As used in this part 12, unless the context otherwise
requires:
(1) Affordable housing financial assistance means loans, grants, equity,
bonds, or tax credits provided to a multifamily rental property from any source to
support the creation, preservation, or rehabilitation of affordable housing that, as a
condition of funding, encumbers the property with a restricted use covenant or
similar recorded agreement to ensure affordability.
(2) Applicable qualifying property means either qualifying property as
defined in section 29-4-1202 (1), or qualifying property as defined in section 29-4-1203 (1).
(3) Applicable right means either a local government's right of first refusal,
as set forth in section 29-4-1202, or right of first offer, as set forth in section 29-4-1203.
(4) Area median income means the median income of the county in which a
qualifying property is located in relation to household size, as established annually
by the United States department of housing and urban development.
(5) Colorado housing and finance authority means the Colorado housing
and finance authority created in section 29-4-704 (1).
(6) Existing affordable housing means housing that is subject to one or
more restricted use covenants or similar recorded agreements to ensure
affordability and that is consistent with affordable housing financial assistance
requirements. Existing affordable housing does not include properties for which
all restricted use covenants or affordability requirements have expired as of June 1,
2024.
(7) Local government means:
(a) A city, city and county, or town if the applicable qualifying property is
located within the incorporated area of a city, a city and county, or a town; and
(b) A county if the applicable qualifying property is located within the
unincorporated area of a county.
(8) Local or regional housing authority means a housing authority created
pursuant to section 29-4-204 (1), 29-4-306 (1), 29-4-402, or 29-4-503 (1).
(9) (a) Long-term affordable housing means housing for which the local
government ensures that affordability levels at an applicable qualifying property
are on average equal to or greater than preexisting levels at the applicable
qualifying property and that the average annual rents at the applicable qualifying
property do not exceed the rent for households of a given size at a given area
median income, as established annually by the United States department of
housing and urban development, for a minimum of forty years, and for which the
local government agrees not to raise rent for any unit in the applicable qualifying
property by more than the rent increase cap; except that the rent increase cap does
not apply to units of housing that are subject to rent or income limits established
pursuant to local, state, federal, or political subdivision affordable housing program
guidelines.
(b) Nothing in this subsection (9) prevents a local government from providing
affordability requirements beyond forty years or for units to be affordable to
renters with incomes below existing affordability levels, in which case the local
government's requirements apply for purposes of the definition of long-term
affordable housing as set forth in subsection (9)(a) of this section.
(10) (a) Matched offer means an offer of purchase for a qualifying property,
as defined in section 29-4-1202 (1), for a price and with other material terms and
conditions that are at least as favorable to those in an arm's-length, third-party
offer that a residential seller has received and is willing to accept for the sale of the
qualifying property; except that, to the extent that there are any provisions in the
arm's-length, third- party offer that the local government is prohibited by law from
contracting for, the local government is not required to include such provisions in
its offer for its offer to be a matched offer.
(b) Matched offer also means, in the absence of an arm's-length, third-party offer, an offer of purchase for a qualifying property, as defined in section 29-4-1202 (1), for a price and with other material terms and conditions comparable to
those for which the residential seller would sell, and a willing buyer would
purchase, the qualifying property.
(11) Material terms and conditions means, generally, significant terms and
conditions of a contract such as sale price, earnest money, representations,
warranties, property description, and performance under the contract and, if a
residential seller has received an offer from a third-party buyer that is entirely a
cash offer for the third-party to purchase the qualifying property, the local
government, in accordance with section 29-4-1202 (5)(a)(II), must agree to close on
the qualifying property within the same time period as set forth in the third-party
buyer's offer for purposes of a matched offer. Material terms and conditions
excludes, but is not limited to excluding, the type of financing or payment method
or the period for closing.
(12) Mixed-income project means an affordable housing development in
which a percentage of units have restricted availability to households at or below
given area median income levels, proportional to the demonstrated housing needs
of the local community. The percentage of income restricted units and affordability
levels must comply with laws enacted by local governments promoting the
development of new affordable housing units pursuant to section 29-20-104 (1).
(13) Rent increase cap means a percentage of the current annual rent for
an applicable qualifying property that is equal to the greater of:
(a) The average annual percentage change for the previous twelve months at
the time of the calculation in the United States department of labor's bureau of
labor statistics consumer price index for Denver-Aurora-Lakewood for all items and
all urban consumers, or its successor index; or
(b) Three percentage points.
(14) Residential seller means the fee simple owner of an applicable
qualifying property. If there is more than one fee simple owner of an applicable
qualifying property, each fee simple owner is referred to in this part 12 jointly and
severally as the residential seller.