§ 41B.9. INCENTIVES.

(a) Access to Buyers. The Agency shall endeavor to maintain and publicize the list of Qualified Nonprofits described in Section 41B.4 in a manner that, to the maximum extent feasible, promotes the existence of the Qualified Nonprofits as a readily accessible pool of potential buyers for Multi-Family Residential Buildings. The Agency shall, to the maximum extent permitted by law and otherwise feasible, publicize the existence of this list in a manner intended to facilitate voluntary sales to Qualified Nonprofits in a manner that avoids or minimizes the need for a broker, other search costs, or other transaction costs.

(b) Partial City Transfer-Tax Exemption. As set forth in Section 1108.6 of the Business and Tax Regulations Code, the increased tax rate imposed by subsections (d), (e), and (f) of Business and Tax Regulations Code Section 1102 shall not apply with respect to any deed, instrument or writing that effects a transfer under Section 41B.6 of this Administrative Code, as Administrative Code Section 41B.6 exists as of the effective date of the ordinance in Board File No. 181212.

(c) Potential Federal Tax Benefits. Any Qualified Nonprofit that Purchases a Multi-Family Residential Building under the right of first offer set forth in Section 41B.6 shall, to the maximum extent permitted by law and otherwise feasible, be obliged to work with the Seller in good faith to facilitate an exchange of real property of the kind described in 26 U.S.C. § 1031, for the purpose of facilitating the Seller’s realization of any federal tax benefits available under that section of the Internal Revenue Code.

(d) Information to Sellers. The Agency shall produce an information sheet describing the benefits of a Seller’s decision to accept a Qualified Nonprofit’s offer of Purchase made in connection with the right of first offer set forth in Section 41B.6. The information sheet shall further explain that, even if a Seller does not accept a Qualified Nonprofit’s offer to Purchase a Multi-Family Residential Building pursuant to the right of first offer set forth in Section 41B.6, the Building will still be subject to the right of first refusal set forth in Section 41B.7. The information sheet shall contain a field in which the Seller may acknowledge, in writing, that the Seller (or the Seller’s authorized representative) has read and understood the information sheet. A Qualified Nonprofit that makes an offer to Purchase a Multi-Family Residential Building under the right of first offer set forth in Section 41B.6 shall include a copy of, or link to, this information sheet with that offer of Purchase, but any failure to comply with this Section 41B.9(d) shall have no effect on a Qualified Nonprofit’s exercise of the right of first offer set forth in Section 41B.6.

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