§98.1006 Qualified Entity Offer to Purchase — San Diego Zoning Code

(a) Within 60 days of a qualified entity delivering a Letter of Interest to Acquire Assisted Housing Development, a qualified entity may submit to the owner a bona fide Offer to Purchase the assisted housing development at the market value determined by negotiation and agreement between the parties.
(b) A bona fide Offer to Purchase means an offer to purchase that contains all of the following:
- (1) the name, contact information, and form of organization of the qualified entity ;
- (2) the names and titles of the officers, directors, and similar persons in control of and principal investors in the qualified entity ;
- (3) a statement that the offeror is a qualified entity within the meaning of this Division; and
- (4) the terms of the offer to purchase, including the purchase price, the proposed methods and terms of financing, the financing mechanisms by which the qualified entity will maintain the affordability of the assisted housing development , and any other terms of purchase.
(c) If the owner receives a bona fide Offer to Purchase from a qualified entity and wishes to sell , the owner may accept any offer submitted by a qualified entity that meets the requirements of this Division and execute a purchase agreement for the assisted housing development within 30 days of offer acceptance. If multiple qualified entities submit bona fide Offers to Purchase that meet the requirements of this Division, the owner may accept any such offer.
(d) Once a purchase agreement is executed, the owner and qualified entity have 120 days to close escrow, unless a different timeline is mutually agreed to by the parties. Prior to the close of escrow, the qualified entity shall satisfy the requirements imposed on qualified entities under San Diego Municipal Code section 98.1007(d).
(e) If the owner rejects all bona fide Offers to Purchase received from qualified entities that meet the requirements of this Division, the owner shall comply with the right of first refusal requirements in San Diego Municipal Code section 98.1007.

Ch. Art. Div. 9 8 10 5

San Diego Municipal Code

Chapter 9: Building, Housing and Sign Regulations

(3-2025)

(f) If the owner does not receive any bona fide Offers to Purchase from qualified entities , the owner may proceed with the intended sale of the assisted housing development to a third-party and has no further obligations under this Division.

(“Qualified Entity Offer to Purchase” added 2-27-2025 by O–21917 N.S.; effective 3-29-2025.)