When apartment buildings go up for sale, local governments often struggle to compete with private equity firms and hedge funds in the bidding process. Without a seat at the table, investors continue to win bids to buy properties – hiking up the cost of living and exacerbating the housing crisis in Colorado.
A bill introduced in the state legislature (House Bill 23-1190) is trying to change that. The “Right of First Refusal” bill allows state or local government agencies to be competitive with for-profit developers in the purchase of multifamily properties in order to preserve or create affordable housing in Colorado. The bill gives local governments and housing authorities the opportunity to match the sale price to prevent affordable housing from being converted into market-rate housing.
As the need for quality affordable housing in Colorado continues to grow this bill gives local governments a proven tool to acquire and preserve affordable housing communities and is not detrimental to the free market.
Peter LiFari, executive director of Maiker Housing Partners, has been a vocal advocate in support of the Right of First Refusal.
Read his take and learn more about this new legislation in the recent coverage below:
Want to sell an apartment building in Colorado? This bill would let your city have first dibs. (CPR News)
Colorado cities would get first right of refusal when apartment buildings sell in new affordable housing plan (The Denver Post)