Selling your home? Proposed law in this city forces 1 year ‘notice’ to government

A proposed law in Denver would force landlords to give notice to the city if they intend to sell their homes, and would set a future purchase price for a rental home where government could force a sale.

Part of an “affordable housing preservation ordinance,” the Denver City Council mandate being voted on Monday is a response to rising rents in the city. The Denver Post reports that rents are up 8.3 percent this year and government is tripping over itself to capitalize on the crisis by assuming responsibility for the well-being of those who rent.

According to the Post:

Among the biggest proposed changes to the 2000 ordinance is requiring landlords to give more notice to the city, a full year in advance, if they intend to convert a property to market-rate or sell it.

A right has been written into the proposal that would make landlords lower the asking price of a rental property, or possibly force a sale.

The proposal reads (in part):

Such a right allows the City (or its designee) to acquire the property by matching a market-based price negotiated by the owner and a third party.

No third party has yet to be identified, but reliance on their determination of value could lead to homeowners being forced to sell their properties for whatever a service such as or any other automated value system would suggest.

There is no known provision for appeal of such a system and there is no restrictive language prohibiting the government from forcing such a sale on the homeowner.

The proposed law paves the way for government to begin purchasing rental homes as soon as they hit the market.

A “right of first refusal” allows the government to be allowed to have right of first refusal to match any offer to buy a property. Mayor Hancock is asking for $15 million a year to start the effort.


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