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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 a n n e l D i f f e r e n c e ( f t ) El e v a t i o n ( f t ) River Distance from Downstream (ft) Existing Proposed - 100-year Existing - Terrain Proposed - Terrain Regrading Depth Ri v e r s i d e D r i v e Ro c k w e l l S t 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 a n n e l D i f f e r e n c e ( f t ) El e v a t i o n ( f t ) River Distance from Downstream (ft) Proposed Alternative – Fall River03 Sl a b B r i d g e Mo r a i n e A v e 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 ƒPrepare 30% Plans, Specifications, and Estimate ƒBasis 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