Procedures for purchase of facility by tenants
- • financial information
- • deadlines
(1) Within 10 days after delivery of the notice described in ORS 90.842 (Notice of sale of facility), if the tenants choose to compete to purchase the facility in which the tenants reside, the tenants must notify the owner in writing of:
(a) The tenants interest in competing to purchase the facility;
(b) The formation or identification of a single tenants committee formed for the purpose of purchasing the facility; and
(c) The name and contact information of the representative of the tenants committee with whom the owner may communicate about the purchase.
(2) During the 10-day period, in order to perform a due diligence evaluation of the opportunity to compete to purchase the facility, the representative of the tenants committee may make a written request for the kind of financial information that a seller of a facility would customarily provide to a prospective purchaser.
(3) Of the financial information described in subsection (2) of this section, the owner shall provide the following information within seven days after delivery of the request by the tenants committee for the information:
(a) The asking price, if any, for the facility;
(b) The total income collected from the facility and related profit centers, including storage and laundry, in the 12-month period immediately before delivery of the notice required by ORS 90.842 (Notice of sale of facility);
(c) The cost of all utilities for the facility that were paid by the owner in the 12-month period immediately before delivery of the notice required by ORS 90.842 (Notice of sale of facility);
(d) The annual cost of all insurance policies for the facility that were paid by the owner, as shown by the most recent premium;
(e) The number of homes in the facility owned by the owner; and
(f) The number of vacant spaces and homes in the facility.
(4) The owner may:
(a) Designate all or part of the financial information provided pursuant to this section as confidential.
(b) If the owner designates financial information as confidential, establish, in cooperation with the representative of the tenants committee, a list of persons with whom the tenants may share the information, including any of the following persons that are either seeking to purchase the facility on behalf of the tenants committee or assisting the tenants committee in evaluating or purchasing the facility:
(A) A nonprofit organization or a housing authority.
(B) An attorney or other licensed professional or adviser.
(C) A financial institution.
(c) Require that persons authorized to receive the confidential information:
(A) Sign a confidentiality agreement before receiving the information;
(B) Refrain from copying any of the information; and
(C) Return the information to the owner when the negotiations to purchase the facility are completed or terminated.
(5) Within 15 days after delivery of the financial information described in subsection (3) of this section, or within 15 days after the end of the 10-day period described in subsection (1) of this section when the representative of the tenants committee does not request financial information under subsection (2) of this section, if the tenants choose to continue competing to purchase the facility, the tenants committee must:
(a) Form a corporate entity under ORS chapter 60, 62 or 65 that is legally capable of purchasing real property or associate with a nonprofit corporation or housing authority that is legally capable of purchasing real property or that is advising the tenants about purchasing the facility in which the tenants reside.
(b) Submit to the owner a written offer to purchase the facility, in the form of a proposed purchase and sale agreement, and either a copy of the articles of incorporation of the corporate entity or other evidence of the legal capacity of the formed or associated corporate entity to purchase real property.
(6)(a) The owner may accept the offer to purchase in the tenants committees purchase and sale agreement, reject the offer or submit a counteroffer.
(b) If the parties reach agreement on the purchase, the purchase and sale agreement must specify the price, due diligence duties, schedules, timelines, conditions and any extensions.
(c) If the tenants do not act as required within the time periods described in this section and ORS 90.842 (Notice of sale of facility), if the tenants violate the confidentiality agreement described in this section or if the parties do not reach agreement on a purchase, the owner is not obligated to take additional action under ORS 90.842 (Notice of sale of facility) to 90.850 (Owner affidavit certifying compliance with requirements for sale of facility). [2014 c.89 §2; 2015 c.217 §11; 2019 c.625 §27]
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information