§ 27-47. Federal preservation projects—Notice and purchase opportunities.

(a)

Owners of federal preservation projects must provide the city and each building tenant with the following notices:

(1)

One (1) year's advance notice of expiration of (i) a contract under which federal financial assistance was provided, and (ii) any affordability restrictions;

(2)

One (1) year's advance notice of owner's intent to "opt out"; and

(3)

Ninety (90) days' advance notice of its intent to pursue a sale of such federal preservation project.

(b)

Notices required by subsection (a) above shall specify:

(1)

Whether the owner or intended buyer intends to withdraw the property from the federal financial assistance program;

(2)

Whether the owner or intended buyer is involved in negotiations with HUD regarding an extension of affordability restrictions; and

(3)

For a sale, the intended date of sale or transfer.

(c)

Owners of federal preservation projects who have decided to "opt out" or sell the federal preservation project must consent to reasonable inspection of the property and inspection of the owner reports on file with HUD, the State of Colorado, or the city. These inspections are designed to facilitate the city's ability to assess the fair market value of the property and evaluate status of the tenants, viability of transfer and/or continuation of a section 8 agreement with HUD and other pertinent information.

(d)

To the extent allowed by HUD, owners of federal preservation projects must maintain an available HUD section 8 contract in good standing during the notice periods identified in this chapter as well as any condemnation proceeding commenced.

(e)

Owners of federal preservation projects must refrain from taking any action, other than notifying HUD of the owner's intention to not renew the contract, that would preclude the city or its designee from succeeding to the contract or negotiating with the owner for purchase of the property during the notice periods identified in this article as well as any condemnation proceeding commenced.

(f)

In addition to any other times, during the notice periods identified in this article, the city may pursue preservation of the project through negotiation for purchase or through condemnation.

(g)

Owners of federal preservation projects who have decided to sell the federal preservation project shall provide a right of first refusal to the city or its designee, and any such purchase and sale agreement entered into by the owner of federal preservation project shall be contingent upon the right of first refusal of the city or its designee to purchase the federal preservation project. The owner of the federal preservation projects shall provide the contingent sales agreement to the city or its designee upon its execution. Upon receipt of the contingent sales agreement, the city shall have one hundred twenty (120) days to notify the owner of the federal preservation project of its or its designee's intent to purchase the federal preservation project or its intent to facilitate the purchase of the federal preservation project by its designee, an entity willing to preserve the affordability of the housing provided in the federal preservation project. If the city or its designee is willing to purchase the federal preservation project on terms that are economically substantially identical to the terms of the contingent purchase and sale agreement and shall agree to close within one hundred twenty (120) days from the date the city or its designee and the owner sign a purchase and sale agreement, the owner shall sell the federal preservation project to the city or its designee on those terms.

(Ord. No. 757-00, § 1, 9-25-00; Ord. No. 291-05, § 14, 5-2-05; Ord. No. 571-15, § 2, 9-14-15; Ord. No. 1089-18, § 2, 10-22-18)