§ 34-45-7 — § 34-45-7. Opportunity to purchase.

§ 34-45-7. Opportunity to purchase.

No owner shall:

(1) Sell, lease, or otherwise dispose of, or prepay any obligation secured by, a federally insured or assisted development in a manner which would result in either:

(i) A discontinuance of the use of the development as a federally insured or assisted housing development or a development that was federally insured or assisted within the preceding two year period, or

(ii) Cause the termination of any use restrictions which apply to the development, or

(2) Record a declaration of condominium, pursuant to chapter 36.1 of this title, with respect to all or any portion of a federally insured or assisted development, or

(3) Terminate any contract subject to the provisions of § 34-45-5 of this chapter unless he or she shall have first provided each of the persons and entities listed below an opportunity to purchase the development at a price and upon terms which represent a bona fide offer to sell, in compliance with the provisions of § 34-45-8. The persons and entities to whom such an opportunity to purchase shall be provided are:

(i) The tenant association of the development,

(ii) The corporation,

(iii) The housing authority of the city or town in which the development is located, and

(iv) The municipal government of the city or town in which the development is located.

Legislative History

P.L. 1988, ch. 508, § 1; P.L. 1989, ch. 493, §§ 1, 4; P.L. 2006, ch. 267, § 1; P.L. 2006, ch. 295, § 1.