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HomeMy WebLinkAboutPACKET Town Board Study Session 2025-01-28
Town of Estes Park
TOWN BOARD STUDY SESSION
January 28, 2025 from 4:30 p.m. – 6:45 p.m.
Town Hall Board Room
170 MacGregor Ave, Estes Park
Accessing Meeting Translations (Accediendo a las Traducciones de la Reunión) can be
found on the Town website at www.estes.org/boardsandmeetings
Public comment is not typically heard at Study Sessions, but may be allowed by the Mayor
with agreement of a majority of the Board. This study session will be streamed live and
available at www.estes.org/videos
AGENDA
4:30 p.m. Scoping Project for Capacity Improvements on the Big
Thompson River and Fall River.
(Engineer Waters)
5:30 p.m. Break for Dinner
5:45 p.m. Proposed Resolution Supporting Immigrants.
(Town Administrator Machalek)
6:20 p.m. HB 24-1175 Local Governments Rights to Property for
Affordable Housing.
(Deputy Town Administrator Damweber)
6:35 p.m. Trustee & Administrator Comments & Questions.
6:40 p.m. Future Study Session Agenda Items.
(Board Discussion)
6:45 p.m. Adjourn for Town Board Meeting.
Informal discussion among Trustees and staff concerning agenda items or other Town matters may occur before this
meeting at approximately 4:15 p.m.
Public Works Report
To: Honorable Mayor Hall
Board of Trustees
Through: Town Administrator Machalek
From: Jennifer Waters, EIT, CFM, Civil Engineer
Greg Muhonen, PE, Public Works Director
Date: January 28, 2025
RE: Scoping Project for Capacity Improvements on the Big Thompson River
and Fall River
Purpose of Study Session Item:
Update the Town Board about progress on the Scoping Project prior to the April 2025
completion of the study by GEI Consultants.
Town Board Direction Requested:
Does the Board wish to receive a public presentation of the final Scoping Project study
results which will include a technical report and 30% complete design drawings?
Present Situation:
The Scoping Project study, funded by the Building Resilient Infrastructure and
Communities (BRIC) program’s Flood Mitigation Assistance (FMA) grant, aims to
reduce or eliminate the risk of repetitive flood damage to buildings and structures
insurable under the National Flood Insurance Program (NFIP).
This study will deliver a technical report and 30% design drawings that are ready to be
submitted with an application for a construction grant to complete the design and build
river corridor capacity improvements. The report and drawing package will reflect
conceptual and preliminary engineering, environmental feasibility, utility impacts, and a
Benefit Cost Analysis (BCA). The proposed capacity improvements include channel
widening and/or deepening in the Big Thompson River and Fall River, as well as
replacement of the Rockwell and Riverside bridges. Pedestrian and bicycling
infrastructure improvements would also serve as flood benches in the river corridors.
Since beginning the Scoping Project study in July 2023, GEI Consultants, Inc. has
completed the following milestone tasks:
Public meetings hosted by Public Works and the consultant team on May 1 and
June 12, 2024.
Additional public feedback gathered at Bike Estes Day on June 26, 2024, and
through communications with the Town’s Transportation Advisory Board.
Consultant coordination with local utility providers (Power & Communications,
Water, and both sanitation districts) to identify opportunities for system layouts
and redundancies that support flood mitigation and resilience.
Preparation of a draft BCA which has produced a favorable outcome (BCA > 1).
At the Study Session on September 10, 2024, design concepts were presented for the
Big Thompson River. The Board expressed interest in learning about design concepts
proposed along the Fall River at a future study session.
Proposal:
Based on staff input, public feedback, and best hydraulic engineering practices, the
consultant proposes to advance the current proposed concepts to a 30% complete
preliminary design.
Advantages:
The study findings and final products will reflect selection of flood mitigation
techniques and recreational design elements that can reduce the risk of future
infrastructure damage in Estes Park.
The proposed concepts are consistent with other plans (Downtown Plan and
Stormwater Master Plan) previously reviewed by citizens and approved by the
Town Board.
Completion of this study sets the stage for future grant applications and offers
flexibility to either move forward or to do nothing and forego constructing river
capacity improvements or infrastructure.
Disadvantages:
The Town would need to identify, pursue, and be awarded appropriate grant
funding to complete the design and construction of the project.
With an awarded grant, it is likely that the Town would need to fund a portion of
the cost; however, the grant funding would reduce the financial impact of the
work on the local taxpayers while reducing the threat of future flood damage.
Finance/Resource Impact:
Federal dollars in support of FMA priorities were made available through the Building
Resilient Infrastructure and Communities (BRIC) grant program in 2020. This Scoping
Project will be completed within the grant and Town budgeted amounts. Future local
and grant revenue sources must be identified prior to any future progress on the project.
Level of Public Interest
Level of public interest is moderate and varies based on perceived risk of flooding or
land use impacts.
Attachments:
Presentation Slides – GEI Consultants
Big Thompson River and Fall River
Capacity Improvements Study
Town of Estes Park Board Study Session
January 28th, 2025
1
Who we are
• Floodplain Hydraulics
• River Design
• Environmental Compliance
• Civil Design
• Constructability Review
• Utilities and Infrastructure
• Stormwater
• Floodplain Hydraulics
• Community Engagement and Facilitation
• FEMA Expertise
• Hazard Mitigation Estimates and Grants
2
ATTACHMENT 1
Agenda
01
02
03
04
Presentation Purpose
Preferred & Proposed Alternatives
Project Summary
Design Opportunities & Utilities
05 Completed & Next Steps
3
Presentation Purpose
4
This presentation is to update the Town Board about progress on the Scoping Project prior to the
April 2025 completion of the study.
At the Study Session on September 10, 2024, design concepts were presented for the Big Thompson
River. The Board expressed interest in learning about design concepts proposed along the Fall River
at a future study session.
Project Summary
Identify feasible alternatives that
improve channel capacity to reduce
flooding damages
Feasible –constructable, conforms to community vision,
environmentally sustainable, cost effective
Channel Capacity –containing flood waters within waterway and
away from infrastructure, buildings, and utilities
Flooding damages –physical, economic disruption to services and
industries, lifeline hazards (ingress/egress, utilities, hospital)
5
Project Summary02
Mitigate Flood Hazard Risk for TOEP Community
•Decrease depth and frequency of flood events
•Reduce property damage
•Improve public safety
FEMA Building Resilient Infrastructure and Communities (BRIC) Funding
•“Investment in Community Resilience”
•Hazard Mitigation
•Public Infrastructure Projects
•Nature-based Solutions
Benefit-Cost Analysis
(BCA)
Environmental and Historic Preservation
(EHP)
6
Preferred Alternatives03
Increase Bridge Capacity through
Channel Regrading
•Approximately 10 feet of grade drop downstream of
Riverside Drive Bridge
•Redistributing grade upstream can provide
necessary clearance for Riverside Drive and
Rockwell Street bridges
7
Proposed Alternative – Big Thompson River03
-10
-5
0
5
10
15
20
25
7500
7505
7510
7515
7520
7525
7530
7535
1500 1700 1900 2100 2300 2500 2700 2900
Ch
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River Distance from Downstream (ft)
Existing Proposed - 100-year Existing - Terrain Proposed - Terrain Regrading Depth
Ri
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D
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Ro
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8
REGRADE DEPTH
Proposed 100-yr Flooding Extents
Existing 100-yr Flooding Extents
100-yr
Existing
100-yr
Proposed
Existing
Bed
Proposed
Bed
Regrading
Depth
-10
-5
0
5
10
15
20
25
30
7505
7510
7515
7520
7525
7530
7535
7540
7545
0 100 200 300 400 500 600 700 800
Ch
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River Distance from Downstream (ft)
Proposed Alternative – Fall River03
Sl
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Mo
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A
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9
REGRADE DEPTH
100-YR Existing WSE 100-YR Proposed WSE
Proposed 100-yr Flooding Extents
Existing 100-yr Flooding Extents
Proposed Future Conditions – Fall River 03
Long range reductions in flooding extents potentially achievable with future channel
improvements upstream of Moraine Ave.
10
11
CONFLUENCE
ACCESS
MILD SWIFTWATER
ACCESSIBLE
BACKWATER
04 – Design Opportunities
11
Low flow hydraulics:
•Big Thompson River 200 cfs(Aug-May)
•Fall River 50 cfs
Velocity (ft/s)
Ped.
Bridges
SMALL HYDRAULIC
DROPS
HIX PLAZA
ACCESS
Design Opportunities04
1
12
3
2
04 – Design Opportunities
Trails and Circulation –bike and pedestrian transit
to/from downtown areas, parks, and economic centers
13
2016 Estes Valley Master Trails Plan
04 – Design Opportunities
Trails and Circulation –bike and pedestrian transit
to/from downtown areas, parks, and economic centers
14
2018 Estes Park Downtown Plan
Design Opportunities - Trails04
CONNECT TO
MORAINE AVE
UNDERPASS
BRIDGE OVER
FALL RIVER
BRIDGE OVER BIG
THOMPSON RIVER
SPLIT PATH AND US 36
UNDERPASS
15
BIKE PATH UNDER
CANTILEVERED
WALKWAY
Design Opportunities04
SECTION A
16
~ 8 FT
17
Design Opportunities - Trails04
18
Existing East Pedestrian
Bridge Landing at Hix Plaza
Existing West Pedestrian
Bridge Landing at Parking Lot
Design Opportunities - Trails04
19
s
Existing Moraine Ave Underpass
and Pedestrian Access
Existing Space Beneath
Pedestrian Access and
Building Foundation
Design Opportunities - Trails04
20
SECTION D
2-YEAR WSEL APPROX 7526’
s
Existing Moraine Ave Underpass
and Pedestrian Access
~10-YEAR WSEL APPROX 7531’
Design Opportunities - Trails04
21
Existing Pedestrian
Bridge by Slab
Design Opportunities - Trails04
22
2-YEAR WSEL APPROX 7526’
Utility Considerations04
REDUNDANCY AND IMPROVEMENTS CORRIDOR
•UTSD AND EPSD SEWER
•POWER & COMMUNICATIONS
•WATER
•GAS
SMALL
UNDERGROUND LIFT
STATION
23
REMOVE TWO EXISTING SANITARY SEWER
CROSSINGS
RELOCATE CHANNEL ELECTRIC TO BRIDGES
AND UPGRADE/REPLACE POWER
THROUGHOUT PROJECT AREA
REDUNDANCY CORRIDOR FREES ADDITIONAL
CAPACITY IN UTSD AND EPSD TRUNK LINES
Utility Redundancy Corridor
Completed & Next Steps
24
9 Trail and access concepts along Big Thompson River and Fall River fulfill design guidance
9 Consensus with Town Plans, coordination with property owners, public engagement
9 Study has gathered guidance and communicated with stakeholders
9 Public Meetings
9 Public Outreach Events & Coordination
9 Town Board Study Sessions
9 Upon construction, project design would reduce flood damage and improve channel capacity
9 Meets Benefit Cost Analysis (BCA) > 1
9 Satisfies FEMA Environmental Planning and Historic Preservation (EHP) requirements for future
BRIC funding through DHSEM
9 Positions Town for future floodplain resiliency along river corridors
9 Ready for next steps
Prepare 30% Plans, Specifications, and Estimate
Basis of Design Report
Requested Direction
from Board
25
Town Board Direction Requested
Based on staff input, public feedback, and best hydraulic engineering practices, the consultant proposes to
advance the current proposed concepts to a 30% complete preliminary design.
Does the Board wish to receive a public presentation of the final Scoping Project study results which will include
a technical report and 30% complete design drawings?
26
Extra slides
27
Design Opportunities04
PERSPECTIVE 1 28
Design Opportunities04
PERSPECTIVE 2 29
Design Opportunities04
PERSPECTIVE 3 30
Design Opportunities04
SECTION B
31
~ 5 FT
Design Opportunities04
SECTION C
32
~ 5 FT
TOWN ADMINISTRATOR’S
OFFICE
Report
To: Honorable Mayor Hall
Board of Trustees
From: Town Administrator Machalek
Date: January 28, 2025
RE: Proposed Resolution Supporting Immigrants
Purpose of Study Session Item:
Town Board discussion about the proposed Resolution supporting immigrants in Estes
Park.
Town Board Direction Requested:
•Does the Board want to consider a Resolution supporting immigrants in Estes
Park?
•If so, what elements should a proposed Resolution contain?
Present Situation:
At the January 14th Town Board meeting, a group of public commenters presented a
proposed Resolution supporting immigrants in Estes Park to the Town Board. The
group also presented copies of Resolution 10-18 (a Board Resolution supporting
immigration reform) for context. The Board directed staff to schedule a Study Session to
discuss the topic.
Proposal:
Staff has included both Resolution 10-18 and the Resolution Supporting Immigrants in
Estes Park presented during the public comment session of the January 14th Town
Board meeting for reference.
Finance/Resource Impact:
Unknown. The finance/resource impact details depend on the content of the Resolution.
Level of Public Interest
High.
Attachments
1.Resolution 10-18
2. Resident-proposed Resolution Supporting Immigrants in Estes Park
ATTACHMENT 1
RESOLUTION NO.___________________
SUPPORTING IMMIGRANTS IN ESTES PARK
WHEREAS, on May 22, 2018, the Town of Estes Park passed Resolution No.
10-18, Supporting Immigration Reform; and
WHEREAS, Resolution No. 10-18 called upon the Estes Park Board of Trustees
to urge the elected Colorado Delegation in Washington, D.C. to advocate for
immigration reform as a way to address the immigration related issues of our
community at the time; and
WHEREAS, with the rising risk of mass arrest and deportation of immigrants in
the United States, renewal for the Estes Park Board of Trustees to urge our Colorado
Delegation to further support immigration reform under the Resolution is necessary; and
WHEREAS, foreign-born immigrants in Colorado comprise approximately 10% of
the population, have over $19 billion in spending power, and paid $6.6 billion in taxes 1 ;
and
WHEREAS, Estes Park is home to many of these immigrants, documented and
undocumented, who positively contribute and add value to all aspects of our community;
and
WHEREAS, over 160,000 people in Colorado are undocumented immigrants and
close to 70% of these immigrants have resided here for at least 10 years 2 ; and
WHEREAS, in Estes Park, undocumented immigrants have lived here for many
years (as our family members, friends, neighbors, employers, employees, co-workers,
classmates, fellow church members, service providers, and community volunteers) and
are part of the fabric of our community, enriching our lives and broadening our vision;
and
WHEREAS, about 5.1 million U.S. citizen children live with an undocumented
family member 3 ; and
3 Mass Deportation; Devastating Costs to America, Its Budget and Economy,” Special Report, American
Immigration Council (Oct. 2, 2024) available at:
https://www.americanimmigrationcouncil.org/research/mass-deportation.
2 “Profile of the Unauthorized Population: Colorado,” Migration Policy Institute (2019) available at
https://www.migrationpolicy.org/data/unauthorized-immigrant-population/state/CO.
1 “Immigrants in Colorado,” American Immigration Council (information as of Oct. 2, 2024 and reflecting
2022 analysis- see Methodology) available at:
https://map.americanimmigrationcouncil.org/locations/colorado/#.
Page 1
ATTACHMENT 2
WHEREAS, in Colorado, over 72,000 children live with at least one
undocumented parent 4 ; and
WHEREAS, in Estes Park, there are children, many who are U.S. citizens, who
rely on parents or other relatives who are undocumented; and
WHEREAS, removal of these undocumented immigrants would cause family
separation; and
WHEREAS, separated family members, children and adults alike, experience
extensive trauma and exceptional hardships resulting from losses of consortium,
guardianship, caretaking, home, financial support, business, property, and healthcare;
and
WHEREAS, even without actual separation, undocumented immigrants, their
children, and other family members live under constant fear, stress and other mental
health issues due to the daily threat of family separation from an arrest or deportation of
a loved one; and
WHEREAS, Estes Park is a mountain town whose economy is dependent on
tourism, especially to Rocky Mountain National Park, which has visitation of well over 4
million visitors annually from all over the world; and
WHEREAS, Estes Park is dependent upon its immigrant workforce to help serve
our thriving tourism industry; and
WHEREAS, in a value of tourism study completed in 2021, Visit Estes Park
estimated that travelers bring $500 million dollars to the town annually, which generated
$35 million in local and state tax revenues, and reduced the tax burden of every
resident by thousands of dollars 5 ; and
WHEREAS, a forced reduction of the immigrant workforce as a result of changes
in immigration and enforcement policies will substantially reduce our ability to serve our
visitors and will have negative impacts on our economy; and
5 “New Data Shows Tourism Continues to Positively Impact Economy in Estes Park,” Visit Estes Park
(Nov. 1, 2022) available at https://www.visitestespark.com/articles/post/ne.
4 “Immigrants in Colorado,” American Immigration Council (information as of Oct. 2, 2024 and reflecting
2022 analysis- see Methodology) available at:
https://map.americanimmigrationcouncil.org/locations/colorado/#.
Page 2
WHEREAS, a forced reduction of immigrants would likely result in a parallel
reduction in the Estes Park school student population, resulting in reductions in overall
school funding, negatively impacting the school district’s ability to provide the breadth of
educational opportunity that it currently offers; and
WHEREAS, undocumented immigrants in the U.S. paid almost $97 billion in
federal, state, and local taxes ($37.3 billion of that amount was paid to state and local
governments) in 2022 6 ; and
WHEREAS, undocumented immigrants also contributed almost $23 billion to
Social Security and $6 billion to Medicare 7 ; and
WHEREAS, removal of immigrants in Estes Park and anywhere else in the U.S.
would result in significant reduction of tax revenues and have negative impacts on our
Social Security and Medicare programs.
WHEREAS, the Universal Declaration of Human Rights, the Constitution of the
United States, and the Constitution of Colorado provide rights for ALL people, including
undocumented immigrants; and
WHEREAS, the State of Colorado has further passed laws to protect immigrants,
including House Bill 19-1124, House Bill 21-1194, House Bill 23-1100, Senate Bill
20-224, Senate Bill 21-131, Senate Bill 21-199, and many others; and
WHEREAS, the Mission of the Town of Estes Park is to provide high-quality,
reliable services for the benefit of our residents, guests and employees, while being
good stewards of public resources and our natural setting; and
WHEREAS, Estes Park relies on immigrants, documented and undocumented, to
provide these high quality and reliable services and to help maintain our public
resources and natural setting; and
WHEREAS, a forced reduction of immigrants in our community would severely
reduce the Town’s ability to accomplish its mission.
7 Mass Deportation; Devastating Costs to America, Its Budget and Economy,” Special Report, American
Immigration Council (Oct. 2, 2024) available at:
https://www.americanimmigrationcouncil.org/research/mass-deportation.
6 “Tax Payments by Undocumented Immigrants,” Institute on Taxation and Economic Policy (July 30,
2024) available at: https://itep.org/undocumented-immigrants-taxes-2024/
Page 3
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF
THE TOWN OF ESTES PARK, that in order to protect our community, prevent family
separation, and to sustain the economy and the stability of the Town of Estes Park, the
Estes Park Board of Trustees will assure that the government of the Town of Estes Park
resolves to:
1. Renew its call to action for immigration reform to the elected Colorado Delegation
in Washington, D.C. under Resolution No. 10-18;
2. Ensure equal access for support services and resources to those in our
community (documented or not) who are challenged with mental health issues,
general healthcare and childcare needs, experiencing loss or family separation,
and meeting fundamental needs;
3. Support the laws that help preserve and protect the rights of all people in Estes
Park;
4. Apply these laws to defend the immigrants in our community; and
5. Adjust and create local policies, consistent with the laws, to keep immigrant
families together and to safeguard our community’s immigrant workforce.
Passed and adopted on this ______ day of ______________, 2025.
TOWN OF ESTES PARK
Mayor
ATTEST:
Town Clerk
Page 4
TOWN ADMINISTRATOR’S OFFICE Report
To: Honorable Mayor Hall
Board of Trustees
Through: Town Administrator Machalek
From: Jason Damweber, Deputy Town Administrator
Date: January 28, 2025
RE: HB 24-1175: Local Governments Rights to Property for Affordable
Housing
Purpose of Study Session Item:
The purpose of this Study Session is to determine whether the Town Board desires to
assign new rights afforded by House Bill 24-1175: “Local Governments Rights to
Property for Affordable Housing” to the Estes Park Housing Authority. More specifically,
HB 24-1175 permits the Town to assign 1) a right of first refusal (ROFR) regarding
certain multifamily residential or mixed-use property with at least five units that are
already affordable housing, and 2) a right of first offer (ROFO) for certain multifamily
residential or mixed-use properties between 15-100 units regardless of affordability.
Town Board Direction Requested:
Should staff prepare an Intergovernmental Agreement (IGA) between the Town and the
Estes Park Housing Authority that would assign the new rights afforded by House Bill
24-1175 as outlined above? If so, should the IGA cover both ROFR and ROFO?
Present Situation:
Per an October 2024 publication from the Colorado Municipal League titled “Using the
New Rights of First Refusal and First Offer”:
By the end of the year, many city and town clerks will receive notice directed to the
governing body from a property seller regarding a potential property sale and the
municipality’s “right of first refusal” or “right of first offer.” They may also receive notice
that affordability restrictions for a specific property are expiring. These notices are
prompted by a new law (House Bill 24-1175) intended to create and preserve affordable
housing by giving local governments and housing authorities a chance to intercede in
private sales of certain multifamily residential properties.
Effective Aug. 7, 2024, the law imposes strict timelines and requirements to fulfill the
law’s purpose and minimize impacts on private sellers. Municipalities that want to use
the tools should establish procedures and standards to ensure compliance or consider
assigning their rights to housing authorities.
First Refusal vs. First Offer
The new law grants a right of first refusal (ROFR) regarding certain multifamily
residential or mixed-use property with at least five units that are already affordable
housing. The ROFR allows the municipality to make an offer to buy the property in
competition with other offers. The seller must negotiate in good faith but is not required
to ultimately sell to the government. The municipality can only use the right to preserve
or convert the property to long-term affordable housing. The right of first offer (ROFO),
on the other hand, applies to certain multifamily residential or mixed-use properties of
between 15 and 100 units, regardless of current affordability. The ROFO is a narrower
right, however, and merely gives a local government an early chance to make an offer
before the property is listed for sale.
A Fast Process
To use these rights, municipalities must be prepared for fast timelines. Note that a
nondisclosure agreement with the seller is required in each case, arguably even before
the clerk can share a ROFR notice internally. When a ROFR notice is received, the local
government has up to 14 days to notify the seller and the Colorado Housing and Finance
Authority (CHFA), that it wants to preserve or waive the right (although the right is
deemed waived if ignored). The government then has 30 days to make an offer and
must agree to close within 60 days.
A ROFO notice requires a response within seven days to ask for due diligence
information or waive the right (again, the right is waived if the government doesn’t
respond). Once that information is received, the government has 14 days to make an
offer. The law expects an agreement within 30 days and a closing within 60 days.
The law also instructs governments to record a “certificate of compliance” with the
county clerk within 14 days of the seller’s initial notice (or second notice, if the
government is exercising the right). Use caution when completing this certificate,
as the statute requires information that the government might not be able to verify, like a
legal description and confirmation of the seller’s compliance with the law.
Is the Option Right for You?
Each municipality should determine whether these tools are a good fit. Beyond requiring
an agile response to notices and transactions, the law imposes long-term obligations in
the management of properties. Purchasers must maintain certain affordability levels and
limit rent increases. Leases must be renewed except in limited circumstances.
The new law rewards local governments that want to stay actively engaged in creating
affordable housing. To make use of the rights, municipalities should establish
procedures for handling notices, including delegating certain responsibilities to a staff
member and bringing the issue quickly to the governing body. Plans for financing and
due diligence should be in place. Partnering with other entities and housing authorities
can help to smooth this process.
Alternatively, municipalities can assign the rights to specific properties or all properties to
public entities that may be better equipped to purchase and manage the properties,
including a housing authority or CHFA. Assigning rights maintains the benefit of the new
law while reducing a municipality’s involvement.
If a municipality doesn’t want to use the rights at all, the governing body can approve the
waiver of the rights. The waiver must be effective for at least three months. Notice of the
waiver (including any expiration date) must be posted conspicuously on the
government’s website and provided to CHFA.
Having a plan before the notices arrive will help your municipality respond effectively and
make the most of these new, time-limited rights. The law currently expires Dec. 31,
2029.
Proposal:
In light of the agreement in place between the Town and the Estes Park Housing
Authority regarding the passthrough of 6E funds to address the community’s workforce
and affordable housing needs, staff believes it stands to reason that the Town should
assign the rights afforded by HB 24-1175 to the Housing Authority.
Advantages:
• House Bill 24-1175 gives local governments or their designees the right of first
refusal or first offer to purchase multi-unit residential properties to preserve or
create long-term affordable housing.
• Delegating rights afforded by House Bill 24-1175 to the Housing Authority allows
us to maintain the benefits of the new law while reducing the Town’s direct
involvement.
Disadvantages:
• None noted, though opponents of the bill expressed concerns that it could
potentially impact the multifamily market by decreasing the buyer pool, the value
of the properties, and the associated tax base.
Finance/Resource Impact:
Not Applicable
Level of Public Interest
Medium
Attachments:
1. Presentation
HOUSE BILL 24-1175:
LOCAL GOVERNMENTS RIGHTS TO PROPERTY
FOR AFFORDABLE HOUSING
TOWN BOARD STUDY SESSION
JANUARY 28, 2025
Purpose
To determine whether the Town Board desires to assign new rights
afforded by House Bill 24-1175: “Local Governments Rights to
Property for Affordable Housing”to the Estes Park Housing Authority.
HB 24-1175 permits the Town to assign:
1. a Right of First Refusal (ROFR) regarding certain multifamily
residential or mixed-use property with at least five units that are
already affordable housing; and
2.a Right of First Offer (ROFO) for certain multifamily residential
or mixed-use properties between 15-100 units regardless of
affordability.
ROFR Process
If a property qualifies for the right of first refusal, the owner must send a notice to the
government on three separate occasions:
1. two years before the expiration of the property’s final
affordability restriction
2. at six months before the expiration of the property’s final
affordability restriction
3. when the owner either
• materially departs from a representation made in the six
months’ notice described above;
• signs a letter of intent, option to sell or buy, or other
conditional written agreement with a potential buyer that
contains the estimated price, terms and conditions of the
proposed sale or transfer, even if subject to change;
• lists the property for sale; or
• conditionally accepts an offer for the sale or transfer of
the property.
The local government then has the right
to respond and indicate whether it
intends to exercise its right of first
refusal and, if it does, has 30 days to
make a “matched offer.” If the local
government fails to timely provide its
notice of intent or to make an offer with
the required terms, the owner may
proceed with the sale of the property to
the other buyer.
The seller must negotiate in good faith
but is not required to ultimately sell to
the government. The municipality can
only use the right to preserve or convert
the property to long-term affordable
housing.
ROFR Process Cont’d
• The local government then has the right to respond and indicate
whether it intends to exercise its right of first refusal and, if it does,
has 30 days to make a “matched offer.” If the local government fails to
timely provide its notice of intent or to make an offer with the required
terms, the owner may proceed with the sale of the property to the
other buyer.
• The seller must negotiate in good faith but is not required to ultimately
sell to the government. The municipality can only use the right to
preserve or convert the property to long-term affordable housing.
ROFO Process
• The ROFO is a narrower right and merely gives a local
government an early chance to make an offer before the
property is listed for sale.
• If a market rate property qualifies for the right of first offer,
the owner must give notice to the local government before
entering into a listing agreement with a broker or otherwise
listing the property for sale on the multiple listing service.
The Bill then sets forth a timeline of various deadlines by
when the owner must provide certain information to the local
government and then the local government must respond,
with the local government deemed to have waived its right if
it fails to respond.
• The owner has the right to reject the local government’s
offer at any point during this process and proceed with a
third-party buyer.
The right of first offer applies to
the sale of any multifamily
(including mixed-use) property
that:
• is not subject to the right of
first refusal (i.e., market
rate);
• is 30 or more years old at
the time the owner lists the
property for sale; and
• has between 15 and 100
units (excluding mobile
home parks and accessory
dwelling units).
Other Information
•Five Year Sunset: The Bill (including both the right of first refusal and right
of first offer) automatically terminates on Dec. 31, 2029, allowing the
legislature to evaluate the impacts, good or bad, of this legislation before
reenacting it or allowing it to be repealed entirely.
•Assignment of Rights: Municipalities can assign the rights to specific
properties or all properties to public entities that may be better equipped to
purchase and manage the properties, including a housing authority or
CHFA. Assigning rights maintains the benefit of the new law while reducing
a municipality’s involvement.
Questions for the Town Board
• Should staff prepare an Intergovernmental Agreement (IGA) between the Town and the
Estes Park Housing Authority that would assign the new rights afforded by House Bill
24-1175 as outlined above?
• If so, should the IGA cover both ROFR and ROFO?
•Staff Perspective: Delegating rights afforded by House Bill 24-1175 to the Housing
Authority allows us to maintain the potential benefits of the new law while reducing the
Town’s direct involvement.
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.
CONCERNING 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. AS USED IN THIS PART 12, UNLESS THE
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) "AFFORDABLE 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) "APPLICABLE 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) "APPLICABLE 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) "AREA 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) "COLORADO HOUSING AND FINANCE AUTHORITY" MEANS THE
COLORADO HOUSING AND FINANCE AUTHORITY CREATED IN SECTION
29-4-704 (1).
(6) "EXISTING 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) "LOCAL 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) "LOCAL 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) "LONG-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) NOTHING 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) "MATCHED 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) "MATCHED 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.
(1 1) "MATERIAL 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) "MIXED-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) "RENT INCREASE CAP" MEANS A PERCENTAGE OF THE CURRENT
ANNUAL RENT FOR AN APPLICABLE QUALIFYING PROPERTY THAT IS EQUAL TO
THE GREATER OF:
(a) THE 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) "RESIDENTIAL 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. As 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) IN 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) ANY 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) IF 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) FOR 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) THE PERIOD FOR CLOSING;
(B) THE TYPE OF FINANCING OR PAYMENT METHOD;
(C) WHETHER 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 FINANCING 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) THE 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 THROUGH ANOTHER ENTITY TO WHICH THE LOCAL
GOVERNMENT ASSIGNS ITS RIGHTS PURSUANT SUBSECTION (2)(f) OF THIS
SECTION OR TRANSFERS THE QUALIFYING PROPERTY.
(d) 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.
(e) THE 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 LONG AS THE LOCAL GOVERNMENT OR
ITS ASSIGNEE MAINTAINS OWNERSHIP OF THE QUALIFYING PROPERTY EITHER
DIRECTLY OR THROUGH A SPECIAL PURPOSE ENTITY OR AFFILIATE.
(f) AT 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) IF 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.
THE 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) IF 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) THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS THE
RIGHT TO WAIVE THE RIGHT OF FIRST REFUSAL PROVIDED IN THIS SECTION.
(II) (A) IF 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) THE 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) FAILURE 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) NOT 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) NOTWITHSTANDING 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) NOT 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) THE 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) WITHIN 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) SIGNS 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) LISTS THE QUALIFYING PROPERTY FOR SALE; OR
(D) MAKES A CONDITIONAL ACCEPTANCE OF AN OFFER FOR THE SALE
OR TRANSFER OF THE QUALIFYING PROPERTY.
(II) THE 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) THE RESIDENTIAL SELLER'S ADDRESS AND, IF AVAILABLE,
ELECTRONIC MAILING ADDRESS TO RECEIVE NOTICES FROM THE LOCAL
GOVERNMENT;
(C) THE 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) ANY 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) THE 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) IF 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) THE 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) THE 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) THE LOCAL GOVERNMENT SHALL MAKE A GOOD FAITH EFFORT TO
PROVIDE NOTICE TO THE RESIDENTIAL SELLER AS SOON AS POSSIBLE BUT NOT
LATER THAN FOURTEEN 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) THE NOTICE GIVEN PURSUANT TO SUBSECTION (4)(a)(I) OF THIS
SECTION IS NONBINDING ON THE LOCAL GOVERNMENT.
(III) IF 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) IF 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. IN 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) EXCEPT 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) NOTWITHSTANDING 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) IF 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) WITHIN 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. THE 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. WITHIN 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) THE 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) NOTWITHSTANDING 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. NOTHING 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. As 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) IN 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) THE 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) AT 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) IF 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) THE 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) FAILURE TO POST NOTICE PURSUANT TO THIS SUBSECTION
(2)(e)(II) DOES NOT OTHERWISE AFFECT THE LOCAL GOVERNMENT'S RIGHT
OF FIRST OFFER.
(f) NOTWITHSTANDING 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) IF 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) ANY 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) NOTWITHSTANDING 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) ANY 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) ANY 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) BEFOREA 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) THE 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) IS 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) IF 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) IF 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) THE ADDRESS AND NAME OF THE QUALIFYING PROPERTY, IF ANY,
AND THE LEGAL DESCRIPTION OF THE QUALIFYING PROPERTY;
(II) THE 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) ANY 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) SUBJECT 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) MAKES 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) THE 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.
DURING 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) IF 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. WITHIN 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) NOTHING 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) ANY ACTION BY THE LOCAL GOVERNMENT REQUIRED OR
PERMITTED PURSUANT TO THIS PART 12 MAY BE PERFORMED, AS IS
APPLICABLE AND TO THE EXTENT 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) ANY 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) NOTHING 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) IF 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) THIS PART 12 DOES NOT APPLY TO ANY
SALE, TRANSFER, OR CONVEYANCE OF AN APPLICABLE QUALIFYING
PROPERTY BY A RESIDENTIAL SELLER:
(a) MADE 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) MADE 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) MADE 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) IF 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) IF, 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) IF 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) MADE TO A FAMILY MEMBER, AS DEFINED IN SECTION 8-13.3-503
(11), OF THE RESIDENTIAL SELLER;
(h) MADE 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) MADE 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) THE 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) MADE PURSUANT TO A COURT ORDER;
(b) MADE 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) IF 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) THAT 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) NOTWITHSTANDING 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) THE 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) THE REMEDIES FOR ANY ACTION BROUGHT 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) IF 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) THE 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. THE 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. THIS 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
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
ta.,,....
Robin Jones
CHIEF CLERK OF TH OUSE
OF REPRESENTATIVES
Steve Fenberg
PRESIDENT OF
THE SENATE
1 -e-the o(nmielocA.e.
Cindi L. Markwell
SECRETARY OF
THE SENATE
APPROVED -TitmArsa."Ni vvvq4- 404‘ 2.2...-.-t -,./c- 1,O '2S ok-,,..—
(Date anc Time)
Jared
G
. oli
ERN OF THE STA
PAGE 29-HOUSE BILL 24-1175
E O COLORADO
February 11, 2025
•Big Horn Parking Structure Construction
Funding
•Review Town Process for Approving
High-Impact Projects
February 25, 2025
•Stanley Park Master Plan and Performing
Arts Center
•Senior Needs Assessment &
Recommendations
•2025 Public Works 1A Update
March 11, 2025
•Hosted Short-Term Rentals
March 25, 2025
•Estes Park Municipal Code Title 10
Parking Prohibition Revisions
•Policy 842 Parking Permits Revisions
April 8, 2025
•Annexation Policy
Items Approved – Unscheduled:
•OHV/Golf Carts on Roads
•Cleave Street Redevelopment Update
•Town Board Email Listing on Website
•Police Department Facility Financing
•Curb and Gutter Philosophy
•Liquor License Process
•Stanley Park Master Plan Implementation
•Noise Ordinance Enforcement
Items for Town Board Consideration:
•6E Childcare Grant Funding Framework
and Updates to Policy 225
Future Town Board Study Session Agenda Items
January 28, 2025