Chapter 04. Owner's Offer of Right of First Purchase
Regulation .01 Registration.LinkCopy Citation
A.
The following entities may register with the Secretary at any time, including after a notice of intent and owner’s offer of right of first purchase have been sent to the Secretary, to receive owners’ offers of first purchase by sending a written request to the Secretary:
(1)
Any legally organized tenant association or other group representing any of the tenants at any assisted project;
(2)
Any nonprofit developer; and
(3)
Any other developer unrelated to the owner and experienced in the ownership or operation of low income housing projects.
B.
On receipt of an owner’s offer of right of first purchase, the Director shall provide the owner with a list of all entities registered under this regulation.
C.
Not later than 10 days after the owner receives the list of entities registered to receive a copy of the offer, the owner shall send by certified mail, return receipt requested, the owner’s offer to any person or entity on the registration list.
Regulation .02 Acceptance of Owner’s Offer of Right of First Purchase.LinkCopy Citation
A.
The acceptance of an owner’s offer of a right of first purchase is governed by §§7-204—7-211 of the Act and this regulation.
B.
In determining which party’s acceptance will most benefit the assisted households, the Secretary shall consider the following factors as applicable to each prospective purchaser:
(1)
The duration of the low income rental restrictions for the project following the purchase;
(2)
The number of units to receive or continue to receive, project-based rental assistance or other subsidies, under the prospective purchaser’s ownership of the project;
(3)
Projected tenant rents for a period of at least 5 years under the prospective purchaser’s ownership;
(4)
Tenant ownership and operation or ownership and operation by a nonprofit developer, local government, or local housing authority;
(5)
The experience and expertise of the purchasers in the ownership and operation of low income residential rental property;
(6)
The economic feasibility of the project following purchase;
(7)
The type, nature, and extent of any proposed physical improvements to the project;
(8)
The extent of any tenant services proposed by the prospective purchaser;
(9)
The extent to which the proposed ownership would minimize financial hardship and displacement to the tenants; or
(10)
Any other relevant factor, including the preferences of the tenants, as determined by the Secretary.
Regulation .03 Withdrawal of an Acceptance.LinkCopy Citation
A.
The original party which accepts or is authorized to accept an offer of the right of first purchase by the Secretary may withdraw its acceptance by a written notice to the owner, with a copy to the Department.
B.
The party withdrawing its acceptance will forfeit the first $10,000 of its deposit, unless any remaining party submits an acceptance of the owner’s offer.
C.
In the event of a withdrawal, the owner, within 3 days of receipt of the notice of withdrawal shall notify in writing:
(1)
All other parties who received a notice of a right of first purchase;
(2)
All parties who submitted an acceptance; and
(3)
The Department.
D.
The withdrawal notice shall specify the terms of the owner’s offer and the rights of the parties receiving notice to submit an acceptance in accordance with the timeframes in the Act.
Chapter annotations
Authority: Housing and Community Development Article, §§7-101—7-501, Annotated Code of Maryland
History: Effective date: April 18, 2011 (38:8 Md. R. 505)