§ 325c. Age-restricted housing; right of first refusal
(a) Definitions. As used in this section:
(1) “Age-restricted property” means a privately owned age-restricted residential property
that is not licensed pursuant to 33 V.S.A. chapter 71 or 8 V.S.A. chapter 151.
(2) “Eligible buyer” means a nonprofit housing provider.
(b) Right of first refusal; assignment to eligible buyer.
(1) The Vermont Housing and Conservation Board shall have a right of first refusal for
age-restricted properties as set out in this section. The Board may assign this right
to an eligible buyer.
(2) For any offer made under this section, the Board or its assignee shall contractually
commit to maintaining any affordability requirements in place for the age-restricted
property at the time of sale.
(c) Content of notice. An owner of age-restricted property shall give to the Board notice by certified mail,
return receipt requested, of the owner’s intention to sell the age-restricted property.
The requirements of this section shall not be construed to restrict the price at which
the owner offers the age-restricted housing for sale. The notice shall state all the
following:
(1) that the owner intends to sell the age-restricted property;
(2) the price, terms, and conditions under which the owner offers the age-restricted property
for sale;
(3) that for 60 days following the notice, the owner shall not make a final unconditional
acceptance of an offer to purchase the age-restricted property and that if within
the 60 days the owner receives notice pursuant to subsection (d) of this section that
the Board or its assignee intends to consider purchase of the age-restricted property,
the owner shall not make a final unconditional acceptance of an offer to purchase
the age-restricted property for an additional 120 days, starting from the 61st day
following notice, except one from the Board or its assignee.
(d) Intent to negotiate; timetable. The Board or its assignee shall have 60 days following notice under subsection (c)
of this section in which to determine whether the buyer intends to consider purchase
of the age-restricted property. During this 60-day period, the owner shall not accept
a final unconditional offer to purchase the age-restricted property.
(e) Response to notice; required action. If the owner receives no notice from the Board or its assignee during the 60-day period
or if the Board notifies the owner that neither it nor its designee intends to consider
purchase of the age-restricted property, the owner has no further restrictions regarding
sale of the age-restricted property pursuant to this section. If, during the 60-day
period, the owner receives notice in writing that the Board or its assignee intends
to consider purchase of the age-restricted property, then the owner shall do all the
following:
(1) not accept a final unconditional offer to purchase from a party other than the Board
or its assignee giving notice under subsection (d) of this section for 120 days following
the 60-day period, a total of 180 days following the notice under subsection (c);
(2) negotiate in good faith with the Board or its assignee giving notice under subsection
(d) of this section; and
(3) consider any offer to purchase from the Board or its assignee giving notice under
subsection (d) of this section.
(f) Exceptions. The provisions of this section do not apply when the sale, transfer, or conveyance
of the age-restricted property is any one or more of the following:
(1) through a foreclosure sale;
(2) to a member of the owner’s family or to a trust for the sole benefit of members of
the owner’s family;
(3) among the partners who own the age-restricted property;
(4) incidental to financing the age-restricted property;
(5) between joint tenants or tenants in common;
(6) pursuant to eminent domain; or
(7) pursuant to a municipal tax sale.
(g) Requirement for new notice of intent to sell.
(1) Subject to subdivision (2) of this subsection, a notice of intent to sell issued pursuant
to subsection (b) of this section shall be valid:
(A) for a period of one year from the expiration of the 60-day period following the date
of the notice; or
(B) if the owner has entered into a binding purchase and sale agreement with the Board
or its assignee within one year from the expiration of the 60-day period following
the date of the notice, until the completion of the sale of the age-restricted property
under the agreement or the expiration of the agreement, whichever is sooner.
(2) During the period in which a notice of intent to sell is valid, an owner shall provide
a new notice of intent to sell, consistent with the requirements of subsection (b)
of this section, prior to making an offer to sell the age-restricted property or accepting
an offer to purchase the age-restricted property that is either more than five percent
below the price for which the age-restricted property was initially offered for sale
or less than five percent above the final written offer from the Board or its assignee.
(h) “Good faith.” The Board or its assignee shall negotiate in good faith with the owner for purchase
of the age-restricted property. (Added 2023, No. 181 (Adj. Sess.), § 109, eff. June 17, 2024.)