A Delivery of Notice to Tenants and Affected Public Entities

Section 375.EXHIBIT A   Delivery of Notice to Tenants and Affected Public Entities a)          Where a provision of the Preservation Act requires that notice be given to tenants of the Assisted Housing Development and affected public entities, the requirements may be met by transmitting the notice described in subsection (b) by one of the following methods: 1)         delivering the notice, by certified mail or registered mail, return receipt requested, postmarked at least 12 months prior to the anticipated date of the action covered by the notice, to the following public persons or entities: A)        the mayor of the city or village in which the Assisted Housing Development is located or, if in an unincorporated area, the chairperson of the county board; B)        the public housing agency in whose jurisdiction the Assisted Housing Development is located, if any; C)        the Executive Director of IHDA; and D)        the federal agency providing mortgage loan insurance, subsidies or financing for the property, if any; 2)         delivering the notice to all affected tenants by certified or registered mail, return receipt requested, postmarked at least 12 months prior to the anticipated date of the covered action; 3)         posting, at least 12 months prior to the anticipated date of the covered action, a copy of the notice in a readily accessible location within each affected building; and 4)         publication of the notice in a newspaper for the locality in which the property is located. b)         The text of the notice shall read as follows: NOTICE TO TENANTS AND AFFECTED PUBLIC ENTITIES The federally Assisted Housing Preservation Act (the Act) affects rental housing developments that have received subsidies from the federal government under various federal housing programs.  Generally, these programs limit the amount of rent that owners can charge tenants.  The Act refers to these limits as "affordability restrictions." The Act requires owners of these developments to give tenants notice at least 12 months in advance of any of the following events: · The sale or other disposition of the development, which has the effect of removing the affordability restrictions on the development; · The prepayment of the existing mortgage, on the development, or the termination of the mortgage insurance on the mortgage, if either of those actions would result in removing the affordability restrictions on the development; or · The termination of the development's participation in the federal program.  One example is the termination of rental subsidies under the so-called Section 8 program. You have received this notice because the owner of your development may take one of these actions.  The Act gives tenants in your development certain rights: · You and the other tenants have the right to form a tenants association for the purpose of buying the development. · Within 60 days from the date of the owner's notice, you must notify the owner that you have formed an association and the names of the individuals who represent the association. · The owner will then have 60 days to present the association or its representative with a bona fide offer to sell the development.  The association then has 90 days to notify the owner whether it intends to buy the development. · If the association is interested in buying the development, it has 90 additional days to present the owner with a purchase contract and negotiate the final sales price.  Once the sales price is agreed to, the sale must close within 90 days.