Committee Approves Bill to Preserve Affordable Housing Stock
HB24-1175 would give local governments the right of first refusal to buy existing affordable housing when a building or complex is up for sale
DENVER, CO – Today the Senate Local Government and Housing Committee advanced legislation to give local governments the right of first refusal to purchase existing subsidized housing and preserve Colorado’s limited affordable housing stock.
Sponsored by Senators Faith Winter, D-Broomfield, and Sonya Jaquez Lewis, D-Longmont, HB24-1175 would also give local governments the right to make the first offer to purchase other multifamily properties with 15 to 100 units that are more than 30 years old, before the property is listed for sale to other parties.
“Whether it’s Broomfield or Berthoud, housing is a top concern for Coloradans,” Winter said. “This year, we’re tackling Colorado’s housing crisis from all angles. By giving local governments an additional tool to preserve affordable housing stock, Coloradans will be better positioned to find housing options that fit their budget.”
“Colorado is in the midst of a housing crisis and we must do everything we can to help renters and homeowners,” said Jaquez Lewis. “By giving local governments the chance to make the first offer and create new affordable housing stock, we can ensure more Coloradans – especially lower income families – have an affordable place they can call home.”
The right of first refusal would give local governments the right to purchase a multi-family residential or mixed-use rental property with at least five units, for existing affordable housing, if they match any offers that the seller receives and continue to use the property for long-term affordable housing.
For other multifamily properties, the bill gives local governments the right of first offer before the property is listed for sale. If interested, the local government must respond within seven days and may request additional information, with the seller having five days to comply and the local government another 14 days to make an offer. Accepted offers would lead to a 30-day negotiation period and a 60-day closing period. The right of first offer terminates on December 31st, 2029.
HB24-1175 now moves to the Senate floor for further consideration. Track the bill’s progress HERE.