§ 41B.6. RIGHT OF FIRST OFFER.

(a) General Construction. This Section 41B.6 shall be construed to confer upon each Qualified Nonprofit a right of first offer with respect to any Multi-Family Residential Building for Sale in the City, as set forth in this Section.

(b) Opportunity for Qualified Nonprofits to Submit Offers. Before the Seller of a Multi-Family Residential Building may offer that Building for Sale to any Purchaser other than a Qualified Nonprofit, or otherwise solicit any offer to Purchase that Building from any Purchaser other than a Qualified Nonprofit, the Seller shall notify each Qualified Nonprofit, via e-mail, of its intent to Sell the Building, and shall provide each Qualified Nonprofit with an opportunity to make an offer to Purchase the Building as set forth in subsections (d)–(f). The Seller shall submit this notification on the same calendar day and, to the extent possible, at the same time, to each of the e-mail addresses included on the Agency’s list of Qualified Nonprofits pursuant to Section 41B.4(b).

(c) Related Disclosures. When the Seller, pursuant to subsection (b), notifies each Qualified Nonprofit, via e-mail, of its intent to sell a Multi-Family Residential Building, the Seller shall also provide each Qualified Nonprofit with the following information:

(1) The number of rental units in the Building;

(2) The address or location of each rental unit; and

(3) The rate of rent due for each unit.

(d) Time for Qualified Nonprofits to Express Interest. No later than 11:59 p.m. on the fifth full calendar day after a Seller has, pursuant to subsection (b), notified each Qualified Nonprofit, via e-mail, of its intent to Sell a Multi-Family Residential Building, each Qualified Nonprofit shall notify the Seller and every other Qualified Nonprofit, via e-mail, as to whether or not the Qualified Nonprofit wishes to further consider whether to make an offer to Purchase the Building. If, after 11:59 p.m. on the fifth full calendar day after a Seller has notified each Qualified Nonprofit of its intent to Sell the Building, no Qualified Nonprofit has notified the Seller that it wishes to further consider whether to make an offer to Purchase the Building, the Seller may immediately proceed to offer the Building for Sale to, and to solicit offers of Purchase from, prospective Purchasers other than Qualified Nonprofits, subject to the right of first refusal set forth in Section 41B.7. If, at or before 11:59 p.m. on the fifth full calendar day after a Seller has notified each Qualified Nonprofit of its intent to Sell the Building, each Qualified Nonprofit has notified the Seller that the Qualified Nonprofit does not wish to further consider whether to make an offer to Purchase the Building, the Seller may likewise immediately offer the Building for Sale to, and solicit offers of Purchase from, prospective Purchasers other than Qualified Nonprofits, subject to the right of first refusal set forth in Section 41B.7.

(e) Additional Disclosures. If, no later than 11:59 p.m. on the fifth full calendar day after a Seller has notified each Qualified Nonprofit of its intent to Sell a Multi-Family Residential Building, any Qualified Nonprofit has, consistent with subsection (d), notified the Seller that the Qualified Nonprofit wishes to further consider whether to make an offer to Purchase the Building, the Seller shall disclose to each such Qualified Nonprofit, via e-mail, the name or names of any tenant or tenants in each rental unit of the Building, as well as any available contact information for each tenant.

(f) Time for Qualified Nonprofits to Make Offer. Upon receipt, via e-mail, of the disclosures described in subsection (e), each such Qualified Nonprofit (that is, each Qualified Nonprofit that has, consistent with subsection (d), notified the Seller that the Qualified Nonprofit wishes to further consider whether to make an offer to Purchase the Building) shall have 25 additional calendar days to decide whether to make an offer to Purchase the Building, and to submit any such offer to the Seller. Any such offer of Purchase shall be presumed to be contingent upon the Qualified Nonprofit’s ability to conduct due diligence and secure financing in a manner consistent with subsection (g), unless the Seller and the Qualified Nonprofit expressly agree otherwise in writing.

(g) Seller Free to Accept or Reject Offer. The Seller is free to accept or reject any offer of Purchase submitted by a Qualified Nonprofit under subsection (e). Any such acceptance or rejection shall be communicated in writing. If the Seller rejects all such offers of Purchase, or if the 25-day period described in subsection (e) has elapsed and no Qualified Nonprofit has submitted an offer of Purchase, the Seller may immediately offer the Building for Sale to, and solicit offers of Purchase from, prospective Purchasers other than Qualified Nonprofits, subject to the right of first refusal set forth in Section 41B.7.

(h) Seller’s Acceptance of Offer. If the Seller accepts an offer of Purchase submitted by a Qualified Nonprofit, the Qualified Nonprofit shall have 60 days to conduct due diligence and secure financing related to the Purchase, unless the Seller and the Qualified Nonprofit have expressly agreed otherwise in writing. At the end of this 60-day period (or any other period to which the Seller and the Qualified Nonprofit have expressly agreed in writing), the Seller shall proceed to Sell the Multi-Family Residential Building to the Qualified Nonprofit in a manner consistent with the Qualified Nonprofit’s offer of Purchase.

(Added by Ord. , File No. 181212, App. 5/3/2019, Eff. 6/3/2019)