☆ SJHD clarifies COPA proposal
Kristen Clements, Acting Deputy Director of SJ’s Housing Department, provides some refinements regarding the HD’s upcoming COPA proposal, in response to statements in a previous Opp Now article that included community comments on COPA. An Opp Now exclusive.
On seller authority:
The seller would have complete authority of who to sell to under COPA. Even if a nonprofit has the chance to offer and then put in a final offer, the owner chooses who to sell to, and decides on the terms and conditions. All cash, target price, closing timelines if both parties agree. There is no forcing of anyone to sell to any party. It would be two private parties agreeing on their own deal.
On right of first refusal:
Nonprofit buyers would just get an opportunity to make an offer, rather than get a “right of first refusal.” The latter has different and greater legal connotations to it. COPA would not confer a ROFR.
On nonprofits’ qualifications:
Qualified nonprofits would be experienced building owners, not service organizations. Some of the groups we are talking to have several decades of experience in building, owning, and operating affordable properties. The City definitely wants to make sure properties are run capably.
Affordable developments are owned and operated by private parties, with oversight from public and private lenders. Properties purchased through COPA would be no different. Nonprofits that own these types of buildings operate based on revenues from the property, and much less on donations than other types of nonprofits.
Read more about COPA from the HD here.
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