A. Qualified Entities. SHRA shall develop and maintain a list of qualified entities. Persons or entities may request placement on the list of qualified entities by submitting a written application in such form as may be determined by SHRA, and by demonstrating therein compliance with the following criteria:
1. A history of providing safe and sanitary affordable housing services;
2. Sufficient capacity to provide additional affordable housing services in the city of Sacramento, demonstrated through the adequacy of current fiscal and administrative resources;
3. History of encouraging and facilitating resident participation while providing affordable housing services;
4. History of sound fiscal management of affordable housing services;
5. Adoption of, and compliance with, standards of financial accountability that conform to applicable state and/or federal law.
B. Right of First Refusal.
1. During the one hundred eighty (180) days following the notice required pursuant to Section 5.148.050(A), an owner may not sell, or solicit or accept any offer to sell a federal preservation project to any person or entity other than a qualified entity.
2. During the one hundred eighty (180) day period following the notice required pursuant to 5.148.050(B), an owner may not sell a federal preservation project to any person or entity other than a qualified entity, without having complied with the provisions of this section.
a. During the one hundred eighty (180) day period specified in subsection 5.148.070(B)(2), an owner may negotiate with any potential purchaser. Any agreement of sale with any person or entity other than a qualified entity during the one hundred eighty (180) day period specified in subsection 5.148.070(B)(2), shall be contingent upon the right of first refusal provided in this subsection. Once an owner executes a contingent sales agreement, the owner shall immediately provide a written copy thereof to SHRA.
b. Upon receipt of a contingent sales agreement pursuant to subsection 5.148.070(B)(2)(a), SHRA shall immediately make it available to qualified entities for their review and consideration. The contingent sales agreement shall be a public record.
c. If, within sixty (60) days after the date that SHRA received a contingent sales agreement from an owner pursuant to subsection 5.148.070(B)(2)(a), a qualified entity offers to purchase the federal preservation project from the owner on terms that are economically substantially identical to the terms of that contingent sales agreement, the owner shall sell the federal preservation project to the qualified entity upon those terms. If more than one qualified entity submits a conforming offer to purchase the federal preservation project the owner must select from among the offers and must sell pursuant to the terms of the selected offer. Notwithstanding any other provision of this code, no owner shall be compelled to extend any form of owner financing to a qualified entity.
d. If, after sixty (60) days have elapsed from the date that SHRA received a contingent sales agreement from the owner pursuant to subsection 5.148.070(B)(2)(a), no conforming offer to purchase by a qualified entity has been received, the owner may sell the federal preservation project pursuant to the terms of the contingent sales agreement. Any substantial deviation in the terms of the sale from those of the contingent sales agreement, shall require the resubmission of the new terms of sale to SHRA pursuant to subsection 5.148.070(B)(2)(a). A substantial deviation shall include, but not be limited to, any substitution of parties to the agreement, any change in sales price of greater than two percent, any change in the terms of any owner financing, any change in the allocation of escrow or other fees or costs amongst the parties or any other substantive change to the terms of sale that alters the relative financial positions of the parties. (Ord. 2004-043 § 1)