A. Designees. The City shall consider as designees all qualified entities or individuals as listed by the State Department of Housing and Community Development or who have contacted the developer directly.

B. Notice to City and Designees. The developer shall give notice of the opportunity to purchase the housing development to City and all designees consistent with California Government Code 65863.10 through 65863.13.

C. Exercising First Right of Refusal. Within 180 days of its receipt of the notice of an opportunity to purchase, the City or the designee shall indicate its intent to exercise the first right of refusal for the purpose of providing affordable housing by submitting a bona fide offer to purchase. During this 180-day period, the developer shall not accept an offer to purchase by any other entity.

D. Close of Escrow. Upon exercising its right of first refusal pursuant to subsection (C) of this section, the City or its designee will make a good faith effort to close escrow within a reasonable period, assumed to be approximately 120 days.

E. Appraisal. The fair market value, at the time of sale, assuming continued affordability restrictions of the housing development shall be determined by an appraisal, as requested by the City, the designee, or the developer. Costs associated with the appraisal shall be borne by the requesting party. The appraisal shall be nonbinding with respect to sales price of the development offered in the bona fide offer to purchase, or the acceptance or rejection of the offer.

F. Failure to Exercise Right. If the City or its designee fails to exercise its option of first right of refusal to purchase the housing development within 180 days of notification of the opportunity to purchase, then the target units may be converted to market rate units with no income or rent restrictions as allowed by California Government Code Sections 65863.10 through 65863.13. (Ord. 3250 § 1, 2013).