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DENVER, CO - The House Transportation, Housing, & Local Government Committee today passed legislation to give local governments the right of first refusal and right of first offer to preserve Colorado’s affordable housing opportunities.
“Colorado Democrats are working to save Coloradans money on housing and address Colorado’s housing crisis not only by building more housing but also by maintaining affordable housing units that already exist and have benefitted from public investment,” said Rep. Andrew Boesenecker, D-Fort Collins. “Many Coloradans are struggling to keep up with rising housing costs, and losing affordable housing in the rental market only makes it more difficult for hardworking people to find a place to live. This bill is an important tool for local governments so they can preserve housing Coloradans can afford in our communities while ensuring sellers receive fair compensation for the sale of their property.”
“With rental rates increasing much faster than income, the right of first refusal is crucial in protecting housing options that work for every Coloradan’s budget,” said Rep. Emily Sirota, D-Denver. “Our bill gives local governments the opportunity to buy affordable housing properties before private companies and hedge funds grab them, so we can prevent corporate greed from pricing Coloradans out of their communities and displacing our neighbors.”
HB24-1175, which passed by a vote of 8-3, would give local governments a right of first offer and a right of first refusal to preserve long-term affordable housing opportunities.
The right of first offer gives local governments the right to make an offer to purchase a qualifying multi-family rental property before the property is listed for sale to other parties. In urban counties, a property qualifies under this bill if it is an existing affordable housing multi-family residential or mixed-use rental property with more than five and less than 100 units. In rural or rural resort counties, a property qualifies under this bill if it is an existing affordable housing property and has more than three and fewer than 100 units. Certain transactions of qualifying properties are exempt, and the right of first offer terminates on December 31, 2029.
The right of first refusal gives local governments the right to purchase a multi-family residential or mixed-use rental property that is existing affordable housing if they match any offers that the seller receives and continue to use the property for long-term affordable housing.