Effective Date: August 7th, 2024
Key points:
Right of First Refusal (ROFR): Local governments are granted the right to match any third-party offer to purchase existing affordable housing properties with five or more units. This right enables local authorities to acquire such properties to maintain or convert them into long-term affordable housing.
Right of First Offer (ROFO): For multifamily properties aged 30 years or older, comprising between 15 and 100 units, local governments have the right to make the first purchase offer before these properties are listed for sale. This provision aims to facilitate the preservation or development of affordable housing or mixed-income projects.
Notification Requirements: Property owners intending to sell must notify local governments and the Colorado Housing and Finance Authority (CHFA) at least two years and again six months before the expiration of existing affordability restrictions. This ensures local governments are informed and can exercise their rights in a timely manner.
Assignment and Partnerships: Local governments may assign their ROFR or ROFO to housing authorities or the CHFA. They can also collaborate with nonprofit, private, or other governmental entities to finance, lease, or manage properties acquired under these rights, provided the properties are maintained as long-term affordable housing.
Enforcement and Penalties: The Attorney General's office, local governments, or their assignees have the authority to enforce these provisions. Courts may impose penalties ranging from $10,000 to $100,000 for violations, depending on the severity and recurrence of the offense.
This legislation aims to empower local governments to proactively preserve and expand affordable housing options within their communities
