§ 456.814 — Offers by qualified purchasers; right of first refusal; recording

Oregon § 456.814

• Jurisdiction: Oregon
• Vol.: 13
• Title 36A: Housing; Lottery and Games; Environment
• Ch. 456: Housing

Text

(1) After the owner of a participating property has delivered the notice under ORS 456.781 (1) or 30 months prior to the date when the contract term would expire as described in ORS 456.781 (1)(a), whichever is earlier, the Housing and Community Services Department may appoint a designee to act as purchaser of the participating property. The appointment becomes effective upon the department delivering to the property owner notice of the appointment of a designee. The department must consult with each local government where the property is located before appointing a designee under this subsection. The department shall enter into a written agreement with the appointed designee requiring that the designee and any of the designee’s successors or assigns:
(a) Agree to preserve the affordability of the participating property; and
(b) Assume all rights and responsibilities attributable to the department as a prospective purchaser of the participating property.
(2) No later than 60 days prior to the termination date, a qualified purchaser may deliver by certified mail, with return receipt requested, an offer to the property owner to purchase the participating property, which includes a notice that the qualified purchaser may record a notice of right of first refusal under subsection (3) of this section. A property owner is under no obligation to accept an offer made under this subsection.
(3) No earlier than 14 days after delivery of the offer under subsection (2) of this section and no later than the termination date, a qualified purchaser may record in the real property records of the county a notice of right of first refusal in a form prepared by the department that:
(a) Includes a legal description of the participating property;
(b) Attaches a copy of the notice delivered with the offer and proof of mailing of the notice as required by subsection (2) of this section;
(c) Declares that the department or local government party acknowledging the instrument holds the right of first refusal to purchase the property under ORS 456.819 and that the acknowledging party may assign the right of first refusal to a qualified purchaser and that right may be, from time to time, reassigned;
(d) Declares that the right of first refusal shall expire 36 months after the termination date;
(e) Declares that a copy of the recorded notice of right of first refusal must be promptly delivered to the property owner by the qualified purchaser offering the instrument for recording; and
(f) Is executed and acknowledged by an authorized representative of the local government or department in the manner provided for the acknowledgment of deeds.
(4) The property owner may not withdraw the participating property from publicly supported housing and terminate the affordability restrictions until the termination date, which may not be sooner than the latest of the date:
(a) Thirty months following the owner’s delivery of all notices required under ORS 456.788 (3) and (4);
(b) Twenty-four months following the owner’s delivery of all notices required under ORS 456.781 (2);
(c) Thirty months following the owner’s delivery of all notices required under ORS 456.781 (1); or
(d) Upon which all affordability restriction periods set forth in any contract expire.
(5) At any time after the notice described in ORS 456.781 (1) has been delivered, within 30 days of the request from a qualified purchaser, the property owner shall make available documents that are relevant to the participating property at the property owner’s principal place of business or at a commercial photocopying facility.
(6)(a) Notwithstanding the provisions of ORS 192.311 to 192.478 relating to public records, the documents provided by the property owner to a qualified purchaser under subsection (5) of this section are confidential and exempt from public inspection except with the written consent of the property owner or as ordered by a court.
(b) Notwithstanding paragraph (a) of this subsection, disclosure may be made to potential funding sources, regulatory agencies or agents or consultants of a qualified purchaser in connection with a transaction between the property owner and a qualified purchaser under this section, subject to appropriate confidentiality agreements.
(7) The department may record a notice of right of first refusal as described in subsection (3) of this section without delivering an offer if:
(a) No qualified purchaser has recorded a right of first refusal 60 days prior to the termination date;
(b) The department has given written notice to the owner 14 days in advance; and
(c) The notice of right of first refusal is recorded prior to the termination date.

Legislative History

Formerly 456.262