Our Approach to the New Affordable Housing ROFR/ROFO Law

Passed during the 2024 Colorado legislative session, HB24-1175 created a right of first refusal (ROFR) and/or a right of first offer (ROFO) for local governments to make an offer to purchase certain types of multifamily rental properties for the purpose of increasing the supply of long-term affordable housing or mixed-income units.

Effective August 7, 2024, for multifamily rental properties consisting of not less than five units, a local government has a right of first refusal to make a matched offer for the purchase of such property, subject to the local government using the property for long-term affordable housing. Additionally, for all other multifamily rental properties that are 30 years or older and have between 15 and 100 units, a local government has a right of first offer. 

For both the right of first refusal and right of first offer, the seller is responsible for ensuring compliance with HB24-1175. However, Land Title and its underwriter partners strive to provide maximum flexibility in order to minimize closing requirements and issue policies quickly and efficiently. 

As a result, depending on the underwriter, Schedule B-I of our commitments issued for purchase transactions involving residential multifamily housing or mixed-use multifamily housing will include either a notice or a specific requirement relating to this new affordable housing law.

You can learn more about HB24-1175 by visiting the Colorado General Assembly website here.

Please reach out to your Sales representative with Land Title’s Commercial Group with any questions.