(1) (A) The owner may choose to:
(i) provide to the Department of Housing by first class mail, and to the residents of the SRO by hand delivery and first class mail, at least 180 days’ notice of the proposed sale or transfer of the property;
(ii) allow 180 days following the date of notice for a buyer intending to maintain affordable housing at the location, including, but not limited to, current residents and their representatives, to tender an offer to purchase the property; and
(iii) upon receiving such offer, engage in good-faith negotiations, during the remaining portion of the 180-day period described in subsection 5-15-050(a)(1)(A)(ii), as well as any extension of time beyond that 180-day period agreed to by the owner and the offering party, toward a purchase and sale agreement with the offering party.
(B) If the owner accepts an offer tendered and negotiated in the manner described in subsection 5-15-050(a)(1)(A), then the owner shall include in the purchase and sale agreement a clause whereby the purchaser agrees to maintain the property, for a period of not less than 15 years, as subsidized or unsubsidized affordable housing for very low-income individuals and families; provided, however, that for each unit the purchaser agrees to maintain as subsidized or unsubsidized affordable housing for extremely low- income individuals and families, the purchaser may set aside one unit as subsidized or unsubsidized affordable housing for low-income individuals and families. However, any unit that is subsidized such that the resident's portion of the rent constitutes not more than 30 percent of his adjusted gross monthly household income that falls under this subsection 5-15-050(a)(1)(B) may be rented to a low-income individual or family. Each purchase and sale agreement shall provide for the sale to be completed within one year. The closing on any sale that falls under this subsection may be extended beyond one year on agreement of the parties, provided they are diligently and actively pursuing all necessary governmental approvals and those approvals have not been subject to a final denial by the relevant governmental entity.
(C) If the owner receives an offer and meets the requirement of negotiating in good faith, as described in subsections 5-15-050(a)(1)(A)(ii) and (iii), but does not reach a purchase and sale agreement with the offering party, then the owner shall have a period of 120 days following the expiration of the 180-day notice period described in subsection 5-15-050(a)(1)(A)(i) within which to enter into a purchase and sale agreement to sell or transfer the property to any other party. The purchase and sale agreement shall provide for the sale to be completed within one year. The closing on any sale that falls under this subsection 5-15-050(a)(1)(C) may be extended beyond one year on agreement of the parties, provided they are diligently and actively, pursuing all necessary governmental approvals and those approvals have not been subject to a final denial by the relevant governmental entity. Each owner subject to this subsection shall be required to fulfill the resident relocation, requirements described in subsection 5-15-060(b), but shall not be required to pay the preservation fee described in subsection 5-15-050(a)(2). Beginning on the 121st day following the expiration of the 180-day notice period described in subsection 5-15-050(a)(1)(A)(i), the owner shall not sell or otherwise transfer the property without repeating the process described in subsection 5-15-050(a)(1)(A).
(2) An owner shall not be subject to any of the requirements described in subsection 5-15-050(a)(1) if he remits to the City, before selling or otherwise transferring his property, a preservation fee in the amount of the number of units at the property times $20,000.00 (as adjusted pursuant to Section 5-15-030).
(b) An SRO for which plans, and applications for all required permits, were filed on or before June 25, 2014, where said plans call for modifications that will bring the SRO under the definition of "newly constructed" set out in Section 13-206-020 of the Municipal Code in effect on that date, shall be exempt from the requirements described in subsection 5-15-050(a), as well those described in Sections 5-15-060 through 5-15-090, for a period of 15 years from that date. However, this exemption does not relieve an SRO owner of his responsibilities under Sections 5-15-060 through 5-15-090 insofar as those responsibilities extend to individuals or families residing in subsidized or unsubsidized units at the property that are affordable for low-, very low-, or extremely low-income households.
(Added Coun. J. 11-12-14, p. 97375, § 2; Amend Coun. J. 11-14-18, p. 90308, Art. I, § 33; Amend Coun. J. 4-10-19, p. 100029, Art. II, § 85)