An owner must provide a Notice of Opportunity to Submit an Offer to Purchase (NOSOP) prior to or concurrent with the 12-month notice. Additionally, if an owner is contemplating selling an assisted property within five years of expiration or eligibility for termination or prepayment, they must provide the NOSOP at least twelve months in advance unless the sale or disposition qualifies for exemption pursuant to Government Code section 65863.13.
- Notice of Opportunity to Submit and Offer to Purchase template (PDF) — Revised: 02/18/2025
This notice must be:
- Sent to geographically relevant Qualified Entities (QEs) and to QEs that directly contact the owner. QEs are entities interested in bidding on affordable properties and deemed qualified by HCD.
- Geographically relevant QEs include all QEs in the county where the development is located and those whose area of interest includes “All Counties.”
- The notices to QEs must be made by registered or certified mail, return receipt requested.
- Additional information and the contact list of QEs can be found here.
- Sent to HCD, via Affordable Housing Preservation Portal (preferred) or via mail to 651 Bannon Street, Suite 400, Sacramento, CA 95811.
- Posted in a conspicuous place in the common area of the development. (Gov. Code, § 65863.11).
270-Day Offer Period Prioritizing Affordability for Sales and Purchase of Properties
The Notice of Opportunity to Submit an Offer to Purchase (NOSOP) initiates a 270-day offer period, during which preservation is prioritized. The owner may not accept an offer from any entity other than a QE during these 270 days. If the owner receives one or more bona fide offers from a QE or QEs that meet these requirements, the owner must notify HCD within 90 days of all bona fide offers and either:
- Accept one of the bona fide offers from a QE subject to the valuation process described in Government Code section 65863.11, subdivision (j) and execute a purchase agreement; or
- Record a new regulatory agreement with a term of at least 30 years that, at a minimum, meets the criteria of subdivision (a) of Government Code section 65863.13 (Gov. Code, § 65863.11, subd. (i)).
If the owner does not receive a bona fide offer from one or more qualified entities within the 270-day offer period, or all bona fide offers are withdrawn, the owner may do any of the following:
- Sell the property to any buyer. If the property is sold to a non-QE, the owner must record a compliance certification prior to the close of escrow. Contact HCD via Affordable Housing Preservation Portal for copy of the compliance of certification template.
- Extend affordability restriction for any period of time.
- Maintain ownership of the property and allow the affordability to end after the required notices are provided.