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2019.10.08 WS Packet
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2019.10.08 WS Packet
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6 <br /> <br />San Francisco5 have right of first refusal ordinances covering subsidized properties; Washington, <br />D.C. provides for a City OTP like that described below;6 and Portland,7 Denver,8 and San <br />Francisco 9 require notice prior to loss of affordability of federally or locally subsidized projects. <br />City and resident rights are typically triggered in these statutes by a Section 8 opt out notice or <br />loss of affordability in the case of local subsidies. Periods in which to exercise ROFR or OTP <br />rights typically run from 60 to 120 days. Notice statues generally require a one year notice for <br />loss of Section 8 housing, matching the federal opt out notice requirement. <br /> <br />A number of states also have ROFR or OTP rights with respect to subsidized properties 10 <br />and many states have notice requirements, generally matching the federal requirements. <br />Minnesota has a one year notice requirement for Section 8 owners who intend to opt out.11 <br />Preemption by federal preservation statutes is a concern if state or local statues conflict with <br />federal laws, and the Minnesota statue was held preempted as it applied to Section 236 <br />prepayments.12 <br /> <br />Manufactured home park preservation laws. Several states have ROFR or OTP <br />statues aimed at allowing non-profit or cooperative purchase of manufactured home parks and/or <br />preventing them from closing. See, “Promoting Resident Ownership of Communities,” for a <br />good description of how ROFR and OTP laws work, where they’re in effect, and for a model <br />ROFR/OTP statute.13 Minnesota has a ROFR law aimed at preserving manufactured home parks <br /> <br />5 S.F., CAL., ADMINISTRATIVE CODE §§ 60.1-60.14. The ordinance is somewhere between a <br />ROFR and OTP law. Section 60.8(d) provides that an owner who has notified the city of the <br />intent to opt out must also provide a notice of intent to sell and then must accept an offer from a <br />qualified buyer proposing “commercially reasonable” terms and a price defined by the <br />ordinance. That’s not exactly a ROFR because there is not an existing offer to match. Further, <br />§ 60.8(j) provides that if the owner accepts, the parties must negotiate a purchase agreement, and <br />§ 60.8(k) indicates that the owner need not close the deal if good faith negotiations do not <br />produce an agreement. <br />6 D.C., CODE § 42-2851.04 (2018). <br />7 PORTLAND, OR., CITY CODE & CHARTER §§ 30.01.010-30.01.80 (requiring notice to City and <br />residents before Section 8 opt out or to City before loss of City subsidy rent restrictions). <br />8 DENVER, COLO., REV. MUNICIPAL CODE §§ 27-45 to 27-52 requires notice to City and residents <br />of section 8 opt outs or loss of affordability in locally subsidized projects. <br />9 S.F., CAL., ADMINISTRATIVE CODE §§ 60.5, 60.9. <br />10 See 310 ILL. COMP. STAT. 60/; MD. CODE ANN., HOUS. & CMTY DEV. tit. 7; CAL. GOV’T CODE, <br />tit. 7, §§ 65863.10-.11; ME. REV. STAT. tit. 30-A, §§ 4972-73; 34 R.I. GEN. LAWS § 34-45-4. <br />11 MINN. STAT. § 504B.255. <br />12 In Forest Park II v. Hadley, 336 F.3d 724 (8th Cir. 2003), the Court held that this statute was <br />preempted by federal law as it related to termination of Section 236 contracts, for which federal <br />law required only a shorter notice period. The statute continues to apply to Sec. 8 opt outs. <br />See, Mother Zion Tenant Ass’n v. Donovan, 865 N.Y.S.2d 64 (N.Y. App. Div. 2008), holding a <br />New York City right to purchase law preempted by federal statutes governing Section 8 opt outs. <br />13 2015 by the National Consumer Law Center, available at: <br />https://www.nclc.org/images/pdf/manufactured_housing/cfed-purchase_guide.pdf
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