SF 3467

Introduction - 81st Legislature (1999 - 2000)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to housing; requiring owners of certain 
  1.3             rental housing to provide notice in the event of a 
  1.4             sale or transfer of the housing; providing a right of 
  1.5             first refusal to certain parties; proposing coding for 
  1.6             new law in Minnesota Statutes, chapter 471. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [471.9998] [NOTICE OF INTENT TO SELL; RIGHT OF 
  1.9   FIRST REFUSAL.] 
  1.10     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  1.11  section, the following terms have the meanings given: 
  1.12     (1) "owner" has the meaning given in section 566.18, 
  1.13  subdivision 3. 
  1.14     (2) "tenant" has the meaning given in section 566.18, 
  1.15  subdivision 2. 
  1.16     (3) "assisted housing" means federally assisted rental 
  1.17  housing. 
  1.18     (4) "agency" means the Minnesota housing finance agency. 
  1.19     (5) "eligible entity" means a: 
  1.20     (i) nonprofit housing organization that has registered with 
  1.21  the agency to receive notices under this section; or 
  1.22     (ii) local government unit, or an agency thereof, in which 
  1.23  the assisted housing property is located. 
  1.24     Subd. 2.  [NOTICE.] (a) The owner of assisted housing must 
  1.25  not sell or transfer title to the housing unless the owner gives 
  1.26  notice to the tenants of the housing, the agency, and the 
  2.1   governing body of the government unit in which the housing is 
  2.2   located. 
  2.3      (b) This notice must be made at least 60 days prior to the 
  2.4   sale or transfer of the housing. 
  2.5      (c) Upon receiving notice from the owner, the agency must 
  2.6   give notice to nonprofit housing organizations that have 
  2.7   registered with the agency for the purpose of receiving notices 
  2.8   under this section. 
  2.9      Subd. 3.  [RIGHT OF FIRST REFUSAL.] (a) An eligible entity 
  2.10  has the right of first refusal to buy or produce a buyer for the 
  2.11  property at its current appraised value, or, if the owner has 
  2.12  received a bona fide written offer to purchase the property, to 
  2.13  match the offer so that the property will be maintained as 
  2.14  assisted housing for the current tenants and future low-income 
  2.15  families. 
  2.16     (b) An eligible entity holds the right of first refusal for 
  2.17  60 days from the receipt of notice by the agency.  An eligible 
  2.18  entity may, within this 60-day period, give notice to the owner 
  2.19  that it intends to exercise its right of first refusal and upon 
  2.20  doing so, has an additional 60 days to buy or produce a buyer 
  2.21  for the property.  The eligible entity and the owner, upon 
  2.22  mutual agreement, may further extend the time period to buy or 
  2.23  produce a buyer for the property. 
  2.24     (c) If an owner receives more than one offer from an 
  2.25  eligible entity under this section, the owner may choose which 
  2.26  offer to accept.  
  2.27     (d) Failure of an eligible entity to respond to the owner's 
  2.28  notice of intent to sell within 60 days constitutes a waiver of 
  2.29  the right of first refusal. 
  2.30     Subd. 4.  [LIMITATIONS; EXCEPTIONS.] (a) Nothing in this 
  2.31  section prohibits an owner from deciding not to sell or transfer 
  2.32  title to the housing and revoking the notice required by this 
  2.33  section.  The decision not to sell or transfer and the 
  2.34  revocation of notice terminates any right of first refusal. 
  2.35     (b) This section does not apply if a bona fide purchaser, 
  2.36  by contract with the seller, agrees to maintain the property as 
  3.1   assisted housing for at least 30 years. 
  3.2      (c) This section does not apply to a transfer of the 
  3.3   property by gift, devise, or operation of laws.