§ 13-1113. County right of first refusal.

(a)

An owner shall offer the Department the right to buy a multifamily rental facility before selling the rental housing to another party, except as provided under this section.

(b)

An offer required by subsection (a) above must:

(1)

be in writing;

(2)

be sent by certified mail, return receipt requested, within five (5) business days after the execution of a bona fide contract of sale, to the Department;

(3)

include substantially the same terms and conditions as a pending bona fide contract of sale from a third party to buy the multifamily rental facility;

(4)

within seven (7) business days of receipt of the offer, the Department shall make an initial evaluation whether it will exercise its right of first refusal or waiver pursuant to this section and shall notify the owner in writing;

(5)

if the Department determines that it will exercise its right of first refusal the offer shall remain open for sixty (60) days for a multifamily rental facility after it is received for the Department pursuant to this section.

(c)

The owner must give the Department:

(1)

any information about the multifamily rental facility relevant to exercising the right of first refusal, such as architectural and engineering plans and specifications, and operating data; and

(2)

access to the multifamily rental facility to inspect the property and conduct reasonable tests at reasonable times after reasonable notice within forty-five (45) days of the notice of sale under Section 13-1112 of this division.

(d)

The Department may exercise the right of first refusal by accepting the offer within the applicable period under subsection (b)(4) above.

(e)

The owner must sell the multifamily rental facility under the right of first refusal if the acceptance includes substantially the same terms and conditions contained in the owner's bona fide contract of sale with the third party, including any contract term that provides for a bona fide real estate commission payable to an independent broker. Notwithstanding this general requirement or any term of the contract, the Department may condition its acceptance on obtaining financing within one hundred eighty (180) days from the date of the offer.

(f)

The owner and the Department must complete a sale under this subsection within one hundred eighty (180) days after the Department receives the owner's offer unless the owner agrees to extend the 180-day period.

(g)

If the Department does not exercise its right of first refusal within the applicable period under subsection (b)(4) above, the owner may sell the multifamily rental facility to the third party buyer under substantially the same terms and conditions offered to the Department.

(h)

The Department may waive its right to purchase a particular multifamily rental facility or unit, by execution and delivery of an appropriate waiver.

(i)

The Department may accept an offer to buy rental housing in a municipality only if the municipality approves in writing within one hundred eighty (180) days from the date of the offer. The failure of a municipality to provide written approval to the Department within the timeframe above shall be deemed an approval.

(j)

The Department or any entity the County assigned the right of first refusal under Section 13-1119 is not liable for any damages incurred by the owner, a third-party buyer, a tenant, or any other person in connection with a decision to exercise or not exercise a right of first refusal under this division.

(CB-27-2013)

Editor's note

CR-51-2015 allows the County the Right of First Refusal to all areas of the County where the owner of a multi-family rental facility of 20 units or more intends to sell the facility.