A. Owners of federal preservation projects must provide SHRA and each affected tenant household residing in the affected federal preservation project with a one year's notice, in such form as required by the SHRA, of an anticipated prepayment, termination of a subsidy contract or termination of rental restrictions. SHRA will notify each owner of federal preservation projects within the city of this notice requirement. In addition, enclosed with the notice required by this subsection, each owner shall provide SHRA with the current rent roll, and a statement of the current income and operating expenses of the federal preservation project. SHRA shall provide a copy of all notices received pursuant to this section to the Board of the Sacramento Housing and Redevelopment Agency, in such form and on such terms as directed by the board.
B. Owners of federal preservation projects who have decided to prepay, "opt out," fail to renew the existing federal subsidy or otherwise terminate the existing use restrictions applicable to the project without substitution of substantially similar use restrictions must provide to the SHRA a notice, in such form as required by the SHRA, of one hundred eighty (180) days of intent to do so. The notice shall specify, among other matters as directed by the SHRA, the following:
1. The nature of the subsidy maintaining the affordability of the project;
2. Whether the owner intends to withdraw the property from the Section 8 program;
3. Whether the owner intends to convert the participating property to a nonparticipating use; and
4. Whether the owner is involved in negotiations regarding an extension of an expiring contract. SHRA shall provide a copy of all notices received pursuant to this section to the Board of the Sacramento Housing and Redevelopment Agency, in such form and on such terms as directed by the Board.
C. Owners of federal preservation projects who have decided to prepay, "opt out," fail to renew the existing federal subsidy or otherwise seek to terminate the existing use restrictions applicable to the project without substitution of substantially similar use restrictions must consent to reasonable inspection of the property and inspection of the owner reports on file with HUD or the state. These inspections are designed to facilitate the SHRA's ability to assess the fair market value of the property and evaluate status of the tenants, viability of transfer and/or continuation of a Section 8 agreement with HUD and other pertinent information.
D. To the extent allowed by HUD, owners of federal preservation projects with a project based section 8 contract, must maintain an available HUD Section 8 contract in good standing during the notice periods identified in this chapter.
E. Owners of federal preservation projects must refrain from taking any action, other than notifying HUD of the owner's intention to not renew the contract, that would preclude the SHRA or other potential purchaser of the project from succeeding to the contract or negotiating with the owner for purchase of the property during the notice periods identified in this chapter.
F. In addition to any other times, during the notice periods identified in this chapter, the SHRA may pursue preservation of federal preservation projects through negotiation for purchase. To facilitate this process, SHRA shall analyze the feasibility of acquiring each federal preservation project that is the subject of a notice filed pursuant to this chapter and provide that analysis to the Board of the Sacramento Housing and Redevelopment Agency for its consideration. (Ord. 2004-043 § 1)