THE RESIDENTIAL SELLER SHALL PROVIDE A WRITTEN
EXPLANATION OF THE REJECTION AND THE RESIDENTIAL SELLER
'S REJECTION
OF THE SUBSEQUENT OFFER CONSTITUTES TERMINATION OF THE LOCAL
GOVERNMENT
'S RIGHT OF FIRST REFUSAL TO PURCHASE THE QUALIFYING
PROPERTY
, SUBJECT TO THE LOCAL GOVERNMENT 'S RIGHT TO EXERCISE, OR
RE
-EXERCISE ITS RIGHT OF FIRST REFUSAL PURSUANT TO SUBSECTION (3)(c)
OF THIS SECTION IF THE CONDITION SET FORTH IN SUBSECTION (3)(c) OF THIS
SECTION OCCURS
.
(c) W
ITHIN SEVEN CALENDAR DAYS OF CLOSING ON THE SALE OF THE
QUALIFYING PROPERTY TO THE LOCAL GOVERNMENT
, THE RESIDENTIAL
SELLER SHALL MAIL NOTICE TO EACH RESIDENT OF THE QUALIFYING
PROPERTY OF THE SALE OF THE QUALIFYING PROPERTY TO THE LOCAL
GOVERNMENT
. THE RESIDENTIAL SELLER SHALL ALSO POST A COPY OF THE
NOTICE IN A CONSPICUOUS PLACE IN THE QUALIFYING PROPERTY
. THE
MAILED AND POSTED NOTICES MUST BE PROVIDED IN
ENGLISH, SPANISH, AND
ANY OTHER LANGUAGE KNOWN TO BE SPOKEN BY RESIDENTS AT THE
QUALIFYING PROPERTY AND MUST INCLUDE CONTACT INFORMATION FOR THE
LOCAL GOVERNMENT
, OR ITS ASSIGNEE, IF APPLICABLE, FOR RESIDENTS TO
DIRECT QUESTIONS AND INPUT TO
.
(6) Extension of time. T
HE TIME PERIODS SET FORTH IN THIS
PAGE 14-HOUSE BILL 24-1175 SECTION MAY BE EXTENDED AND ANY TERMS OR CONDITIONS OF SALE MAY
BE MODIFIED BY WRITTEN AGREEMENT BETWEEN THE LOCAL GOVERNMENT
AND THE RESIDENTIAL SELLER OR
, IF THE LOCAL GOVERNMENT HAS
ASSIGNED ITS RIGHT OF FIRST REFUSAL
, THE LOCAL GOVERNMENT'S ASSIGNEE
AND THE RESIDENTIAL SELLER
.
(7) Certificate of compliance. W
ITHIN FOURTEEN CALENDAR DAYS
OF RECEIPT OF NOTICE REQUIRED BY EITHER SUBSECTION
(3)(b) OR (3)(c) OF
THIS SECTION OR
, IF THE LOCAL GOVERNMENT INTENDS TO EXERCISE ITS
RIGHT OF FIRST REFUSAL
, WITHIN FOURTEEN CALENDAR DAYS OF EITHER
ACCEPTANCE BY A RESIDENTIAL SELLER OF THE LOCAL GOVERNMENT
'S
OFFER OR REJECTION BY A RESIDENTIAL SELLER OF THE LOCAL
GOVERNMENT
'S OFFER IN ACCORDANCE WITH SUBSECTION (5)(b) OF THIS
SECTION
, THE LOCAL GOVERNMENT OR ITS ASSIGNEE SHALL EXECUTE AND
RECORD A CERTIFICATE OF COMPLIANCE IN THE REAL PROPERTY RECORDS OF
THE COUNTY IN WHICH THE QUALIFYING PROPERTY IS SITUATED
. THE
CERTIFICATE OF COMPLIANCE MUST INCLUDE THE NAME OF THE RESIDENTIAL
SELLER
, A LEGAL DESCRIPTION OF THE QUALIFYING PROPERTY , AND A
STATEMENT THAT THE RESIDENTIAL SELLER HAS COMPLIED WITH ALL
APPLICABLE PROVISIONS OF THIS SECTION
. THE RECORDED CERTIFICATE OF
COMPLIANCE IS PRIMA FACIE EVIDENCE OF THE RESIDENTIAL SELLER
'S
COMPLIANCE WITH THIS SECTION AND MAY BE RELIED UPON BY A
RESIDENTIAL SELLER
, ANY PERSON CLAIMING AN INTEREST IN THE
QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER
, AND A TITLE
INSURANCE ENTITY
, AS DEFINED IN SECTION 10-11-102 (11).
(8) Tenant qualifications. (a) T
HE LOCAL GOVERNMENT OR ITS
ASSIGNEE SHALL MAINTAIN AT THE QUALIFYING PROPERTY AFFORDABILITY
LEVELS THAT ARE ON AVERAGE EQUAL TO OR GREATER THAN THE LEVELS
PROVIDED AT THE TIME IT IS ACQUIRED BY THE LOCAL GOVERNMENT BOTH
WITH RESPECT TO THE NUMBER OF AFFORDABLE UNITS AND THE AREA
MEDIAN INCOMES USED TO DETERMINE RENT AND INCOME LIMITS
. TENANT
QUALIFICATIONS MUST COMPLY WITH FAIR HOUSING LAWS AND
AFFORDABILITY REQUIREMENTS OF ANY NEW FUNDING SOURCES
.
(b) N
OTWITHSTANDING THE REQUIREMENTS AROUND LONG -TERM
AFFORDABLE HOUSING SET FORTH IN THIS SECTION OR THE REQUIREMENTS
IN SUBSECTION
(8)(A) OF THIS SECTION, RESIDENTS AT THE QUALIFYING
PROPERTY AT THE TIME IT IS ACQUIRED BY THE LOCAL GOVERNMENT
PURSUANT TO THIS SECTION MAY CONTINUE TO RESIDE AT THE QUALIFYING
PAGE 15-HOUSE BILL 24-1175 PROPERTY IRRESPECTIVE OF THEIR INCOME LEVEL FOR AT LEAST THE
DURATION OF THEIR TENANCY AGREEMENT PURSUANT TO THE TENANCY
AGREEMENT
'S TERMS IN EFFECT AT THE TIME THE LOCAL GOVERNMENT
ACQUIRES THE QUALIFYING PROPERTY
. A LOCAL GOVERNMENT OR ITS
ASSIGNEE MAY ONLY DECLINE TO RENEW A TENANT
'S LEASE IN ORDER TO
COMPLY WITH GREATER AFFORDABILITY RESTRICTIONS AT THE QUALIFYING
PROPERTY IN ACCORDANCE WITH SUBSECTION
(8)(a) OF THIS SECTION OR IF
THE RESIDENT IS DEMONSTRABLY VIOLATING ANY TERMS OF THE LEASE
.
(9) Application of a local government's right of first refusal
laws. N
OTHING IN THIS PART 12 RESTRICTS OR SUPERSEDES THE AUTHORITY
OF A LOCAL GOVERNMENT TO ENACT LAWS FOR ITS JURISDICTION PROVIDING
FOR THE LOCAL GOVERNMENT
'S RIGHT OF FIRST REFUSAL TO PURCHASE
PROPERTY FOR AFFORDABLE HOUSING THAT AT A MINIMUM COMPLY WITH
THIS PART
12 AND IN THE EVENT OF CONFLICT BETWEEN A PROVISION IN THIS
PART
12 AND A LOCAL GOVERNMENT 'S LAWS, THE PROVISION MORE
FAVORABLE TO THE LOCAL GOVERNMENT APPLIES
; EXCEPT THAT THE
PROVISIONS OF SUBSECTION
(7) OF THIS SECTION AND THE PROVISIONS SET
FORTH IN SECTION
29-4-1206 APPLY NOTWITHSTANDING ANY LAW ENACTED
BY A LOCAL GOVERNMENT REGARDING THE LOCAL GOVERNMENT
'S RIGHT OF
FIRST REFUSAL
.
29-4-1203. Right of first offer - eligibility - process - notice -
definition. (1) Definition of qualifying property. A
S USED IN THIS
SECTION
, UNLESS THE CONTEXT OTHERWISE REQUIRES , "QUALIFYING
PROPERTY
" MEANS A MULTIFAMILY RESIDENTIAL OR MIXED -USE RENTAL
PROPERTY CONSISTING OF NOT MORE THAN ONE HUNDRED UNITS AND NOT
LESS THAN FIFTEEN UNITS AND EXCLUDING EXISTING AFFORDABLE HOUSING
AND A MOBILE HOME PARK AS DEFINED IN SECTION
38-12-201.5 (6). FOR THE
PURPOSE OF DETERMINING WHETHER A PROPERTY CONSISTS OF AT LEAST THE
MINIMUM NUMBER OF UNITS SET FORTH IN THIS SUBSECTION
(1) FOR A
QUALIFYING PROPERTY
, AN ACCESSORY DWELLING UNIT DOES NOT COUNT AS
A UNIT
.
(2) Local government's right of first offer. (a) I
N ACCORDANCE
WITH THIS PART
12, THE LOCAL GOVERNMENT FOR THE JURISDICTION IN
WHICH A QUALIFYING PROPERTY IS LOCATED HAS A RIGHT OF FIRST OFFER TO
MAKE AN OFFER TO PURCHASE THE QUALIFYING PROPERTY BEFORE THE
QUALIFYING PROPERTY IS LISTED FOR SALE TO THIRD PARTIES
.
PAGE 16-HOUSE BILL 24-1175 (b) THE LOCAL GOVERNMENT 'S RIGHT OF FIRST OFFER CONCERNING
THE QUALIFYING PROPERTY IS LIMITED TO PRESERVING OR CONVERTING THE
QUALIFYING PROPERTY TO LONG
-TERM AFFORDABLE HOUSING OR A
MIXED
-INCOME DEVELOPMENT DIRECTLY OR THROUGH ANOTHER ENTITY TO
WHICH THE LOCAL GOVERNMENT ASSIGNS ITS RIGHTS PURSUANT TO
SUBSECTION
(2)(d) OF THIS SECTION OR TRANSFERS THE QUALIFYING
PROPERTY
. IF A QUALIFYING PROPERTY IS CLASSIFIED AS MIXED -USE, THE
LOCAL GOVERNMENT
'S OFFER MUST INCLUDE ANY COMMERCIAL PORTION OF
THE QUALIFYING PROPERTY
, BUT ONLY THE RESIDENTIAL PORTION OF THE
QUALIFYING PROPERTY IS SUBJECT TO AFFORDABILITY REQUIREMENTS
.
(c) T
HE LOCAL GOVERNMENT , IN EXERCISING ITS RIGHT OF FIRST
OFFER
, MAY PARTNER WITH A NONPROFIT ENTITY , A PRIVATE ENTITY, A
QUASI
-GOVERNMENTAL ENTITY , OR ANOTHER GOVERNMENTAL ENTITY TO
CO
-FINANCE, LEASE, OR MANAGE THE QUALIFYING PROPERTY FOR THE
PUBLIC PURPOSE OF MAINTAINING THE QUALIFYING PROPERTY AS
LONG
-TERM AFFORDABLE HOUSING OR A MIXED -INCOME DEVELOPMENT IF
THE LOCAL GOVERNMENT OR ITS ASSIGNEE MAINTAINS OWNERSHIP OF THE
QUALIFYING PROPERTY EITHER DIRECTLY OR THROUGH A SPECIAL PURPOSE
ENTITY OR AFFILIATE
.
(d) A
T ANY TIME, THE LOCAL GOVERNMENT MAY ASSIGN THE RIGHT
OF FIRST OFFER REGARDING A QUALIFYING PROPERTY TO A LOCAL OR
REGIONAL HOUSING AUTHORITY OR THE
COLORADO HOUSING AND FINANCE
AUTHORITY
, SUBJECT TO THE REQUIREMENTS THAT THE QUALIFYING
PROPERTY IS USED TO PRESERVE OR BE CONVERTED TO LONG
-TERM
AFFORDABLE HOUSING OR A MIXED
-INCOME DEVELOPMENT AND THAT ALL
OTHER PROVISIONS OF THIS PART
12 APPLY TO THE ASSIGNEE. THE ASSIGNEE
MUST IMMEDIATELY NOTIFY THE RESIDENTIAL SELLER OF ANY ASSIGNMENT
PURSUANT TO THIS SUBSECTION
(2)(d), AND THE NOTICE MUST INCLUDE THE
ASSIGNEE
'S ADDRESS TO RECEIVE ANY NOTICES THAT THE RESIDENTIAL
SELLER IS REQUIRED TO SEND IN ACCORDANCE WITH THIS SECTION
. THE
LOCAL GOVERNMENT REMAINS LIABLE FOR OBLIGATIONS PURSUANT TO THIS
PART
12 ACCRUING PRIOR TO THE ASSIGNMENT AND UPON ASSIGNMENT , THE
ASSIGNEE ASSUMES ALL LIABILITY OF THE LOCAL GOVERNMENT REGARDING
THE EXERCISE OF THE RIGHT OF FIRST OFFER AND IS RESPONSIBLE FOR
PERFORMING ALL REQUIREMENTS PURSUANT TO THIS PART
12, IN EACH CASE
ACCRUING FROM AND AFTER THE ASSIGNMENT
, WITH RESPECT TO A
QUALIFYING PROPERTY AS IF THE ASSIGNEE WERE THE LOCAL GOVERNMENT
.
PAGE 17-HOUSE BILL 24-1175 (e) (I) THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS THE
RIGHT TO WAIVE THE RIGHT OF FIRST OFFER PROVIDED IN THIS SECTION
.
(II) (A) I
F THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS
WAIVED ITS RIGHT OF FIRST OFFER
, IT SHALL POST A NOTICE IN A
CONSPICUOUS LOCATION ON ITS WEBSITE INDICATING THAT THERE IS A
WAIVER AND THAT RESIDENTIAL SELLERS WITH QUALIFYING PROPERTIES
WITHIN ITS JURISDICTION DO NOT HAVE AN OBLIGATION TO COMPLY WITH
THIS SECTION
.
(B) T
HE NOTICE POSTED IN ACCORDANCE WITH SUBSECTION
(2)(e)(II)(A) OF THIS SECTION MUST BE EFFECTIVE FOR AT LEAST THREE
MONTHS AFTER IT IS POSTED AND MUST EXPLICITLY STATE THE DATE IT
EXPIRES
, IF ANY.
(C) F
AILURE TO POST NOTICE PURSUANT TO THIS SUBSECTION
(2)(e)(II) DOES NOT OTHERWISE AFFECT THE LOCAL GOVERNMENT 'S RIGHT
OF FIRST OFFER
.
(f) N
OTWITHSTANDING ANYTHING IN THIS SECTION TO THE
CONTRARY
, AT ANY TIME PRIOR TO THE RESIDENTIAL SELLER AND THE LOCAL
GOVERNMENT ENTERING INTO A CONTRACT FOR THE PURCHASE OF THE
QUALIFYING PROPERTY BY THE LOCAL GOVERNMENT
, THE RESIDENTIAL
SELLER MAY REJECT THE LOCAL GOVERNMENT
'S OFFER AND OTHERWISE
TERMINATE NEGOTIATIONS WITH THE LOCAL GOVERNMENT
.
(g) I
F THE LOCAL GOVERNMENT WAIVES OR IS DEEMED TO HAVE
WAIVED ITS RIGHT OF FIRST OFFER IN ACCORDANCE WITH THIS SECTION OR
IF A RESIDENTIAL SELLER REJECTS THE LOCAL GOVERNMENT
'S OFFER IN
ACCORDANCE WITH SUBSECTION
(2)(f) OF THIS SECTION, THE RESIDENTIAL
SELLER HAS NO OBLIGATION TO PROVIDE INITIAL OR ADDITIONAL NOTICE
, AS
APPLICABLE
, TO THE LOCAL GOVERNMENT OR OTHERWISE OFFER OR
RE
-OFFER, AS APPLICABLE, THE QUALIFYING PROPERTY TO THE LOCAL
GOVERNMENT PURSUANT TO ANY PROVISION OF THIS SECTION UNLESS A
TRANSACTION FOR THE SALE OF THE QUALIFYING PROPERTY DOES NOT CLOSE
WITHIN TWELVE MONTHS OF EITHER THE LOCAL GOVERNMENT
'S WAIVER OR
DEEMED WAIVER OR REJECTION BY THE RESIDENTIAL SELLER OF THE LOCAL
GOVERNMENT
'S OFFER, WHICHEVER IS EARLIER; EXCEPT THAT, IF THE
CONTRACT FOR SALE TO A THIRD PARTY HAS A DURATION LONGER THAN
TWELVE MONTHS
, THEN THE TWELVE MONTH PERIOD IS EXTENDED TO MATCH
PAGE 18-HOUSE BILL 24-1175 THE TERM OF THE CONTRACT.
(3) Notice requirements generally. (a) (I) A
NY NOTICES REQUIRED
TO BE PROVIDED TO THE LOCAL GOVERNMENT PURSUANT TO THIS SECTION
MUST BE DELIVERED TO THE CLERK OF THE GOVERNING BODY OF THE LOCAL
GOVERNMENT BY ELECTRONIC MAIL
; EXCEPT THAT IF THERE IS NOT AN
ELECTRONIC MAILING ADDRESS AVAILABLE FOR THE CLERK
, THEN BY HAND
DELIVERY
, UNITED STATES FIRST CLASS MAIL, OR OVERNIGHT DELIVERY.
(II) N
OTWITHSTANDING SUBSECTION (3)(a)(I) OF THIS SECTION, IF
THE LOCAL GOVERNMENT ASSIGNS ITS RIGHT OF FIRST OFFER AND THE
ASSIGNEE PROVIDES NOTICE OF THE ASSIGNMENT TO THE RESIDENTIAL
SELLER PURSUANT TO SUBSECTION
(2)(d) OF THIS SECTION, THEN UPON AND
AFTER RECEIPT OF NOTICE OF THE ASSIGNMENT
, THE RESIDENTIAL SELLER
SHALL SEND BY ELECTRONIC MAIL ANY REQUIRED NOTICES PURSUANT TO
THIS SECTION TO THE ADDRESS SPECIFIED BY THE ASSIGNEE
; EXCEPT THAT,
IF THERE IS NOT AN ELECTRONIC MAILING ADDRESS PROVIDED BY THE
ASSIGNEE
, THEN BY HAND DELIVERY, UNITED STATES FIRST CLASS MAIL, OR
OVERNIGHT DELIVERY
.
(b) A
NY NOTICES PROVIDED TO THE RESIDENTIAL SELLER PURSUANT
TO THIS SECTION MUST BE DELIVERED TO THE PHYSICAL ADDRESS PROVIDED
BY THE RESIDENTIAL SELLER IN ACCORDANCE WITH SUBSECTION
(5)(a)(II)
OF THIS SECTION OR, UPON ELECTION BY THE RESIDENTIAL SELLER , BY
ELECTRONIC MAIL TO THE ELECTRONIC MAILING ADDRESS PROVIDED BY THE
RESIDENTIAL SELLER TO THE LOCAL GOVERNMENT
.
(c) A
NY NOTICE PROVIDED PURSUANT TO THIS SECTION IS DEEMED
DELIVERED ON THE DATE IT IS SENT BY ELECTRONIC MAIL
, THE DATE IT IS
HAND DELIVERED
, THE DATE AFTER THE DAY IT IS DEPOSITED FOR DELIVERY
BY OVERNIGHT DELIVERY
, OR THE DATE THAT IS TWO BUSINESS DAYS AFTER
THE DAY IT IS DEPOSITED IN THE
UNITED STATES MAIL, AS APPLICABLE.
(4) Notice by residential seller, local government's intent, and
nondisclosure agreement. (a) B
EFORE A RESIDENTIAL SELLER ENTERS INTO
AN AGREEMENT WITH A LICENSED BROKER TO SOLICIT AND PROCURE
PURCHASERS FOR A QUALIFYING PROPERTY OR OTHERWISE LISTS A
QUALIFYING PROPERTY FOR SALE ON THE MULTIPLE LISTING SERVICE
, THE
RESIDENTIAL SELLER SHALL PROVIDE NOTICE TO THE GOVERNING BODY OF
THE LOCAL GOVERNMENT IN WHICH THE QUALIFYING PROPERTY IS LOCATED
PAGE 19-HOUSE BILL 24-1175 THAT THE RESIDENTIAL SELLER INTENDS TO SELL THE QUALIFYING
PROPERTY
.
(b) T
HE LOCAL GOVERNMENT HAS SEVEN CALENDAR DAYS FROM THE
DATE OF RECEIVING THE NOTICE REQUIRED BY SUBSECTION
(4)(a) OF THIS
SECTION TO PROVIDE A WRITTEN RESPONSE TO THE RESIDENTIAL SELLER
INDICATING THAT THE LOCAL GOVERNMENT EITHER
:
(I) I
S INTERESTED IN RECEIVING DUE DILIGENCE INFORMATION ON
THE QUALIFYING PROPERTY SO THAT IT CAN EVALUATE WHETHER IT WANTS
TO MAKE AN OFFER TO PURCHASE THE QUALIFYING PROPERTY
, WHICH
RESPONSE MUST CONTAIN A NONDISCLOSURE AGREEMENT IN A FORM
ACCEPTABLE TO THE RESIDENTIAL SELLER THAT THE LOCAL GOVERNMENT
HAS EXECUTED
, EXCEPT AS OTHERWISE GOVERNED BY LAW OR COURT
ORDER
; OR
(II) WAIVES ANY RIGHT OF THE LOCAL GOVERNMENT TO PURCHASE
THE QUALIFYING PROPERTY
.
(c) I
F THE LOCAL GOVERNMENT DOES NOT RESPOND WITHIN THE
SEVEN
-DAY PERIOD REQUIRED BY SUBSECTION (4)(b) OF THIS SECTION, IT IS
DEEMED TO HAVE WAIVED ITS RIGHT OF FIRST OFFER WITH RESPECT TO THE
QUALIFYING PROPERTY
.
(5) Residential seller's notice of terms. (a) I
F THE LOCAL
GOVERNMENT PROVIDES NOTICE IN ACCORDANCE WITH SUBSECTION
(4)(b)
OF THIS SECTION, THE RESIDENTIAL SELLER HAS FIVE CALENDAR DAYS FROM
RECEIPT OF THE NOTICE TO PROVIDE A NOTICE TO THE LOCAL GOVERNMENT
THAT INCLUDES
:
(I) T
HE ADDRESS AND NAME OF THE QUALIFYING PROPERTY , IF ANY,
AND THE LEGAL DESCRIPTION OF THE QUALIFYING PROPERTY ;
(II) T
HE RESIDENTIAL SELLER'S ADDRESS AND, IF AVAILABLE,
ELECTRONIC MAILING ADDRESS TO RECEIVE NOTICES FROM THE LOCAL
GOVERNMENT
;
(III) A
RENT ROLL FOR THE QUALIFYING PROPERTY SHOWING THE
AMOUNT OF RENT CHARGED TO TENANTS AT THE QUALIFYING PROPERTY
;
PAGE 20-HOUSE BILL 24-1175 (IV) THE VACANCY RATE, OPERATING EXPENSES AND INCOME , AND
COMMON AREA AMENITIES AT THE QUALIFYING PROPERTY
;
(V) A
NY MARKETING MATERIALS THAT THE RESIDENTIAL SELLER
HAS PREPARED ON OR BEFORE THE DATE OF SUCH NOTICE AND ANTICIPATES
USING IN CONNECTION WITH LISTING THE QUALIFYING PROPERTY FOR SALE
;
(VI) A
CURRENT TITLE COMMITMENT ; AND
(VII) THE RESIDENTIAL SELLER'S EXECUTED VERSION OF THE
NONDISCLOSURE AGREEMENT
.
(b) S
UBJECT TO AND PURSUANT TO THE NONDISCLOSURE AGREEMENT
EXECUTED IN ACCORDANCE WITH SUBSECTION
(4)(b) OF THIS SECTION, THE
LOCAL GOVERNMENT MAY SHARE THE INFORMATION CONTAINED IN THE
NOTICES REQUIRED PURSUANT TO THIS SUBSECTION
(5) WITH ITS OFFICERS
AND EMPLOYEES FOR THE PURPOSES OF EVALUATING OR OBTAINING
FINANCING FOR THE PROSPECTIVE TRANSACTION
. AGENTS OF THE LOCAL
GOVERNMENT AND PROSPECTIVE ENTITIES THAT THE LOCAL GOVERNMENT
PARTNERS WITH PURSUANT TO SUBSECTION
(2)(c) OF THIS SECTION OR
PROSPECTIVE ASSIGNEES PURSUANT TO SUBSECTION
(2)(d) OF THIS SECTION
MUST EACH SIGN A NONDISCLOSURE AGREEMENT FOR THE RESPECTIVE
ENTITY
. AN ENTITY THAT HAS EXECUTED A NONDISCLOSURE AGREEMENT
MAY SHARE THE INFORMATION CONTAINED IN THE NOTICES REQUIRED
PURSUANT TO THIS SUBSECTION
(5) WITH ITS OFFICERS AND EMPLOYEES FOR
THE PURPOSES OF EVALUATING OR OBTAINING FINANCING FOR THE
PROSPECTIVE TRANSACTION
. THE INFORMATION CONTAINED IN THE NOTICE
MUST BE KEPT CONFIDENTIAL AND IS CONFIDENTIAL INFORMATION NOT
SUBJECT TO PUBLIC DISCLOSURE
.
(6) Notice by the local government. (a) A
LOCAL GOVERNMENT
HAS FOURTEEN CALENDAR DAYS FROM THE DATE OF RECEIVING THE NOTICE
REQUIRED BY SUBSECTION
(5)(a) OF THIS SUBSECTION TO PROVIDE A
WRITTEN RESPONSE TO THE RESIDENTIAL SELLER THAT EITHER
:
(I) M
AKES AN OFFER TO PURCHASE THE QUALIFYING PROPERTY
SETTING FORTH THE PRICE
, TERMS, AND CONDITIONS OF THE OFFER; OR
(II) WAIVES ANY RIGHT OF THE LOCAL GOVERNMENT TO PURCHASE
THE QUALIFYING PROPERTY
.
PAGE 21-HOUSE BILL 24-1175 (b) IF THE LOCAL GOVERNMENT DOES NOT PROVIDE A RESPONSE
WITHIN THE FOURTEEN
-DAY PERIOD SET FORTH IN SUBSECTION (6)(a) OF THIS
SECTION
, THE LOCAL GOVERNMENT 'S RIGHT OF FIRST OFFER IS DEEMED
WAIVED
.
(7) Process after offer is made. (a) T
HE RESIDENTIAL SELLER HAS
FOURTEEN CALENDAR DAYS AFTER RECEIPT OF THE LOCAL GOVERNMENT
'S
OFFER MADE PURSUANT TO SUBSECTION
(6)(a)(I) OF THIS SECTION TO NOTIFY
THE LOCAL GOVERNMENT THAT IT EITHER ACCEPTS OR REJECTS THE OFFER
.
D
URING THIS PERIOD, THE RESIDENTIAL SELLER MAY INITIATE NEGOTIATIONS
IN GOOD FAITH WITH THE LOCAL GOVERNMENT WHICH MAY INCLUDE
DISCUSSING ALTERNATIVE PRICE
, TERMS, OR CONDITIONS FOR THE PURCHASE
OF THE QUALIFYING PROPERTY
. IF THE RESIDENTIAL SELLER DOES NOT
PROVIDE NOTICE OF ITS ACCEPTANCE OR REJECTION OF THE LOCAL
GOVERNMENT
'S OFFER IN THE FOURTEEN DAY PERIOD PURSUANT TO THIS
SUBSECTION
(7)(a), THE OFFER IS DEEMED REJECTED.
(b) I
F THE RESIDENTIAL SELLER ACCEPTS THE LOCAL GOVERNMENT 'S
OFFER OR ACCEPTS AN OFFER NEGOTIATED WITH THE LOCAL GOVERNMENT
,
THE LOCAL GOVERNMENT AND THE RESIDENTIAL SELLER HAVE THIRTY
CALENDAR DAYS AFTER THE DATE OF THE RESIDENTIAL SELLER
'S RECEIPT OF
THE LOCAL GOVERNMENT
'S NOTICE PROVIDED IN ACCORDANCE WITH
SUBSECTION
(6)(a)(I) OF THIS SECTION TO NEGOTIATE AND EXECUTE A
CONTRACT FOR THE PURCHASE OF THE QUALIFYING PROPERTY BY THE LOCAL
GOVERNMENT
. THE CONTRACT MUST REQUIRE THE TRANSACTION TO CLOSE
NO LATER THAN SIXTY DAYS AFTER ITS EXECUTION
, UNLESS BOTH PARTIES
AGREE TO OTHER TERMS
.
(8) Certificate of compliance. W
ITHIN FOURTEEN CALENDAR DAYS
OF RECEIPT OF NOTICE REQUIRED BY SUBSECTION
(4)(a) OF THIS SECTION
UNLESS THE LOCAL GOVERNMENT PROVIDES NOTICE PURSUANT TO
SUBSECTION
(4)(b) OF THIS SECTION AND THEN WITHIN FOURTEEN CALENDAR
DAYS OF RECEIPT OF THE NOTICE REQUIRED BY SUBSECTION
(5)(a) OF THIS
SECTION
, THE LOCAL GOVERNMENT OR ITS ASSIGNEE SHALL EXECUTE AND
RECORD A CERTIFICATE OF COMPLIANCE IN THE REAL PROPERTY RECORDS OF
THE COUNTY IN WHICH THE QUALIFYING PROPERTY IS SITUATED
. THE
CERTIFICATE OF COMPLIANCE MUST INCLUDE THE NAME OF THE RESIDENTIAL
SELLER
, A LEGAL DESCRIPTION OF THE QUALIFYING PROPERTY , AND A
STATEMENT THAT THE RESIDENTIAL SELLER HAS COMPLIED WITH ALL THE
APPLICABLE PROVISIONS OF THIS SECTION
. THE RECORDED CERTIFICATE OF
PAGE 22-HOUSE BILL 24-1175 COMPLIANCE IS PRIMA FACIE EVIDENCE OF THE RESIDENTIAL SELLER 'S
COMPLIANCE WITH THIS SECTION AND MAY BE RELIED UPON BY A
RESIDENTIAL SELLER
, ANY PERSON CLAIMING AN INTEREST IN THE
QUALIFYING PROPERTY THROUGH A RESIDENTIAL SELLER
, AND A TITLE
INSURANCE ENTITY
, AS DEFINED IN SECTION 10-11-102 (11).
29-4-1204. General provisions applicable to a local government's
right of first refusal and right of first offer. (1) N
OTHING IN THIS PART 12
REQUIRES A LOCAL GOVERNMENT TO EXERCISE ITS RIGHT OF FIRST REFUSAL
SET FORTH IN SECTION
29-4-1202 OR ITS RIGHT OF FIRST OFFER SET FORTH IN
SECTION
29-4-1203 AND A LOCAL GOVERNMENT MUST PROMPTLY NOTIFY A
RESIDENTIAL SELLER OF ITS INTENT NOT TO EXERCISE ITS RIGHT OF FIRST
OFFER AS SET FORTH IN SECTIONS
29-4-1203 (4)(b)(II) AND (6)(a)(II).
(2) A
NY ACTION BY THE LOCAL GOVERNMENT REQUIRED OR
PERMITTED PURSUANT TO THIS PART
12 MAY BE PERFORMED , AS IS
APPLICABLE AND TO THE EX TENT PERMITTED BY LAW
, BY THE COUNTY
MANAGER OF A COUNTY
, THE MAYOR OR CITY MANAGER OF A CITY OR TOWN ,
OR ANOTHER OFFICER DESIGNATED BY THE GOVERNING BODY OF THE LOCAL
GOVERNMENT
.
(3) A
NY ACTIONS OF AN AGENT WORKING ON BEHALF OF A
RESIDENTIAL SELLER FOR PURPOSES OF THIS PART
12 ARE ATTRIBUTABLE TO
THE RESIDENTIAL SELLER
. NOTWITHSTANDING ANY OTHER PROVISION OF
THIS PART
12 TO THE CONTRARY, A POLITICAL SUBDIVISION OR A HOUSING
AUTHORITY IN THE STATE THAT ENGAGES IN ACTIVITIES TO CREATE OR
PRESERVE AFFORDABLE HOUSING FOR AN APPLICABLE QUALIFYING PROPERTY
IS NOT CONSIDERED AN AGENT WORKING ON BEHALF OF A RESIDENTIAL
SELLER FOR PURPOSES OF THIS PART
12.
(4) N
OTHING WITHIN THIS PART 12 LIMITS THE LOCAL GOVERNMENT'S
ABILITY TO CONDEMN AN APPLICABLE QUALIFYING PROPERTY ACQUIRED
PURSUANT TO THIS PART
12 TO THE EXTENT PERMITTED BY APPLICABLE LAW.
(5) I
F A LOCAL GOVERNMENT HAS ADOPTED LONG -TERM
AFFORDABILITY REQUIREMENTS THAT ARE GREATER THAN THE
REQUIREMENTS SET FORTH IN THIS PART
12, THE LOCAL GOVERNMENT 'S
REQUIREMENTS APPLY TO THIS PART
12. NOTHING IN THIS PART 12
OVERRIDES ANY LOCAL AFFORDABLE HOUSING LAWS .
PAGE 23-HOUSE BILL 24-1175 29-4-1205. Exemptions. (1) T HIS PART 12 DOES NOT APPLY TO ANY
SALE
, TRANSFER, OR CONVEYANCE OF AN APPLICABLE QUALIFYING
PROPERTY BY A RESIDENTIAL SELLER
:
(a) M
ADE TO, IF WHOLLY OR MAJORITY OWNED , DIRECTLY OR
INDIRECTLY
, BY, BENEFICIALLY HELD, ALL OR IN PART, IN COMMON WITH, OR
UNDER COMMON OWNERSHIP OR CONTROL WITH THE RESIDENTIAL SELLER
,
ONE OR MORE PARTNERSHIPS , LIMITED LIABILITY COMPANIES ,
CORPORATIONS, OR OTHER ENTITIES, MADE FOR TAX OR ESTATE PURPOSES
BETWEEN CLOSELY HELD PARTNERS
, MEMBERS OF ONE OR MORE LIMITED
LIABILITY COMPANIES
, MEMBERS OF ONE OR MORE CORPORATIONS , OR
MEMBERS
, TRUSTEES, MANAGERS, OR PARTNERS OF ONE OR MORE OTHER
ENTITIES
, OR IF THE UNITED STATES, OR ANY AGENCY OR INSTRUMENTALITY
THEREOF
, OR THE STATE, OR ANY POLITICAL SUBDIVISION OF THE STATE, IS
THE RESIDENTIAL SELLER OF OR IS A THIRD
-PARTY BUYER OF THE
APPLICABLE QUALIFYING PROPERTY
;
(b) M
ADE TO THE STATE, A LOCAL GOVERNMENT, THE COLORADO
HOUSING AND FINANCE AUTHORITY
, ANY PUBLIC HOUSING AUTHORITY, AND
ANY OTHER POLITICAL SUBDIVISION OF THE STATE
;
(c) M
ADE TO AN AFFORDABLE HOUSING PROVIDER THAT HAS
PROVIDED NOTICE OF INTENT TO PURCHASE THE APPLICABLE QUALIFYING
PROPERTY AND COMMITS TO PROVIDING LONG
-TERM AFFORDABLE HOUSING ;
(d) I
F THE APPLICABLE QUALIFYING PROPERTY IS SOLD ,
TRANSFERRED, OR CONVEYED IN A FORECLOSURE ACTION OR BY A DEED IN
LIEU OF FORECLOSURE
, IF THE APPLICABLE QUALIFYING PROPERTY IS SOLD,
TRANSFERRED, OR CONVEYED BY A PARTY THAT ACQUIRES THE APPLICABLE
QUALIFYING PROPERTY IN A FORECLOSURE ACTION OR BY A DEED IN LIEU OF
FORECLOSURE
, OR IF THE APPLICABLE QUALIFYING PROPERTY IS
SUBSEQUENTLY TRANSFERRED BY A GOVERNMENT
-SPONSORED ENTERPRISE
TO A DIRECT OR INDIRECT WHOLLY OWNED SUBSIDIARY
, AFFILIATED LENDER,
OR OTHER THIRD PARTY;
(e) I
F, ON OR AFTER THE EFFECTIVE DATE OF THIS PART 12, THE
APPLICABLE QUALIFYING PROPERTY HAS A PREEXISTING AGREEMENT THAT
BESTOWS A RIGHT OF FIRST REFUSAL
, RIGHT OF FIRST OFFER, OR OTHER
CONTINGENT PROPERTY RIGHT REGARDING THE APPLICABLE QUALIFYING
PROPERTY TO A THIRD PARTY
; EXCEPT THAT, UPON EXPIRATION OF THE
PAGE 24-HOUSE BILL 24-1175 AGREEMENT, THE PROVISIONS OF THIS PART 12 APPLY TO ANY SALE ,
TRANSFER, OR CONVEYANCE OF THE APPLICABLE QUALIFYING PROPERTY BY
THE RESIDENTIAL SELLER
;
(f) I
F THE RESIDENTIAL SELLER HAS APPLIED FOR, IS IN THE PROCESS
OF
, OR HAS SUCCESSFULLY RESYNDICATED OR RECAPITALIZED THE
APPLICABLE QUALIFYING PROPERTY IN CONNECTION WITH AN AFFORDABLE
HOUSING PROGRAM OFFERED BY THE FEDERAL
, STATE, OR LOCAL
GOVERNMENT OR A POLITICAL SUBDIVISION OR ANY PUBLIC ENTITY
, AND THE
RESIDENTIAL SELLER PROVIDES NOTICE AND DEMONSTRABLE EVIDENCE OF
THIS TO THE LOCAL GOVERNMENT
; EXCEPT THAT, IF THE RESIDENTIAL
SELLER IS NOT SUCCESSFUL IN RESYNDICATING OR RECAPITALIZING AN
APPLICABLE QUALIFYING PROPERTY IN CONNECTION WITH AN AFFORDABLE
HOUSING PROGRAM OFFERED BY THE FEDERAL
, STATE, OR LOCAL
GOVERNMENT OR A POLITICAL SUBDIVISION OR ANY PUBLIC ENTITY THEN
THE RIGHT OF FIRST REFUSAL OR THE RIGHT OF FIRST OFFER
, AS APPLICABLE,
AND THE REQUIREMENTS SET FORTH IN THIS PART 12 APPLY;
(g) M
ADE TO A FAMILY MEMBER, AS DEFINED IN SECTION 8-13.3-503
(11),
OF THE RESIDENTIAL SELLER;
(h) M
ADE TO A TRUST IF THE BENEFICIARY OF THE TRUST IS THE
SPOUSE
, PARTNER IN A CIVIL UNION, LEGALLY RECOGNIZED CHILD, OR OTHER
FAMILY MEMBER OF THE RESIDENTIAL SELLER
;
(i) M
ADE PURSUANT TO A WILL , DESCENT, OR INTESTATE
DISTRIBUTION
; OR
(j) MADE PURSUANT TO AN ACTION IN EMINENT DOMAIN OR IN
RESPONSE TO A THREAT OF EMINENT DOMAIN
.
(2) T
HE RIGHT OF FIRST OFFER SET FORTH IN SECTION 29-4-1203
DOES NOT APPLY TO ANY SALE , TRANSFER, OR CONVEYANCE OF A
QUALIFYING PROPERTY
, AS DEFINED IN SECTION 29-4-1203 (1), BY A
RESIDENTIAL SELLER
:
(a) M
ADE PURSUANT TO A COURT ORDER ;
(b) M
ADE BETWEEN JOINT TENANTS OR TENANTS IN COMMON ;
PAGE 25-HOUSE BILL 24-1175 (c) IF THE FIRST CERTIFICATE OF OCCUPANCY FOR THE QUALIFYING
PROPERTY WAS ISSUED WITHIN THIRTY YEARS PRECEDING THE DATE THAT
THE RESIDENTIAL SELLER WILL LIST THE QUALIFYING PROPERTY FOR SALE
;
(d) I
F THE QUALIFYING PROPERTY IS BEING SOLD, TRANSFERRED, OR
CONVEYED AS PART OF A TRANSACTION INVOLVING MULTIPLE PROPERTIES
WHICH INCLUDES AT LEAST ONE PROPERTY LOCATED IN A JURISDICTION THAT
IS OUTSIDE OF THE JURISDICTION OF THE LOCAL GOVERNMENT
;
(e) T
HAT DOES NOT INVOLVE THE SALE, TRANSFER, OR CONVEYANCE
OF ALL OR SUBSTANTIALLY ALL OF THE QUALIFYING PROPERTY
; OR
(f) THAT IS A SALE, TRANSFER, OR CONVEYANCE, DIRECTLY OR
INDIRECTLY
, OF OWNERSHIP INTERESTS IN THE RESIDENTIAL SELLER .
29-4-1206. Remedies for noncompliance.
(1) (a) N
OTWITHSTANDING SUBSECTION (1)(b) OF THIS SECTION AND
SUBJECT TO THE AVAILABILITY OF RESOURCES
, IT IS THE RESPONSIBILITY OF
THE ATTORNEY GENERAL
'S OFFICE TO ENFORCE THE PROVISIONS OF THIS
PART
12, AND THE ATTORNEY GENERAL MAY INTERVENE IN ANY ACTION
BROUGHT PURSUANT TO SUBSECTION
(1)(b) OF THIS SECTION.
(b) T
HE ATTORNEY GENERAL'S OFFICE, THE LOCAL GOVERNMENT, OR
THE LOCAL GOVERNMENT
'S ASSIGNEE MAY BRING A CIVIL ACTION AGAINST
A RESIDENTIAL SELLER FOR ANY VIOLATION OF THIS PART
12.
(c) T
HE REMEDIES FOR ANY ACTION BR OUGHT PURSUANT TO THIS
SUBSECTION
(1) ARE LIMITED TO MONETARY DAMAGES AND STATUTORY
PENALTIES AGAINST THE RESIDENTIAL SELLER
. ANY PERSON CLAIMING AN
INTEREST IN AN APPLICABLE QUALIFYING PROPERTY THROUGH A
RESIDENTIAL SELLER SHALL TAKE TITLE TO THE APPLICABLE QUALIFYING
PROPERTY FREE OF ANY RIGHTS OR CLAIMS SET FORTH IN THIS PART
12.
(2) I
F A COURT FINDS THAT A RESIDENTIAL SELLER IS IN MATERIAL
VIOLATION OF THIS PART
12, THE COURT SHALL AWARD A STATUTORY
PENALTY THAT IS NOT LESS THAN TEN THOUSAND DOLLARS FOR A FIRST
OFFENSE AND NOT LESS THAN THIRTY THOUSAND DOLLARS FOR ANY
SUBSEQUENT OFFENSES
; EXCEPT THAT THE COURT SHALL NOT AWARD A
STATUTORY PENALTY THAT IS MORE THAN ONE HUNDRED THOUSAND
DOLLARS
.
PAGE 26-HOUSE BILL 24-1175 (3) A COURT MAY ALSO AWARD REASONABLE ATTORNEY FEES AND
COSTS TO A PREVAILING PARTY
.
(4) T
HE REMEDIES PROVIDED IN THIS SECTION ARE THE SOLE AND
EXCLUSIVE REMEDIES PURSUANT TO A CIVIL ACTION BROUGHT PURSUANT TO
THIS SECTION FOR A VIOLATION OF THIS PART
12 BY A RESIDENTIAL SELLER.
29-4-1207. Termination of right of first refusal and right of first
offer. T
HE RIGHTS OF FIRST REFUSAL AND FIRST OFFER ESTABLISHED IN THIS
PART
12 TERMINATE ON DECEMBER 31, 2029. A RESIDENTIAL SELLER IS NOT
REQUIRED TO PROVIDE NOTICES REQUIRED PURSUANT TO THIS PART
12 AFTER
DECEMBER 31, 2029, AND A LOCAL GOVERNMENT SHALL NOT EXERCISE THE
RIGHT OF FIRST REFUSAL OR THE RIGHT OF FIRST OFFER PURSUANT TO THIS
PART
12 AFTER DECEMBER 31, 2029; EXCEPT THAT, IF THE LOCAL
GOVERNMENT OR ITS ASSIGNEE
, HAS EXERCISED THE RIGHT OF FIRST
REFUSAL OR THE RIGHT OF FIRST OFFER PURSUANT TO THIS PART
12 BEFORE
DECEMBER 31, 2029, AND THE PROCESS HAS NOT CONCLUDED , THEN THE
PROCESS SHALL CONTINUE UNTIL IT CONCLUDES IN ACCORDANCE WITH THIS
PART
12 NOTWITHSTANDING THE TERMINATION DATE SET FORTH IN THIS
SECTION
.
29-4-1208. Repeal of part. T
HIS PART 12 IS REPEALED EFFECTIVE
JULY 1, 2031.
SECTION 2. In Colorado Revised Statutes, 24-31-101, amend
(1)(i)(XVII) and (1)(i)(XVIII); and add (1)(i)(XXI) as follows:
24-31-101. Powers and duties of attorney general. (1) The
attorney general:
(i) May independently initiate and bring civil and criminal actions
to enforce state laws, including actions brought pursuant to:
(XVII) The "Rental Application Fairness Act", part 9 of article 12
of title 38; and
(XVIII) The "Reproductive Health Equity Act", part 4 of article 6
of title 25;
AND
(XXI) PART 12 OF ARTICLE 4 OF TITLE 29.
PAGE 27-HOUSE BILL 24-1175 SECTION 3. Act subject to petition - effective date -
applicability. (1) This act takes effect at 12:01 a.m. on the day following
the expiration of the ninety-day period after final adjournment of the
general assembly; except that, if a referendum petition is filed pursuant to
section 1 (3) of article V of the state constitution against this act or an item,
section, or part of this act within such period, then the act, item, section, or
part will not take effect unless approved by the people at the general
election to be held in November 2024 and, in such case, will take effect on
the date of the official declaration of the vote thereon by the governor.
(2) This act applies to all qualifying properties for the right of first
refusal that are listed for sale on or after the effective date of this act but for
which a residential seller has not accepted an offer to purchase the
qualifying property and executed the necessary agreements in connection
PAGE 28-HOUSE BILL 24-1175 with accepting the offer and to all qualifying properties for the right of first
offer on or after the effective date of this act that do not have active listings
as of the effective date of this act.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 29-HOUSE BILL 24-1175